H. B. No. 100 As Introduced

As Introduced

127th General Assembly

Regular Session

2007-2008

H. B. No. 100

Representative Brinkman

A BILL

To amend sections 102.02, 102.06, 109.981, 119.01, 1
1707.01, 3345.12, 4121.01, 4121.12, 4121.121, 2
4121.122, 4121.125, 4121.126, 4121.128, 4121.37, 3
4121.441, 4121.48, 4121.61, 4121.67, 4121.70, 4
4123.01, 4123.025, 4123.21, 4123.25, 4123.29, 5
4123.291, 4123.311, 4123.32, 4123.34, 4123.341, 6
4123.342, 4123.35, 4123.351, 4123.37, 4123.38, 7
4123.39, 4123.40, 4123.41, 4123.411, 4123.419, 8
4123.44, 4123.441, 4123.47, 4123.50, 4123.511, 9
4123.512, 4123.57, 4123.65, 4123.66, 4123.75, 10
4123.80, 4123.82, 4123.92, 4125.05, 4127.07, 11
4127.08, 4131.04, 4131.06, 4131.13, 4131.14, 12
4131.16, 4167.02, 4167.07, 4167.08, 4167.09, 13
4167.11, and 4167.14; to enact new section 14
4121.123 and sections 121.51, 4123.321, and 15
4123.442; to repeal sections 4121.06 and 4121.123 16
of the Revised Code; to amend Section 4 of Am. 17
Sub. H.B. 516 of the 125th General Assembly, as 18
subsequently amended; and to amend Section 3 of 19
Am. H.B. 67 of the 126th General Assembly, as 20
subsequently amended, to abolish the Workers' 21
Compensation Oversight Commission, the Workers' 22
Compensation Oversight Commission Nominating 23
Committee, and the Services Committee; to create 24
the Bureau of Workers' Compensation Board of 25
Directors and specified working committees, to 26
transfer the powers and duties of the Oversight 27
Commission to the Board and the working 28
committees, and to make other changes in the 29
Workers' Compensation Law, to make appropriations 30
for the Bureau of Workers' Compensation for the 31
biennium beginning July 1, 2007, and ending June 32
30, 2009, and to provide authorization and 33
conditions for the operation of the Bureau's 34
programs. 35

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

       Section 101.01. That sections 102.02, 102.06, 109.981, 36
119.01, 1707.01, 3345.12, 4121.01, 4121.12, 4121.121, 4121.122, 37
4121.125, 4121.126, 4121.128, 4121.37, 4121.441, 4121.48, 4121.61, 38
4121.67, 4121.70, 4123.01, 4123.025, 4123.21, 4123.25, 4123.29, 39
4123.291, 4123.311, 4123.32, 4123.34, 4123.341, 4123.342, 4123.35, 40
4123.351, 4123.37, 4123.38, 4123.39, 4123.40, 4123.41, 4123.411, 41
4123.419, 4123.44, 4123.441, 4123.47, 4123.50, 4123.511, 4123.512, 42
4123.57, 4123.65, 4123.66, 4123.75, 4123.80, 4123.82, 4123.92, 43
4125.05, 4127.07, 4127.08, 4131.04, 4131.06, 4131.13, 4131.14, 44
4131.16, 4167.02, 4167.07, 4167.08, 4167.09, 4167.11, and 4167.14 45
be amended; and new section 4121.123 and sections 121.51, 46
4123.321, and 4123.442 of the Revised Code be enacted to read as 47
follows: 48

       Sec. 102.02. (A) Except as otherwise provided in division 49
(H) of this section, all of the following shall file with the 50
appropriate ethics commission the disclosure statement described 51
in this division on a form prescribed by the appropriate 52
commission: every person who is elected to or is a candidate for a 53
state, county, or city office and every person who is appointed to 54
fill a vacancy for an unexpired term in such an elective office; 55
all members of the state board of education; the director, 56
assistant directors, deputy directors, division chiefs, or persons 57
of equivalent rank of any administrative department of the state; 58
the president or other chief administrative officer of every state 59
institution of higher education as defined in section 3345.011 of 60
the Revised Code; the executive director and the members of the 61
capitol square review and advisory board appointed or employed 62
pursuant to section 105.41 of the Revised Code; the chief 63
executive officer and the members of the board of each state 64
retirement system; each employee of a state retirement board who 65
is a state retirement system investment officer licensed pursuant 66
to section 1707.163 of the Revised Code; the members of the Ohio 67
retirement study council appointed pursuant to division (C) of 68
section 171.01 of the Revised Code; employees of the Ohio 69
retirement study council, other than employees who perform purely 70
administrative or clerical functions; the administrator of 71
workers' compensation and each voting member of the bureau of 72
workers' compensation ~~oversight commission~~board of directors; the 73
chief investment officer of the bureau of workers' compensation; 74
all members of the board of commissioners on grievances and 75
discipline of the supreme court and the ethics commission created 76
under section 102.05 of the Revised Code; every business manager, 77
treasurer, or superintendent of a city, local, exempted village, 78
joint vocational, or cooperative education school district or an 79
educational service center; every person who is elected to or is a 80
candidate for the office of member of a board of education of a 81
city, local, exempted village, joint vocational, or cooperative 82
education school district or of a governing board of an 83
educational service center that has a total student count of 84
twelve thousand or more as most recently determined by the 85
department of education pursuant to section 3317.03 of the Revised 86
Code; every person who is appointed to the board of education of a 87
municipal school district pursuant to division (B) or (F) of 88
section 3311.71 of the Revised Code; all members of the board of 89
directors of a sanitary district that is established under Chapter 90
6115. of the Revised Code and organized wholly for the purpose of 91
providing a water supply for domestic, municipal, and public use, 92
and that includes two municipal corporations in two counties; 93
every public official or employee who is paid a salary or wage in 94
accordance with schedule C of section 124.15 or schedule E-2 of 95
section 124.152 of the Revised Code; members of the board of 96
trustees and the executive director of the tobacco use prevention 97
and control foundation; members of the board of trustees and the 98
executive director of the southern Ohio agricultural and community 99
development foundation; and every other public official or 100
employee who is designated by the appropriate ethics commission 101
pursuant to division (B) of this section. 102

       The disclosure statement shall include all of the following: 103

       (1) The name of the person filing the statement and each 104
member of the person's immediate family and all names under which 105
the person or members of the person's immediate family do 106
business; 107

       (2)(a) Subject to divisions (A)(2)(b) and (c) of this section 108
and except as otherwise provided in section 102.022 of the Revised 109
Code, identification of every source of income, other than income 110
from a legislative agent identified in division (A)(2)(b) of this 111
section, received during the preceding calendar year, in the 112
person's own name or by any other person for the person's use or 113
benefit, by the person filing the statement, and a brief 114
description of the nature of the services for which the income was 115
received. If the person filing the statement is a member of the 116
general assembly, the statement shall identify the amount of every 117
source of income received in accordance with the following ranges 118
of amounts: zero or more, but less than one thousand dollars; one 119
thousand dollars or more, but less than ten thousand dollars; ten 120
thousand dollars or more, but less than twenty-five thousand 121
dollars; twenty-five thousand dollars or more, but less than fifty 122
thousand dollars; fifty thousand dollars or more, but less than 123
one hundred thousand dollars; and one hundred thousand dollars or 124
more. Division (A)(2)(a) of this section shall not be construed to 125
require a person filing the statement who derives income from a 126
business or profession to disclose the individual items of income 127
that constitute the gross income of that business or profession, 128
except for those individual items of income that are attributable 129
to the person's or, if the income is shared with the person, the 130
partner's, solicitation of services or goods or performance, 131
arrangement, or facilitation of services or provision of goods on 132
behalf of the business or profession of clients, including 133
corporate clients, who are legislative agents. A person who files 134
the statement under this section shall disclose the identity of 135
and the amount of income received from a person who the public 136
official or employee knows or has reason to know is doing or 137
seeking to do business of any kind with the public official's or 138
employee's agency. 139

       (b) If the person filing the statement is a member of the 140
general assembly, the statement shall identify every source of 141
income and the amount of that income that was received from a 142
legislative agent during the preceding calendar year, in the 143
person's own name or by any other person for the person's use or 144
benefit, by the person filing the statement, and a brief 145
description of the nature of the services for which the income was 146
received. Division (A)(2)(b) of this section requires the 147
disclosure of clients of attorneys or persons licensed under 148
section 4732.12 of the Revised Code, or patients of persons 149
certified under section 4731.14 of the Revised Code, if those 150
clients or patients are legislative agents. Division (A)(2)(b) of 151
this section requires a person filing the statement who derives 152
income from a business or profession to disclose those individual 153
items of income that constitute the gross income of that business 154
or profession that are received from legislative agents. 155

       (c) Except as otherwise provided in division (A)(2)(c) of 156
this section, division (A)(2)(a) of this section applies to 157
attorneys, physicians, and other persons who engage in the 158
practice of a profession and who, pursuant to a section of the 159
Revised Code, the common law of this state, a code of ethics 160
applicable to the profession, or otherwise, generally are required 161
not to reveal, disclose, or use confidences of clients, patients, 162
or other recipients of professional services except under 163
specified circumstances or generally are required to maintain 164
those types of confidences as privileged communications except 165
under specified circumstances. Division (A)(2)(a) of this section 166
does not require an attorney, physician, or other professional 167
subject to a confidentiality requirement as described in division 168
(A)(2)(c) of this section to disclose the name, other identity, or 169
address of a client, patient, or other recipient of professional 170
services if the disclosure would threaten the client, patient, or 171
other recipient of professional services, would reveal details of 172
the subject matter for which legal, medical, or professional 173
advice or other services were sought, or would reveal an otherwise 174
privileged communication involving the client, patient, or other 175
recipient of professional services. Division (A)(2)(a) of this 176
section does not require an attorney, physician, or other 177
professional subject to a confidentiality requirement as described 178
in division (A)(2)(c) of this section to disclose in the brief 179
description of the nature of services required by division 180
(A)(2)(a) of this section any information pertaining to specific 181
professional services rendered for a client, patient, or other 182
recipient of professional services that would reveal details of 183
the subject matter for which legal, medical, or professional 184
advice was sought or would reveal an otherwise privileged 185
communication involving the client, patient, or other recipient of 186
professional services. 187

       (3) The name of every corporation on file with the secretary 188
of state that is incorporated in this state or holds a certificate 189
of compliance authorizing it to do business in this state, trust, 190
business trust, partnership, or association that transacts 191
business in this state in which the person filing the statement or 192
any other person for the person's use and benefit had during the 193
preceding calendar year an investment of over one thousand dollars 194
at fair market value as of the thirty-first day of December of the 195
preceding calendar year, or the date of disposition, whichever is 196
earlier, or in which the person holds any office or has a 197
fiduciary relationship, and a description of the nature of the 198
investment, office, or relationship. Division (A)(3) of this 199
section does not require disclosure of the name of any bank, 200
savings and loan association, credit union, or building and loan 201
association with which the person filing the statement has a 202
deposit or a withdrawable share account. 203

       (4) All fee simple and leasehold interests to which the 204
person filing the statement holds legal title to or a beneficial 205
interest in real property located within the state, excluding the 206
person's residence and property used primarily for personal 207
recreation; 208

       (5) The names of all persons residing or transacting business 209
in the state to whom the person filing the statement owes, in the 210
person's own name or in the name of any other person, more than 211
one thousand dollars. Division (A)(5) of this section shall not be 212
construed to require the disclosure of debts owed by the person 213
resulting from the ordinary conduct of a business or profession or 214
debts on the person's residence or real property used primarily 215
for personal recreation, except that the superintendent of 216
financial institutions shall disclose the names of all 217
state-chartered savings and loan associations and of all service 218
corporations subject to regulation under division (E)(2) of 219
section 1151.34 of the Revised Code to whom the superintendent in 220
the superintendent's own name or in the name of any other person 221
owes any money, and that the superintendent and any deputy 222
superintendent of banks shall disclose the names of all 223
state-chartered banks and all bank subsidiary corporations subject 224
to regulation under section 1109.44 of the Revised Code to whom 225
the superintendent or deputy superintendent owes any money. 226

       (6) The names of all persons residing or transacting business 227
in the state, other than a depository excluded under division 228
(A)(3) of this section, who owe more than one thousand dollars to 229
the person filing the statement, either in the person's own name 230
or to any person for the person's use or benefit. Division (A)(6) 231
of this section shall not be construed to require the disclosure 232
of clients of attorneys or persons licensed under section 4732.12 233
or 4732.15 of the Revised Code, or patients of persons certified 234
under section 4731.14 of the Revised Code, nor the disclosure of 235
debts owed to the person resulting from the ordinary conduct of a 236
business or profession. 237

       (7) Except as otherwise provided in section 102.022 of the 238
Revised Code, the source of each gift of over seventy-five 239
dollars, or of each gift of over twenty-five dollars received by a 240
member of the general assembly from a legislative agent, received 241
by the person in the person's own name or by any other person for 242
the person's use or benefit during the preceding calendar year, 243
except gifts received by will or by virtue of section 2105.06 of 244
the Revised Code, or received from spouses, parents, grandparents, 245
children, grandchildren, siblings, nephews, nieces, uncles, aunts, 246
brothers-in-law, sisters-in-law, sons-in-law, daughters-in-law, 247
fathers-in-law, mothers-in-law, or any person to whom the person 248
filing the statement stands in loco parentis, or received by way 249
of distribution from any inter vivos or testamentary trust 250
established by a spouse or by an ancestor; 251

       (8) Except as otherwise provided in section 102.022 of the 252
Revised Code, identification of the source and amount of every 253
payment of expenses incurred for travel to destinations inside or 254
outside this state that is received by the person in the person's 255
own name or by any other person for the person's use or benefit 256
and that is incurred in connection with the person's official 257
duties, except for expenses for travel to meetings or conventions 258
of a national or state organization to which any state agency, 259
including, but not limited to, any legislative agency or state 260
institution of higher education as defined in section 3345.011 of 261
the Revised Code, pays membership dues, or any political 262
subdivision or any office or agency of a political subdivision 263
pays membership dues; 264

       (9) Except as otherwise provided in section 102.022 of the 265
Revised Code, identification of the source of payment of expenses 266
for meals and other food and beverages, other than for meals and 267
other food and beverages provided at a meeting at which the person 268
participated in a panel, seminar, or speaking engagement or at a 269
meeting or convention of a national or state organization to which 270
any state agency, including, but not limited to, any legislative 271
agency or state institution of higher education as defined in 272
section 3345.011 of the Revised Code, pays membership dues, or any 273
political subdivision or any office or agency of a political 274
subdivision pays membership dues, that are incurred in connection 275
with the person's official duties and that exceed one hundred 276
dollars aggregated per calendar year; 277

       (10) If the disclosure statement is filed by a public 278
official or employee described in division (B)(2) of section 279
101.73 of the Revised Code or division (B)(2) of section 121.63 of 280
the Revised Code who receives a statement from a legislative 281
agent, executive agency lobbyist, or employer that contains the 282
information described in division (F)(2) of section 101.73 of the 283
Revised Code or division (G)(2) of section 121.63 of the Revised 284
Code, all of the nondisputed information contained in the 285
statement delivered to that public official or employee by the 286
legislative agent, executive agency lobbyist, or employer under 287
division (F)(2) of section 101.73 or (G)(2) of section 121.63 of 288
the Revised Code. 289

       A person may file a statement required by this section in 290
person or by mail. A person who is a candidate for elective office 291
shall file the statement no later than the thirtieth day before 292
the primary, special, or general election at which the candidacy 293
is to be voted on, whichever election occurs soonest, except that 294
a person who is a write-in candidate shall file the statement no 295
later than the twentieth day before the earliest election at which 296
the person's candidacy is to be voted on. A person who holds 297
elective office shall file the statement on or before the 298
fifteenth day of April of each year unless the person is a 299
candidate for office. A person who is appointed to fill a vacancy 300
for an unexpired term in an elective office shall file the 301
statement within fifteen days after the person qualifies for 302
office. Other persons shall file an annual statement on or before 303
the fifteenth day of April or, if appointed or employed after that 304
date, within ninety days after appointment or employment. No 305
person shall be required to file with the appropriate ethics 306
commission more than one statement or pay more than one filing fee 307
for any one calendar year. 308

       The appropriate ethics commission, for good cause, may extend 309
for a reasonable time the deadline for filing a statement under 310
this section. 311

       A statement filed under this section is subject to public 312
inspection at locations designated by the appropriate ethics 313
commission except as otherwise provided in this section. 314

       (B) The Ohio ethics commission, the joint legislative ethics 315
committee, and the board of commissioners on grievances and 316
discipline of the supreme court, using the rule-making procedures 317
of Chapter 119. of the Revised Code, may require any class of 318
public officials or employees under its jurisdiction and not 319
specifically excluded by this section whose positions involve a 320
substantial and material exercise of administrative discretion in 321
the formulation of public policy, expenditure of public funds, 322
enforcement of laws and rules of the state or a county or city, or 323
the execution of other public trusts, to file an annual statement 324
on or before the fifteenth day of April under division (A) of this 325
section. The appropriate ethics commission shall send the public 326
officials or employees written notice of the requirement by the 327
fifteenth day of February of each year the filing is required 328
unless the public official or employee is appointed after that 329
date, in which case the notice shall be sent within thirty days 330
after appointment, and the filing shall be made not later than 331
ninety days after appointment. 332

       Except for disclosure statements filed by members of the 333
board of trustees and the executive director of the tobacco use 334
prevention and control foundation and members of the board of 335
trustees and the executive director of the southern Ohio 336
agricultural and community development foundation, disclosure 337
statements filed under this division with the Ohio ethics 338
commission by members of boards, commissions, or bureaus of the 339
state for which no compensation is received other than reasonable 340
and necessary expenses shall be kept confidential. Disclosure 341
statements filed with the Ohio ethics commission under division 342
(A) of this section by business managers, treasurers, and 343
superintendents of city, local, exempted village, joint 344
vocational, or cooperative education school districts or 345
educational service centers shall be kept confidential, except 346
that any person conducting an audit of any such school district or 347
educational service center pursuant to section 115.56 or Chapter 348
117. of the Revised Code may examine the disclosure statement of 349
any business manager, treasurer, or superintendent of that school 350
district or educational service center. The Ohio ethics commission 351
shall examine each disclosure statement required to be kept 352
confidential to determine whether a potential conflict of interest 353
exists for the person who filed the disclosure statement. A 354
potential conflict of interest exists if the private interests of 355
the person, as indicated by the person's disclosure statement, 356
might interfere with the public interests the person is required 357
to serve in the exercise of the person's authority and duties in 358
the person's office or position of employment. If the commission 359
determines that a potential conflict of interest exists, it shall 360
notify the person who filed the disclosure statement and shall 361
make the portions of the disclosure statement that indicate a 362
potential conflict of interest subject to public inspection in the 363
same manner as is provided for other disclosure statements. Any 364
portion of the disclosure statement that the commission determines 365
does not indicate a potential conflict of interest shall be kept 366
confidential by the commission and shall not be made subject to 367
public inspection, except as is necessary for the enforcement of 368
Chapters 102. and 2921. of the Revised Code and except as 369
otherwise provided in this division. 370

       (C) No person shall knowingly fail to file, on or before the 371
applicable filing deadline established under this section, a 372
statement that is required by this section. 373

       (D) No person shall knowingly file a false statement that is 374
required to be filed under this section. 375

       (E)(1) Except as provided in divisions (E)(2) and (3) of this 376
section, the statement required by division (A) or (B) of this 377
section shall be accompanied by a filing fee of forty dollars. 378

       (2) The statement required by division (A) of this section 379
shall be accompanied by the following filing fee to be paid by the 380
person who is elected or appointed to, or is a candidate for, any 381
of the following offices: 382

For state office, except member of the 383

state board of education $65 384

For office of member of general assembly $40 385

For county office $40 386

For city office $25 387

For office of member of the state board 388

of education $25 389

For office of member of a city, local, 390

exempted village, or cooperative 391

education board of 392

education or educational service 393

center governing board $20 394

For position of business manager, 395

treasurer, or superintendent of a 396

city, local, exempted village, joint 397

vocational, or cooperative education 398

school district or 399

educational service center $20 400

       (3) No judge of a court of record or candidate for judge of a 401
court of record, and no referee or magistrate serving a court of 402
record, shall be required to pay the fee required under division 403
(E)(1) or (2) or (F) of this section. 404

       (4) For any public official who is appointed to a nonelective 405
office of the state and for any employee who holds a nonelective 406
position in a public agency of the state, the state agency that is 407
the primary employer of the state official or employee shall pay 408
the fee required under division (E)(1) or (F) of this section. 409

       (F) If a statement required to be filed under this section is 410
not filed by the date on which it is required to be filed, the 411
appropriate ethics commission shall assess the person required to 412
file the statement a late filing fee of ten dollars for each day 413
the statement is not filed, except that the total amount of the 414
late filing fee shall not exceed two hundred fifty dollars. 415

       (G)(1) The appropriate ethics commission other than the Ohio 416
ethics commission shall deposit all fees it receives under 417
divisions (E) and (F) of this section into the general revenue 418
fund of the state. 419

       (2) The Ohio ethics commission shall deposit all receipts, 420
including, but not limited to, fees it receives under divisions 421
(E) and (F) of this section and all moneys it receives from 422
settlements under division (G) of section 102.06 of the Revised 423
Code, into the Ohio ethics commission fund, which is hereby 424
created in the state treasury. All moneys credited to the fund 425
shall be used solely for expenses related to the operation and 426
statutory functions of the commission. 427

       (H) Division (A) of this section does not apply to a person 428
elected or appointed to the office of precinct, ward, or district 429
committee member under Chapter 3517. of the Revised Code; a 430
presidential elector; a delegate to a national convention; village 431
or township officials and employees; any physician or psychiatrist 432
who is paid a salary or wage in accordance with schedule C of 433
section 124.15 or schedule E-2 of section 124.152 of the Revised 434
Code and whose primary duties do not require the exercise of 435
administrative discretion; or any member of a board, commission, 436
or bureau of any county or city who receives less than one 437
thousand dollars per year for serving in that position. 438

       Sec. 102.06. (A) The appropriate ethics commission shall 439
receive and may initiate complaints against persons subject to 440
this chapter concerning conduct alleged to be in violation of this 441
chapter or section 2921.42 or 2921.43 of the Revised Code. All 442
complaints except those by the commission shall be by affidavit 443
made on personal knowledge, subject to the penalties of perjury. 444
Complaints by the commission shall be by affidavit, based upon 445
reasonable cause to believe that a violation has occurred. 446

       (B) The appropriate ethics commission shall investigate 447
complaints, may investigate charges presented to it, and may 448
request further information, including the specific amount of 449
income from a source, from any person filing with the commission a 450
statement required by section 102.02 or 102.021 of the Revised 451
Code, if the information sought is directly relevant to a 452
complaint or charges received by the commission pursuant to this 453
section. This information is confidential, except that the 454
commission, in its discretion, may share information gathered in 455
the course of any investigation with, or disclose the information 456
to, the inspector general, any appropriate prosecuting authority, 457
any law enforcement agency, or any other appropriate ethics 458
commission. If the accused person is a member of the public 459
employees retirement board, state teachers retirement board, 460
school employees retirement board, board of trustees of the Ohio 461
police and fire pension fund, or state highway patrol retirement 462
board, or is a voting member of the bureau of workers' 463
compensation ~~oversight commission~~board of directors, the 464
appropriate ethics commission, in its discretion, also may share 465
information gathered in the course of an investigation with, or 466
disclose the information to, the attorney general and the auditor 467
of state. The person so requested shall furnish the information to 468
the commission, unless within fifteen days from the date of the 469
request the person files an action for declaratory judgment 470
challenging the legitimacy of the request in the court of common 471
pleas of the county of the person's residence, the person's place 472
of employment, or Franklin county. The requested information need 473
not be furnished to the commission during the pendency of the 474
judicial proceedings. Proceedings of the commission in connection 475
with the declaratory judgment action shall be kept confidential 476
except as otherwise provided by this section. Before the 477
commission proceeds to take any formal action against a person who 478
is the subject of an investigation based on charges presented to 479
the commission, a complaint shall be filed against the person. If 480
the commission finds that a complaint is not frivolous, and there 481
is reasonable cause to believe that the facts alleged in a 482
complaint constitute a violation of section 102.02, 102.021, 483
102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised Code, 484
it shall hold a hearing. If the commission does not so find, it 485
shall dismiss the complaint and notify the accused person in 486
writing of the dismissal of the complaint. The commission shall 487
not make a report of its finding unless the accused person 488
requests a report. Upon the request of the accused person, the 489
commission shall make a public report of its finding. The person 490
against whom the complaint is directed shall be given reasonable 491
notice by certified mail of the date, time, and place of the 492
hearing and a statement of the charges and the law directly 493
involved and shall be given the opportunity to be represented by 494
counsel, to have counsel appointed for the person if the person is 495
unable to afford counsel without undue hardship, to examine the 496
evidence against the person, to produce evidence and to call and 497
subpoena witnesses in the person's defense, to confront the 498
person's accusers, and to cross-examine witnesses. The commission 499
shall have a stenographic record made of the hearing. The hearing 500
shall be closed to the public. 501

       (C)(1)(a) If, upon the basis of the hearing, the appropriate 502
ethics commission finds by a preponderance of the evidence that 503
the facts alleged in the complaint are true and constitute a 504
violation of section 102.02, 102.021, 102.03, 102.04, 102.07, 505
2921.42, or 2921.43 of the Revised Code, it shall report its 506
findings to the appropriate prosecuting authority for proceedings 507
in prosecution of the violation and to the appointing or employing 508
authority of the accused. If the accused person is a member of the 509
public employees retirement board, state teachers retirement 510
board, school employees retirement board, board of trustees of the 511
Ohio police and fire pension fund, or state highway patrol 512
retirement board, the commission also shall report its findings to 513
the Ohio retirement study council. 514

       (b) If the Ohio ethics commission reports its findings to the 515
appropriate prosecuting authority under division (C)(1)(a) of this 516
section and the prosecuting authority has not initiated any 517
official action on those findings within ninety days after 518
receiving the commission's report of them, the commission may 519
publicly comment that no official action has been taken on its 520
findings, except that the commission shall make no comment in 521
violation of the Rules of Criminal Procedure or about any 522
indictment that has been sealed pursuant to any law or those 523
rules. The commission shall make no comment regarding the merits 524
of its findings. As used in division (C)(1)(b) of this section, 525
"official action" means prosecution, closure after investigation, 526
or grand jury action resulting in a true bill of indictment or no 527
true bill of indictment. 528

       (2) If the appropriate ethics commission does not find by a 529
preponderance of the evidence that the facts alleged in the 530
complaint are true and constitute a violation of section 102.02, 531
102.021, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the 532
Revised Code or if the commission has not scheduled a hearing 533
within ninety days after the complaint is filed or has not finally 534
disposed of the complaint within six months after it has been 535
heard, it shall dismiss the complaint and notify the accused 536
person in writing of the dismissal of the complaint. The 537
commission shall not make a report of its finding unless the 538
accused person requests a report. Upon the request of the accused 539
person, the commission shall make a public report of the finding, 540
but in this case all evidence and the record of the hearing shall 541
remain confidential unless the accused person also requests that 542
the evidence and record be made public. Upon request by the 543
accused person, the commission shall make the evidence and the 544
record available for public inspection. 545

       (D) The appropriate ethics commission, or a member of the 546
commission, may administer oaths, and the commission may issue 547
subpoenas to any person in the state compelling the attendance of 548
witnesses and the production of relevant papers, books, accounts, 549
and records. The commission shall issue subpoenas to compel the 550
attendance of witnesses and the production of documents upon the 551
request of an accused person. Section 101.42 of the Revised Code 552
shall govern the issuance of these subpoenas insofar as 553
applicable. Upon the refusal of any person to obey a subpoena or 554
to be sworn or to answer as a witness, the commission may apply to 555
the court of common pleas of Franklin county under section 2705.03 556
of the Revised Code. The court shall hold proceedings in 557
accordance with Chapter 2705. of the Revised Code. The commission 558
or the accused person may take the depositions of witnesses 559
residing within or without the state in the same manner as 560
prescribed by law for the taking of depositions in civil actions 561
in the court of common pleas. 562

       (E) At least once each year, the Ohio ethics commission shall 563
report on its activities of the immediately preceding year to the 564
majority and minority leaders of the senate and house of 565
representatives of the general assembly. The report shall indicate 566
the total number of complaints received, initiated, and 567
investigated by the commission, the total number of complaints for 568
which formal hearings were held, and the total number of 569
complaints for which formal prosecution was recommended or 570
requested by the commission. The report also shall indicate the 571
nature of the inappropriate conduct alleged in each complaint and 572
the governmental entity with which any employee or official that 573
is the subject of a complaint was employed at the time of the 574
alleged inappropriate conduct. 575

       (F) All papers, records, affidavits, and documents upon any 576
complaint, inquiry, or investigation relating to the proceedings 577
of the appropriate ethics commission shall be sealed and are 578
private and confidential, except as otherwise provided in this 579
section and section 102.07 of the Revised Code. 580

       (G)(1) When a complaint or charge is before it, the Ohio 581
ethics commission or the appropriate prosecuting authority, in 582
consultation with the person filing the complaint or charge, the 583
accused, and any other person the commission or prosecuting 584
authority considers necessary, may compromise or settle the 585
complaint or charge with the agreement of the accused. The 586
compromise or settlement may include mediation, restitution, 587
rescission of affected contracts, forfeiture of any benefits 588
resulting from a violation or potential violation of law, 589
resignation of a public official or employee, or any other relief 590
that is agreed upon between the commission or prosecuting 591
authority and the accused. 592

       (2) Any settlement agreement entered into under division 593
(G)(1) of this section shall be in writing and be accompanied by a 594
statement of the findings of the commission or prosecuting 595
authority and the reasons for entering into the agreement. The 596
commission or prosecuting authority shall retain the agreement and 597
statement in the commission's or prosecuting authority's office 598
and, in the commission's or prosecuting authority's discretion, 599
may make the agreement, the statement, and any supporting 600
information public, unless the agreement provides otherwise. 601

       (3) If a settlement agreement is breached by the accused, the 602
commission or prosecuting authority, in the commission's or 603
prosecuting authority's discretion, may rescind the agreement and 604
reinstitute any investigation, hearing, or prosecution of the 605
accused. No information obtained from the accused in reaching the 606
settlement that is not otherwise discoverable from the accused 607
shall be used in any proceeding before the commission or by the 608
appropriate prosecuting authority in prosecuting the violation. 609
Notwithstanding any other section of the Revised Code, if a 610
settlement agreement is breached, any statute of limitations for a 611
violation of this chapter or section 2921.42 or 2921.43 of the 612
Revised Code is tolled from the date the complaint or charge is 613
filed until the date the settlement agreement is breached. 614

       Sec. 109.981. If a voting member of the bureau of workers' 615
compensation ~~oversight commission~~board of directors breaches the 616
member's fiduciary duty to the bureau of workers' compensation, 617
the attorney general may maintain a civil action against the board 618
member for harm resulting from that breach. Notwithstanding 619
section 4121.128 of the Revised Code, after being informed of an 620
allegation that the entire ~~oversight commission~~board has breached 621
its fiduciary duty, the ~~oversight commission~~board may retain 622
independent legal counsel, including legal counsel provided by the 623
~~oversight commission's~~board's fiduciary insurance carrier, to 624
advise the board and to represent the board. The attorney general 625
may recover damages or be granted injunctive relief, which shall 626
include the enjoinment of specified activities and the removal of 627
the member from the board. Any damages awarded shall be paid to 628
the bureau. The authority to maintain a civil action created by 629
this section is in addition to any authority the attorney general 630
possesses under any other provision of the Revised Code. 631

       Sec. 119.01. As used in sections 119.01 to 119.13 of the 632
Revised Code: 633

       (A)(1) "Agency" means, except as limited by this division, 634
any official, board, or commission having authority to promulgate 635
rules or make adjudications in the civil service commission, the 636
division of liquor control, the department of taxation, the 637
industrial commission, the bureau of workers' compensation, the 638
functions of any administrative or executive officer, department, 639
division, bureau, board, or commission of the government of the 640
state specifically made subject to sections 119.01 to 119.13 of 641
the Revised Code, and the licensing functions of any 642
administrative or executive officer, department, division, bureau, 643
board, or commission of the government of the state having the 644
authority or responsibility of issuing, suspending, revoking, or 645
canceling licenses. 646

       Except as otherwise provided in division (I) of this section, 647
sections 119.01 to 119.13 of the Revised Code do not apply to the 648
public utilities commission. Sections 119.01 to 119.13 of the 649
Revised Code do not apply to the utility radiological safety 650
board; to the controlling board; to actions of the superintendent 651
of financial institutions and the superintendent of insurance in 652
the taking possession of, and rehabilitation or liquidation of, 653
the business and property of banks, savings and loan associations, 654
savings banks, credit unions, insurance companies, associations, 655
reciprocal fraternal benefit societies, and bond investment 656
companies; to any action taken by the division of securities under 657
section 1707.201 of the Revised Code; or to any action that may be 658
taken by the superintendent of financial institutions under 659
section 1113.03, 1121.06, 1121.10, 1125.09, 1125.12, 1125.18, 660
1157.01, 1157.02, 1157.10, 1165.01, 1165.02, 1165.10, 1349.33, 661
1733.35, 1733.361, 1733.37, or 1761.03 of the Revised Code. 662

       Sections 119.01 to 119.13 of the Revised Code do not apply to 663
actions of the industrial commission or the bureau of workers' 664
compensation under sections 4123.01 to 4123.94 of the Revised Code 665
with respect to all matters of adjudication, ~~and~~or to the actions 666
of the industrial commission, bureau of workers' compensation 667
board of directors, workers' compensation investment committee, 668
and bureau of workers' compensation under division (D) of section 669
4121.32, sections 4123.29, 4123.34, 4123.341, 4123.342, 4123.40, 670
4123.411, 4123.44, and 4123.442, and divisions (B), (C), and (E) 671
of section 4131.14 of the Revised Code. 672

       (2) "Agency" also means any official or work unit having 673
authority to promulgate rules or make adjudications in the 674
department of job and family services, but only with respect to 675
both of the following: 676

       (a) The adoption, amendment, or rescission of rules that 677
section 5101.09 of the Revised Code requires be adopted in 678
accordance with this chapter; 679

       (b) The issuance, suspension, revocation, or cancellation of 680
licenses. 681

       (B) "License" means any license, permit, certificate, 682
commission, or charter issued by any agency. "License" does not 683
include any arrangement whereby a person, institution, or entity 684
furnishes medicaid services under a provider agreement with the 685
department of job and family services pursuant to Title XIX of the 686
"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as 687
amended. 688

       (C) "Rule" means any rule, regulation, or standard, having a 689
general and uniform operation, adopted, promulgated, and enforced 690
by any agency under the authority of the laws governing such 691
agency, and includes any appendix to a rule. "Rule" does not 692
include any internal management rule of an agency unless the 693
internal management rule affects private rights and does not 694
include any guideline adopted pursuant to section 3301.0714 of the 695
Revised Code. 696

       (D) "Adjudication" means the determination by the highest or 697
ultimate authority of an agency of the rights, duties, privileges, 698
benefits, or legal relationships of a specified person, but does 699
not include the issuance of a license in response to an 700
application with respect to which no question is raised, nor other 701
acts of a ministerial nature. 702

       (E) "Hearing" means a public hearing by any agency in 703
compliance with procedural safeguards afforded by sections 119.01 704
to 119.13 of the Revised Code. 705

       (F) "Person" means a person, firm, corporation, association, 706
or partnership. 707

       (G) "Party" means the person whose interests are the subject 708
of an adjudication by an agency. 709

       (H) "Appeal" means the procedure by which a person, aggrieved 710
by a finding, decision, order, or adjudication of any agency, 711
invokes the jurisdiction of a court. 712

       (I) "Rule-making agency" means any board, commission, 713
department, division, or bureau of the government of the state 714
that is required to file proposed rules, amendments, or 715
rescissions under division (D) of section 111.15 of the Revised 716
Code and any agency that is required to file proposed rules, 717
amendments, or rescissions under divisions (B) and (H) of section 718
119.03 of the Revised Code. "Rule-making agency" includes the 719
public utilities commission. "Rule-making agency" does not include 720
any state-supported college or university. 721

       (J) "Substantive revision" means any addition to, elimination 722
from, or other change in a rule, an amendment of a rule, or a 723
rescission of a rule, whether of a substantive or procedural 724
nature, that changes any of the following: 725

       (1) That which the rule, amendment, or rescission permits, 726
authorizes, regulates, requires, prohibits, penalizes, rewards, or 727
otherwise affects; 728

       (2) The scope or application of the rule, amendment, or 729
rescission. 730

       (K) "Internal management rule" means any rule, regulation, or 731
standard governing the day-to-day staff procedures and operations 732
within an agency. 733

       Sec. 121.51. There is hereby created in the office of the 734
inspector general the office of deputy inspector general for the 735
bureau of workers' compensation and industrial commission. The 736
inspector general shall hire the deputy inspector general, and the 737
deputy inspector general shall serve at the pleasure of the 738
inspector general. A person employed as the deputy inspector 739
general shall have the same qualifications as those specified in 740
section 121.49 of the Revised Code for the inspector general. The 741
inspector general shall provide professional and clerical 742
assistance to the deputy inspector general. The administrator of 743
workers' compensation shall pay the costs incurred by the deputy 744
inspector general, including the salaries of the deputy inspector 745
general and employees of the office of the deputy inspector 746
general. 747

       The deputy inspector general shall investigate all claims or 748
cases of criminal violations, abuse of office, or misconduct on 749
the part of employees of the bureau of workers' compensation or 750
the industrial commission and shall conduct a program of random 751
review of the processing of workers' compensation claims. The 752
deputy inspector general has the same powers and duties regarding 753
matters concerning the bureau and the commission as those 754
specified in sections 121.42, 121.43, and 121.45 of the Revised 755
Code for the inspector general. Complaints may be filed with the 756
deputy inspector general in the same manner as prescribed for 757
complaints filed with the inspector general under section 121.46 758
of the Revised Code. All investigations conducted and reports 759
issued by the deputy inspector general are subject to section 760
121.44 of the Revised Code. 761

       The members of the commission, bureau of workers' 762
compensation board of directors, workers' compensation audit 763
committee, workers' compensation actuarial committee, and workers' 764
compensation investment committee, and the administrator and 765
employees of the commission and the bureau shall cooperate with 766
and provide assistance to, the deputy inspector general in the 767
performance of any investigation conducted by the deputy inspector 768
general. In particular, those persons shall make their premises, 769
equipment, personnel, books, records, and papers readily available 770
to the deputy inspector general. In the course of an 771
investigation, the deputy inspector general may question any of 772
those persons employed by the commission or the administrator and 773
any other person transacting business with the commission, the 774
board, the audit committee, the actuarial committee, the 775
investment committee, the administrator, or the bureau, and may 776
inspect and copy any books, records, or papers in the possession 777
of those entities, taking care to preserve the confidentiality of 778
information contained in responses to questions or the books, 779
records, or papers that are made confidential by law. In 780
performing any investigation, the deputy inspector general shall 781
avoid interfering with the ongoing operations of the entities 782
being investigated, except insofar as is reasonably necessary to 783
successfully complete the investigation. 784

       The deputy inspector general shall deliver to the board, the 785
administrator, the commission, and the governor any case for which 786
remedial action is necessary. The deputy inspector general shall 787
maintain a public record of its activities to the extent permitted 788
under this section, ensuring that the rights of the parties 789
involved in each case are protected, and, once every six months, 790
shall report to the governor, the general assembly, the board, the 791
administrator, and commission, the deputy inspector general's 792
findings and the corrective actions subsequently taken in cases 793
considered by the deputy inspector general. 794

       No person shall disclose any information that is designated 795
as confidential in accordance with section 121.44 of the Revised 796
Code or any confidential information that is acquired in the 797
course of an investigation conducted under this section to any 798
person who is not legally entitled to disclosure of that 799
information. 800

       Sec. 1707.01. As used in this chapter: 801

       (A) Whenever the context requires it, "division" or "division 802
of securities" may be read as "director of commerce" or as 803
"commissioner of securities." 804

       (B) "Security" means any certificate or instrument, or any 805
oral, written, or electronic agreement, understanding, or 806
opportunity, that represents title to or interest in, or is 807
secured by any lien or charge upon, the capital, assets, profits, 808
property, or credit of any person or of any public or governmental 809
body, subdivision, or agency. It includes shares of stock, 810
certificates for shares of stock, an uncertificated security, 811
membership interests in limited liability companies, voting-trust 812
certificates, warrants and options to purchase securities, 813
subscription rights, interim receipts, interim certificates, 814
promissory notes, all forms of commercial paper, evidences of 815
indebtedness, bonds, debentures, land trust certificates, fee 816
certificates, leasehold certificates, syndicate certificates, 817
endowment certificates, interests in or under profit-sharing or 818
participation agreements, interests in or under oil, gas, or 819
mining leases, preorganization or reorganization subscriptions, 820
preorganization certificates, reorganization certificates, 821
interests in any trust or pretended trust, any investment 822
contract, any life settlement interest, any instrument evidencing 823
a promise or an agreement to pay money, warehouse receipts for 824
intoxicating liquor, and the currency of any government other than 825
those of the United States and Canada, but sections 1707.01 to 826
1707.45 of the Revised Code do not apply to the sale of real 827
estate. 828

       (C)(1) "Sale" has the full meaning of "sale" as applied by or 829
accepted in courts of law or equity, and includes every 830
disposition, or attempt to dispose, of a security or of an 831
interest in a security. "Sale" also includes a contract to sell, 832
an exchange, an attempt to sell, an option of sale, a solicitation 833
of a sale, a solicitation of an offer to buy, a subscription, or 834
an offer to sell, directly or indirectly, by agent, circular, 835
pamphlet, advertisement, or otherwise. 836

       (2) "Sell" means any act by which a sale is made. 837

       (3) The use of advertisements, circulars, or pamphlets in 838
connection with the sale of securities in this state exclusively 839
to the purchasers specified in division (D) of section 1707.03 of 840
the Revised Code is not a sale when the advertisements, circulars, 841
and pamphlets describing and offering those securities bear a 842
readily legible legend in substance as follows: "This offer is 843
made on behalf of dealers licensed under sections 1707.01 to 844
1707.45 of the Revised Code, and is confined in this state 845
exclusively to institutional investors and licensed dealers." 846

       (4) The offering of securities by any person in conjunction 847
with a licensed dealer by use of advertisement, circular, or 848
pamphlet is not a sale if that person does not otherwise attempt 849
to sell securities in this state. 850

       (5) Any security given with, or as a bonus on account of, any 851
purchase of securities is conclusively presumed to constitute a 852
part of the subject of that purchase and has been "sold." 853

       (6) "Sale" by an owner, pledgee, or mortgagee, or by a person 854
acting in a representative capacity, includes sale on behalf of 855
such party by an agent, including a licensed dealer or 856
salesperson. 857

       (D) "Person," except as otherwise provided in this chapter, 858
means a natural person, firm, partnership, limited partnership, 859
partnership association, syndicate, joint-stock company, 860
unincorporated association, trust or trustee except where the 861
trust was created or the trustee designated by law or judicial 862
authority or by a will, and a corporation or limited liability 863
company organized under the laws of any state, any foreign 864
government, or any political subdivision of a state or foreign 865
government. 866

       (E)(1) "Dealer," except as otherwise provided in this 867
chapter, means every person, other than a salesperson, who engages 868
or professes to engage, in this state, for either all or part of 869
the person's time, directly or indirectly, either in the business 870
of the sale of securities for the person's own account, or in the 871
business of the purchase or sale of securities for the account of 872
others in the reasonable expectation of receiving a commission, 873
fee, or other remuneration as a result of engaging in the purchase 874
and sale of securities. "Dealer" does not mean any of the 875
following: 876

       (a) Any issuer, including any officer, director, employee, or 877
trustee of, or member or manager of, or partner in, or any general 878
partner of, any issuer, that sells, offers for sale, or does any 879
act in furtherance of the sale of a security that represents an 880
economic interest in that issuer, provided no commission, fee, or 881
other similar remuneration is paid to or received by the issuer 882
for the sale; 883

       (b) Any licensed attorney, public accountant, or firm of such 884
attorneys or accountants, whose activities are incidental to the 885
practice of the attorney's, accountant's, or firm's profession; 886

       (c) Any person that, for the account of others, engages in 887
the purchase or sale of securities that are issued and outstanding 888
before such purchase and sale, if a majority or more of the equity 889
interest of an issuer is sold in that transaction, and if, in the 890
case of a corporation, the securities sold in that transaction 891
represent a majority or more of the voting power of the 892
corporation in the election of directors; 893

       (d) Any person that brings an issuer together with a 894
potential investor and whose compensation is not directly or 895
indirectly based on the sale of any securities by the issuer to 896
the investor; 897

       (e) Any bank; 898

       (f) Any person that the division of securities by rule 899
exempts from the definition of "dealer" under division (E)(1) of 900
this section. 901

       (2) "Licensed dealer" means a dealer licensed under this 902
chapter. 903

       (F)(1) "Salesman" or "salesperson" means every natural 904
person, other than a dealer, who is employed, authorized, or 905
appointed by a dealer to sell securities within this state. 906

       (2) The general partners of a partnership, and the executive 907
officers of a corporation or unincorporated association, licensed 908
as a dealer are not salespersons within the meaning of this 909
definition, nor are clerical or other employees of an issuer or 910
dealer that are employed for work to which the sale of securities 911
is secondary and incidental; but the division of securities may 912
require a license from any such partner, executive officer, or 913
employee if it determines that protection of the public 914
necessitates the licensing. 915

       (3) "Licensed salesperson" means a salesperson licensed under 916
this chapter. 917

       (G) "Issuer" means every person who has issued, proposes to 918
issue, or issues any security. 919

       (H) "Director" means each director or trustee of a 920
corporation, each trustee of a trust, each general partner of a 921
partnership, except a partnership association, each manager of a 922
partnership association, and any person vested with managerial or 923
directory power over an issuer not having a board of directors or 924
trustees. 925

       (I) "Incorporator" means any incorporator of a corporation 926
and any organizer of, or any person participating, other than in a 927
representative or professional capacity, in the organization of an 928
unincorporated issuer. 929

       (J) "Fraud," "fraudulent," "fraudulent acts," "fraudulent 930
practices," or "fraudulent transactions" means anything recognized 931
on or after July 22, 1929, as such in courts of law or equity; any 932
device, scheme, or artifice to defraud or to obtain money or 933
property by means of any false pretense, representation, or 934
promise; any fictitious or pretended purchase or sale of 935
securities; and any act, practice, transaction, or course of 936
business relating to the purchase or sale of securities that is 937
fraudulent or that has operated or would operate as a fraud upon 938
the seller or purchaser. 939

       (K) Except as otherwise specifically provided, whenever any 940
classification or computation is based upon "par value," as 941
applied to securities without par value, the average of the 942
aggregate consideration received or to be received by the issuer 943
for each class of those securities shall be used as the basis for 944
that classification or computation. 945

       (L)(1) "Intangible property" means patents, copyrights, 946
secret processes, formulas, services, good will, promotion and 947
organization fees and expenses, trademarks, trade brands, trade 948
names, licenses, franchises, any other assets treated as 949
intangible according to generally accepted accounting principles, 950
and securities, accounts receivable, or contract rights having no 951
readily determinable value. 952

       (2) "Tangible property" means all property other than 953
intangible property and includes securities, accounts receivable, 954
and contract rights, when the securities, accounts receivable, or 955
contract rights have a readily determinable value. 956

       (M) "Public utilities" means those utilities defined in 957
sections 4905.02, 4905.03, 4907.02, and 4907.03 of the Revised 958
Code; in the case of a foreign corporation, it means those 959
utilities defined as public utilities by the laws of its domicile; 960
and in the case of any other foreign issuer, it means those 961
utilities defined as public utilities by the laws of the situs of 962
its principal place of business. The term always includes 963
railroads whether or not they are so defined as public utilities. 964

       (N) "State" means any state of the United States, any 965
territory or possession of the United States, the District of 966
Columbia, and any province of Canada. 967

       (O) "Bank" means any bank, trust company, savings and loan 968
association, savings bank, or credit union that is incorporated or 969
organized under the laws of the United States, any state of the 970
United States, Canada, or any province of Canada and that is 971
subject to regulation or supervision by that country, state, or 972
province. 973

       (P) "Include," when used in a definition, does not exclude 974
other things or persons otherwise within the meaning of the term 975
defined. 976

       (Q)(1) "Registration by description" means that the 977
requirements of section 1707.08 of the Revised Code have been 978
complied with. 979

       (2) "Registration by qualification" means that the 980
requirements of sections 1707.09 and 1707.11 of the Revised Code 981
have been complied with. 982

       (3) "Registration by coordination" means that there has been 983
compliance with section 1707.091 of the Revised Code. Reference in 984
this chapter to registration by qualification also includes 985
registration by coordination unless the context otherwise 986
indicates. 987

       (R) "Intoxicating liquor" includes all liquids and compounds 988
that contain more than three and two-tenths per cent of alcohol by 989
weight and are fit for use for beverage purposes. 990

       (S) "Institutional investor" means any corporation, bank, 991
insurance company, pension fund or pension fund trust, employees' 992
profit-sharing fund or employees' profit-sharing trust, any 993
association engaged, as a substantial part of its business or 994
operations, in purchasing or holding securities, or any trust in 995
respect of which a bank is trustee or cotrustee. "Institutional 996
investor" does not include any business entity formed for the 997
primary purpose of evading sections 1707.01 to 1707.45 of the 998
Revised Code. 999

       (T) A reference to a statute of the United States or to a 1000
rule, regulation, or form promulgated by the securities and 1001
exchange commission or by another federal agency means the 1002
statute, rule, regulation, or form as it exists at the time of the 1003
act, omission, event, or transaction to which it is applied under 1004
this chapter. 1005

       (U) "Securities and exchange commission" means the securities 1006
and exchange commission established by the Securities Exchange Act 1007
of 1934. 1008

       (V)(1) "Control bid" means the purchase of or offer to 1009
purchase any equity security of a subject company from a resident 1010
of this state if either of the following applies: 1011

       (a) After the purchase of that security, the offeror would be 1012
directly or indirectly the beneficial owner of more than ten per 1013
cent of any class of the issued and outstanding equity securities 1014
of the issuer. 1015

       (b) The offeror is the subject company, there is a pending 1016
control bid by a person other than the issuer, and the number of 1017
the issued and outstanding shares of the subject company would be 1018
reduced by more than ten per cent. 1019

       (2) For purposes of division (V)(1) of this section, "control 1020
bid" does not include any of the following: 1021

       (a) A bid made by a dealer for the dealer's own account in 1022
the ordinary course of business of buying and selling securities; 1023

       (b) An offer to acquire any equity security solely in 1024
exchange for any other security, or the acquisition of any equity 1025
security pursuant to an offer, for the sole account of the 1026
offeror, in good faith and not for the purpose of avoiding the 1027
provisions of this chapter, and not involving any public offering 1028
of the other security within the meaning of Section 4 of Title I 1029
of the "Securities Act of 1933," 48 Stat. 77, 15 U.S.C.A. 77d(2), 1030
as amended; 1031

       (c) Any other offer to acquire any equity security, or the 1032
acquisition of any equity security pursuant to an offer, for the 1033
sole account of the offeror, from not more than fifty persons, in 1034
good faith and not for the purpose of avoiding the provisions of 1035
this chapter. 1036

       (W) "Offeror" means a person who makes, or in any way 1037
participates or aids in making, a control bid and includes persons 1038
acting jointly or in concert, or who intend to exercise jointly or 1039
in concert any voting rights attached to the securities for which 1040
the control bid is made and also includes any subject company 1041
making a control bid for its own securities. 1042

       (X)(1) "Investment adviser" means any person who, for 1043
compensation, engages in the business of advising others, either 1044
directly or through publications or writings, as to the value of 1045
securities or as to the advisability of investing in, purchasing, 1046
or selling securities, or who, for compensation and as a part of 1047
regular business, issues or promulgates analyses or reports 1048
concerning securities. 1049

       (2) "Investment adviser" does not mean any of the following: 1050

       (a) Any attorney, accountant, engineer, or teacher, whose 1051
performance of investment advisory services described in division 1052
(X)(1) of this section is solely incidental to the practice of the 1053
attorney's, accountant's, engineer's, or teacher's profession; 1054

       (b) A publisher of any bona fide newspaper, news magazine, or 1055
business or financial publication of general and regular 1056
circulation; 1057

       (c) A person who acts solely as an investment adviser 1058
representative; 1059

       (d) A bank holding company, as defined in the "Bank Holding 1060
Company Act of 1956," 70 Stat. 133, 12 U.S.C. 1841, that is not an 1061
investment company; 1062

       (e) A bank, or any receiver, conservator, or other 1063
liquidating agent of a bank; 1064

       (f) Any licensed dealer or licensed salesperson whose 1065
performance of investment advisory services described in division 1066
(X)(1) of this section is solely incidental to the conduct of the 1067
dealer's or salesperson's business as a licensed dealer or 1068
licensed salesperson and who receives no special compensation for 1069
the services; 1070

       (g) Any person, the advice, analyses, or reports of which do 1071
not relate to securities other than securities that are direct 1072
obligations of, or obligations guaranteed as to principal or 1073
interest by, the United States, or securities issued or guaranteed 1074
by corporations in which the United States has a direct or 1075
indirect interest, and that have been designated by the secretary 1076
of the treasury as exempt securities as defined in the "Securities 1077
Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78c; 1078

       (h) Any person that is excluded from the definition of 1079
investment adviser pursuant to section 202(a)(11)(A) to (E) of the 1080
"Investment Advisers Act of 1940," 15 U.S.C. 80b-2(a)(11), or that 1081
has received an order from the securities and exchange commission 1082
under section 202(a)(11)(F) of the "Investment Advisers Act of 1083
1940," 15 U.S.C. 80b-2(a)(11)(F), declaring that the person is not 1084
within the intent of section 202(a)(11) of the Investment Advisers 1085
Act of 1940. 1086

       (i) A person who acts solely as a state retirement system 1087
investment officer or as a bureau of workers' compensation chief 1088
investment officer; 1089

       (j) Any other person that the division designates by rule, if 1090
the division finds that the designation is necessary or 1091
appropriate in the public interest or for the protection of 1092
investors or clients and consistent with the purposes fairly 1093
intended by the policy and provisions of this chapter. 1094

       (Y)(1) "Subject company" means an issuer that satisfies both 1095
of the following: 1096

       (a) Its principal place of business or its principal 1097
executive office is located in this state, or it owns or controls 1098
assets located within this state that have a fair market value of 1099
at least one million dollars. 1100

       (b) More than ten per cent of its beneficial or record equity 1101
security holders are resident in this state, more than ten per 1102
cent of its equity securities are owned beneficially or of record 1103
by residents in this state, or more than one thousand of its 1104
beneficial or record equity security holders are resident in this 1105
state. 1106

       (2) The division of securities may adopt rules to establish 1107
more specific application of the provisions set forth in division 1108
(Y)(1) of this section. Notwithstanding the provisions set forth 1109
in division (Y)(1) of this section and any rules adopted under 1110
this division, the division, by rule or in an adjudicatory 1111
proceeding, may make a determination that an issuer does not 1112
constitute a "subject company" under division (Y)(1) of this 1113
section if appropriate review of control bids involving the issuer 1114
is to be made by any regulatory authority of another jurisdiction. 1115

       (Z) "Beneficial owner" includes any person who directly or 1116
indirectly through any contract, arrangement, understanding, or 1117
relationship has or shares, or otherwise has or shares, the power 1118
to vote or direct the voting of a security or the power to dispose 1119
of, or direct the disposition of, the security. "Beneficial 1120
ownership" includes the right, exercisable within sixty days, to 1121
acquire any security through the exercise of any option, warrant, 1122
or right, the conversion of any convertible security, or 1123
otherwise. Any security subject to any such option, warrant, 1124
right, or conversion privilege held by any person shall be deemed 1125
to be outstanding for the purpose of computing the percentage of 1126
outstanding securities of the class owned by that person, but 1127
shall not be deemed to be outstanding for the purpose of computing 1128
the percentage of the class owned by any other person. A person 1129
shall be deemed the beneficial owner of any security beneficially 1130
owned by any relative or spouse or relative of the spouse residing 1131
in the home of that person, any trust or estate in which that 1132
person owns ten per cent or more of the total beneficial interest 1133
or serves as trustee or executor, any corporation or entity in 1134
which that person owns ten per cent or more of the equity, and any 1135
affiliate or associate of that person. 1136

       (AA) "Offeree" means the beneficial or record owner of any 1137
security that an offeror acquires or offers to acquire in 1138
connection with a control bid. 1139

       (BB) "Equity security" means any share or similar security, 1140
or any security convertible into any such security, or carrying 1141
any warrant or right to subscribe to or purchase any such 1142
security, or any such warrant or right, or any other security 1143
that, for the protection of security holders, is treated as an 1144
equity security pursuant to rules of the division of securities. 1145

       (CC)(1) "Investment adviser representative" means a 1146
supervised person of an investment adviser, provided that the 1147
supervised person has more than five clients who are natural 1148
persons other than excepted persons defined in division (EE) of 1149
this section, and that more than ten per cent of the supervised 1150
person's clients are natural persons other than excepted persons 1151
defined in division (EE) of this section. "Investment adviser 1152
representative" does not mean any of the following: 1153

       (a) A supervised person that does not on a regular basis 1154
solicit, meet with, or otherwise communicate with clients of the 1155
investment adviser; 1156

       (b) A supervised person that provides only investment 1157
advisory services described in division (X)(1) of this section by 1158
means of written materials or oral statements that do not purport 1159
to meet the objectives or needs of specific individuals or 1160
accounts; 1161

       (c) Any other person that the division designates by rule, if 1162
the division finds that the designation is necessary or 1163
appropriate in the public interest or for the protection of 1164
investors or clients and is consistent with the provisions fairly 1165
intended by the policy and provisions of this chapter. 1166

       (2) For the purpose of the calculation of clients in division 1167
(CC)(1) of this section, a natural person and the following 1168
persons are deemed a single client: Any minor child of the natural 1169
person; any relative, spouse, or relative of the spouse of the 1170
natural person who has the same principal residence as the natural 1171
person; all accounts of which the natural person or the persons 1172
referred to in division (CC)(2) of this section are the only 1173
primary beneficiaries; and all trusts of which the natural person 1174
or persons referred to in division (CC)(2) of this section are the 1175
only primary beneficiaries. Persons who are not residents of the 1176
United States need not be included in the calculation of clients 1177
under division (CC)(1) of this section. 1178

       (3) If subsequent to March 18, 1999, amendments are enacted 1179
or adopted defining "investment adviser representative" for 1180
purposes of the Investment Advisers Act of 1940 or additional 1181
rules or regulations are promulgated by the securities and 1182
exchange commission regarding the definition of "investment 1183
adviser representative" for purposes of the Investment Advisers 1184
Act of 1940, the division of securities shall, by rule, adopt the 1185
substance of the amendments, rules, or regulations, unless the 1186
division finds that the amendments, rules, or regulations are not 1187
necessary for the protection of investors or in the public 1188
interest. 1189

       (DD) "Supervised person" means a natural person who is any of 1190
the following: 1191

       (1) A partner, officer, or director of an investment adviser, 1192
or other person occupying a similar status or performing similar 1193
functions with respect to an investment adviser; 1194

       (2) An employee of an investment adviser; 1195

       (3) A person who provides investment advisory services 1196
described in division (X)(1) of this section on behalf of the 1197
investment adviser and is subject to the supervision and control 1198
of the investment adviser. 1199

       (EE) "Excepted person" means a natural person to whom any of 1200
the following applies: 1201

       (1) Immediately after entering into the investment advisory 1202
contract with the investment adviser, the person has at least 1203
seven hundred fifty thousand dollars under the management of the 1204
investment adviser. 1205

       (2) The investment adviser reasonably believes either of the 1206
following at the time the investment advisory contract is entered 1207
into with the person: 1208

       (a) The person has a net worth, together with assets held 1209
jointly with a spouse, of more than one million five hundred 1210
thousand dollars. 1211

       (b) The person is a qualified purchaser as defined in 1212
division (FF) of this section. 1213

       (3) Immediately prior to entering into an investment advisory 1214
contract with the investment adviser, the person is either of the 1215
following: 1216

       (a) An executive officer, director, trustee, general partner, 1217
or person serving in a similar capacity, of the investment 1218
adviser; 1219

       (b) An employee of the investment adviser, other than an 1220
employee performing solely clerical, secretarial, or 1221
administrative functions or duties for the investment adviser, 1222
which employee, in connection with the employee's regular 1223
functions or duties, participates in the investment activities of 1224
the investment adviser, provided that, for at least twelve months, 1225
the employee has been performing such nonclerical, nonsecretarial, 1226
or nonadministrative functions or duties for or on behalf of the 1227
investment adviser or performing substantially similar functions 1228
or duties for or on behalf of another company. 1229

       If subsequent to March 18, 1999, amendments are enacted or 1230
adopted defining "excepted person" for purposes of the Investment 1231
Advisers Act of 1940 or additional rules or regulations are 1232
promulgated by the securities and exchange commission regarding 1233
the definition of "excepted person" for purposes of the Investment 1234
Advisers Act of 1940, the division of securities shall, by rule, 1235
adopt the substance of the amendments, rules, or regulations, 1236
unless the division finds that the amendments, rules, or 1237
regulations are not necessary for the protection of investors or 1238
in the public interest. 1239

       (FF)(1) "Qualified purchaser" means either of the following: 1240

       (a) A natural person who owns not less than five million 1241
dollars in investments as defined by rule by the division of 1242
securities; 1243

       (b) A natural person, acting for the person's own account or 1244
accounts of other qualified purchasers, who in the aggregate owns 1245
and invests on a discretionary basis, not less than twenty-five 1246
million dollars in investments as defined by rule by the division 1247
of securities. 1248

       (2) If subsequent to March 18, 1999, amendments are enacted 1249
or adopted defining "qualified purchaser" for purposes of the 1250
Investment Advisers Act of 1940 or additional rules or regulations 1251
are promulgated by the securities and exchange commission 1252
regarding the definition of "qualified purchaser" for purposes of 1253
the Investment Advisers Act of 1940, the division of securities 1254
shall, by rule, adopt the amendments, rules, or regulations, 1255
unless the division finds that the amendments, rules, or 1256
regulations are not necessary for the protection of investors or 1257
in the public interest. 1258

       (GG)(1) "Purchase" has the full meaning of "purchase" as 1259
applied by or accepted in courts of law or equity and includes 1260
every acquisition of, or attempt to acquire, a security or an 1261
interest in a security. "Purchase" also includes a contract to 1262
purchase, an exchange, an attempt to purchase, an option to 1263
purchase, a solicitation of a purchase, a solicitation of an offer 1264
to sell, a subscription, or an offer to purchase, directly or 1265
indirectly, by agent, circular, pamphlet, advertisement, or 1266
otherwise. 1267

       (2) "Purchase" means any act by which a purchase is made. 1268

       (3) Any security given with, or as a bonus on account of, any 1269
purchase of securities is conclusively presumed to constitute a 1270
part of the subject of that purchase. 1271

       (HH) "Life settlement interest" means the entire interest or 1272
any fractional interest in an insurance policy or certificate of 1273
insurance, or in an insurance benefit under such a policy or 1274
certificate, that is the subject of a life settlement contract. 1275

       For purposes of this division, "life settlement contract" 1276
means an agreement for the purchase, sale, assignment, transfer, 1277
devise, or bequest of any portion of the death benefit or 1278
ownership of any life insurance policy or contract, in return for 1279
consideration or any other thing of value that is less than the 1280
expected death benefit of the life insurance policy or contract. 1281
"Life settlement contract" includes a viatical settlement contract 1282
as defined in section 3916.01 of the Revised Code, but does not 1283
include any of the following: 1284

       (1) A loan by an insurer under the terms of a life insurance 1285
policy, including, but not limited to, a loan secured by the cash 1286
value of the policy; 1287

       (2) An agreement with a bank that takes an assignment of a 1288
life insurance policy as collateral for a loan; 1289

       (3) The provision of accelerated benefits as defined in 1290
section 3915.21 of the Revised Code; 1291

       (4) Any agreement between an insurer and a reinsurer; 1292

       (5) An agreement by an individual to purchase an existing 1293
life insurance policy or contract from the original owner of the 1294
policy or contract, if the individual does not enter into more 1295
than one life settlement contract per calendar year; 1296

       (6) The initial purchase of an insurance policy or 1297
certificate of insurance from its owner by a viatical settlement 1298
provider, as defined in section 3916.01 of the Revised Code, that 1299
is licensed under Chapter 3916. of the Revised Code. 1300

       (II) "State retirement system" means the public employees 1301
retirement system, Ohio police and fire pension fund, state 1302
teachers retirement system, school employees retirement system, 1303
and state highway patrol retirement system. 1304

        (JJ) "State retirement system investment officer" means an 1305
individual employed by a state retirement system as a chief 1306
investment officer, assistant investment officer, or the person in 1307
charge of a class of assets or in a position that is substantially 1308
equivalent to chief investment officer, assistant investment 1309
officer, or person in charge of a class of assets. 1310

       (KK) "Bureau of workers' compensation chief investment 1311
officer" means an individual employed by the ~~bureau~~administrator 1312
of workers' compensation as a chief investment officer or in a 1313
position that is substantially equivalent to a chief investment 1314
officer. 1315

       Sec. 3345.12. (A) As used in this section and sections 1316
3345.07 and 3345.11 of the Revised Code, in other sections of the 1317
Revised Code that make reference to this section unless the 1318
context does not permit, and in related bond proceedings unless 1319
otherwise expressly provided: 1320

       (1) "State university or college" means each of the state 1321
universities identified in section 3345.011 of the Revised Code 1322
and the northeastern Ohio universities college of medicine, and 1323
includes its board of trustees. 1324

       (2) "Institution of higher education" or "institution" means 1325
a state university or college, or a community college district, 1326
technical college district, university branch district, or state 1327
community college, and includes the applicable board of trustees 1328
or, in the case of a university branch district, any other 1329
managing authority. 1330

       (3) "Housing and dining facilities" means buildings, 1331
structures, and other improvements, and equipment, real estate, 1332
and interests in real estate therefor, to be used for or in 1333
connection with dormitories or other living quarters and 1334
accommodations, or related dining halls or other food service and 1335
preparation facilities, for students, members of the faculty, 1336
officers, or employees of the institution of higher education, and 1337
their spouses and families. 1338

       (4) "Auxiliary facilities" means buildings, structures, and 1339
other improvements, and equipment, real estate, and interests in 1340
real estate therefor, to be used for or in connection with student 1341
activity or student service facilities, housing and dining 1342
facilities, dining halls, and other food service and preparation 1343
facilities, vehicular parking facilities, bookstores, athletic and 1344
recreational facilities, faculty centers, auditoriums, assembly 1345
and exhibition halls, hospitals, infirmaries and other medical and 1346
health facilities, research, and continuing education facilities. 1347

       (5) "Education facilities" means buildings, structures, and 1348
other improvements, and equipment, real estate, and interests in 1349
real estate therefor, to be used for or in connection with, 1350
classrooms or other instructional facilities, libraries, 1351
administrative and office facilities, and other facilities, other 1352
than auxiliary facilities, to be used directly or indirectly for 1353
or in connection with the conduct of the institution of higher 1354
education. 1355

       (6) "Facilities" means housing and dining facilities, 1356
auxiliary facilities, or education facilities, and includes any 1357
one, part of, or any combination of such facilities, and further 1358
includes site improvements, utilities, machinery, furnishings, and 1359
any separate or connected buildings, structures, improvements, 1360
sites, open space and green space areas, utilities or equipment to 1361
be used in, or in connection with the operation or maintenance of, 1362
or supplementing or otherwise related to the services or 1363
facilities to be provided by, such facilities. 1364

       (7) "Obligations" means bonds or notes or other evidences of 1365
obligation, including interest coupons pertaining thereto, 1366
authorized to be issued under this section or section 3345.07, 1367
3345.11, 3354.121, 3355.091, 3357.112, or 3358.10 of the Revised 1368
Code. 1369

       (8) "Bond service charges" means principal, including any 1370
mandatory sinking fund or redemption requirements for the 1371
retirement of obligations, interest, or interest equivalent and 1372
other accreted amounts, and any call premium required to be paid 1373
on obligations. 1374

       (9) "Bond proceedings" means the resolutions, trust 1375
agreement, indenture, and other agreements and credit enhancement 1376
facilities, and amendments and supplements to the foregoing, or 1377
any one or more or combination thereof, authorizing, awarding, or 1378
providing for the terms and conditions applicable to, or providing 1379
for the security or liquidity of, obligations, and the provisions 1380
contained in those obligations. 1381

       (10) "Costs of facilities" means the costs of acquiring, 1382
constructing, reconstructing, rehabilitating, remodeling, 1383
renovating, enlarging, improving, equipping, or furnishing 1384
facilities, and the financing thereof, including the cost of 1385
clearance and preparation of the site and of any land to be used 1386
in connection with facilities, the cost of any indemnity and 1387
surety bonds and premiums on insurance, all related direct 1388
administrative expenses and allocable portions of direct costs of 1389
the institution of higher education or state agency, cost of 1390
engineering, architectural services, design, plans, specifications 1391
and surveys, estimates of cost, legal fees, fees and expenses of 1392
trustees, depositories, bond registrars, and paying agents for the 1393
obligations, cost of issuance of the obligations and financing 1394
costs and fees and expenses of financial advisers and consultants 1395
in connection therewith, interest on the obligations from the date 1396
thereof to the time when interest is to be covered by available 1397
receipts or other sources other than proceeds of the obligations, 1398
amounts necessary to establish reserves as required by the bond 1399
proceedings, costs of audits, the reimbursements of all moneys 1400
advanced or applied by or borrowed from the institution or others, 1401
from whatever source provided, including any temporary advances 1402
from state appropriations, for the payment of any item or items of 1403
cost of facilities, and all other expenses necessary or incident 1404
to planning or determining feasibility or practicability with 1405
respect to facilities, and such other expenses as may be necessary 1406
or incident to the acquisition, construction, reconstruction, 1407
rehabilitation, remodeling, renovation, enlargement, improvement, 1408
equipment, and furnishing of facilities, the financing thereof and 1409
the placing of them in use and operation, including any one, part 1410
of, or combination of such classes of costs and expenses. 1411

       (11) "Available receipts" means all moneys received by the 1412
institution of higher education, including income, revenues, and 1413
receipts from the operation, ownership, or control of facilities, 1414
grants, gifts, donations, and pledges and receipts therefrom, 1415
receipts from fees and charges, and the proceeds of the sale of 1416
obligations, including proceeds of obligations issued to refund 1417
obligations previously issued, but excluding any special fee, and 1418
receipts therefrom, charged pursuant to division (D) of section 1419
154.21 of the Revised Code. 1420

       (12) "Credit enhancement facilities" has the meaning given in 1421
division (H) of section 133.01 of the Revised Code. 1422

       (13) "Financing costs" has the meaning given in division (K) 1423
of section 133.01 of the Revised Code. 1424

       (14) "Interest" or "interest equivalent" has the meaning 1425
given in division (R) of section 133.01 of the Revised Code. 1426

       (B) Obligations issued under section 3345.07 or 3345.11 of 1427
the Revised Code by a state university or college shall be 1428
authorized by resolution of its board of trustees. Obligations 1429
issued by any other institution of higher education shall be 1430
authorized by resolution of its board of trustees, or managing 1431
directors in the case of certain university branch districts, as 1432
applicable. Sections 9.96 and 9.98 to 9.983 of the Revised Code 1433
apply to obligations. Obligations may be issued to pay costs of 1434
facilities even if the institution anticipates the possibility of 1435
a future state appropriation to pay all or a portion of such 1436
costs. 1437

       (C) Obligations shall be secured by a pledge of and lien on 1438
all or such part of the available receipts of the institution of 1439
higher education as it provides for in the bond proceedings, 1440
excluding moneys raised by taxation and state appropriations. Such 1441
pledge and lien may be made prior to all other expenses, claims, 1442
or payments, excepting any pledge of such available receipts 1443
previously made to the contrary and except as provided by any 1444
existing restrictions on the use thereof, or such pledge and lien 1445
may be made subordinate to such other expenses, claims, or 1446
payments, as provided in the bond proceedings. Obligations may be 1447
additionally secured by covenants of the institution to make, fix, 1448
adjust, collect, and apply such charges, rates, fees, rentals, and 1449
other items of available receipts as will produce pledged 1450
available receipts sufficient to meet bond service charges, 1451
reserve, and other requirements provided for in the bond 1452
proceedings. Notwithstanding this and any other sections of the 1453
Revised Code, the holders or owners of the obligations shall not 1454
be given the right and shall have no right to have excises or 1455
taxes levied by the general assembly for the payment of bond 1456
service charges thereon, and each such obligation shall bear on 1457
its face a statement to that effect and to the effect that the 1458
right to such payment is limited to the available receipts and 1459
special funds pledged to such purpose under the bond proceedings. 1460

       All pledged available receipts and funds and the proceeds of 1461
obligations are trust funds and, subject to the provisions of this 1462
section and the applicable bond proceedings, shall be held, 1463
deposited, invested, reinvested, disbursed, applied, and used to 1464
such extent, in such manner, at such times, and for such purposes, 1465
as are provided in the bond proceedings. 1466

       (D) The bond proceedings for obligations shall provide for 1467
the purpose thereof and the principal amount or maximum principal 1468
amount, and provide for or authorize the manner of determining the 1469
principal maturity or maturities, the sale price including any 1470
permitted discount, the interest rate or rates, which may be a 1471
variable rate or rates, or the maximum interest rate, the date of 1472
the obligations and the date or dates of payment of interest 1473
thereon, their denominations, the manner of sale thereof, and the 1474
establishment within or without the state of a place or places of 1475
payment of bond service charges. The bond proceedings also shall 1476
provide for a pledge of and lien on available receipts of the 1477
institution of higher education as provided in division (C) of 1478
this section, and a pledge of and lien on such fund or funds 1479
provided in the bond proceedings arising from available receipts, 1480
which pledges and liens may provide for parity with obligations 1481
theretofore or thereafter issued by the institution. The available 1482
receipts so pledged and thereafter received by the institution and 1483
the funds so pledged are immediately subject to the lien of such 1484
pledge without any physical delivery thereof or further act, and 1485
the lien of any such pledge is valid and binding against all 1486
parties having claims of any kind against the institution, 1487
irrespective of whether such parties have notice thereof, and 1488
shall create a perfected security interest for all purposes of 1489
Chapter 1309. of the Revised Code, without the necessity for 1490
separation or delivery of funds or for the filing or recording of 1491
the bond proceedings by which such pledge is created or any 1492
certificate, statement, or other document with respect thereto; 1493
and the pledge of such available receipts and funds shall be 1494
effective and the money therefrom and thereof may be applied to 1495
the purposes for which pledged without necessity for any act of 1496
appropriation. 1497

       (E) The bond proceedings may contain additional provisions 1498
customary or appropriate to the financing or to the obligations or 1499
to particular obligations, including: 1500

       (1) The acquisition, construction, reconstruction, equipment, 1501
furnishing, improvement, operation, alteration, enlargement, 1502
maintenance, insurance, and repair of facilities, and the duties 1503
of the institution of higher education with reference thereto; 1504

       (2) The terms of the obligations, including provisions for 1505
their redemption prior to maturity at the option of the 1506
institution of higher education at such price or prices and under 1507
such terms and conditions as are provided in the bond proceedings; 1508

       (3) Limitations on the purposes to which the proceeds of the 1509
obligations may be applied; 1510

       (4) The rates or rentals or other charges for the use of or 1511
right to use the facilities financed by the obligations, or other 1512
properties the revenues or receipts from which are pledged to the 1513
obligations, and rules for assuring use and occupancy thereof, 1514
including limitations upon the right to modify such rates, 1515
rentals, other charges, or regulations; 1516

       (5) The use and expenditure of the pledged available receipts 1517
in such manner and to such extent as shall be determined, which 1518
may include provision for the payment of the expenses of 1519
operation, maintenance, and repair of facilities so that such 1520
expenses, or part thereof, shall be paid or provided as a charge 1521
prior or subsequent to the payment of bond service charges and any 1522
other payments required to be made by the bond proceedings; 1523

       (6) Limitations on the issuance of additional obligations; 1524

       (7) The terms of any trust agreement or indenture securing 1525
the obligations or under which the same may be issued; 1526

       (8) The deposit, investment, and application of funds, and 1527
the safeguarding of funds on hand or on deposit without regard to 1528
Chapter 131. or 135. of the Revised Code, and any bank or trust 1529
company or other financial institution that acts as depository of 1530
any moneys under the bond proceedings shall furnish such 1531
indemnifying bonds or pledge such securities as required by the 1532
bond proceedings or otherwise by the institution of higher 1533
education; 1534

       (9) The binding effect of any or every provision of the bond 1535
proceedings upon such officer, board, commission, authority, 1536
agency, department, or other person or body as may from time to 1537
time have the authority under law to take such actions as may be 1538
necessary to perform all or any part of the duty required by such 1539
provision; 1540

       (10) Any provision that may be made in a trust agreement or 1541
indenture; 1542

       (11) Any other or additional agreements with respect to the 1543
facilities of the institution of higher education, their 1544
operation, the available receipts and funds pledged, and insurance 1545
of facilities and of the institution, its officers and employees. 1546

       (F) Such obligations may have the seal of the institution of 1547
higher education or a facsimile thereof affixed thereto or printed 1548
thereon and shall be executed by such officers as are designated 1549
in the bond proceedings, which execution may be by facsimile 1550
signatures. Any obligations may be executed by an officer who, on 1551
the date of execution, is the proper officer although on the date 1552
of such obligations such person was not the proper officer. In 1553
case any officer whose signature or a facsimile of whose signature 1554
appears on any such obligation ceases to be such officer before 1555
delivery thereof, such signature or facsimile is nevertheless 1556
valid and sufficient for all purposes as if the person had 1557
remained such officer until such delivery; and in case the seal of 1558
the institution has been changed after a facsimile of the seal has 1559
been imprinted on such obligations, such facsimile seal continues 1560
to be sufficient as to such obligations and obligations issued in 1561
substitution or exchange therefor. 1562

       (G) All such obligations are negotiable instruments and 1563
securities under Chapter 1308. of the Revised Code, subject to the 1564
provisions of the bond proceedings as to registration. The 1565
obligations may be issued in coupon or in registered form, or 1566
both. Provision may be made for the registration of any 1567
obligations with coupons attached thereto as to principal alone or 1568
as to both principal and interest, their exchange for obligations 1569
so registered, and for the conversion or reconversion into 1570
obligations with coupons attached thereto of any obligations 1571
registered as to both principal and interest, and for reasonable 1572
charges for such registration, exchange, conversion, and 1573
reconversion. 1574

       (H) Pending preparation of definitive obligations, the 1575
institution of higher education may issue interim receipts or 1576
certificates which shall be exchanged for such definitive 1577
obligations. 1578

       (I) Such obligations may be secured additionally by a trust 1579
agreement or indenture between the institution of higher education 1580
and a corporate trustee, which may be any trust company or bank 1581
having the powers of a trust company within or without this state 1582
but authorized to exercise trust powers within this state. Any 1583
such agreement or indenture may contain the resolution authorizing 1584
the issuance of the obligations, any provisions that may be 1585
contained in the bond proceedings as authorized by this section, 1586
and other provisions which are customary or appropriate in an 1587
agreement or indenture of such type, including: 1588

       (1) Maintenance of each pledge, trust agreement, and 1589
indenture, or other instrument comprising part of the bond 1590
proceedings until the institution of higher education has fully 1591
paid the bond service charges on the obligations secured thereby, 1592
or provision therefor has been made; 1593

       (2) In the event of default in any payments required to be 1594
made by the bond proceedings, or any other agreement of the 1595
institution of higher education made as a part of the contract 1596
under which the obligations were issued, enforcement of such 1597
payments or agreement by mandamus, the appointment of a receiver, 1598
suit in equity, action at law, or any combination of the 1599
foregoing; 1600

       (3) The rights and remedies of the holders of obligations and 1601
of the trustee, and provisions for protecting and enforcing them, 1602
including limitations on rights of individual holders of 1603
obligations; 1604

       (4) The replacement of any obligations that become mutilated 1605
or are destroyed, lost, or stolen; 1606

       (5) Such other provisions as the trustee and the institution 1607
of higher education agree upon, including limitations, conditions, 1608
or qualifications relating to any of the foregoing. 1609

       (J) Each duty of the institution of higher education and its 1610
officers or employees, undertaken pursuant to the bond proceedings 1611
or any related agreement or lease made under authority of law, is 1612
hereby established as a duty of such institution, and of each such 1613
officer or employee having authority to perform such duty, 1614
specially enjoined by law resulting from an office, trust, or 1615
station within the meaning of section 2731.01 of the Revised Code. 1616
The persons who are at the time the members of the board of 1617
trustees or the managing directors of the institution or its 1618
officers or employees are not liable in their personal capacities 1619
on such obligations, or lease, or other agreement of the 1620
institution. 1621

       (K) The authority to issue obligations includes authority to: 1622

       (1) Issue obligations in the form of bond anticipation notes 1623
and to renew them from time to time by the issuance of new notes. 1624
Such notes are payable solely from the available receipts and 1625
funds that may be pledged to the payment of such bonds, or from 1626
the proceeds of such bonds or renewal notes, or both, as the 1627
institution of higher education provides in its resolution 1628
authorizing such notes. Such notes may be additionally secured by 1629
covenants of the institution to the effect that it will do such or 1630
all things necessary for the issuance of such bonds or renewal 1631
notes in appropriate amount, and either exchange such bonds or 1632
renewal notes therefor or apply the proceeds thereof to the extent 1633
necessary, to make full payment of the bond service charges on 1634
such notes at the time or times contemplated, as provided in such 1635
resolution. Subject to the provisions of this division, all 1636
references to obligations in this section apply to such 1637
anticipation notes. 1638

       (2) Issue obligations to refund, including funding and 1639
retirement of, obligations previously issued to pay costs of 1640
facilities. Such obligations may be issued in amounts sufficient 1641
for payment of the principal amount of the obligations to be so 1642
refunded, any redemption premiums thereon, principal maturities of 1643
any obligations maturing prior to the redemption of any other 1644
obligations on a parity therewith to be so refunded, interest 1645
accrued or to accrue to the maturity date or dates of redemption 1646
of such obligations, and any expenses incurred or to be incurred 1647
in connection with such refunding or the issuance of the 1648
obligations. 1649

       (L) Obligations are lawful investments for banks, societies 1650
for savings, savings and loan associations, deposit guarantee 1651
associations, trust companies, trustees, fiduciaries, insurance 1652
companies, including domestic for life and domestic not for life, 1653
trustees or other officers having charge of sinking and bond 1654
retirement or other special funds of political subdivisions and 1655
taxing districts of this state, the commissioners of the sinking 1656
fund, the administrator of workers' compensation in accordance 1657
with the investment policy ~~established~~approved by the bureau of 1658
workers' compensation ~~oversight commission~~board of directors 1659
pursuant to section 4121.12 of the Revised Code, the state 1660
teachers retirement system, the public employees retirement 1661
system, the school employees retirement system, and the Ohio 1662
police and fire pension fund, notwithstanding any other provisions 1663
of the Revised Code or rules adopted pursuant thereto by any state 1664
agency with respect to investments by them, and are also 1665
acceptable as security for the deposit of public moneys. 1666

       (M) All facilities purchased, acquired, constructed, or owned 1667
by an institution of higher education, or financed in whole or in 1668
part by obligations issued by an institution, and used for the 1669
purposes of the institution or other publicly owned and controlled 1670
college or university, is public property used exclusively for a 1671
public purpose, and such property and the income therefrom is 1672
exempt from all taxation and assessment within this state, 1673
including ad valorem and excise taxes. The obligations, the 1674
transfer thereof, and the income therefrom, including any profit 1675
made on the sale thereof, are at all times free from taxation 1676
within the state. The transfer of tangible personal property by 1677
lease under authority of this section or section 3345.07, 3345.11, 1678
3354.121, 3355.091, 3357.112, or 3358.10 of the Revised Code is 1679
not a sale as used in Chapter 5739. of the Revised Code. 1680

       (N) The authority granted by this section is cumulative with 1681
the authority granted to institutions of higher education under 1682
Chapter 154. of the Revised Code, and nothing in this section 1683
impairs or limits the authority granted by Chapter 154. of the 1684
Revised Code. In any lease, agreement, or commitment made by an 1685
institution of higher education under Chapter 154. of the Revised 1686
Code, it may agree to restrict or subordinate any pledge it may 1687
thereafter make under authority of this section. 1688

       (O) Title to lands acquired under this section and sections 1689
3345.07 and 3345.11 of the Revised Code by a state university or 1690
college shall be taken in the name of the state. 1691

       (P) Except where costs of facilities are to be paid in whole 1692
or in part from funds appropriated by the general assembly, 1693
section 125.81 of the Revised Code and the requirement for 1694
certification with respect thereto under section 153.04 of the 1695
Revised Code do not apply to such facilities. 1696

       (Q) A state university or college may sell or lease lands or 1697
interests in land owned by it or by the state for its use, or 1698
facilities authorized to be acquired or constructed by it under 1699
section 3345.07 or 3345.11 of the Revised Code, to permit the 1700
purchasers or lessees thereof to acquire, construct, equip, 1701
furnish, reconstruct, alter, enlarge, remodel, renovate, 1702
rehabilitate, improve, maintain, repair, or maintain and operate 1703
thereon and to provide by lease or otherwise to such institution, 1704
facilities authorized in section 3345.07 or 3345.11 of the Revised 1705
Code. Such land or interests therein shall be sold for such 1706
appraised value, or leased, and on such terms as the board of 1707
trustees determines. All deeds or other instruments relating to 1708
such sales or leases shall be executed by such officer of the 1709
state university or college as the board of trustees designates. 1710
The state university or college shall hold, invest, or use the 1711
proceeds of such sales or leases for the same purposes for which 1712
proceeds of borrowings may be used under sections 3345.07 and 1713
3345.11 of the Revised Code. 1714

       (R) An institution of higher education may pledge available 1715
receipts, to the extent permitted by division (C) of this section 1716
with respect to obligations, to secure the payments to be made by 1717
it under any lease, lease with option to purchase, or 1718
lease-purchase agreement authorized under this section or section 1719
3345.07, 3345.11, 3354.121, 3355.091, 3357.112, or 3358.10 of the 1720
Revised Code. 1721

       Sec. 4121.01. (A) As used in sections 4121.01 to 4121.29 of 1722
the Revised Code: 1723

       (1) "Place of employment" means every place, whether indoors 1724
or out, or underground, and the premises appurtenant thereto, 1725
where either temporarily or permanently any industry, trade, or 1726
business is carried on, or where any process or operation, 1727
directly or indirectly related to any industry, trade, or 1728
business, is carried on and where any person is directly or 1729
indirectly employed by another for direct or indirect gain or 1730
profit, but does not include any place where persons are employed 1731
in private domestic service or agricultural pursuits which do not 1732
involve the use of mechanical power. 1733

       (2) "Employment" means any trade, occupation, or process of 1734
manufacture or any method of carrying on such trade, occupation, 1735
or process of manufacture in which any person may be engaged, 1736
except in such private domestic service or agricultural pursuits 1737
as do not involve the use of mechanical power. 1738

       (3) "Employer" means every person, firm, corporation, agent, 1739
manager, representative, or other person having control or custody 1740
of any employment, place of employment, or employee. 1741

       (4) "Employee" means every person who may be required or 1742
directed by any employer, in consideration of direct or indirect 1743
gain or profit, to engage in any employment, or to go, or work, or 1744
be at any time in any place of employment. 1745

       (5) "Frequenter" means every person, other than an employee, 1746
who may go in or be in a place of employment under circumstances 1747
which render the person other than a trespasser. 1748

       (6) "Deputy" means any person employed by the industrial 1749
commission or the bureau of workers' compensation, designated as a 1750
deputy by the commission or the administrator of workers' 1751
compensation, who possesses special, technical, scientific, 1752
managerial, professional, or personal abilities or qualities in 1753
matters within the jurisdiction of the commission or the bureau, 1754
and who may be engaged in the performance of duties under the 1755
direction of the commission or the bureau calling for the exercise 1756
of such abilities or qualities. 1757

       (7) "Order" means any decision, rule, regulation, direction, 1758
requirement, or standard, or any other determination or decision 1759
that the bureau is empowered to and does make. 1760

       (8) "General order" means an order that applies generally 1761
throughout the state to all persons, employments, or places of 1762
employment, or all persons, employments, or places of employment 1763
of a class under the jurisdiction of the bureau. All other orders 1764
shall be considered special orders. 1765

       (9) "Local order" means any ordinance, order, rule, or 1766
determination of the legislative authority of any municipal 1767
corporation, or any trustees, or board or officers of any 1768
municipal corporation upon any matter over which the bureau has 1769
jurisdiction. 1770

       (10) "Welfare" means comfort, decency, and moral well-being. 1771

       (11) "Safe" or "safety," as applied to any employment or a 1772
place of employment, means such freedom from danger to the life, 1773
health, safety, or welfare of employees or frequenters as the 1774
nature of the employment will reasonably permit, including 1775
requirements as to the hours of labor with relation to the health 1776
and welfare of employees. 1777

       (12) "Employee organization" means any labor or bona fide 1778
organization in which employees participate and that exists for 1779
the purpose, in whole or in part, of dealing with employers 1780
concerning grievances, labor disputes, wages, hours, terms, and 1781
other conditions of employment. 1782

       (B) As used in the Revised Code: 1783

       (1) "Industrial commission" means the chairperson of the 1784
three-member industrial commission created pursuant to section 1785
4121.02 of the Revised Code when the context refers to the 1786
authority vested in the chairperson as the chief executive officer 1787
of the three-member industrial commission pursuant to divisions 1788
(A), (B), (C), and (D) of section 4121.03 of the Revised Code. 1789

       (2) "Industrial commission" means the three-member industrial 1790
commission created pursuant to section 4121.02 of the Revised Code 1791
when the context refers to the authority vested in the 1792
three-member industrial commission pursuant to division (E) of 1793
section 4121.03 of the Revised Code. 1794

       (3) "Industrial commission" means the industrial commission 1795
as a state agency when the context refers to the authority vested 1796
in the industrial commission as a state agency. 1797

       Sec. 4121.12. (A) There is hereby created the bureau of 1798
workers' compensation ~~oversight commission~~board of directors 1799
consisting of ~~eleven~~fifteen members, of which members the 1800
governor shall appoint ~~five~~eleven with the advice and consent of 1801
the senate. Of the ~~five~~eleven members the governor appoints, ~~two~~ 1802
one shall be ~~individuals~~an individual who, on account of ~~their~~ 1803
the individual's previous vocation, employment, or affiliations, 1804
can be classed as a representative of employees~~, at least one of~~ 1805
~~whom is representative of employees who are members of an~~; two 1806
shall be individuals who, on account of their previous vocation, 1807
employment, or affiliations, can be classed as representatives of 1808
employee ~~organization~~organizations and at least one of these two 1809
individuals shall be members of the executive committee of the 1810
largest statewide labor federation; ~~two~~three shall be individuals 1811
who, on account of their previous vocation, employment, or 1812
affiliations, can be classed as ~~representative~~representatives of 1813
~~employers~~industry, one of whom represents self-insuring employers 1814
~~and~~, one of whom employs one hundred or more employees and has 1815
experience as an employer in compliance with section 4123.35 of 1816
the Revised Code other than a self-insuring employer, and one of 1817
~~those two representatives also shall represent employers whose~~ 1818
~~employees are not members of an employee organization~~whom employs 1819
less than one hundred employees and has experience as an employer 1820
in compliance with section 4123.35 of the Revised Code other than 1821
a self-insuring employer; two shall be individuals who, because of 1822
their vocation, employment, or affiliations, can be classed as 1823
investment and securities experts who have experience with state 1824
workers' compensation funds or state pension funds; one individual 1825
who shall be a certified public accountant; one individual who 1826
shall be an actuary who is a member in good standing with the 1827
American academy of actuaries or who is an associate or fellow 1828
with the society of actuaries; and one shall represent the public 1829
and also be an individual who, on account of the individual's 1830
previous vocation, employment, or affiliations, cannot be classed 1831
as either predominantly representative of employees or of 1832
~~employers~~industry. The governor shall select the chairperson of 1833
the ~~commission~~board who shall serve as chairperson at the 1834
pleasure of the governor. ~~No more than three members appointed by~~ 1835
~~the governor shall belong to or be affiliated with the same~~ 1836
~~political party.~~ 1837

       ~~Each~~None of these ~~five~~eleven members, within the three 1838
years immediately preceding the member's appointment, shall have 1839
~~at least three years' experience in the field of insurance,~~ 1840
~~finance,~~been employed by the bureau of workers' compensation, 1841
~~law, accounting, actuarial, personnel, investments, or data~~ 1842
~~processing,~~ or ~~in the management of an organization whose size is~~ 1843
~~commensurate with that of the bureau of workers' compensation. At~~ 1844
~~least one of these five members shall be an attorney licensed~~ 1845
~~under Chapter 4705. of the Revised Code to practice law in this~~ 1846
~~state~~by any person, partnership, or corporation that has provided 1847
to the bureau services of a financial or investment nature, 1848
including the management, analysis, supervision, or investment of 1849
assets. 1850

       (B) The governor shall appoint the initial members to the 1851
board not later than sixty days after the effective date of this 1852
amendment. Of the initial appointments made to the ~~commission~~ 1853
board, the governor shall appoint ~~one~~the member who represents 1854
employees ~~to a term ending one year after September 1, 1995~~, one 1855
member who represents ~~employers to a term ending two years after~~ 1856
~~September 1, 1995~~industry, and the member who represents the 1857
public to a term ending ~~three years~~one year after ~~September 1,~~ 1858
~~1995,~~the effective date of this amendment; one member who 1859
represents ~~employees~~industry, one member who represents employee 1860
organizations, one member who is an investment and securities 1861
expert, and the member who is a certified public accountant to a 1862
term ending ~~four~~two years after ~~September 1, 1995,~~the effective 1863
date of this amendment; and one member who represents ~~employers~~ 1864
industry, one member who represents employee organizations, one 1865
member who is an investment and securities expert, and the member 1866
who is an actuary to a term ending ~~five~~three years after 1867
~~September 1, 1995~~the effective date of this amendment. 1868
Thereafter, terms of office shall be for three years, with each 1869
term ending on the same day of the same month as did the term that 1870
it succeeds. Each member shall hold office from the date of the 1871
member's appointment until the end of the term for which the 1872
member was appointed. 1873

       ~~The governor shall not appoint any person to more than two~~ 1874
~~full terms of office on the commission. This restriction does not~~ 1875
~~prevent the governor from appointing a person to fill a vacancy~~ 1876
~~caused by the death, resignation, or removal of a commission~~ 1877
~~member and also appointing that person twice to full terms on the~~ 1878
~~commission, or from appointing a person previously appointed to~~ 1879
~~fill less than a full term twice to full terms on the commission~~ 1880
Members may be reappointed. Any member appointed to fill a vacancy 1881
occurring prior to the expiration date of the term for which the 1882
member's predecessor was appointed shall hold office as a member 1883
for the remainder of that term. A member shall continue in office 1884
subsequent to the expiration date of the member's term until a 1885
successor takes office or until a period of sixty days has 1886
elapsed, whichever occurs first. 1887

       (C) ~~In making appointments to the commission, the governor~~ 1888
~~shall select the members from the list of names submitted by the~~ 1889
~~workers' compensation oversight commission nominating committee~~ 1890
~~pursuant to this division. Within fourteen days after the governor~~ 1891
~~calls the initial meeting of the nominating committee pursuant to~~ 1892
~~division (C) of section 4121.123 of the Revised Code, the~~ 1893
~~nominating committee shall submit to the governor, for the initial~~ 1894
~~appointments, a list containing four separate names for each of~~ 1895
~~the members on the commission. Within fourteen days after the~~ 1896
~~submission of the list, the governor shall appoint individuals~~ 1897
~~from the list.~~ 1898

       ~~For the appointment of the member who is representative of~~ 1899
~~employees who are members of an employee organization, both for~~ 1900
~~initial appointments and for the filling of vacancies, the list of~~ 1901
~~four names submitted by the nominating committee shall be~~ 1902
~~comprised of four individuals who are members of the executive~~ 1903
~~committee of the largest statewide labor federation.~~ 1904

       ~~Thereafter, within sixty days after a vacancy occurring as a~~ 1905
~~result of the expiration of a term and within thirty days after~~ 1906
~~other vacancies occurring on the commission, the nominating~~ 1907
~~committee shall submit a list containing four names for each~~ 1908
~~vacancy. Within fourteen days after the submission of the list,~~ 1909
~~the governor shall appoint individuals from the list. With respect~~ 1910
~~to the filling of vacancies, the nominating committee shall~~ 1911
~~provide the governor with a list of four individuals who are, in~~ 1912
~~the judgment of the nominating committee, the most fully qualified~~ 1913
~~to accede to membership on the commission. The nominating~~ 1914
~~committee shall not include the name of an individual upon the~~ 1915
~~list for the filling of vacancies if the appointment of that~~ 1916
~~individual by the governor would result in more than three members~~ 1917
~~of the commission belonging to or being affiliated with the same~~ 1918
~~political party. The committee shall include on the list for the~~ 1919
~~filling of vacancies only the names of attorneys admitted to~~ 1920
~~practice law in this state if, to fulfill the requirement of~~ 1921
~~division (A) of section 4121.12 of the Revised Code, the vacancy~~ 1922
~~must be filled by an attorney.~~ 1923

       ~~In order for the name of an individual to be submitted to the~~ 1924
~~governor under this division, the nominating committee shall~~ 1925
~~approve the individual by an affirmative vote of a majority of its~~ 1926
~~members.~~ 1927

       ~~(D) The commission shall also consist of two members, known~~ 1928
~~as the investment expert members. One investment expert member~~ 1929
~~shall be appointed by the treasurer of state and one investment~~ 1930
~~expert member shall be jointly appointed by the speaker of the~~ 1931
~~house of representatives and the president of the senate. Each~~ 1932
~~investment expert member shall have the following qualifications:~~ 1933

       ~~(1) Be a resident of this state;~~ 1934

       ~~(2) Within the three years immediately preceding the~~ 1935
~~appointment, not have been employed by the bureau of workers'~~ 1936
~~compensation or by any person, partnership, or corporation that~~ 1937
~~has provided to the bureau services of a financial or investment~~ 1938
~~nature, including the management, analysis, supervision, or~~ 1939
~~investment of assets;~~ 1940

       ~~(3) Have direct experience in the management, analysis,~~ 1941
~~supervision, or investment of assets.~~ 1942

       ~~Terms of office of the investment expert members shall be for~~ 1943
~~three years, with each term ending on the same day of the same~~ 1944
~~month as did the term that it succeeds. Each member shall hold~~ 1945
~~office for the date of the member's appointment until the end of~~ 1946
~~the term for which the member was appointed. The president,~~ 1947
~~speaker, and treasurer shall not appoint any person to more than~~ 1948
~~two full terms of office on the commission. This restriction does~~ 1949
~~not prevent the president, speaker, and treasurer from appointing~~ 1950
~~a person to fill a vacancy caused by the death, resignation, or~~ 1951
~~removal of a commission member and also appointing that person~~ 1952
~~twice to full terms on the commission, or from appointing a person~~ 1953
~~previously appointed to fill less than a full term twice to full~~ 1954
~~terms on the commission. Any investment expert member appointed to~~ 1955
~~fill a vacancy occurring prior to the expiration of the term for~~ 1956
~~which the member's predecessor was appointed shall hold office~~ 1957
~~until the end of that term. The member shall continue in office~~ 1958
~~subsequent to the expiration date of the member's term until the~~ 1959
~~member's successor takes office or until a period of sixty days~~ 1960
~~has elapsed, whichever occurs first.~~ 1961

       ~~The investment expert members of the oversight commission~~ 1962
~~shall vote only on investment matters.~~ 1963

       ~~(E)~~ The remaining four members of the ~~commission~~board shall 1964
be the chairperson and ranking minority member of the standing 1965
committees of the house of representatives and of the senate to 1966
which legislation concerning this chapter and Chapters 4123., 1967
4127., and 4131. of the Revised Code normally are referred, or a 1968
designee of the chairperson or ranking minority member, provided 1969
that the designee is a member of the standing committee. 1970
Legislative members shall serve during the session of the general 1971
assembly to which they are elected and for as long as they are 1972
members of the general assembly. Legislative members shall serve 1973
in an advisory capacity to the ~~commission~~board and shall have no 1974
voting rights on matters coming before the ~~commission~~board. 1975
Membership on the ~~commission~~board by legislative members shall 1976
not be deemed as holding a public office. 1977

       ~~(F)~~(D) All members of the ~~commission~~board shall receive 1978
their reasonable and necessary expenses pursuant to section 126.31 1979
of the Revised Code while engaged in the performance of their 1980
duties as members. Members appointed by the governor ~~and the~~ 1981
~~investment expert members~~ also shall receive an annual salary not 1982
to exceed ~~eighteen~~thirty thousand dollars payable on the 1983
following basis: 1984

       (1) Except as provided in division (F)(2) of this section, a 1985
member shall receive two thousand five hundred dollars during a 1986
month in which the member attends one or more meetings of the 1987
~~commission~~board and shall receive no payment during a month in 1988
which the member attends no meeting of the ~~commission~~board. 1989

       (2) A member may receive no more than the annual ~~eighteen~~ 1990
thirty thousand dollar salary regardless of the number of meetings 1991
held by the ~~commission~~board during a year or the number of 1992
meetings in excess of ~~nine~~twelve within a year that the member 1993
attends. 1994

       The chairperson of the ~~commission~~board shall set the meeting 1995
dates of the ~~commission~~board as necessary to perform the duties 1996
of the ~~commission~~board under this chapter and Chapters 4123., 1997
4125., 4127., ~~and~~ 4131., and 4167. of the Revised Code. The 1998
~~commission~~board shall meet at least ~~nine~~twelve times ~~during the~~ 1999
~~period commencing on the first day of September and ending on the~~ 2000
~~thirty-first day of August of the following~~a year. The 2001
administrator of workers' compensation shall provide professional 2002
and clerical assistance to the ~~commission~~board, as the ~~commission~~ 2003
board considers appropriate. 2004

       ~~(G)~~(E) Before entering upon the duties of office, each 2005
appointed member of the board shall take an oath of office as 2006
required by sections 3.22 and 3.23 of the Revised Code and file in 2007
the office of the secretary of state the bond required under 2008
section 4121.127 of the Revised Code. 2009

       (F) The ~~commission~~board shall: 2010

       (1) Establish the overall administrative policy for the 2011
bureau for the purposes of this chapter and Chapters 4123., 4125., 2012
4127., 4131., and 4167. of the Revised Code; 2013

       (2) Review progress of the bureau in meeting its cost and 2014
quality objectives and in complying with this chapter and Chapters 2015
4123., 4125., 4127., ~~and~~ 4131., and 4167. of the Revised Code; 2016

       ~~(2)~~(3) Issue an annual report on the cost and quality 2017
objectives of the bureau to the president of the senate, the 2018
speaker of the house of representatives, and the governor; 2019

       ~~(3)~~(4) Review all independent financial audits of the bureau. 2020
The administrator shall provide access to records of the bureau to 2021
facilitate the review required under this division. 2022

       ~~(4)~~(5) Study issues as requested by the administrator or the 2023
governor; 2024

       ~~(5)~~(6) Contract with anall of the following: 2025

       (a) An independent actuarial firm to assist the ~~commission~~ 2026
board in ~~making recommendations to the administrator regarding~~ 2027
determining premium rates; 2028

       ~~(6) Establish objectives, policies, and criteria for the~~ 2029
~~administration of the investment program that include asset~~ 2030
~~allocation targets and ranges, risk factors, asset class~~ 2031
~~benchmarks, time horizons, total return objectives, and~~ 2032
~~performance evaluation guidelines, and monitor the administrator's~~ 2033
~~progress in implementing the objectives, policies, and criteria on~~ 2034
~~a quarterly basis. The commission shall not specify in the~~ 2035
~~objectives, policies, and criteria that the administrator or~~ 2036
~~employees of the bureau are prohibited from conducting business~~ 2037
~~with an investment management firm, any investment management~~ 2038
~~professional associated with that firm, any third party solicitor~~ 2039
~~associated with that firm, or any political action committee~~ 2040
~~controlled by that firm or controlled by an investment management~~ 2041
~~professional of that firm based on criteria that are more~~ 2042
~~restrictive than the restrictions described in divisions (Y) and~~ 2043
~~(Z) of section 3517.13 of the Revised Code. The commission shall~~ 2044
~~review~~ 2045

       (b) An outside investment counsel to assist the workers' 2046
compensation investment committee in fulfilling its duties; 2047

       (c) An independent fiduciary counsel to assist the board in 2048
the performance of its duties. 2049

       (7) Approve the investment policy developed by the workers' 2050
compensation investment committee pursuant to section 4121.123 of 2051
the Revised Code if the policy satisfies the requirements 2052
specified in section 4123.442 of the Revised Code. 2053

       (8) Review and publish the ~~objectives, policies, and criteria~~ 2054
investment policy no less than annually and ~~shall~~ make copies 2055
available to interested parties. ~~The commission shall prohibit~~ 2056

       (9) Prohibit, on a prospective basis, any specific investment 2057
it finds to be contrary to ~~its~~the investment ~~objectives,~~ 2058
~~policies, and criteria.~~ 2059

       ~~The objectives, policies, and criteria adopted by the~~ 2060
~~commission for the operation of the investment program shall~~ 2061
~~prohibit investing assets of funds, directly or indirectly, in~~ 2062
~~vehicles that target any of the following:~~ 2063

       ~~(a) Coins;~~ 2064

       ~~(b) Artwork;~~ 2065

       ~~(c) Horses;~~ 2066

       ~~(d) Jewelry or gems;~~ 2067

       ~~(e) Stamps;~~ 2068

       ~~(f) Antiques;~~ 2069

       ~~(g) Artifacts;~~ 2070

       ~~(h) Collectibles;~~ 2071

       ~~(i) Memorabilia;~~ 2072

       ~~(j) Similar unregulated investments that are not commonly~~ 2073
~~part of an institutional portfolio, that lack liquidity, and that~~ 2074
~~lack readily determinable valuation~~policy approved by the board. 2075

       ~~(7) Specify in the objectives, policies, and criteria for the~~ 2076
~~investment program that the administrator is permitted~~(10) Vote 2077
to open each investment class and allow the administrator to 2078
invest in an investment class only if the ~~commission~~board, by a 2079
majority vote, opens that class~~. After the commission opens~~; 2080

       (11) After opening a class but prior to the administrator 2081
investing in that class, ~~the commission shall~~ adopt rules 2082
establishing due diligence standards for employees of the bureau 2083
to follow when investing in that class and ~~shall~~ establish 2084
policies and procedures to review and monitor the performance and 2085
value of each investment class~~. The commission shall submit~~; 2086

       (12) Submit a report annually on the performance and value of 2087
each investment class to the governor, the president and minority 2088
leader of the senate, and the speaker and minority leader of the 2089
house of representatives. ~~The commission may vote to close any~~ 2090
~~investment class.~~ 2091

       ~~(8)~~(13) Advise and consent on all of the following: 2092

       (a) ~~Administrative rules the administrator submits to it~~ 2093
~~pursuant to division (B)(5) of section 4121.121 of the Revised~~ 2094
~~Code for the classification of occupations or industries, for~~ 2095
~~premium rates and contributions, for the amount to be credited to~~ 2096
~~the surplus fund, for rules and systems of rating, rate revisions,~~ 2097
~~and merit rating;~~ 2098

       ~~(b) The overall policy of the bureau of workers' compensation~~ 2099
~~as set by the administrator;~~ 2100

       ~~(c)~~ The duties and authority conferred upon the administrator 2101
pursuant to section 4121.37 of the Revised Code; 2102

       ~~(d)~~(b) Rules the administrator adopts for the health 2103
partnership program and the qualified health plan system, as 2104
provided in sections 4121.44, 4121.441, and 4121.442 of the 2105
Revised Code; 2106

       ~~(e)~~(c) Rules the administrator submits to it pursuant to 2107
Chapter 4167. of the Revised Code regarding the public employment 2108
risk reduction program and the protection of public health care 2109
workers from exposure incidents. 2110

        As used in this division, "public health care worker" and 2111
"exposure incident" have the same meanings as in section 4167.25 2112
of the Revised Code. 2113

       ~~(9)~~(14) Perform all duties required under ~~section 4121.125~~ 2114
this chapter and Chapters 4123., 4125., 4127., 4131., and 4167. of 2115
the Revised Code; 2116

       (15) Meet with the governor on an annual basis to discuss the 2117
administrator's performance of the duties specified in this 2118
chapter and Chapters 4123., 4125., 4127., 4131., and 4167. of the 2119
Revised Code. 2120

       ~~(H)~~(G) The board may do both of the following: 2121

       (1) Vote to close any investment class; 2122

       (2) Create any committees in addition to the workers' 2123
compensation audit committee, the workers' compensation actuarial 2124
committee, and the workers' compensation investment committee that 2125
the board determines are necessary to assist the board in 2126
performing its duties. 2127

       (H) The office of a member of the ~~commission~~board who is 2128
convicted of or pleads guilty to a felony, a theft offense as 2129
defined in section 2913.01 of the Revised Code, or a violation of 2130
section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2131
2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code 2132
shall be deemed vacant. The vacancy shall be filled in the same 2133
manner as the original appointment. A person who has pleaded 2134
guilty to or been convicted of an offense of that nature is 2135
ineligible to be a member of the ~~commission~~board. A member who 2136
receives a bill of indictment for any of the offenses specified in 2137
this section shall be automatically suspended from the ~~commission~~ 2138
board pending resolution of the criminal matter. 2139

       (I) ~~As used in this section, "employee organization" means~~ 2140
~~any labor or bona fide organization in which employees participate~~ 2141
~~and which exists for the purpose, in whole or in part, of dealing~~ 2142
~~with employers concerning grievances, labor disputes, wages,~~ 2143
~~hours, terms and other conditions of employment~~For the purposes 2144
of division (G)(1) of section 121.22 of the Revised Code, the 2145
meeting between the governor and the board to review the 2146
administrator's performance as required under division (F)(15) of 2147
this section shall be considered a meeting regarding the 2148
employment of the administrator. 2149

       Sec. 4121.121. (A) There is hereby created the bureau of 2150
workers' compensation, which shall be administered by the 2151
administrator of workers' compensation. A person appointed to the 2152
position of administrator shall possess significant management 2153
experience in effectively managing an organization or 2154
organizations of substantial size and complexity. The governor 2155
shall appoint the administrator as provided in section 121.03 of 2156
the Revised Code, and the administrator shall serve at the 2157
pleasure of the governor. The governor shall fix the 2158
administrator's salary on the basis of the administrator's 2159
experience and the administrator's responsibilities and duties 2160
under this chapter and Chapters 4123., 4125., 4127., 4131., and 2161
4167. of the Revised Code. The governor shall not appoint to the 2162
position of administrator any person who has, or whose spouse has, 2163
given a contribution to the campaign committee of the governor in 2164
an amount greater than one thousand dollars during the two-year 2165
period immediately preceding the date of the appointment of the 2166
administrator. 2167

       The administrator shall hold no other public office and shall 2168
devote full time to the duties of administrator. Before entering 2169
upon the duties of the office, the administrator shall take an 2170
oath of office as required by sections 3.22 and 3.23 of the 2171
Revised Code, and shall file in the office of the secretary of 2172
state, a bond signed by the administrator and by surety approved 2173
by the governor, for the sum of fifty thousand dollars payable to 2174
the state, conditioned upon the faithful performance of the 2175
administrator's duties. 2176

       (B) The administrator is responsible for the management of 2177
the bureau ~~of workers' compensation~~ and for the discharge of all 2178
administrative duties imposed upon the administrator in this 2179
chapter and Chapters 4123., 4125., 4127., 4131., and 4167. of the 2180
Revised Code, and in the discharge thereof shall do all of the 2181
following: 2182

       (1) ~~Establish the overall administrative policy of the bureau~~ 2183
~~for the purposes of this chapter and Chapters 4123., 4127., 4131.,~~ 2184
~~and 4167. of the Revised Code, and perform~~Perform all acts and 2185
exercise all authorities and powers, discretionary and otherwise 2186
that are required of or vested in the bureau or any of its 2187
employees in this chapter and Chapters 4123., 4125., 4127., 4131., 2188
and 4167. of the Revised Code, except the acts and the exercise of 2189
authority and power that is required of and vested in the 2190
~~oversight commission~~bureau of workers' compensation board of 2191
directors or the industrial commission pursuant to those chapters. 2192
The treasurer of state shall honor all warrants signed by the 2193
administrator, or by one or more of the administrator's employees, 2194
authorized by the administrator in writing, or bearing the 2195
facsimile signature of the administrator or such employee under 2196
sections 4123.42 and 4123.44 of the Revised Code. 2197

       (2) Employ, direct, and supervise all employees required in 2198
connection with the performance of the duties assigned to the 2199
bureau by this chapter and Chapters 4123., 4125., 4127., 4131., 2200
and 4167. of the Revised Code, and may establish job 2201
classification plans and compensation for all employees of the 2202
bureau provided that this grant of authority shall not be 2203
construed as affecting any employee for whom the state employment 2204
relations board has established an appropriate bargaining unit 2205
under section 4117.06 of the Revised Code. All positions of 2206
employment in the bureau are in the classified civil service 2207
except those employees the administrator may appoint to serve at 2208
the administrator's pleasure in the unclassified civil service 2209
pursuant to section 124.11 of the Revised Code. The administrator 2210
shall fix the salaries of employees the administrator appoints to 2211
serve at the administrator's pleasure, including the chief 2212
operating officer, staff physicians, and other senior management 2213
personnel of the bureau and shall establish the compensation of 2214
staff attorneys of the bureau's legal section and their immediate 2215
supervisors, and take whatever steps are necessary to provide 2216
adequate compensation for other staff attorneys. 2217

       The administrator may appoint a person who holds a certified 2218
position in the classified service within the bureau to a position 2219
in the unclassified service within the bureau. A person appointed 2220
pursuant to this division to a position in the unclassified 2221
service shall retain the right to resume the position and status 2222
held by the person in the classified service immediately prior to 2223
the person's appointment in the unclassified service, regardless 2224
of the number of positions the person held in the unclassified 2225
service. An employee's right to resume a position in the 2226
classified service may only be exercised when the administrator 2227
demotes the employee to a pay range lower than the employee's 2228
current pay range or revokes the employee's appointment to the 2229
unclassified service. An employee forfeits the right to resume a 2230
position in the classified service when the employee is removed 2231
from the position in the unclassified service due to incompetence, 2232
inefficiency, dishonesty, drunkenness, immoral conduct, 2233
insubordination, discourteous treatment of the public, neglect of 2234
duty, violation of this chapter or Chapter 124., 4123., 4125., 2235
4127., 4131., or 4167. of the Revised Code, violation of the rules 2236
of the director of administrative services or the administrator of 2237
~~workers' compensation~~, any other failure of good behavior, any 2238
other acts of misfeasance, malfeasance, or nonfeasance in office, 2239
or conviction of a felony. An employee also forfeits the right to 2240
resume a position in the classified service upon transfer to a 2241
different agency. 2242

       Reinstatement to a position in the classified service shall 2243
be to a position substantially equal to that position in the 2244
classified service held previously, as certified by the department 2245
of administrative services. If the position the person previously 2246
held in the classified service has been placed in the unclassified 2247
service or is otherwise unavailable, the person shall be appointed 2248
to a position in the classified service within the bureau that the 2249
director of administrative services certifies is comparable in 2250
compensation to the position the person previously held in the 2251
classified service. Service in the position in the unclassified 2252
service shall be counted as service in the position in the 2253
classified service held by the person immediately prior to the 2254
person's appointment in the unclassified service. When a person is 2255
reinstated to a position in the classified service as provided in 2256
this division, the person is entitled to all rights, status, and 2257
benefits accruing to the position during the person's time of 2258
service in the position in the unclassified service. 2259

       (3) Reorganize the work of the bureau, its sections, 2260
departments, and offices to the extent necessary to achieve the 2261
most efficient performance of its functions and to that end may 2262
establish, change, or abolish positions and assign and reassign 2263
duties and responsibilities of every employee of the bureau. All 2264
persons employed by the commission in positions that, after 2265
November 3, 1989, are supervised and directed by the administrator 2266
under this section are transferred to the bureau in their 2267
respective classifications but subject to reassignment and 2268
reclassification of position and compensation as the administrator 2269
determines to be in the interest of efficient administration. The 2270
civil service status of any person employed by the commission is 2271
not affected by this section. Personnel employed by the bureau or 2272
the commission who are subject to Chapter 4117. of the Revised 2273
Code shall retain all of their rights and benefits conferred 2274
pursuant to that chapter as it presently exists or is hereafter 2275
amended and nothing in this chapter or Chapter 4123. of the 2276
Revised Code shall be construed as eliminating or interfering with 2277
Chapter 4117. of the Revised Code or the rights and benefits 2278
conferred under that chapter to public employees or to any 2279
bargaining unit. 2280

       (4) Provide offices, equipment, supplies, and other 2281
facilities for the bureau. 2282

       (5) ~~Prepare and submit to the oversight commission~~ 2283
~~information the administrator considers pertinent or the oversight~~ 2284
~~commission requires, together with the administrator's~~ 2285
~~recommendations, in the form of administrative rules, for the~~ 2286
~~advice and consent of the oversight commission, for~~ 2287
~~classifications of occupations or industries, for premium rates~~ 2288
~~and contributions, for the amount to be credited to the surplus~~ 2289
~~fund, for rules and systems of rating, rate revisions, and merit~~ 2290
~~rating. The administrator shall obtain~~Obtain, prepare, and submit 2291
any ~~other~~ information the ~~oversight commission~~board requires for 2292
the prompt and efficient discharge of its duties. 2293

       (6) Keep ~~the accounts required by division (A) of section~~ 2294
~~4123.34 of the Revised Code~~an accurate account of the money paid 2295
in premiums by each of the several classes of occupations or 2296
industries specified by the board; the losses on account of 2297
injuries, occupational disease, and death of employees thereof; an 2298
account of the money received from each individual employer and 2299
the amount of losses incurred against the state insurance fund on 2300
account of injuries, occupational disease, and death of the 2301
employees of the employer; and all other accounts and records 2302
necessary to the collection, administration, and distribution of 2303
the workers' compensation funds and shall obtain the statistical 2304
and other information required by section 4123.19 of the Revised 2305
Code. 2306

       (7) Exercise the investment powers vested in the 2307
administrator by section 4123.44 of the Revised Code in accordance 2308
with the investment ~~objectives, policies, and criteria established~~ 2309
policy approved by the ~~oversight commission~~board pursuant to 2310
section 4121.12 of the Revised Code and in consultation with the 2311
chief investment officer of the bureau of workers' compensation. 2312
The administrator shall not engage in any prohibited investment 2313
activity specified by the ~~oversight commission~~board pursuant to 2314
division ~~(G)(6)~~(F)(9) of section 4121.12 of the Revised Code and 2315
shall not invest in any type of investment specified in divisions 2316
~~(G)(6)(a)~~(B)(1) to ~~(j)~~(10) of ~~that~~ section 4123.442 of the Revised 2317
Code. All business shall be transacted, all funds invested, all 2318
warrants for money drawn and payments made, and all cash and 2319
securities and other property held, in the name of the bureau, or 2320
in the name of its nominee, provided that nominees are authorized 2321
by the administrator solely for the purpose of facilitating the 2322
transfer of securities, and restricted to the administrator and 2323
designated employees. 2324

       (8) Make contracts for and supervise the construction of any 2325
project or improvement or the construction or repair of buildings 2326
under the control of the bureau. 2327

       (9) Purchase supplies, materials, equipment, and services; 2328
make contracts for, operate, and superintend the telephone, other 2329
telecommunication, and computer services for the use of the 2330
bureau; and make contracts in connection with office reproduction, 2331
forms management, printing, and other services. Notwithstanding 2332
sections 125.12 to 125.14 of the Revised Code, the administrator 2333
may transfer surplus computers and computer equipment directly to 2334
an accredited public school within the state. The computers and 2335
computer equipment may be repaired or refurbished prior to the 2336
transfer. 2337

       (10) ~~Separately~~Prepare and submit to the board an annual 2338
budget for internal operating purposes for the board's approval. 2339
The administrator also shall, separately from the budget the 2340
industrial commission submits, prepare and submit to the director 2341
of budget and management a budget for each biennium. The ~~budget~~ 2342
budgets submitted to the board and the director shall include 2343
estimates of the costs and necessary expenditures of the bureau in 2344
the discharge of any duty imposed by law. 2345

       (11) As promptly as possible in the course of efficient 2346
administration, decentralize and relocate such of the personnel 2347
and activities of the bureau as is appropriate to the end that the 2348
receipt, investigation, determination, and payment of claims may 2349
be undertaken at or near the place of injury or the residence of 2350
the claimant and for that purpose establish regional offices, in 2351
such places as the administrator considers proper, capable of 2352
discharging as many of the functions of the bureau as is 2353
practicable so as to promote prompt and efficient administration 2354
in the processing of claims. All active and inactive lost-time 2355
claims files shall be held at the service office responsible for 2356
the claim. A claimant, at the claimant's request, shall be 2357
provided with information by telephone as to the location of the 2358
file pertaining to the claimant's claim. The administrator shall 2359
ensure that all service office employees report directly to the 2360
director for their service office. 2361

       (12) Provide a written binder on new coverage where the 2362
administrator considers it to be in the best interest of the risk. 2363
The administrator, or any other person authorized by the 2364
administrator, shall grant the binder upon submission of a request 2365
for coverage by the employer. A binder is effective for a period 2366
of thirty days from date of issuance and is nonrenewable. Payroll 2367
reports and premium charges shall coincide with the effective date 2368
of the binder. 2369

       (13) Set standards for the reasonable and maximum handling 2370
time of claims payment functions, ensure, by rules, the impartial 2371
and prompt treatment of all claims and employer risk accounts, and 2372
establish a secure, accurate method of time stamping all incoming 2373
mail and documents hand delivered to bureau employees. 2374

       (14) Ensure that all employees of the bureau follow the 2375
orders and rules of the commission as such orders and rules relate 2376
to the commission's overall adjudicatory policy-making and 2377
management duties under this chapter and Chapters 4123., 4127., 2378
and 4131. of the Revised Code. 2379

       (15) Manage and operate a data processing system with a 2380
common data base for the use of both the bureau and the commission 2381
and, in consultation with the commission, using electronic data 2382
processing equipment, shall develop a claims tracking system that 2383
is sufficient to monitor the status of a claim at any time and 2384
that lists appeals that have been filed and orders or 2385
determinations that have been issued pursuant to section 4123.511 2386
or 4123.512 of the Revised Code, including the dates of such 2387
filings and issuances. 2388

       (16) Establish and maintain a medical section within the 2389
bureau. The medical section shall do all of the following: 2390

       (a) Assist the administrator in establishing standard medical 2391
fees, approving medical procedures, and determining eligibility 2392
and reasonableness of the compensation payments for medical, 2393
hospital, and nursing services, and in establishing guidelines for 2394
payment policies which recognize usual, customary, and reasonable 2395
methods of payment for covered services; 2396

       (b) Provide a resource to respond to questions from claims 2397
examiners for employees of the bureau; 2398

       (c) Audit fee bill payments; 2399

       (d) Implement a program to utilize, to the maximum extent 2400
possible, electronic data processing equipment for storage of 2401
information to facilitate authorizations of compensation payments 2402
for medical, hospital, drug, and nursing services; 2403

       (e) Perform other duties assigned to it by the administrator. 2404

       (17) Appoint, as the administrator determines necessary, 2405
panels to review and advise the administrator on disputes arising 2406
over a determination that a health care service or supply provided 2407
to a claimant is not covered under this chapter or Chapter 4123., 2408
4127., or 4131. of the Revised Code or is medically unnecessary. 2409
If an individual health care provider is involved in the dispute, 2410
the panel shall consist of individuals licensed pursuant to the 2411
same section of the Revised Code as such health care provider. 2412

       (18) Pursuant to section 4123.65 of the Revised Code, approve 2413
applications for the final settlement of claims for compensation 2414
or benefits under this chapter and Chapters 4123., 4127., and 2415
4131. of the Revised Code as the administrator determines 2416
appropriate, except in regard to the applications of self-insuring 2417
employers and their employees. 2418

       (19) Comply with section 3517.13 of the Revised Code, and 2419
except in regard to contracts entered into pursuant to the 2420
authority contained in section 4121.44 of the Revised Code, comply 2421
with the competitive bidding procedures set forth in the Revised 2422
Code for all contracts into which the administrator enters 2423
provided that those contracts fall within the type of contracts 2424
and dollar amounts specified in the Revised Code for competitive 2425
bidding and further provided that those contracts are not 2426
otherwise specifically exempt from the competitive bidding 2427
procedures contained in the Revised Code. 2428

       (20) Adopt, with the advice and consent of the ~~oversight~~ 2429
~~commission~~board, rules for the operation of the bureau. 2430

       (21) Prepare and submit to the ~~oversight commission~~board 2431
information the administrator considers pertinent or the ~~oversight~~ 2432
~~commission~~board requires, together with the administrator's 2433
recommendations, in the form of administrative rules, for the 2434
advice and consent of the ~~oversight commission~~board, for the 2435
health partnership program and the qualified health plan system, 2436
as provided in sections 4121.44, 4121.441, and 4121.442 of the 2437
Revised Code. 2438

       (C) The administrator, with the advice and consent of the 2439
senate, shall appoint a chief operating officer who has 2440
significant experience in the field of workers' compensation 2441
insurance or other similar insurance industry experience if the 2442
administrator does not possess such experience. The chief 2443
operating officer shall not commence the chief operating officer's 2444
duties until after the senate consents to the chief operating 2445
officer's appointment. The chief operating officer shall serve in 2446
the unclassified civil service of the state. 2447

       Sec. 4121.122. (A) The administrator of workers' 2448
compensation, for employees of the bureau of workers' 2449
compensation, and the industrial commission, for employees of the 2450
commission may discipline, suspend, demote or discharge any 2451
employee for misfeasance, malfeasance, or nonfeasance. In the case 2452
of any deputy administrator, or of any employee assigned to the 2453
investigation or determination of claims, and finding of the 2454
administrator or the commission that such person is not efficient, 2455
impartial, or judicious, if supported by any evidence and not 2456
promoted by personal, political, racial, or religious 2457
discrimination shall be accepted as a fact justifying the action 2458
taken by the administrator or commission. 2459

       (B) The administrator and the commission shall jointly adopt, 2460
in the form of a rule, a code of ethics for all employees of the 2461
bureau and the commission and post copies of the rule in a 2462
conspicuous place in every bureau and commission office. 2463

       (C) The administrator and the commission shall jointly adopt 2464
rules setting forth procedures designed to eliminate outside 2465
influence on bureau and commission employees, produce an impartial 2466
workers' compensation claims handling process, and avoid 2467
favoritism in the claims handling process. Failure to adopt and 2468
enforce these rules constitutes grounds for removal of the 2469
administrator and the members of the commission. 2470

       ~~(D) The commission and the administrator shall appoint a~~ 2471
~~six-member internal security committee composed of three bureau~~ 2472
~~employees appointed by the administrator and three commission~~ 2473
~~employees appointed by the commission. The administrator shall~~ 2474
~~supply to the committee the services of trained investigative~~ 2475
~~personnel and clerical assistance necessary to the committee's~~ 2476
~~duties. The committee shall investigate all claims or cases of~~ 2477
~~criminal violations, abuse of office, or misconduct on the part of~~ 2478
~~bureau or commission employees and shall conduct a program of~~ 2479
~~random review of the processing of workers' compensation claims.~~ 2480

       ~~The committee shall deliver to the administrator, the~~ 2481
~~commission, or the governor any case for which remedial action is~~ 2482
~~necessary. The committee shall maintain a public record of its~~ 2483
~~activities, ensuring that the rights of innocent parties are~~ 2484
~~protected, and, once every six months, shall report to the~~ 2485
~~governor, the general assembly, the administrator, and commission,~~ 2486
~~the committee's findings and the corrective actions subsequently~~ 2487
~~taken in cases considered by the committee.~~ 2488

       Sec. 4121.123. (A) There is hereby created the workers' 2489
compensation audit committee consisting of at least three members. 2490
One member shall be the member of the bureau of workers' 2491
compensation board of directors who is a certified public 2492
accountant. The board, by majority vote, shall appoint two 2493
additional members of the board to serve on the audit committee 2494
and may appoint additional members who are not board members, as 2495
the board determines necessary. Members of the audit committee 2496
serve at the pleasure of the board, and the board, by majority 2497
vote, may remove any member except the member of the committee who 2498
is the certified public accountant member of the board. The board, 2499
by majority vote, shall determine how often the audit committee 2500
shall meet and report to the board. The audit committee shall do 2501
all of the following: 2502

       (1) Recommend to the board an accounting firm to perform the 2503
annual audits required under section 4123.47 of the Revised Code; 2504

       (2) Recommend an auditing firm for the board to use when 2505
conducting audits under section 4121.125 of the Revised Code; 2506

       (3) Review the results of each annual audit and management 2507
review and, if any problems exist, assess the appropriate course 2508
of action to correct those problems and develop an action plan to 2509
correct those problems; 2510

       (4) Monitor the implementation of any action plans created 2511
pursuant to division (A)(3) of this section; 2512

       (5) Review all internal audit reports on a regular basis. 2513

       (B) There is hereby created the workers' compensation 2514
actuarial committee consisting of at least three members. One 2515
member shall be the member of the board who is an actuary. The 2516
board, by majority vote, shall appoint two additional members of 2517
the board to serve on the actuarial committee and may appoint 2518
additional members who are not board members, as the board 2519
determines necessary. Members of the actuarial committee serve at 2520
the pleasure of the board and the board, by majority vote, may 2521
remove any member except the member of the committee who is the 2522
actuary member of the board. The board, by majority vote, shall 2523
determine how often the actuarial committee shall meet and report 2524
to the board. The actuarial committee shall do all of the 2525
following: 2526

       (1) Recommend actuarial consultants for the board to use for 2527
the funds specified in this chapter and Chapters 4123., 4127., and 2528
4131. of the Revised Code; 2529

       (2) Review calculations on rate schedules and performance 2530
prepared by the actuarial consultants with whom the board enters 2531
into a contract; 2532

       (3) Make recommendations to the board regarding 2533
classifications of occupations or industries, premium rates and 2534
contributions, the amount to be credited to the surplus fund, and 2535
rules and systems of rating, rate revisions, and merit rating as 2536
required under Chapters 4123., 4125., 4127., and 4131. of the 2537
Revised Code. 2538

       (C)(1) There is hereby created the workers' compensation 2539
investment committee consisting of at least four members. Two of 2540
the members shall be the members of the board who serve as the 2541
investment and securities experts on the board. The board, by 2542
majority vote, shall appoint two additional members of the board 2543
to serve on the investment committee and may appoint additional 2544
members who are not board members. Each additional member the 2545
board appoints shall have at least one of the following 2546
qualifications: 2547

       (a) Experience managing another state's pension funds or 2548
workers' compensation funds; 2549

       (b) Represents an employee organization; 2550

       (c) Special expertise that the board determines is needed to 2551
make investment decisions. 2552

        Members of the investment committee serve at the pleasure of 2553
the board and the board, by majority vote, may remove any member 2554
except the members of the committee who are the investment and 2555
securities expert members of the board. The board, by majority 2556
vote, shall determine how often the investment committee shall 2557
meet and report to the board. 2558

       (2) The investment committee shall do all of the following: 2559

       (a) Develop the investment policy for the administration of 2560
the investment program for the funds specified in this chapter and 2561
Chapters 4123., 4127., and 4131. of the Revised Code in accordance 2562
with the requirements specified in section 4123.442 of the Revised 2563
Code; 2564

       (b) Submit the investment policy developed pursuant to 2565
division (C)(2)(a) of this section to the board for approval; 2566

       (c) Monitor implementation by the administrator of workers' 2567
compensation and the bureau of workers' compensation chief 2568
investment officer of the investment policy approved by the board; 2569

       (d) Recommend outside investment counsel with whom the board 2570
may contract to assist the investment committee in fulfilling its 2571
duties; 2572

       (e) Review the performance of the bureau of workers' 2573
compensation chief investment officer and any investment 2574
consultants retained by the administrator to assure that the 2575
investments of the assets of the funds specified in this chapter 2576
and Chapters 4123., 4127., and 4131. of the Revised Code are made 2577
in accordance with the investment policy approved by the board and 2578
that the best possible return on investment is achieved. 2579

       Sec. 4121.125. (A) The bureau of workers' compensation 2580
~~oversight commission~~board of directors, based upon 2581
recommendations of the workers' compensation actuarial committee, 2582
may contract with one or more outside actuarial firms and other 2583
professional persons, as the ~~oversight commission~~board determines 2584
necessary, to assist the ~~oversight commission~~board in measuring 2585
the performance of Ohio's workers' compensation system and in 2586
comparing Ohio's workers' compensation system to other state and 2587
private workers' compensation systems. The ~~oversight commission~~ 2588
board, actuarial firm or firms, and professional persons shall 2589
make such measurements and comparisons using accepted insurance 2590
industry standards, including, but not limited to, standards 2591
promulgated by the National Council on Compensation Insurance. 2592

       (B) The ~~oversight commission~~board may contract with one or 2593
more outside firms to conduct management and financial audits of 2594
the workers' compensation system, including audits of the reserve 2595
fund belonging to the state insurance fund, and to establish 2596
objective quality management principles and methods by which to 2597
review the performance of the workers' compensation system. 2598

       (C) The administrator of workers' compensation and the 2599
industrial commission shall compile information and provide access 2600
to records of the bureau and the industrial commission to the 2601
~~oversight commission~~board to the extent necessary for fulfillment 2602
of both of the following requirements: 2603

       (1) Conduct of the measurements and comparisons described in 2604
division (A) of this section; 2605

       (2) Conduct of the management and financial audits and 2606
establishment of the principles and methods described in division 2607
(B) of this section. 2608

       (D) The ~~oversight commission~~board shall have an independent 2609
auditor, at least once every ten years, conduct a fiduciary 2610
performance audit of the investment program of the bureau of 2611
workers' compensation. That audit shall include an audit of the 2612
investment policies ofapproved by the ~~oversight commission~~board 2613
and investment procedures of the bureau. The ~~oversight commission~~ 2614
board shall submit a copy of that audit to the auditor of state. 2615

       (E) The ~~bureau of workers' compensation~~administrator, with 2616
the advice and consent of the ~~oversight commission~~board, shall 2617
employ an internal auditor who shall report directly to the 2618
~~oversight commission~~board on investment matters. The ~~oversight~~ 2619
~~commission~~board and the workers' compensation audit committee may 2620
request and review internal audits conducted by the internal 2621
auditor. 2622

       (F) The administrator shall pay the expenses incurred by the 2623
~~oversight commission~~board to effectively fulfill its duties and 2624
exercise its powers under this section as the administrator pays 2625
other operating expenses of the bureau. 2626

       Sec. 4121.126. Except as provided in this chapter, no member 2627
of the bureau of workers' compensation ~~oversight commission~~board 2628
of directors or employee of the bureau of workers' compensation 2629
shall have any direct or indirect interest in the gains or profits 2630
of any investment made by the administrator of workers' 2631
compensation or shall receive directly or indirectly any pay or 2632
emolument for the member's or employee's services. No member or 2633
person connected with the bureau directly or indirectly, for self 2634
or as an agent or partner of others, shall borrow any of its funds 2635
or deposits or in any manner use the funds or deposits except to 2636
make current and necessary payments that are authorized by the 2637
administrator. No member of the ~~oversight commission~~board or 2638
employee of the bureau shall become an indorser or surety or 2639
become in any manner an obligor for moneys loaned by or borrowed 2640
from the bureau. 2641

       The administrator shall make no investments through or 2642
purchases from, or otherwise do any business with, any individual 2643
who is, or any partnership, association, or corporation that is 2644
owned or controlled by, a person who within the preceding three 2645
years was employed by the bureau, a board member of, or an officer 2646
of the ~~oversight commission~~board, or a person who within the 2647
preceding three years was employed by or was an officer holding a 2648
fiduciary, administrative, supervisory, or trust position, or any 2649
other position in which such person would be involved, on behalf 2650
of the person's employer, in decisions or recommendations 2651
affecting the investment policy of the bureau, and in which such 2652
person would benefit by any monetary gain. 2653

       Sec. 4121.128. The attorney general shall be the legal 2654
adviser of the bureau of workers' compensation ~~oversight~~ 2655
~~commission~~board of directors. 2656

       Sec. 4121.37. The administrator of workers' compensation 2657
having, by virtue of Section 35 of Article II, Ohio Constitution, 2658
the expenditure of the fund therein created for the investigation 2659
and prevention of industrial accidents and diseases, shall, with 2660
the advice and consent of the bureau of workers' compensation 2661
~~oversight commission~~board of directors, in the exercise of the 2662
administrator's authority and in the performance of the 2663
administrator's duty, employ a superintendent and the necessary 2664
experts, engineers, investigators, clerks, and stenographers for 2665
the efficient operation of a division of safety and hygiene of the 2666
bureau of workers' compensation, which is hereby created. 2667

       The administrator ~~of workers' compensation~~, with the advice 2668
and consent of the ~~oversight commission~~board, shall pay into the 2669
safety and hygiene fund, which is hereby created in the state 2670
treasury, the portion of the contributions paid by employers, 2671
calculated as though all employers paid premiums based upon 2672
payroll, not to exceed one per cent thereof in any year, as is 2673
necessary for the payment of the salary of the superintendent of 2674
the division of safety and hygiene and the compensation of the 2675
other employees of the division of safety and hygiene, the 2676
expenses of investigations and researches for the prevention of 2677
industrial accidents and diseases, and for operating the long-term 2678
care loan fund program established under section 4121.48 of the 2679
Revised Code. All investment earnings of the fund shall be 2680
credited to the fund. The administrator has the same powers to 2681
invest any of the funds belonging to the fund as are delegated to 2682
the administrator under section 4123.44 of the Revised Code with 2683
respect to the state insurance fund. The superintendent, under the 2684
direction of the administrator, with the advice and consent of the 2685
~~oversight commission~~board, shall conduct investigations and 2686
researches for the prevention of industrial accidents and 2687
diseases, conduct loss prevention programs and courses for 2688
employers, establish and administrate cooperative programs with 2689
employers for the purchase of individual safety equipment for 2690
employees, and print and distribute information as may be of 2691
benefit to employers and employees. The administrator shall pay 2692
from the safety and hygiene fund the salary of the superintendent 2693
of the division of safety and hygiene, the compensation of the 2694
other employees of the division of safety and hygiene, the 2695
expenses necessary or incidental to investigations and researches 2696
for the prevention of industrial accidents and diseases, and the 2697
cost of printing and distributing such information. 2698

       The superintendent, under the direction of the administrator, 2699
shall prepare an annual report, addressed to the governor, on the 2700
amount of the expenditures and the purposes for which they have 2701
been made, and the results of the investigations and researches. 2702
The administrator shall include the administrative costs, 2703
salaries, and other expenses of the division of safety and hygiene 2704
as a part of the budget of the bureau of workers' compensation 2705
that is submitted to the director of budget and management and 2706
shall identify those expenditures separately from other bureau 2707
expenditures. 2708

       The superintendent shall be a competent person with at least 2709
five years' experience in industrial accident or disease 2710
prevention work. The superintendent and up to six positions in the 2711
division of safety and hygiene as the administrator, with the 2712
advice and consent of the ~~oversight commission~~board, designates 2713
are in the unclassified civil service of the state as long as the 2714
administrator, with the advice and consent of the ~~oversight~~ 2715
~~commission~~board, determines the positions subordinate to the 2716
superintendent are primarily and distinctively administrative, 2717
managerial, or professional in character. All other full-time 2718
employees of the division of safety and hygiene are in the 2719
classified civil service of the state. 2720

       Sec. 4121.441. (A) The administrator of workers' 2721
compensation, with the advice and consent of the bureau of 2722
workers' compensation ~~oversight commission~~board of directors, 2723
shall adopt rules under Chapter 119. of the Revised Code for the 2724
health care partnership program administered by the bureau of 2725
workers' compensation to provide medical, surgical, nursing, drug, 2726
hospital, and rehabilitation services and supplies to an employee 2727
for an injury or occupational disease that is compensable under 2728
this chapter or Chapter 4123., 4127., or 4131. of the Revised 2729
Code. 2730

       The rules shall include, but are not limited to, the 2731
following: 2732

       (1) Procedures for the resolution of medical disputes between 2733
an employer and an employee, an employee and a provider, or an 2734
employer and a provider, prior to an appeal under section 4123.511 2735
of the Revised Code. Rules the administrator adopts pursuant to 2736
division (A)(1) of this section may specify that the resolution 2737
procedures shall not be used to resolve disputes concerning 2738
medical services rendered that have been approved through standard 2739
treatment guidelines, pathways, or presumptive authorization 2740
guidelines. 2741

       (2) Prohibitions against discrimination against any category 2742
of health care providers; 2743

       (3) Procedures for reporting injuries to employers and the 2744
bureau by providers; 2745

       (4) Appropriate financial incentives to reduce service cost 2746
and insure proper system utilization without sacrificing the 2747
quality of service; 2748

       (5) Adequate methods of peer review, utilization review, 2749
quality assurance, and dispute resolution to prevent, and provide 2750
sanctions for, inappropriate, excessive or not medically necessary 2751
treatment; 2752

       (6) A timely and accurate method of collection of necessary 2753
information regarding medical and health care service and supply 2754
costs, quality, and utilization to enable the administrator to 2755
determine the effectiveness of the program; 2756

       (7) Provisions for necessary emergency medical treatment for 2757
an injury or occupational disease provided by a health care 2758
provider who is not part of the program; 2759

       (8) Discounted pricing for all in-patient and out-patient 2760
medical services, all professional services, and all 2761
pharmaceutical services; 2762

       (9) Provisions for provider referrals, pre-admission and 2763
post-admission approvals, second surgical opinions, and other cost 2764
management techniques; 2765

       (10) Antifraud mechanisms; 2766

       (11) Standards and criteria for the bureau to utilize in 2767
certifying or recertifying a health care provider or a vendor for 2768
participation in the health partnership program; 2769

       (12) Standards and criteria for the bureau to utilize in 2770
penalizing or decertifying a health care provider or a vendor from 2771
participation in the health partnership program. 2772

       (B) The administrator shall implement the health partnership 2773
program according to the rules the administrator adopts under this 2774
section for the provision and payment of medical, surgical, 2775
nursing, drug, hospital, and rehabilitation services and supplies 2776
to an employee for an injury or occupational disease that is 2777
compensable under this chapter or Chapter 4123., 4127., or 4131. 2778
of the Revised Code. 2779

       Sec. 4121.48. (A) The bureau of workers' compensation shall 2780
operate a long-term care loan fund program. The administrator of 2781
workers' compensation may adopt rules, employ personnel, and do 2782
all things necessary for that purpose. 2783

       (B) The administrator shall use the long-term care loan fund 2784
program to make loans without interest to employers that are 2785
nursing homes for the purpose of allowing those employers to 2786
purchase, improve, install, or erect sit-to-stand floor lifts, 2787
ceiling lifts, other lifts, and fast electric beds, and to pay for 2788
the education and training of personnel, in order to implement a 2789
facility policy of no manual lifting of residents by employees. 2790

       The administrator, with the advice and consent of the bureau 2791
of workers' compensation ~~oversight commission~~board of directors, 2792
may adopt rules establishing criteria for loan eligibility, 2793
maximum loan amounts, loan periods, default penalties, and any 2794
other terms the administrator considers necessary for a loan. 2795

       (C) There is hereby created in the state treasury the 2796
long-term care loan fund. The fund shall consist of money the 2797
administrator, with the advice and consent of the ~~oversight~~ 2798
~~commission~~board, requests the director of budget and management 2799
to transfer from the safety and hygiene fund created in section 2800
4121.37 of the Revised Code. The fund shall be used solely for 2801
purposes identified in this section. All investment earnings of 2802
the fund shall be credited to the fund. All money the 2803
administrator receives for payment of a default penalty assessed 2804
or for repayment of any loan made pursuant to this section shall 2805
be credited to the safety and hygiene fund created under section 2806
4121.37 of the Revised Code. 2807

       (D) As used in this section, "nursing home" has the same 2808
meaning as in section 3721.01 of the Revised Code. 2809

       Sec. 4121.61. The administrator of workers' compensation, 2810
with the advice and consent of the bureau of workers' compensation 2811
~~oversight commission~~board of directors, shall adopt rules, take 2812
measures, and make expenditures as it deems necessary to aid 2813
claimants who have sustained compensable injuries or incurred 2814
compensable occupational diseases pursuant to Chapter 4123., 2815
4127., or 4131. of the Revised Code to return to work or to assist 2816
in lessening or removing any resulting handicap. 2817

       Sec. 4121.67. The administrator of workers' compensation, 2818
with the advice and consent of the bureau of workers' compensation 2819
~~oversight commission~~board of directors, shall adopt rules: 2820

       (A) For the encouragement of reemployment of claimants who 2821
have successfully completed prescribed rehabilitation programs by 2822
payment from the surplus fund established by section 4123.34 of 2823
the Revised Code to employers who employ or re-employ the 2824
claimants. The period or periods of payments shall not exceed six 2825
months in the aggregate, unless the administrator or ~~his~~the 2826
administrator's designee determines that the claimant will be 2827
benefited by an extension of payments. 2828

       (B) Requiring payment, in the same manner as living 2829
maintenance payments are made pursuant to section 4121.63 of the 2830
Revised Code, to the claimant who completes a rehabilitation 2831
training program and returns to employment, but who suffers a wage 2832
loss compared to the wage the claimant was receiving at the time 2833
of injury. Payments per week shall be sixty-six and two-thirds per 2834
cent of the difference, if any, between the claimant's weekly wage 2835
at the time of injury and the weekly wage received while employed, 2836
up to a maximum payment per week equal to the statewide average 2837
weekly wage. The payments may continue for up to a maximum of two 2838
hundred weeks but shall be reduced by the corresponding number of 2839
weeks in which the claimant receives payments pursuant to division 2840
(B) of section 4123.56 of the Revised Code. 2841

       Sec. 4121.70. (A) There is hereby created the 2842
labor-management government advisory council consisting of twelve 2843
members appointed as follows: 2844

       (1) The governor, with the advice and consent of the senate, 2845
shall appoint three members who, by training and vocation, are 2846
representative of labor and three members who, by training and 2847
vocation, are representative of employers. 2848

       (2) Ex officio, the chairpersons of the standing committees 2849
of the house of representatives and the senate to which 2850
legislation concerned with workers' compensation is customarily 2851
referred. A chairperson may designate the vice-chairperson of the 2852
committee to serve instead. 2853

       (3) One person who by training and vocation represents labor 2854
and one person who by training and vocation represents employers 2855
of differing political parties appointed by the speaker of the 2856
house of representatives. 2857

       (4) One person who by training and vocation represents labor 2858
and one person who by training and vocation represents employers 2859
of differing political parties appointed by the president of the 2860
senate. 2861

       (B) Members appointed by the governor shall serve for a term 2862
of six years with each term ending on the same day of the year in 2863
which the member was first appointed, except that each member 2864
shall serve for a period of sixty additional days at the end of 2865
the member's term or until the member's successor is appointed and 2866
qualifies, whichever date occurs first. Of the members first 2867
appointed to the council by the governor, one member each 2868
representing labor and management shall serve an initial term of 2869
two years, one member each representing labor and management shall 2870
serve a term of four years, and the remaining two members shall 2871
serve full six-year terms. The members initially appointed by the 2872
speaker of the house of representatives and the president of the 2873
senate shall serve a term of six years. Thereafter, members shall 2874
be appointed to and serve full six-year terms. Members are 2875
eligible for reappointment to any number of additional terms. 2876

       Legislative members shall serve a term that coincides with 2877
the two-year legislative session in which they are first appointed 2878
with each term ending on the thirty-first day of December of the 2879
even-numbered year. Legislative members are eligible for 2880
reappointment. 2881

       Vacancies on the council shall be filled in the same manner 2882
as the original appointment. All members of the council shall 2883
serve without additional compensation but shall be reimbursed by 2884
the bureau of workers' compensation for actual and necessary 2885
expenses. 2886

       The council shall advise the bureau of workers' compensation 2887
~~oversight commission~~board of directors and the administrator of 2888
workers' compensation on the quality and effectiveness of 2889
rehabilitation services and make recommendations pertaining to the 2890
bureau's rehabilitation program, including the operation of that 2891
program. 2892

       The labor-management government advisory council shall 2893
recommend to the administrator three candidates for the position 2894
of director of rehabilitation. The candidates shall be chosen for 2895
their ability and background in the field of rehabilitation. The 2896
administrator shall select a director from the list of candidates. 2897

       Sec. 4123.01. As used in this chapter: 2898

       (A)(1) "Employee" means: 2899

       (a) Every person in the service of the state, or of any 2900
county, municipal corporation, township, or school district 2901
therein, including regular members of lawfully constituted police 2902
and fire departments of municipal corporations and townships, 2903
whether paid or volunteer, and wherever serving within the state 2904
or on temporary assignment outside thereof, and executive officers 2905
of boards of education, under any appointment or contract of hire, 2906
express or implied, oral or written, including any elected 2907
official of the state, or of any county, municipal corporation, or 2908
township, or members of boards of education. 2909

       As used in division (A)(1)(a) of this section, the term 2910
"employee" includes the following persons when responding to an 2911
inherently dangerous situation that calls for an immediate 2912
response on the part of the person, regardless of whether the 2913
person is within the limits of the jurisdiction of the person's 2914
regular employment or voluntary service when responding, on the 2915
condition that the person responds to the situation as the person 2916
otherwise would if the person were on duty in the person's 2917
jurisdiction: 2918

       (i) Off-duty peace officers. As used in division (A)(1)(a)(i) 2919
of this section, "peace officer" has the same meaning as in 2920
section 2935.01 of the Revised Code. 2921

       (ii) Off-duty firefighters, whether paid or volunteer, of a 2922
lawfully constituted fire department. 2923

       (iii) Off-duty first responders, emergency medical 2924
technicians-basic, emergency medical technicians-intermediate, or 2925
emergency medical technicians-paramedic, whether paid or 2926
volunteer, of an ambulance service organization or emergency 2927
medical service organization pursuant to Chapter 4765. of the 2928
Revised Code. 2929

       (b) Every person in the service of any person, firm, or 2930
private corporation, including any public service corporation, 2931
that (i) employs one or more persons regularly in the same 2932
business or in or about the same establishment under any contract 2933
of hire, express or implied, oral or written, including aliens and 2934
minors, household workers who earn one hundred sixty dollars or 2935
more in cash in any calendar quarter from a single household and 2936
casual workers who earn one hundred sixty dollars or more in cash 2937
in any calendar quarter from a single employer, or (ii) is bound 2938
by any such contract of hire or by any other written contract, to 2939
pay into the state insurance fund the premiums provided by this 2940
chapter. 2941

       (c) Every person who performs labor or provides services 2942
pursuant to a construction contract, as defined in section 4123.79 2943
of the Revised Code, if at least ten of the following criteria 2944
apply: 2945

       (i) The person is required to comply with instructions from 2946
the other contracting party regarding the manner or method of 2947
performing services; 2948

       (ii) The person is required by the other contracting party to 2949
have particular training; 2950

       (iii) The person's services are integrated into the regular 2951
functioning of the other contracting party; 2952

       (iv) The person is required to perform the work personally; 2953

       (v) The person is hired, supervised, or paid by the other 2954
contracting party; 2955

       (vi) A continuing relationship exists between the person and 2956
the other contracting party that contemplates continuing or 2957
recurring work even if the work is not full time; 2958

       (vii) The person's hours of work are established by the other 2959
contracting party; 2960

       (viii) The person is required to devote full time to the 2961
business of the other contracting party; 2962

       (ix) The person is required to perform the work on the 2963
premises of the other contracting party; 2964

       (x) The person is required to follow the order of work set by 2965
the other contracting party; 2966

       (xi) The person is required to make oral or written reports 2967
of progress to the other contracting party; 2968

       (xii) The person is paid for services on a regular basis such 2969
as hourly, weekly, or monthly; 2970

       (xiii) The person's expenses are paid for by the other 2971
contracting party; 2972

       (xiv) The person's tools and materials are furnished by the 2973
other contracting party; 2974

       (xv) The person is provided with the facilities used to 2975
perform services; 2976

       (xvi) The person does not realize a profit or suffer a loss 2977
as a result of the services provided; 2978

       (xvii) The person is not performing services for a number of 2979
employers at the same time; 2980

       (xviii) The person does not make the same services available 2981
to the general public; 2982

       (xix) The other contracting party has a right to discharge 2983
the person; 2984

       (xx) The person has the right to end the relationship with 2985
the other contracting party without incurring liability pursuant 2986
to an employment contract or agreement. 2987

       Every person in the service of any independent contractor or 2988
subcontractor who has failed to pay into the state insurance fund 2989
the amount of premium ~~determined and fixed~~assessed by the 2990
administrator of workers' compensation for the person's employment 2991
or occupation or if a self-insuring employer has failed to pay 2992
compensation and benefits directly to the employer's injured and 2993
to the dependents of the employer's killed employees as required 2994
by section 4123.35 of the Revised Code, shall be considered as the 2995
employee of the person who has entered into a contract, whether 2996
written or verbal, with such independent contractor unless such 2997
employees or their legal representatives or beneficiaries elect, 2998
after injury or death, to regard such independent contractor as 2999
the employer. 3000

       (2) "Employee" does not mean: 3001

       (a) A duly ordained, commissioned, or licensed minister or 3002
assistant or associate minister of a church in the exercise of 3003
ministry; 3004

       (b) Any officer of a family farm corporation; 3005

       (c) An individual incorporated as a corporation; or 3006

        (d) An individual who otherwise is an employee of an employer 3007
but who signs the waiver and affidavit specified in section 3008
4123.15 of the Revised Code on the condition that the 3009
administrator has granted a waiver and exception to the 3010
individual's employer under section 4123.15 of the Revised Code. 3011

       Any employer may elect to include as an "employee" within 3012
this chapter, any person excluded from the definition of 3013
"employee" pursuant to division (A)(2) of this section. If an 3014
employer is a partnership, sole proprietorship, individual 3015
incorporated as a corporation, or family farm corporation, such 3016
employer may elect to include as an "employee" within this 3017
chapter, any member of such partnership, the owner of the sole 3018
proprietorship, the individual incorporated as a corporation, or 3019
the officers of the family farm corporation. In the event of an 3020
election, the employer shall serve upon the bureau of workers' 3021
compensation written notice naming the persons to be covered, 3022
include such employee's remuneration for premium purposes in all 3023
future payroll reports, and no person excluded from the definition 3024
of "employee" pursuant to division (A)(2) of this section, 3025
proprietor, individual incorporated as a corporation, or partner 3026
shall be deemed an employee within this division until the 3027
employer has served such notice. 3028

       For informational purposes only, the bureau shall prescribe 3029
such language as it considers appropriate, on such of its forms as 3030
it considers appropriate, to advise employers of their right to 3031
elect to include as an "employee" within this chapter a sole 3032
proprietor, any member of a partnership, an individual 3033
incorporated as a corporation, the officers of a family farm 3034
corporation, or a person excluded from the definition of 3035
"employee" under division (A)(2) of this section, that they should 3036
check any health and disability insurance policy, or other form of 3037
health and disability plan or contract, presently covering them, 3038
or the purchase of which they may be considering, to determine 3039
whether such policy, plan, or contract excludes benefits for 3040
illness or injury that they might have elected to have covered by 3041
workers' compensation. 3042

       (B) "Employer" means: 3043

       (1) The state, including state hospitals, each county, 3044
municipal corporation, township, school district, and hospital 3045
owned by a political subdivision or subdivisions other than the 3046
state; 3047

       (2) Every person, firm, professional employer organization as 3048
defined in section 4125.01 of the Revised Code, and private 3049
corporation, including any public service corporation, that (a) 3050
has in service one or more employees or shared employees regularly 3051
in the same business or in or about the same establishment under 3052
any contract of hire, express or implied, oral or written, or (b) 3053
is bound by any such contract of hire or by any other written 3054
contract, to pay into the insurance fund the premiums provided by 3055
this chapter. 3056

       All such employers are subject to this chapter. Any member of 3057
a firm or association, who regularly performs manual labor in or 3058
about a mine, factory, or other establishment, including a 3059
household establishment, shall be considered an employee in 3060
determining whether such person, firm, or private corporation, or 3061
public service corporation, has in its service, one or more 3062
employees and the employer shall report the income derived from 3063
such labor to the bureau as part of the payroll of such employer, 3064
and such member shall thereupon be entitled to all the benefits of 3065
an employee. 3066

       (C) "Injury" includes any injury, whether caused by external 3067
accidental means or accidental in character and result, received 3068
in the course of, and arising out of, the injured employee's 3069
employment. "Injury" does not include: 3070

       (1) Psychiatric conditions except where the claimant's 3071
psychiatric conditions have arisen from an injury or occupational 3072
disease sustained by that claimant or where the claimant's 3073
psychiatric conditions have arisen from sexual conduct in which 3074
the claimant was forced by threat of physical harm to engage or 3075
participate; 3076

       (2) Injury or disability caused primarily by the natural 3077
deterioration of tissue, an organ, or part of the body; 3078

       (3) Injury or disability incurred in voluntary participation 3079
in an employer-sponsored recreation or fitness activity if the 3080
employee signs a waiver of the employee's right to compensation or 3081
benefits under this chapter prior to engaging in the recreation or 3082
fitness activity; 3083

       (4) A condition that pre-existed an injury unless that 3084
pre-existing condition is substantially aggravated by the injury. 3085
Such a substantial aggravation must be documented by objective 3086
diagnostic findings, objective clinical findings, or objective 3087
test results. Subjective complaints may be evidence of such a 3088
substantial aggravation. However, subjective complaints without 3089
objective diagnostic findings, objective clinical findings, or 3090
objective test results are insufficient to substantiate a 3091
substantial aggravation. 3092

       (D) "Child" includes a posthumous child and a child legally 3093
adopted prior to the injury. 3094

       (E) "Family farm corporation" means a corporation founded for 3095
the purpose of farming agricultural land in which the majority of 3096
the voting stock is held by and the majority of the stockholders 3097
are persons or the spouse of persons related to each other within 3098
the fourth degree of kinship, according to the rules of the civil 3099
law, and at least one of the related persons is residing on or 3100
actively operating the farm, and none of whose stockholders are a 3101
corporation. A family farm corporation does not cease to qualify 3102
under this division where, by reason of any devise, bequest, or 3103
the operation of the laws of descent or distribution, the 3104
ownership of shares of voting stock is transferred to another 3105
person, as long as that person is within the degree of kinship 3106
stipulated in this division. 3107

       (F) "Occupational disease" means a disease contracted in the 3108
course of employment, which by its causes and the characteristics 3109
of its manifestation or the condition of the employment results in 3110
a hazard which distinguishes the employment in character from 3111
employment generally, and the employment creates a risk of 3112
contracting the disease in greater degree and in a different 3113
manner from the public in general. 3114

       (G) "Self-insuring employer" means an employer who is granted 3115
the privilege of paying compensation and benefits directly under 3116
section 4123.35 of the Revised Code, including a board of county 3117
commissioners for the sole purpose of constructing a sports 3118
facility as defined in section 307.696 of the Revised Code, 3119
provided that the electors of the county in which the sports 3120
facility is to be built have approved construction of a sports 3121
facility by ballot election no later than November 6, 1997. 3122

       (H) "Public employer" means an employer as defined in 3123
division (B)(1) of this section. 3124

       (I) "Sexual conduct" means vaginal intercourse between a male 3125
and female; anal intercourse, fellatio, and cunnilingus between 3126
persons regardless of gender; and, without privilege to do so, the 3127
insertion, however slight, of any part of the body or any 3128
instrument, apparatus, or other object into the vaginal or anal 3129
cavity of another. Penetration, however slight, is sufficient to 3130
complete vaginal or anal intercourse. 3131

       Sec. 4123.025. Any person, other than those covered by 3132
section 4123.03 of the Revised Code, who is injured, and the 3133
dependents of a deceased employee who is killed as the direct 3134
result of performing any act at the request or order of a duly 3135
authorized public official of the state, or any institution or 3136
agency thereof, or any political subdivision thereof, including a 3137
county, township, or municipal corporation, in time of emergency 3138
shall be entitled to all the benefits of Chapter 4123. of the 3139
Revised Code. Any payments made from the state insurance fund 3140
pursuant to this section shall be charged to the surplus fund as 3141
created by division ~~(B)~~(A) of section 4123.34 of the Revised Code, 3142
in order to encourage participation of all persons in times of 3143
emergency. 3144

       Sec. 4123.21. No injunction shall issue suspending or 3145
restraining any order, classification, or rate adopted by the 3146
industrial commission, the bureau of workers' compensation board 3147
of directors, or the bureau of workers' compensation, or any 3148
action of the auditor of state, treasurer of state, attorney 3149
general, or the county auditor or county treasurer of any county, 3150
required to be taken by them or any of them by this chapter. This 3151
section does not effect any right or defense in any action brought 3152
by the commission, the bureau, or the state in pursuance of 3153
authority contained in this chapter. 3154

       Sec. 4123.25. (A) No employer shall knowingly misrepresent 3155
to the bureau of workers' compensation the amount or 3156
classification of payroll upon which the premium under this 3157
chapter is based. Whoever violates this division shall be liable 3158
to the state in an amount determined by the administrator of 3159
workers' compensation for not more than ten times the amount of 3160
the difference between the premium paid and the amount the 3161
employer should have paid. The liability to the state under this 3162
division may be enforced in a civil action in the name of the 3163
state, and all sums collected under this division shall be paid 3164
into the state insurance fund. 3165

       (B) No self-insuring employer shall knowingly misrepresent 3166
the amount of paid compensation paid by such employer for purposes 3167
of the assessments provided under this chapter and Chapter 4121. 3168
of the Revised Code as required by section 4123.35 of the Revised 3169
Code. Whoever violates this division is liable to the state in an 3170
amount determined by the self-insuring employers evaluation board 3171
pursuant to division (C) of section 4123.352 of the Revised Code 3172
or for an amount the board determines that is not more than ten 3173
times the amount of the difference between the assessment paid and 3174
the amount of the assessment that should have been paid. The 3175
liability to the state under this division may be enforced in a 3176
civil action in the name of the state and all sums collected under 3177
this division shall be paid into the self-insurance assessment 3178
fund created pursuant to division (K) of section 4123.35 of the 3179
Revised Code. 3180

       (C) The administrator of workers' compensation, with the 3181
advice and consent of the bureau of workers' compensation 3182
~~oversight commission~~board of directors, shall adopt rules 3183
establishing criteria for determining both of the following: 3184

       (1) The amount of the penalty assessed against an employer 3185
for a violation of division (A) of this section; 3186

       (2) Acts or omissions that do not constitute a violation of 3187
division (A) or (B) of this section. 3188

       Sec. 4123.29. (A) The ~~administrator~~bureau of workers' 3189
compensation board of directors, ~~subject to the approval~~based 3190
upon recommendations of the workers' compensation ~~oversight~~ 3191
~~commission~~actuarial committee, shall do all of the following: 3192

       (1) Classify occupations or industries with respect to their 3193
degree of hazard and determine the risks of the different classes 3194
according to the categories the national council on compensation 3195
insurance establishes that are applicable to employers in this 3196
state; 3197

       (2) Fix the rates of premium of the risks of the classes 3198
based upon the total payroll in each of the classes of occupation 3199
or industry sufficiently large to provide a fund for the 3200
compensation provided for in this chapter and to maintain a state 3201
insurance fund from year to year. The ~~administrator~~board shall 3202
set the rates at a level that assures the solvency of the fund. 3203
Where the payroll cannot be obtained or, in the opinion of the 3204
~~administrator~~board, is not an adequate measure for determining 3205
the premium to be paid for the degree of hazard, the ~~administrator~~ 3206
board may determine the rates of premium upon such other basis, 3207
consistent with insurance principles, as is equitable in view of 3208
the degree of hazard, and whenever in this chapter reference is 3209
made to payroll or expenditure of wages with reference to fixing 3210
premiums, the reference shall be construed to have been made also 3211
to such other basis for fixing the rates of premium as the 3212
~~administrator~~board may determine under this section. 3213

       The ~~administrator~~board in setting or revising rates shall 3214
furnish to employers an adequate explanation of the basis for the 3215
rates set. 3216

       (3) Develop and make available to employers who are paying 3217
premiums to the state insurance fund alternative premium plans. 3218
Alternative premium plans shall include retrospective rating 3219
plans. The ~~administrator~~board may make available plans under 3220
which an advanced deposit may be applied against a specified 3221
deductible amount per claim. 3222

       (4) Offer to insure the obligations of employers under this 3223
chapter under a plan that groups, for rating purposes, employers, 3224
and pools the risk of the employers within the group provided that 3225
the employers meet all of the following conditions: 3226

       (a) All of the employers within the group are members of an 3227
organization that has been in existence for at least two years 3228
prior to the date of application for group coverage; 3229

       (b) The organization was formed for purposes other than that 3230
of obtaining group workers' compensation under this division; 3231

       (c) The employers' business in the organization is 3232
substantially similar such that the risks which are grouped are 3233
substantially homogeneous; 3234

       (d) The group of employers consists of at least one hundred 3235
members or the aggregate workers' compensation premiums of the 3236
members, as determined by the ~~administrator~~board, are expected to 3237
exceed one hundred fifty thousand dollars during the coverage 3238
period; 3239

       (e) The formation and operation of the group program in the 3240
organization will substantially improve accident prevention and 3241
claims handling for the employers in the group; 3242

       (f) Each employer seeking to enroll in a group for workers' 3243
compensation coverage has an industrial insurance account in good 3244
standing with the bureau of workers' compensation such that at the 3245
time the agreement is processed no outstanding premiums, 3246
penalties, or assessments are due from any of the employers. 3247

       In providing employer group plans under division (A)(4) of 3248
this section, the ~~administrator~~board shall consider an employer 3249
group as a single employing entity for purposes of retrospective 3250
rating. No employer may be a member of more than one group for the 3251
purpose of obtaining workers' compensation coverage under this 3252
division. 3253

       In providing employer group plans under division (A)(4) of 3254
this section, the ~~administrator~~board shall establish a program 3255
designed to mitigate the impact of a significant claim that would 3256
come into the experience of a private, state fund group-rated 3257
employer for the first time and be a contributing factor in that 3258
employer being excluded from a group-rated plan. The ~~administrator~~ 3259
board shall establish eligibility criteria and requirements that 3260
such employers must satisfy in order to participate in this 3261
program. For purposes of this program, the ~~administrator~~board 3262
shall establish a discount on premium rates applicable to 3263
employers who qualify for the program. 3264

       In no event shall division (A)(4) of this section be 3265
construed as granting to an employer status as a self-insuring 3266
employer. 3267

       The ~~administrator~~board shall develop classifications of 3268
occupations or industries that are sufficiently distinct so as not 3269
to group employers in classifications that unfairly represent the 3270
risks of employment with the employer. 3271

       ~~(5)~~(B) The board, based upon recommendations of the actuarial 3272
committee, may adopt rules to grant an employer who makes the 3273
employer's semiannual premium payments at least one month prior to 3274
the last day on which the payment may be made without penalty a 3275
discount that the board fixes from time to time. 3276

       (C) The administrator of workers' compensation, with the 3277
advice and consent of the board, shall do both of the following: 3278

       (1) Generally promote employer participation in the state 3279
insurance fund through the regular dissemination of information to 3280
all classes of employers describing the advantages and benefits of 3281
opting to make premium payments to the fund. To that end, the 3282
administrator shall regularly make employers aware of the various 3283
workers' compensation premium packages developed and offered 3284
pursuant to this section. 3285

       ~~(6)~~(2) Make available to every employer who is paying 3286
premiums to the state insurance fund a program whereby the 3287
employer or the employer's agent pays to the claimant or on behalf 3288
of the claimant the first five thousand dollars of a compensable 3289
workers' compensation medical-only claim filed by that claimant 3290
that is related to the same injury or occupational disease. If an 3291
employer elects to enter the program, the administrator shall not 3292
reimburse the employer for such amounts paid and shall not charge 3293
the first five thousand dollars of any medical-only claim paid by 3294
an employer to the employer's experience or otherwise use it in 3295
merit rating or determining the risks of any employer for the 3296
purpose of payment of premiums under this chapter. If an employer 3297
elects to enter the program and the employer fails to pay a bill 3298
for a medical-only claim included in the program, the employer 3299
shall be liable for that bill and the employee for whom the 3300
employer failed to pay the bill shall not be liable for that bill. 3301
The administrator shall adopt rules to implement and administer 3302
division ~~(A)(6)~~(C)(2) of this section. 3303

       ~~(B)~~(D) The administrator, with the advice and consent of the 3304
~~oversight commission~~board, by rule, may ~~do both of the following:~~ 3305

       ~~(1) Grant an employer who makes the employer's semiannual~~ 3306
~~premium payment at least one month prior to the last day on which~~ 3307
~~the payment may be made without penalty, a discount as the~~ 3308
~~administrator fixes from time to time;~~ 3309

       ~~(2) Levy~~levy a minimum annual administrative charge upon 3310
risks where semiannual premium reports develop a charge less than 3311
the administrator considers adequate to offset administrative 3312
costs of processing. 3313

       Sec. 4123.291. ~~(A) An~~There is hereby created the workers' 3314
compensation adjudicating committee ~~appointed by the~~ 3315
~~administrator~~. The bureau of workers' compensation toboard of 3316
directors, based upon recommendations of the workers' compensation 3317
actuarial committee, shall appoint members to the adjudicating 3318
committee. The adjudicating committee shall hear any matter 3319
specified in divisions ~~(B)(1)~~(A) to ~~(7)~~(G) of this section and 3320
shall hear the matter within sixty days of the date on which an 3321
employer files the request, protest, or petition. An employer 3322
desiring to file a request, protest, or petition regarding any 3323
matter specified in divisions ~~(B)(1)~~(A) to ~~(7)~~(G) of this section 3324
shall file the request, protest, or petition to the adjudicating 3325
committee on or before twenty-four months after the administrator 3326
of workers' compensation sends notice of the determination about 3327
which the employer is filing the request, protest, or petition. 3328

       ~~(B) An employer who is adversely affected by a decision of an~~ 3329
~~adjudicating committee appointed by the administrator may appeal~~ 3330
~~the decision of the committee to the administrator or the~~ 3331
~~administrator's designee. The employer shall file the appeal in~~ 3332
~~writing within thirty days after the employer receives the~~ 3333
~~decision of the adjudicating committee.~~ The ~~administrator or the~~ 3334
~~designee shall hear the appeal and hold a hearing, provided that~~ 3335
~~the decision of the~~ adjudicating committee ~~relates~~shall hear 3336
matters that relate to one of the following: 3337

       ~~(1)~~(A) An employer request for a waiver of a default in the 3338
payment of premiums pursuant to section 4123.37 of the Revised 3339
Code; 3340

       ~~(2)~~(B) An employer request for the settlement of liability as 3341
a noncomplying employer under section 4123.75 of the Revised Code; 3342

       ~~(3)~~(C) An employer petition objecting to the assessment of a 3343
premium pursuant to section 4123.37 of the Revised Code and the 3344
rules adopted pursuant to that section; 3345

       ~~(4)~~(D) An employer request for the abatement of penalties 3346
assessed pursuant to section 4123.32 of the Revised Code and the 3347
rules adopted pursuant to that section; 3348

       ~~(5)~~(E) An employer protest relating to an audit finding or a 3349
determination of a manual classification, experience rating, or 3350
transfer or combination of risk experience; 3351

       ~~(6)~~(F) Any decision relating to any other risk premium matter 3352
under Chapters 4121., 4123., and 4131. of the Revised Code; 3353

       ~~(7)~~(G) An employer petition objecting to the amount of 3354
security required under division (C) of section 4125.05 of the 3355
Revised Code and the rules adopted pursuant to that section. 3356

       The board, based upon recommendations of the actuarial 3357
committee, shall establish the policy for all adjudicating 3358
committee procedures, including, but not limited to, specific 3359
criteria for manual premium rate adjustment. 3360

       Sec. 4123.311. (A) The administrator of workers' 3361
compensation may do all of the following: 3362

       (1) Utilize direct deposit of funds by electronic transfer 3363
for all disbursements the administrator is authorized to pay under 3364
this chapter and Chapters 4121., 4127., and 4131. of the Revised 3365
Code; 3366

       (2) Require any payee to provide a written authorization 3367
designating a financial institution and an account number to which 3368
a payment made according to division (A)(1) of this section is to 3369
be credited, notwithstanding division (B) of section 9.37 of the 3370
Revised Code; 3371

       (3) Contract with an agent to do both of the following: 3372

       (a) Supply debit cards for claimants to access payments made 3373
to them pursuant to this chapter and Chapters 4121., 4127., and 3374
4131. of the Revised Code; 3375

       (b) Credit the debit cards described in division (A)(3)(a) of 3376
this section with the amounts specified by the administrator 3377
pursuant to this chapter and Chapters 4121., 4127., and 4131. of 3378
the Revised Code by utilizing direct deposit of funds by 3379
electronic transfer. 3380

       (4) Enter into agreements with financial institutions to 3381
credit the debit cards described in division (A)(3)(a) of this 3382
section with the amounts specified by the administrator pursuant 3383
to this chapter and Chapters 4121., 4127., and 4131. of the 3384
Revised Code by utilizing direct deposit of funds by electronic 3385
transfer. 3386

       (B) The administrator shall inform claimants about the 3387
administrator's utilization of direct deposit of funds by 3388
electronic transfer under this section and section 9.37 of the 3389
Revised Code, furnish debit cards to claimants as appropriate, and 3390
provide claimants with instructions regarding use of those debit 3391
cards. 3392

       (C) The administrator, with the advice and consent of the 3393
bureau of workers' compensation ~~oversight commission~~board of 3394
directors, shall adopt rules in accordance with Chapter 119. of 3395
the Revised Code regarding utilization of the direct deposit of 3396
funds by electronic transfer under this section and section 9.37 3397
of the Revised Code. 3398

       Sec. 4123.32. The ~~administrator~~bureau of workers' 3399
compensation board of directors, ~~with the advice and consent~~based 3400
upon recommendations of the workers' compensation ~~oversight~~ 3401
~~commission~~actuarial committee, shall adopt rules with respect to 3402
the ~~collection,~~ maintenance~~, and disbursements~~ of the state 3403
insurance fund including all of the following: 3404

       (A) A rule providing that in the event there is developed as 3405
of any given rate revision date a surplus of earned premium over 3406
all losses which, in the judgment of the ~~administrator~~board, is 3407
larger than is necessary adequately to safeguard the solvency of 3408
the fund, the ~~administrator~~board may return such excess surplus 3409
to the subscriber to the fund in either the form of cash refunds 3410
or a reduction of premiums, regardless of when the premium 3411
obligations have accrued; 3412

       (B) ~~A rule providing that the premium security deposit~~ 3413
~~collected from any employer entitles the employer to the benefits~~ 3414
~~of this chapter for the remainder of the six months and also for~~ 3415
~~an additional adjustment period of two months, and, thereafter, if~~ 3416
~~the employer pays the premium due at the close of any six-month~~ 3417
~~period, coverage shall be extended for an additional eight-month~~ 3418
~~period beginning from the end of the six-month period for which~~ 3419
~~the employer pays the premium due;~~ 3420

       ~~(C) A rule providing for ascertaining the correctness of any~~ 3421
~~employer's report of estimated or actual expenditure of wages and~~ 3422
~~the determination and adjustment of proper premiums and the~~ 3423
~~payment of those premiums by the employer for or during any period~~ 3424
~~less than eight months and notwithstanding any payment or~~ 3425
~~determination of premium made when exceptional conditions or~~ 3426
~~circumstances in the judgment of the administrator justify the~~ 3427
~~action;~~ 3428

       ~~(D)~~(C) Such special rules as the ~~administrator~~board 3429
considers necessary to safeguard the fund and that are just in the 3430
circumstances, covering the rates to be applied where one employer 3431
takes over the occupation or industry of another or where an 3432
employer first makes application for state insurance, and the 3433
~~administrator~~board may require that if any employer transfers a 3434
business in whole or in part or otherwise reorganizes the 3435
business, the successor in interest shall assume, in proportion to 3436
the extent of the transfer, as determined by the administrator of 3437
workers' compensation, the employer's account and shall continue 3438
the payment of all contributions due under this chapter; 3439

       ~~(E) A rule providing for all of the following:~~ 3440

       ~~(1) If, within two months immediately after the expiration of~~ 3441
~~the six-month period, an employer fails to file a report of the~~ 3442
~~employer's actual payroll expenditures for the period, the premium~~ 3443
~~found to be due from the employer for the period shall be~~ 3444
~~increased in an amount equal to one per cent of the premium, but~~ 3445
~~the increase shall not be less than three nor more than fifteen~~ 3446
~~dollars;~~ 3447

       ~~(2) The premium determined by the administrator to be due~~ 3448
~~from an employer shall be payable on or before the end of the~~ 3449
~~coverage period established by the premium security deposit, or~~ 3450
~~within the time specified by the administrator if the period for~~ 3451
~~which the advance premium has been paid is less than eight months.~~ 3452
~~If an employer fails to pay the premium when due, the~~ 3453
~~administrator may add a late fee penalty of not more than thirty~~ 3454
~~dollars to the premium plus an additional penalty amount as~~ 3455
~~follows:~~ 3456

       ~~(a) For a premium from sixty-one to ninety days past due, the~~ 3457
~~prime interest rate, multiplied by the premium due;~~ 3458

       ~~(b) For a premium from ninety-one to one hundred twenty days~~ 3459
~~past due, the prime interest rate plus two per cent, multiplied by~~ 3460
~~the premium due;~~ 3461

       ~~(c) For a premium from one hundred twenty-one to one hundred~~ 3462
~~fifty days past due, the prime interest rate plus four per cent,~~ 3463
~~multiplied by the premium due;~~ 3464

       ~~(d) For a premium from one hundred fifty-one to one hundred~~ 3465
~~eighty days past due, the prime interest rate plus six per cent,~~ 3466
~~multiplied by the premium due;~~ 3467

       ~~(e) For a premium from one hundred eighty-one to two hundred~~ 3468
~~ten days past due, the prime interest rate plus eight per cent,~~ 3469
~~multiplied by the premium due;~~ 3470

       ~~(f) For each additional thirty-day period or portion thereof~~ 3471
~~that a premium remains past due after it has remained past due for~~ 3472
~~more than two hundred ten days, the prime interest rate plus eight~~ 3473
~~per cent, multiplied by the premium due.~~ 3474

       ~~(3) Notwithstanding the interest rates specified in division~~ 3475
~~(E)(2) of this section, at no time shall the additional penalty~~ 3476
~~amount assessed under division (E)(2) of this section exceed~~ 3477
~~fifteen per cent of the premium due.~~ 3478

       ~~(4) An employer may appeal a late fee penalty or additional~~ 3479
~~penalty to an adjudicating committee pursuant to section 4123.291~~ 3480
~~of the Revised Code.~~ 3481

       ~~For purposes of division (E) of this section, "prime interest~~ 3482
~~rate" means the average bank prime rate, and the administrator~~ 3483
~~shall determine the prime interest rate in the same manner as a~~ 3484
~~county auditor determines the average bank prime rate under~~ 3485
~~section 929.02 of the Revised Code.~~ 3486

       ~~(5) If the employer files an appropriate payroll report,~~ 3487
~~within the time provided by law or within the time specified by~~ 3488
~~the administrator if the period for which the employer paid an~~ 3489
~~estimated premium is less than eight months, the employer shall~~ 3490
~~not be in default and division (E)(2) of this section shall not~~ 3491
~~apply if the employer pays the premiums within fifteen days after~~ 3492
~~being first notified by the administrator of the amount due.~~ 3493

       ~~(6) Any deficiencies in the amounts of the premium security~~ 3494
~~deposit paid by an employer for any period shall be subject to an~~ 3495
~~interest charge of six per cent per annum from the date the~~ 3496
~~premium obligation is incurred. In determining the interest due on~~ 3497
~~deficiencies in premium security deposit payments, a charge in~~ 3498
~~each case shall be made against the employer in an amount equal to~~ 3499
~~interest at the rate of six per cent per annum on the premium~~ 3500
~~security deposit due but remaining unpaid sixty days after notice~~ 3501
~~by the administrator.~~ 3502

       ~~(7) Any interest charges or penalties provided for in~~ 3503
~~divisions (E)(2) and (6) of this section shall be credited to the~~ 3504
~~employer's account for rating purposes in the same manner as~~ 3505
~~premiums.~~ 3506

       ~~(F)~~(D) A rule providing that each employer, on the occasion 3507
of instituting coverage under this chapter, shall submit a premium 3508
security deposit. The deposit shall be calculated equivalent to 3509
thirty per cent of the semiannual premium obligation of the 3510
employer based upon the employer's estimated expenditure for wages 3511
for the ensuing six-month period plus thirty per cent of an 3512
additional adjustment period of two months but only up to a 3513
maximum of one thousand dollars and not less than ten dollars. ~~The~~ 3514
~~administrator shall review the security deposit of every employer~~ 3515
~~who has submitted a deposit which is less than the~~ 3516
~~one-thousand-dollar maximum. The administrator may require any~~ 3517
~~such employer to submit additional money up to the maximum of one~~ 3518
~~thousand dollars that, in the administrator's opinion, reflects~~ 3519
~~the employer's current payroll expenditure for an eight-month~~ 3520
~~period.~~ 3521

       Sec. 4123.321. The administrator of workers' compensation, 3522
with the advice and consent of the bureau of workers' compensation 3523
board of directors, shall adopt rules with respect to the 3524
collection and disbursements of the state insurance fund including 3525
rules that specify all of the following: 3526

       (A) Methods and criteria for ascertaining the correctness of 3527
any employer's report of estimated or actual expenditure of wages 3528
and the determination and adjustment of proper premiums and the 3529
payment of those premiums by the employer for or during any period 3530
less than eight months and notwithstanding any payment or 3531
determination of premium made when exceptional conditions or 3532
circumstances in the judgment of the administrator justify the 3533
action; 3534

       (B) That if, within two months immediately after the 3535
expiration of a six-month period, an employer fails to file a 3536
report of the employer's actual payroll expenditures for the 3537
period, the premium found to be due from the employer for the 3538
period shall be increased in an amount equal to one per cent of 3539
the premium, but the increase shall not be less than three nor 3540
more than fifteen dollars; 3541

       (C) That the premium determined by the administrator to be 3542
due from an employer shall be payable on or before the end of the 3543
coverage period established by the premium security deposit, or 3544
within the time specified by the administrator if the period for 3545
which the advance premium has been paid is less than eight months. 3546

       (D) That if an employer fails to pay the premium when due, 3547
the administrator may add a late fee penalty of not more than 3548
thirty dollars to the premium plus an additional penalty amount as 3549
follows: 3550

       (1) For a premium from sixty-one to ninety days past due, the 3551
prime interest rate, multiplied by the premium due; 3552

       (2) For a premium from ninety-one to one hundred twenty days 3553
past due, the prime interest rate plus two per cent, multiplied by 3554
the premium due; 3555

       (3) For a premium from one hundred twenty-one to one hundred 3556
fifty days past due, the prime interest rate plus four per cent, 3557
multiplied by the premium due; 3558

       (4) For a premium from one hundred fifty-one to one hundred 3559
eighty days past due, the prime interest rate plus six per cent, 3560
multiplied by the premium due; 3561

       (5) For a premium from one hundred eighty-one to two hundred 3562
ten days past due, the prime interest rate plus eight per cent, 3563
multiplied by the premium due; 3564

       (6) For each additional thirty-day period or portion thereof 3565
that a premium remains past due after it has remained past due for 3566
more than two hundred ten days, the prime interest rate plus eight 3567
per cent, multiplied by the premium due. 3568

       (7) Notwithstanding the interest rates specified in division 3569
(D) of this section, at no time shall the additional penalty 3570
amount assessed under division (D) of this section exceed fifteen 3571
per cent of the premium due. 3572

       For purposes of division (D) of this section, "prime interest 3573
rate" means the average bank prime rate, and the administrator 3574
shall determine the prime interest rate in the same manner as a 3575
county auditor determines the average bank prime rate under 3576
section 929.02 of the Revised Code. 3577

       (E) That an employer may appeal a late fee penalty or 3578
additional penalty to an adjudicating committee pursuant to 3579
section 4123.291 of the Revised Code. 3580

       (F) That if the employer files an appropriate payroll report, 3581
within the time provided by law or within the time specified by 3582
the administrator if the period for which the employer paid an 3583
estimated premium is less than eight months, the employer shall 3584
not be in default and division (D) of this section shall not apply 3585
if the employer pays the premiums within fifteen days after being 3586
first notified by the administrator of the amount due. 3587

       (G) That any deficiencies in the amounts of the premium 3588
security deposit paid by an employer for any period shall be 3589
subject to an interest charge of six per cent per annum from the 3590
date the premium obligation is incurred. 3591

       (H) That in determining the interest due on deficiencies in 3592
premium security deposit payments, a charge in each case shall be 3593
made against the employer in an amount equal to interest at the 3594
rate of six per cent per annum on the premium security deposit due 3595
but remaining unpaid sixty days after notice by the administrator. 3596

       (I) That any interest charges or penalties provided for in 3597
divisions (D), (G), and (H) of this section shall be credited to 3598
the employer's account for rating purposes in the same manner as 3599
premiums. 3600

       (J) That the administrator shall review the security deposit 3601
of every employer who has submitted a deposit that is less than 3602
the one-thousand-dollar maximum specified in section 4123.32 of 3603
the Revised Code, and that the administrator may require any such 3604
employer to submit additional money up to the maximum of one 3605
thousand dollars that, in the administrator's opinion, reflects 3606
the employer's current payroll expenditure for an eight-month 3607
period. 3608

       (K) That each employer, on the occasion of instituting 3609
coverage under this chapter, shall submit an application for 3610
coverage that completely provides all of the information required 3611
for the administrator to establish coverage for that employer, and 3612
that the employer's failure to provide all of the information 3613
completely may be grounds for the administrator to deny coverage 3614
for that employer. 3615

       (L) That the premium security deposit collected from any 3616
employer entitles the employer to the benefits of this chapter for 3617
the remainder of the six months and also for an additional 3618
adjustment period of two months, and, thereafter, if the employer 3619
pays the premium due at the close of any six-month period, 3620
coverage shall be extended for an additional eight-month period 3621
beginning from the end of the six-month period for which the 3622
employer pays the premium due; 3623

       (M) That, in addition to any other remedies permitted in this 3624
chapter, the administrator may discontinue an employer's coverage 3625
if the employer fails to pay the premium due on or before the 3626
premium's due date. 3627

       (N) That if after a final adjudication it is determined that 3628
an employer has failed to pay an obligation, billing, account, or 3629
assessment that is greater than one thousand dollars on or before 3630
its due date, the administrator may discontinue the employer's 3631
coverage in addition to any other remedies permitted in this 3632
chapter. 3633

       (O) As used in divisions (M) and (N) of this section: 3634

        (1) "Employer" has the same meaning as in division (B) of 3635
section 4123.01 of the Revised Code except that "employer" does 3636
not include the state, a state hospital, or a state university or 3637
college. 3638

        (2) "State university or college" has the same meaning as in 3639
section 3345.12 of the Revised Code and also includes the Ohio 3640
agricultural research and development center and the Ohio state 3641
university cooperative extension service. 3642

        (3) "State hospital" means the Ohio state university hospital 3643
and its ancillary facilities and the medical university of Ohio at 3644
Toledo hospital. 3645

       Sec. 4123.34. It shall be the duty of the bureau of workers' 3646
compensation board of directors to safeguard and maintain the 3647
solvency of the state insurance fund and all other funds specified 3648
in this chapter and Chapters 4121., 4127., and 4131. of the 3649
Revised Code. The ~~administrator of workers' compensation~~board, in 3650
the exercise of the powers and discretion conferred upon the 3651
~~administrator~~board in section 4123.29 of the Revised Code, shall 3652
fix and maintain~~, with the advice and consentof the workers'~~ 3653
~~compensationoversight commission~~, for each class of occupation or 3654
industry, the lowest possible rates of premium consistent with the 3655
maintenance of a solvent state insurance fund and the creation and 3656
maintenance of a reasonable surplus, after the payment of 3657
legitimate claims for injury, occupational disease, and death that 3658
the administrator of workers' compensation authorizes to be paid 3659
from the state insurance fund for the benefit of injured, 3660
diseased, and the dependents of killed employees. In establishing 3661
rates, the ~~administrator~~actuarial board shall take into account 3662
the necessity of ensuring sufficient money is set aside in the 3663
premium payment security fund to cover any defaults in premium 3664
obligations. The ~~administrator~~board shall observe all of the 3665
following requirements in fixing the rates of premium for the 3666
risks of occupations or industries: 3667

       (A) ~~The administrator shall keep an accurate account of the~~ 3668
~~money paid in premiums by each of the several classes of~~ 3669
~~occupations or industries, and the losses on account of injuries,~~ 3670
~~occupational disease, and death of employees thereof, and also~~ 3671
~~keep an account of the money received from each individual~~ 3672
~~employer and the amount of losses incurred against the state~~ 3673
~~insurance fund on account of injuries, occupational disease, and~~ 3674
~~death of the employees of the employer.~~ 3675

       ~~(B)~~ Ten per cent of the money paid into the state insurance 3676
fund shall be set aside for the creation of a surplus until the 3677
surplus amounts to the sum of one hundred thousand dollars, after 3678
which time, whenever necessary in the judgment of the 3679
~~administrator~~board, based upon recommendations of the actuarial 3680
committee, to guarantee a solvent state insurance fund, a sum not 3681
exceeding five per cent of all the money paid into the state 3682
insurance fund shall be credited to the surplus fund. A revision 3683
of basic rates shall be made annually on the first day of July. 3684

       (B) Notwithstanding any provision of the law to the contrary, 3685
one hundred eighty days after the effective date on which 3686
self-insuring employers first may elect under division (D) of 3687
section 4121.66 of the Revised Code to directly pay for 3688
rehabilitation expenses, the ~~administrator~~board shall calculate 3689
the deficit, if any, in the portion of surplus fund that is used 3690
for reimbursement to self-insuring employers for all expenses 3691
other than handicapped reimbursement under section 4123.343 of the 3692
Revised Code. ~~Without regard to whether a self-insuring employer~~ 3693
~~makes the election under division (D) of section 4121.66 of the~~ 3694
~~Revised Code, the administrator shall assess all self-insuring~~ 3695
~~employers the amount the administrator determines necessary to~~ 3696
~~reduce the deficit over a period not to exceed five years from~~ 3697
~~October 20, 1993. After the initial assessment, the administrator~~ 3698
The board, based upon recommendations of the actuarial committee, 3699
from time to time, may determine whether the surplus fund has such 3700
a deficit and may assess all self-insuring employers who 3701
participated in the portion of the surplus fund during the accrual 3702
of the deficit and who during that time period have not made the 3703
election under division (D) of section 4121.66 of the Revised Code 3704
the amount the ~~administrator~~board, based upon recommendations of 3705
the actuarial committee, determines necessary to reduce the 3706
deficit. 3707

       Revisions of basic rates shall be in accordance with the 3708
oldest four of the last five calendar years of the combined 3709
accident and occupational disease experience of the administrator 3710
in the administration of this chapter, as shown by the accounts 3711
kept as provided in this section, excluding the experience of 3712
employers that are no longer active if the ~~administrator~~board, 3713
based upon recommendations of the actuarial committee, determines 3714
that the inclusion of those employers would have a significant 3715
negative impact on the remainder of the employers in a particular 3716
manual classification; and the ~~administrator~~board shall adopt 3717
rules, ~~with the advice and consent~~based upon recommendations of 3718
the ~~oversight commission~~actuarial committee, governing rate 3719
revisions, the object of which shall be to make an equitable 3720
distribution of losses among the several classes of occupation or 3721
industry, which rules shall be general in their application. 3722

       (C) The ~~administrator~~board may apply that form of rating 3723
system ~~which~~that the ~~administrator~~board, based upon 3724
recommendations of the actuarial committee, finds is best 3725
calculated to merit rate or individually rate the risk more 3726
equitably, predicated upon the basis of its individual industrial 3727
accident and occupational disease experience, and may encourage 3728
and stimulate accident prevention. The ~~administrator~~board, based 3729
upon recommendations of the actuarial committee, shall develop 3730
fixed and equitable rules controlling the rating system, which 3731
rules shall conserve to each risk the basic principles of workers' 3732
compensation insurance. 3733

       (D) The ~~administrator~~board, from the money paid into the 3734
state insurance fund, shall set aside into an account of the state 3735
insurance fund titled a premium payment security fund sufficient 3736
money to pay for any premiums due from an employer and uncollected 3737
that are in excess of the employer's premium security deposit. 3738

       The fund shall be in the custody of the treasurer of state. 3739
All investment earnings of the fund shall be deposited in the 3740
fund. Disbursements from the fund shall be made by the ~~bureau~~ 3741
administrator of workers' compensation upon order of the 3742
~~administrator~~board to the state insurance fund. The use of the 3743
moneys held by the premium payment security fund is restricted to 3744
reimbursement to the state insurance fund of premiums due and 3745
uncollected in excess of an employer's premium security deposit. 3746
The moneys constituting the premium payment security fund shall be 3747
maintained without regard to or reliance upon any other fund. This 3748
section does not prevent the deposit or investment of the premium 3749
payment security fund with any other fund created by this chapter, 3750
but the premium payment security fund is separate and distinct for 3751
every other purpose and a strict accounting thereof shall be 3752
maintained. 3753

       (E) The ~~administrator~~board, based upon recommendations of 3754
the actuarial committee, may grant discounts on premium rates for 3755
employers who meet either of the following requirements: 3756

       (1) Have not incurred a compensable injury for one year or 3757
more and who maintain an employee safety committee or similar 3758
organization or make periodic safety inspections of the workplace. 3759

       (2) Successfully complete a loss prevention program 3760
prescribed by the superintendent of the division of safety and 3761
hygiene and conducted by the division or by any other person 3762
approved by the superintendent. 3763

       (F)(1) In determining the premium rates for the construction 3764
industry the ~~administrator~~board shall ~~calculate the~~base the 3765
determination of employers' ~~premiums based~~premium rates upon the 3766
actual remuneration construction industry employees receive from 3767
construction industry employers, provided that the amount of 3768
remuneration the ~~administrator~~board uses in calculating the 3769
~~premiums~~premium rates shall not exceed an average weekly wage 3770
equal to one hundred fifty per cent of the statewide average 3771
weekly wage as defined in division (C) of section 4123.62 of the 3772
Revised Code. 3773

       (2) Division (F)(1) of this section shall not be construed as 3774
affecting the manner in which benefits to a claimant are awarded 3775
under this chapter. 3776

       (3) As used in division (F) of this section, "construction 3777
industry" includes any activity performed in connection with the 3778
erection, alteration, repair, replacement, renovation, 3779
installation, or demolition of any building, structure, highway, 3780
or bridge. 3781

       Sec. 4123.341. The administrative costs of the industrial 3782
commission, the bureau of workers' compensation ~~oversight~~ 3783
~~commission~~board of directors, and the bureau of workers' 3784
compensation shall be those costs and expenses that are incident 3785
to the discharge of the duties and performance of the activities 3786
of the industrial commission, the ~~oversight commission~~board, and 3787
the bureau under this chapter and Chapters 4121. ~~and 4123.~~, 4125., 3788
4127., 4131., and 4167. of the Revised Code, and all such costs 3789
shall be borne by the state and by other employers amenable to 3790
this chapter as follows: 3791

       (A) In addition to the contribution required of the state 3792
under sections 4123.39 and 4123.40 of the Revised Code, the state 3793
shall contribute the sum determined to be necessary under section 3794
4123.342 of the Revised Code. 3795

       (B) The director of budget and management may allocate the 3796
state's share of contributions in the manner hethe director finds 3797
most equitably apportions the costs. 3798

       (C) The counties and taxing districts therein shall 3799
contribute such sum as may be required under section 4123.342 of 3800
the Revised Code. 3801

       (D) The private employers shall contribute the sum required 3802
under section 4123.342 of the Revised Code. 3803

       Sec. 4123.342. (A) The ~~administrator~~bureau of workers' 3804
compensation board of directors, based upon recommendations of the 3805
workers' compensation actuarial committee, shall allocate among 3806
counties and taxing districts therein as a class, the state and 3807
its instrumentalities as a class, private employers who are 3808
insured under the private fund as a class, and self-insuring 3809
employers as a class their fair shares of the administrative costs 3810
which are to be borne by such employers under division (D) of 3811
section 4123.341 of the Revised Code, separately allocating to 3812
each class those costs solely attributable to the activities of 3813
the industrial commission, and those costs solely attributable to 3814
the activities of the ~~workers' compensation oversight commission~~ 3815
board, and the bureau of workers' compensation in respect of the 3816
class, allocating to any combination of classes those costs 3817
attributable to the activities of the industrial commission, 3818
~~oversight commission~~board, or bureau in respect of the classes, 3819
and allocating to all four classes those costs attributable to the 3820
activities of the industrial commission, ~~oversight commission~~ 3821
board, and bureau in respect of all classes. The administrator of 3822
workers' compensation shall separately calculate each employer's 3823
assessment in the class, except self-insuring employers, on the 3824
basis of the following three factors: payroll, paid compensation, 3825
and paid medical costs of the employer for those costs solely 3826
attributable to the activities of the ~~oversight commission~~board 3827
and the bureau. The administrator shall separately calculate each 3828
employer's assessment in the class, except self-insuring 3829
employers, on the basis of the following three factors: payroll, 3830
paid compensation, and paid medical costs of the employer for 3831
those costs solely attributable to the activities of the 3832
industrial commission. The administrator shall separately 3833
calculate each self-insuring employer's assessment in accordance 3834
with section 4123.35 of the Revised Code for those costs solely 3835
attributable to the activities of the ~~oversight commission~~board 3836
and the bureau. The administrator shall separately calculate each 3837
self-insuring employer's assessment in accordance with section 3838
4123.35 of the Revised Code for those costs solely attributable to 3839
the activities of the industrial commission. In a timely manner, 3840
the industrial commission shall provide to the ~~administrator~~ 3841
board, the information necessary for the ~~administrator~~board to 3842
allocate and calculate, with the approval of the chairperson of 3843
the industrial commission, for each class of employer as described 3844
in this division, the costs solely attributable to the activities 3845
of the industrial commission. 3846

       (B) The administrator shall divide the administrative cost 3847
assessments collected by the administrator into two administrative 3848
assessment accounts within the state insurance fund. One of the 3849
administrative assessment accounts shall consist of the 3850
administrative cost assessment collected by the administrator for 3851
the industrial commission. The other administrative assessment 3852
account shall consist of the administrative cost assessments 3853
collected by the administrator for the bureau and the ~~workers'~~ 3854
~~compensation oversight commission~~board. The administrator may 3855
invest the administrative cost assessments in these accounts on 3856
behalf of the bureau and the industrial commission as authorized 3857
in section 4123.44 of the Revised Code. In a timely manner, the 3858
administrator shall provide to the industrial commission the 3859
information and reports the commission deems necessary for the 3860
commission to monitor the receipts and the disbursements from the 3861
administrative assessment account for the industrial commission. 3862

       (C) The administrator or the administrator's designee shall 3863
transfer moneys as necessary from the administrative assessment 3864
account identified for the bureau and the ~~workers' compensation~~ 3865
~~oversight commission~~board to the workers' compensation fund for 3866
the use of the bureau and the ~~oversight commission~~board. As 3867
necessary and upon the authorization of the industrial commission, 3868
the administrator or the administrator's designee shall transfer 3869
moneys from the administrative assessment account identified for 3870
the industrial commission to the industrial commission operating 3871
fund created under section 4121.021 of the Revised Code. To the 3872
extent that the moneys collected by the administrator in any 3873
fiscal biennium of the state equal the sum appropriated by the 3874
general assembly for administrative costs of the industrial 3875
commission, ~~oversight commission~~board, and bureau for the 3876
biennium, the moneys shall be paid into the workers' compensation 3877
fund and the industrial commission operating fund of the state and 3878
any remainder shall be retained in the state insurance fund and 3879
applied to reduce the amount collected during the next biennium. 3880
Sections 4123.41, 4123.35, and 4123.37 of the Revised Code apply 3881
to the collection of assessments from public and private employers 3882
respectively, except that for boards of county hospital trustees 3883
that are self-insuring employers, only those provisions applicable 3884
to the collection of assessments for private employers apply. 3885

       Sec. 4123.35. (A) Except as provided in this section, every 3886
employer mentioned in division (B)(2) of section 4123.01 of the 3887
Revised Code, and every publicly owned utility shall pay 3888
semiannually in the months of January and July into the state 3889
insurance fund the amount of annual premium the administrator of 3890
workers' compensation fixes for the employment or occupation of 3891
the employer, the amount of which premium to be paid by each 3892
employer to be determined by the classifications, rules, and rates 3893
made by the bureau of workers' compensation board of directors and 3894
published by the administrator. The employer shall pay 3895
semiannually a further sum of money into the state insurance fund 3896
as may be ascertained to be due from the employer by applying the 3897
rules of the ~~administrator~~board, and a receipt or certificate 3898
certifying that payment has been made, along with a written notice 3899
as is required in section 4123.54 of the Revised Code, shall be 3900
mailed immediately to the employer by the bureau of workers' 3901
compensation. The receipt or certificate is prima-facie evidence 3902
of the payment of the premium, and the proper posting of the 3903
notice constitutes the employer's compliance with the notice 3904
requirement mandated in section 4123.54 of the Revised Code. 3905

       The bureau of workers' compensation shall verify with the 3906
secretary of state the existence of all corporations and 3907
organizations making application for workers' compensation 3908
coverage and shall require every such application to include the 3909
employer's federal identification number. 3910

       An employer as defined in division (B)(2) of section 4123.01 3911
of the Revised Code who has contracted with a subcontractor is 3912
liable for the unpaid premium due from any subcontractor with 3913
respect to that part of the payroll of the subcontractor that is 3914
for work performed pursuant to the contract with the employer. 3915

       Division (A) of this section providing for the payment of 3916
premiums semiannually does not apply to any employer who was a 3917
subscriber to the state insurance fund prior to January 1, 1914, 3918
or who may first become a subscriber to the fund in any month 3919
other than January or July. Instead, the semiannual premiums shall 3920
be paid by those employers from time to time upon the expiration 3921
of the respective periods for which payments into the fund have 3922
been made by them. 3923

       The administrator shall adopt rules to permit employers to 3924
make periodic payments of the semiannual premium due under this 3925
division. The rules shall include provisions for the assessment of 3926
interest charges, where appropriate, and for the assessment of 3927
penalties when an employer fails to make timely premium payments. 3928
An employer who timely pays the amounts due under this division is 3929
entitled to all of the benefits and protections of this chapter. 3930
Upon receipt of payment, the bureau immediately shall mail a 3931
receipt or certificate to the employer certifying that payment has 3932
been made, which receipt is prima-facie evidence of payment. 3933
Workers' compensation coverage under this chapter continues 3934
uninterrupted upon timely receipt of payment under this division. 3935

       Every public employer, except public employers that are 3936
self-insuring employers under this section, shall comply with 3937
sections 4123.38 to 4123.41, and 4123.48 of the Revised Code in 3938
regard to the contribution of moneys to the public insurance fund. 3939

       (B) Employers who will abide by the rules of the 3940
administrator and who may be of sufficient financial ability to 3941
render certain the payment of compensation to injured employees or 3942
the dependents of killed employees, and the furnishing of medical, 3943
surgical, nursing, and hospital attention and services and 3944
medicines, and funeral expenses, equal to or greater than is 3945
provided for in sections 4123.52, 4123.55 to 4123.62, and 4123.64 3946
to 4123.67 of the Revised Code, and who do not desire to insure 3947
the payment thereof or indemnify themselves against loss sustained 3948
by the direct payment thereof, upon a finding of such facts by the 3949
administrator, may be granted the privilege to pay individually 3950
compensation, and furnish medical, surgical, nursing, and hospital 3951
services and attention and funeral expenses directly to injured 3952
employees or the dependents of killed employees, thereby being 3953
granted status as a self-insuring employer. The administrator may 3954
charge employers who apply for the status as a self-insuring 3955
employer a reasonable application fee to cover the bureau's costs 3956
in connection with processing and making a determination with 3957
respect to an application. 3958

       All employers granted status as self-insuring employers shall 3959
demonstrate sufficient financial and administrative ability to 3960
assure that all obligations under this section are promptly met. 3961
The administrator shall deny the privilege where the employer is 3962
unable to demonstrate the employer's ability to promptly meet all 3963
the obligations imposed on the employer by this section. 3964

       (1) The administrator shall consider, but is not limited to, 3965
the following factors, where applicable, in determining the 3966
employer's ability to meet all of the obligations imposed on the 3967
employer by this section: 3968

       (a) The employer employs a minimum of five hundred employees 3969
in this state; 3970

       (b) The employer has operated in this state for a minimum of 3971
two years, provided that an employer who has purchased, acquired, 3972
or otherwise succeeded to the operation of a business, or any part 3973
thereof, situated in this state that has operated for at least two 3974
years in this state, also shall qualify; 3975

       (c) Where the employer previously contributed to the state 3976
insurance fund or is a successor employer as defined by bureau 3977
rules, the amount of the buyout, as defined by bureau rules; 3978

       (d) The sufficiency of the employer's assets located in this 3979
state to insure the employer's solvency in paying compensation 3980
directly; 3981

       (e) The financial records, documents, and data, certified by 3982
a certified public accountant, necessary to provide the employer's 3983
full financial disclosure. The records, documents, and data 3984
include, but are not limited to, balance sheets and profit and 3985
loss history for the current year and previous four years. 3986

       (f) The employer's organizational plan for the administration 3987
of the workers' compensation law; 3988

       (g) The employer's proposed plan to inform employees of the 3989
change from a state fund insurer to a self-insuring employer, the 3990
procedures the employer will follow as a self-insuring employer, 3991
and the employees' rights to compensation and benefits; and 3992

       (h) The employer has either an account in a financial 3993
institution in this state, or if the employer maintains an account 3994
with a financial institution outside this state, ensures that 3995
workers' compensation checks are drawn from the same account as 3996
payroll checks or the employer clearly indicates that payment will 3997
be honored by a financial institution in this state. 3998

       The administrator may waive the requirements of divisions 3999
(B)(1)(a) and (b) of this section and the requirement of division 4000
(B)(1)(e) of this section that the financial records, documents, 4001
and data be certified by a certified public accountant. The 4002
administrator shall adopt rules establishing the criteria that an 4003
employer shall meet in order for the administrator to waive the 4004
requirement of division (B)(1)(e) of this section. Such rules may 4005
require additional security of that employer pursuant to division 4006
(E) of section 4123.351 of the Revised Code. 4007

       The administrator shall not grant the status of self-insuring 4008
employer to the state, except that the administrator may grant the 4009
status of self-insuring employer to a state institution of higher 4010
education, excluding its hospitals, that meets the requirements of 4011
division (B)(2) of this section. 4012

       (2) When considering the application of a public employer, 4013
except for a board of county commissioners described in division 4014
(G) of section 4123.01 of the Revised Code, a board of a county 4015
hospital, or a publicly owned utility, the administrator shall 4016
verify that the public employer satisfies all of the following 4017
requirements as the requirements apply to that public employer: 4018

       (a) For the two-year period preceding application under this 4019
section, the public employer has maintained an unvoted debt 4020
capacity equal to at least two times the amount of the current 4021
annual premium established by the administrator under this chapter 4022
for that public employer for the year immediately preceding the 4023
year in which the public employer makes application under this 4024
section. 4025

       (b) For each of the two fiscal years preceding application 4026
under this section, the unreserved and undesignated year-end fund 4027
balance in the public employer's general fund is equal to at least 4028
five per cent of the public employer's general fund revenues for 4029
the fiscal year computed in accordance with generally accepted 4030
accounting principles. 4031

       (c) For the five-year period preceding application under this 4032
section, the public employer, to the extent applicable, has 4033
complied fully with the continuing disclosure requirements 4034
established in rules adopted by the United States securities and 4035
exchange commission under 17 C.F.R. 240.15c 2-12. 4036

       (d) For the five-year period preceding application under this 4037
section, the public employer has not had its local government fund 4038
distribution withheld on account of the public employer being 4039
indebted or otherwise obligated to the state. 4040

       (e) For the five-year period preceding application under this 4041
section, the public employer has not been under a fiscal watch or 4042
fiscal emergency pursuant to section 118.023, 118.04, or 3316.03 4043
of the Revised Code. 4044

       (f) For the public employer's fiscal year preceding 4045
application under this section, the public employer has obtained 4046
an annual financial audit as required under section 117.10 of the 4047
Revised Code, which has been released by the auditor of state 4048
within seven months after the end of the public employer's fiscal 4049
year. 4050

       (g) On the date of application, the public employer holds a 4051
debt rating of Aa3 or higher according to Moody's investors 4052
service, inc., or a comparable rating by an independent rating 4053
agency similar to Moody's investors service, inc. 4054

       (h) The public employer agrees to generate an annual 4055
accumulating book reserve in its financial statements reflecting 4056
an actuarially generated reserve adequate to pay projected claims 4057
under this chapter for the applicable period of time, as 4058
determined by the administrator. 4059

       (i) For a public employer that is a hospital, the public 4060
employer shall submit audited financial statements showing the 4061
hospital's overall liquidity characteristics, and the 4062
administrator shall determine, on an individual basis, whether the 4063
public employer satisfies liquidity standards equivalent to the 4064
liquidity standards of other public employers. 4065

       (j) Any additional criteria that the administrator adopts by 4066
rule pursuant to division (E) of this section. 4067

       The administrator shall not approve the application of a 4068
public employer, except for a board of county commissioners 4069
described in division (G) of section 4123.01 of the Revised Code, 4070
a board of a county hospital, or publicly owned utility, who does 4071
not satisfy all of the requirements listed in division (B)(2) of 4072
this section. 4073

       (C) A board of county commissioners described in division (G) 4074
of section 4123.01 of the Revised Code, as an employer, that will 4075
abide by the rules of the administrator and that may be of 4076
sufficient financial ability to render certain the payment of 4077
compensation to injured employees or the dependents of killed 4078
employees, and the furnishing of medical, surgical, nursing, and 4079
hospital attention and services and medicines, and funeral 4080
expenses, equal to or greater than is provided for in sections 4081
4123.52, 4123.55 to 4123.62, and 4123.64 to 4123.67 of the Revised 4082
Code, and that does not desire to insure the payment thereof or 4083
indemnify itself against loss sustained by the direct payment 4084
thereof, upon a finding of such facts by the administrator, may be 4085
granted the privilege to pay individually compensation, and 4086
furnish medical, surgical, nursing, and hospital services and 4087
attention and funeral expenses directly to injured employees or 4088
the dependents of killed employees, thereby being granted status 4089
as a self-insuring employer. The administrator may charge a board 4090
of county commissioners described in division (G) of section 4091
4123.01 of the Revised Code that applies for the status as a 4092
self-insuring employer a reasonable application fee to cover the 4093
bureau's costs in connection with processing and making a 4094
determination with respect to an application. All employers 4095
granted such status shall demonstrate sufficient financial and 4096
administrative ability to assure that all obligations under this 4097
section are promptly met. The administrator shall deny the 4098
privilege where the employer is unable to demonstrate the 4099
employer's ability to promptly meet all the obligations imposed on 4100
the employer by this section. The administrator shall consider, 4101
but is not limited to, the following factors, where applicable, in 4102
determining the employer's ability to meet all of the obligations 4103
imposed on the board as an employer by this section: 4104

       (1) The board as an employer employs a minimum of five 4105
hundred employees in this state; 4106

       (2) The board has operated in this state for a minimum of two 4107
years; 4108

       (3) Where the board previously contributed to the state 4109
insurance fund or is a successor employer as defined by bureau 4110
rules, the amount of the buyout, as defined by bureau rules; 4111

       (4) The sufficiency of the board's assets located in this 4112
state to insure the board's solvency in paying compensation 4113
directly; 4114

       (5) The financial records, documents, and data, certified by 4115
a certified public accountant, necessary to provide the board's 4116
full financial disclosure. The records, documents, and data 4117
include, but are not limited to, balance sheets and profit and 4118
loss history for the current year and previous four years. 4119

       (6) The board's organizational plan for the administration of 4120
the workers' compensation law; 4121

       (7) The board's proposed plan to inform employees of the 4122
proposed self-insurance, the procedures the board will follow as a 4123
self-insuring employer, and the employees' rights to compensation 4124
and benefits; 4125

       (8) The board has either an account in a financial 4126
institution in this state, or if the board maintains an account 4127
with a financial institution outside this state, ensures that 4128
workers' compensation checks are drawn from the same account as 4129
payroll checks or the board clearly indicates that payment will be 4130
honored by a financial institution in this state; 4131

       (9) The board shall provide the administrator a surety bond 4132
in an amount equal to one hundred twenty-five per cent of the 4133
projected losses as determined by the administrator. 4134

       (D) The administrator shall require a surety bond from all 4135
self-insuring employers, issued pursuant to section 4123.351 of 4136
the Revised Code, that is sufficient to compel, or secure to 4137
injured employees, or to the dependents of employees killed, the 4138
payment of compensation and expenses, which shall in no event be 4139
less than that paid or furnished out of the state insurance fund 4140
in similar cases to injured employees or to dependents of killed 4141
employees whose employers contribute to the fund, except when an 4142
employee of the employer, who has suffered the loss of a hand, 4143
arm, foot, leg, or eye prior to the injury for which compensation 4144
is to be paid, and thereafter suffers the loss of any other of the 4145
members as the result of any injury sustained in the course of and 4146
arising out of the employee's employment, the compensation to be 4147
paid by the self-insuring employer is limited to the disability 4148
suffered in the subsequent injury, additional compensation, if 4149
any, to be paid by the bureau out of the surplus created by 4150
section 4123.34 of the Revised Code. 4151

       (E) In addition to the requirements of this section, the 4152
administrator shall make and publish rules governing the manner of 4153
making application and the nature and extent of the proof required 4154
to justify a finding of fact by the administrator as to granting 4155
the status of a self-insuring employer, which rules shall be 4156
general in their application, one of which rules shall provide 4157
that all self-insuring employers shall pay into the state 4158
insurance fund such amounts as are required to be credited to the 4159
surplus fund in division ~~(B)~~(A) of section 4123.34 of the Revised 4160
Code. The administrator may adopt rules establishing requirements 4161
in addition to the requirements described in division (B)(2) of 4162
this section that a public employer shall meet in order to qualify 4163
for self-insuring status. 4164

       Employers shall secure directly from the bureau central 4165
offices application forms upon which the bureau shall stamp a 4166
designating number. Prior to submission of an application, an 4167
employer shall make available to the bureau, and the bureau shall 4168
review, the information described in division (B)(1) of this 4169
section, and public employers shall make available, and the bureau 4170
shall review, the information necessary to verify whether the 4171
public employer meets the requirements listed in division (B)(2) 4172
of this section. An employer shall file the completed application 4173
forms with an application fee, which shall cover the costs of 4174
processing the application, as established by the administrator, 4175
by rule, with the bureau at least ninety days prior to the 4176
effective date of the employer's new status as a self-insuring 4177
employer. The application form is not deemed complete until all 4178
the required information is attached thereto. The bureau shall 4179
only accept applications that contain the required information. 4180

       (F) The bureau shall review completed applications within a 4181
reasonable time. If the bureau determines to grant an employer the 4182
status as a self-insuring employer, the bureau shall issue a 4183
statement, containing its findings of fact, that is prepared by 4184
the bureau and signed by the administrator. If the bureau 4185
determines not to grant the status as a self-insuring employer, 4186
the bureau shall notify the employer of the determination and 4187
require the employer to continue to pay its full premium into the 4188
state insurance fund. The administrator also shall adopt rules 4189
establishing a minimum level of performance as a criterion for 4190
granting and maintaining the status as a self-insuring employer 4191
and fixing time limits beyond which failure of the self-insuring 4192
employer to provide for the necessary medical examinations and 4193
evaluations may not delay a decision on a claim. 4194

       (G) The administrator shall adopt rules setting forth 4195
procedures for auditing the program of self-insuring employers. 4196
The bureau shall conduct the audit upon a random basis or whenever 4197
the bureau has grounds for believing that a self-insuring employer 4198
is not in full compliance with bureau rules or this chapter. 4199

       The administrator shall monitor the programs conducted by 4200
self-insuring employers, to ensure compliance with bureau 4201
requirements and for that purpose, shall develop and issue to 4202
self-insuring employers standardized forms for use by the 4203
self-insuring employer in all aspects of the self-insuring 4204
employers' direct compensation program and for reporting of 4205
information to the bureau. 4206

       The bureau shall receive and transmit to the self-insuring 4207
employer all complaints concerning any self-insuring employer. In 4208
the case of a complaint against a self-insuring employer, the 4209
administrator shall handle the complaint through the 4210
self-insurance division of the bureau. The bureau shall maintain a 4211
file by employer of all complaints received that relate to the 4212
employer. The bureau shall evaluate each complaint and take 4213
appropriate action. 4214

       The administrator shall adopt as a rule a prohibition against 4215
any self-insuring employer from harassing, dismissing, or 4216
otherwise disciplining any employee making a complaint, which rule 4217
shall provide for a financial penalty to be levied by the 4218
administrator payable by the offending self-insuring employer. 4219

       (H) For the purpose of making determinations as to whether to 4220
grant status as a self-insuring employer, the administrator may 4221
subscribe to and pay for a credit reporting service that offers 4222
financial and other business information about individual 4223
employers. The costs in connection with the bureau's subscription 4224
or individual reports from the service about an applicant may be 4225
included in the application fee charged employers under this 4226
section. 4227

       (I) The administrator, notwithstanding other provisions of 4228
this chapter, may permit a self-insuring employer to resume 4229
payment of premiums to the state insurance fund with appropriate 4230
credit modifications to the employer's basic premium rate as such 4231
rate is determined pursuant to section 4123.29 of the Revised 4232
Code. 4233

       (J) On the first day of July of each year, the administrator 4234
shall calculate separately each self-insuring employer's 4235
assessments for the safety and hygiene fund, administrative costs 4236
pursuant to section 4123.342 of the Revised Code, and for the 4237
portion of the surplus fund under division ~~(B)~~(A) of section 4238
4123.34 of the Revised Code that is not used for handicapped 4239
reimbursement, on the basis of the paid compensation attributable 4240
to the individual self-insuring employer according to the 4241
following calculation: 4242

       (1) The total assessment against all self-insuring employers 4243
as a class for each fund and for the administrative costs for the 4244
year that the assessment is being made, as determined by the 4245
~~administrator~~board, divided by the total amount of paid 4246
compensation for the previous calendar year attributable to all 4247
amenable self-insuring employers; 4248

       (2) Multiply the quotient in division (J)(1) of this section 4249
by the total amount of paid compensation for the previous calendar 4250
year that is attributable to the individual self-insuring employer 4251
for whom the assessment is being determined. Each self-insuring 4252
employer shall pay the assessment that results from this 4253
calculation, unless the assessment resulting from this calculation 4254
falls below a minimum assessment, which minimum assessment the 4255
~~administrator~~board shall determine on the first day of July of 4256
each year ~~with the advice and consent~~based upon recommendations 4257
of the ~~workers' compensation oversight commission~~actuarial 4258
committee, in which event, the self-insuring employer shall pay 4259
the minimum assessment. 4260

       In determining the total amount due for the total assessment 4261
against all self-insuring employers as a class for each fund and 4262
the administrative assessment, the ~~administrator~~board shall 4263
reduce proportionately the total for each fund and assessment by 4264
the amount of money in the self-insurance assessment fund as of 4265
the date of the computation of the assessment. 4266

       The ~~administrator~~board shall calculate the assessment for 4267
the portion of the surplus fund under division ~~(B)~~(A) of section 4268
4123.34 of the Revised Code that is used for handicapped 4269
reimbursement in the same manner as set forth in divisions (J)(1) 4270
and (2) of this section except that the ~~administrator~~board shall 4271
calculate the total assessment for this portion of the surplus 4272
fund only on the basis of those self-insuring employers that 4273
retain participation in the handicapped reimbursement program and 4274
the individual self-insuring employer's proportion of paid 4275
compensation shall be calculated only for those self-insuring 4276
employers who retain participation in the handicapped 4277
reimbursement program. The ~~administrator~~board, as the 4278
~~administrator~~board determines appropriate and based upon 4279
recommendations of the actuarial committee, may determine the 4280
total assessment for the handicapped portion of the surplus fund 4281
in accordance with sound actuarial principles. 4282

       The ~~administrator~~board shall calculate the assessment for 4283
the portion of the surplus fund under division ~~(B)~~(A) of section 4284
4123.34 of the Revised Code that under division (D) of section 4285
4121.66 of the Revised Code is used for rehabilitation costs in 4286
the same manner as set forth in divisions (J)(1) and (2) of this 4287
section, except that the ~~administrator~~board shall calculate the 4288
total assessment for this portion of the surplus fund only on the 4289
basis of those self-insuring employers who have not made the 4290
election to make payments directly under division (D) of section 4291
4121.66 of the Revised Code and an individual self-insuring 4292
employer's proportion of paid compensation only for those 4293
self-insuring employers who have not made that election. 4294

       The ~~administrator~~board shall calculate the assessment for 4295
the portion of the surplus fund under division ~~(B)~~(A) of section 4296
4123.34 of the Revised Code that is used for reimbursement to a 4297
self-insuring employer under division (H) of section 4123.512 of 4298
the Revised Code in the same manner as set forth in divisions 4299
(J)(1) and (2) of this section except that the ~~administrator~~board 4300
shall calculate the total assessment for this portion of the 4301
surplus fund only on the basis of those self-insuring employers 4302
that retain participation in reimbursement to the self-insuring 4303
employer under division (H) of section 4123.512 of the Revised 4304
Code and the individual self-insuring employer's proportion of 4305
paid compensation shall be calculated only for those self-insuring 4306
employers who retain participation in reimbursement to the 4307
self-insuring employer under division (H) of section 4123.512 of 4308
the Revised Code. 4309

       An employer who no longer is a self-insuring employer in this 4310
state or who no longer is operating in this state, shall continue 4311
to pay assessments for administrative costs and for the portion of 4312
the surplus fund under division ~~(B)~~(A) of section 4123.34 of the 4313
Revised Code that is not used for handicapped reimbursement, based 4314
upon paid compensation attributable to claims that occurred while 4315
the employer was a self-insuring employer within this state. 4316

       (K) There is hereby created in the state treasury the 4317
self-insurance assessment fund. All investment earnings of the 4318
fund shall be deposited in the fund. The administrator shall use 4319
the money in the self-insurance assessment fund only for 4320
administrative costs as specified in section 4123.341 of the 4321
Revised Code. 4322

       (L) Every self-insuring employer shall certify, in affidavit 4323
form subject to the penalty for perjury, to the bureau the amount 4324
of the self-insuring employer's paid compensation for the previous 4325
calendar year. In reporting paid compensation paid for the 4326
previous year, a self-insuring employer shall exclude from the 4327
total amount of paid compensation any reimbursement the 4328
self-insuring employer receives in the previous calendar year from 4329
the surplus fund pursuant to section 4123.512 of the Revised Code 4330
for any paid compensation. The self-insuring employer also shall 4331
exclude from the paid compensation reported any amount recovered 4332
under section 4123.931 of the Revised Code and any amount that is 4333
determined not to have been payable to or on behalf of a claimant 4334
in any final administrative or judicial proceeding. The 4335
self-insuring employer shall exclude such amounts from the paid 4336
compensation reported in the reporting period subsequent to the 4337
date the determination is made. The administrator shall adopt 4338
rules, in accordance with Chapter 119. of the Revised Code, that 4339
provide for all of the following: 4340

       (1) Establishing the date by which self-insuring employers 4341
must submit such information and the amount of the assessments 4342
provided for in division (J) of this section for employers who 4343
have been granted self-insuring status within the last calendar 4344
year; 4345

       (2) If an employer fails to pay the assessment when due, the 4346
administrator may add a late fee penalty of not more than five 4347
hundred dollars to the assessment plus an additional penalty 4348
amount as follows: 4349

       (a) For an assessment from sixty-one to ninety days past due, 4350
the prime interest rate, multiplied by the assessment due; 4351

       (b) For an assessment from ninety-one to one hundred twenty 4352
days past due, the prime interest rate plus two per cent, 4353
multiplied by the assessment due; 4354

       (c) For an assessment from one hundred twenty-one to one 4355
hundred fifty days past due, the prime interest rate plus four per 4356
cent, multiplied by the assessment due; 4357

       (d) For an assessment from one hundred fifty-one to one 4358
hundred eighty days past due, the prime interest rate plus six per 4359
cent, multiplied by the assessment due; 4360

       (e) For an assessment from one hundred eighty-one to two 4361
hundred ten days past due, the prime interest rate plus eight per 4362
cent, multiplied by the assessment due; 4363

       (f) For each additional thirty-day period or portion thereof 4364
that an assessment remains past due after it has remained past due 4365
for more than two hundred ten days, the prime interest rate plus 4366
eight per cent, multiplied by the assessment due. 4367

        (3) An employer may appeal a late fee penalty and penalty 4368
assessment to the administrator. 4369

        For purposes of ~~this~~ division (L)(2) of this section, "prime 4370
interest rate" means the average bank prime rate, and the 4371
administrator shall determine the prime interest rate in the same 4372
manner as a county auditor determines the average bank prime rate 4373
under section 929.02 of the Revised Code. 4374

       The administrator shall include any assessment and penalties 4375
that remain unpaid for previous assessment periods in the 4376
calculation and collection of any assessments due under this 4377
division or division (J) of this section. 4378

       (M) As used in this section, "paid compensation" means all 4379
amounts paid by a self-insuring employer for living maintenance 4380
benefits, all amounts for compensation paid pursuant to sections 4381
4121.63, 4121.67, 4123.56, 4123.57, 4123.58, 4123.59, 4123.60, and 4382
4123.64 of the Revised Code, all amounts paid as wages in lieu of 4383
such compensation, all amounts paid in lieu of such compensation 4384
under a nonoccupational accident and sickness program fully funded 4385
by the self-insuring employer, and all amounts paid by a 4386
self-insuring employer for a violation of a specific safety 4387
standard pursuant to Section 35 of Article II, Ohio Constitution 4388
and section 4121.47 of the Revised Code. 4389

       (N) Should any section of this chapter or Chapter 4121. of 4390
the Revised Code providing for self-insuring employers' 4391
assessments based upon compensation paid be declared 4392
unconstitutional by a final decision of any court, then that 4393
section of the Revised Code declared unconstitutional shall revert 4394
back to the section in existence prior to November 3, 1989, 4395
providing for assessments based upon payroll. 4396

       (O) The administrator may grant a self-insuring employer the 4397
privilege to self-insure a construction project entered into by 4398
the self-insuring employer that is scheduled for completion within 4399
six years after the date the project begins, and the total cost of 4400
which is estimated to exceed one hundred million dollars or, for 4401
employers described in division (R) of this section, if the 4402
construction project is estimated to exceed twenty-five million 4403
dollars. The administrator may waive such cost and time criteria 4404
and grant a self-insuring employer the privilege to self-insure a 4405
construction project regardless of the time needed to complete the 4406
construction project and provided that the cost of the 4407
construction project is estimated to exceed fifty million dollars. 4408
A self-insuring employer who desires to self-insure a construction 4409
project shall submit to the administrator an application listing 4410
the dates the construction project is scheduled to begin and end, 4411
the estimated cost of the construction project, the contractors 4412
and subcontractors whose employees are to be self-insured by the 4413
self-insuring employer, the provisions of a safety program that is 4414
specifically designed for the construction project, and a 4415
statement as to whether a collective bargaining agreement 4416
governing the rights, duties, and obligations of each of the 4417
parties to the agreement with respect to the construction project 4418
exists between the self-insuring employer and a labor 4419
organization. 4420

       A self-insuring employer may apply to self-insure the 4421
employees of either of the following: 4422

       (1) All contractors and subcontractors who perform labor or 4423
work or provide materials for the construction project; 4424

       (2) All contractors and, at the administrator's discretion, a 4425
substantial number of all the subcontractors who perform labor or 4426
work or provide materials for the construction project. 4427

       Upon approval of the application, the administrator shall 4428
mail a certificate granting the privilege to self-insure the 4429
construction project to the self-insuring employer. The 4430
certificate shall contain the name of the self-insuring employer 4431
and the name, address, and telephone number of the self-insuring 4432
employer's representatives who are responsible for administering 4433
workers' compensation claims for the construction project. The 4434
self-insuring employer shall post the certificate in a conspicuous 4435
place at the site of the construction project. 4436

       The administrator shall maintain a record of the contractors 4437
and subcontractors whose employees are covered under the 4438
certificate issued to the self-insured employer. A self-insuring 4439
employer immediately shall notify the administrator when any 4440
contractor or subcontractor is added or eliminated from inclusion 4441
under the certificate. 4442

       Upon approval of the application, the self-insuring employer 4443
is responsible for the administration and payment of all claims 4444
under this chapter and Chapter 4121. of the Revised Code for the 4445
employees of the contractor and subcontractors covered under the 4446
certificate who receive injuries or are killed in the course of 4447
and arising out of employment on the construction project, or who 4448
contract an occupational disease in the course of employment on 4449
the construction project. For purposes of this chapter and Chapter 4450
4121. of the Revised Code, a claim that is administered and paid 4451
in accordance with this division is considered a claim against the 4452
self-insuring employer listed in the certificate. A contractor or 4453
subcontractor included under the certificate shall report to the 4454
self-insuring employer listed in the certificate, all claims that 4455
arise under this chapter and Chapter 4121. of the Revised Code in 4456
connection with the construction project for which the certificate 4457
is issued. 4458

       A self-insuring employer who complies with this division is 4459
entitled to the protections provided under this chapter and 4460
Chapter 4121. of the Revised Code with respect to the employees of 4461
the contractors and subcontractors covered under a certificate 4462
issued under this division for death or injuries that arise out 4463
of, or death, injuries, or occupational diseases that arise in the 4464
course of, those employees' employment on that construction 4465
project, as if the employees were employees of the self-insuring 4466
employer, provided that the self-insuring employer also complies 4467
with this section. No employee of the contractors and 4468
subcontractors covered under a certificate issued under this 4469
division shall be considered the employee of the self-insuring 4470
employer listed in that certificate for any purposes other than 4471
this chapter and Chapter 4121. of the Revised Code. Nothing in 4472
this division gives a self-insuring employer authority to control 4473
the means, manner, or method of employment of the employees of the 4474
contractors and subcontractors covered under a certificate issued 4475
under this division. 4476

       The contractors and subcontractors included under a 4477
certificate issued under this division are entitled to the 4478
protections provided under this chapter and Chapter 4121. of the 4479
Revised Code with respect to the contractor's or subcontractor's 4480
employees who are employed on the construction project which is 4481
the subject of the certificate, for death or injuries that arise 4482
out of, or death, injuries, or occupational diseases that arise in 4483
the course of, those employees' employment on that construction 4484
project. 4485

       The contractors and subcontractors included under a 4486
certificate issued under this division shall identify in their 4487
payroll records the employees who are considered the employees of 4488
the self-insuring employer listed in that certificate for purposes 4489
of this chapter and Chapter 4121. of the Revised Code, and the 4490
amount that those employees earned for employment on the 4491
construction project that is the subject of that certificate. 4492
Notwithstanding any provision to the contrary under this chapter 4493
and Chapter 4121. of the Revised Code, the administrator shall 4494
exclude the payroll that is reported for employees who are 4495
considered the employees of the self-insuring employer listed in 4496
that certificate, and that the employees earned for employment on 4497
the construction project that is the subject of that certificate, 4498
when determining those contractors' or subcontractors' premiums or 4499
assessments required under this chapter and Chapter 4121. of the 4500
Revised Code. A self-insuring employer issued a certificate under 4501
this division shall include in the amount of paid compensation it 4502
reports pursuant to division (L) of this section, the amount of 4503
paid compensation the self-insuring employer paid pursuant to this 4504
division for the previous calendar year. 4505

       Nothing in this division shall be construed as altering the 4506
rights of employees under this chapter and Chapter 4121. of the 4507
Revised Code as those rights existed prior to September 17, 1996. 4508
Nothing in this division shall be construed as altering the rights 4509
devolved under sections 2305.31 and 4123.82 of the Revised Code as 4510
those rights existed prior to September 17, 1996. 4511

       As used in this division, "privilege to self-insure a 4512
construction project" means privilege to pay individually 4513
compensation, and to furnish medical, surgical, nursing, and 4514
hospital services and attention and funeral expenses directly to 4515
injured employees or the dependents of killed employees. 4516

       (P) A self-insuring employer whose application is granted 4517
under division (O) of this section shall designate a safety 4518
professional to be responsible for the administration and 4519
enforcement of the safety program that is specifically designed 4520
for the construction project that is the subject of the 4521
application. 4522

       A self-insuring employer whose application is granted under 4523
division (O) of this section shall employ an ombudsperson for the 4524
construction project that is the subject of the application. The 4525
ombudsperson shall have experience in workers' compensation or the 4526
construction industry, or both. The ombudsperson shall perform all 4527
of the following duties: 4528

       (1) Communicate with and provide information to employees who 4529
are injured in the course of, or whose injury arises out of 4530
employment on the construction project, or who contract an 4531
occupational disease in the course of employment on the 4532
construction project; 4533

       (2) Investigate the status of a claim upon the request of an 4534
employee to do so; 4535

       (3) Provide information to claimants, third party 4536
administrators, employers, and other persons to assist those 4537
persons in protecting their rights under this chapter and Chapter 4538
4121. of the Revised Code. 4539

       A self-insuring employer whose application is granted under 4540
division (O) of this section shall post the name of the safety 4541
professional and the ombudsperson and instructions for contacting 4542
the safety professional and the ombudsperson in a conspicuous 4543
place at the site of the construction project. 4544

       (Q) The administrator may consider all of the following when 4545
deciding whether to grant a self-insuring employer the privilege 4546
to self-insure a construction project as provided under division 4547
(O) of this section: 4548

       (1) Whether the self-insuring employer has an organizational 4549
plan for the administration of the workers' compensation law; 4550

       (2) Whether the safety program that is specifically designed 4551
for the construction project provides for the safety of employees 4552
employed on the construction project, is applicable to all 4553
contractors and subcontractors who perform labor or work or 4554
provide materials for the construction project, and has as a 4555
component, a safety training program that complies with standards 4556
adopted pursuant to the "Occupational Safety and Health Act of 4557
1970," 84 Stat. 1590, 29 U.S.C.A. 651, and provides for continuing 4558
management and employee involvement; 4559

       (3) Whether granting the privilege to self-insure the 4560
construction project will reduce the costs of the construction 4561
project; 4562

       (4) Whether the self-insuring employer has employed an 4563
ombudsperson as required under division (P) of this section; 4564

       (5) Whether the self-insuring employer has sufficient surety 4565
to secure the payment of claims for which the self-insuring 4566
employer would be responsible pursuant to the granting of the 4567
privilege to self-insure a construction project under division (O) 4568
of this section. 4569

       (R) As used in divisions (O), (P), and (Q), "self-insuring 4570
employer" includes the following employers, whether or not they 4571
have been granted the status of being a self-insuring employer 4572
under division (B) of this section: 4573

        (1) A state institution of higher education; 4574

        (2) A school district; 4575

        (3) A county school financing district; 4576

        (4) An educational service center; 4577

        (5) A community school established under Chapter 3314. of the 4578
Revised Code. 4579

        (S) As used in this section: 4580

       (1) "Unvoted debt capacity" means the amount of money that a 4581
public employer may borrow without voter approval of a tax levy; 4582

       (2) "State institution of higher education" means the state 4583
universities listed in section 3345.011 of the Revised Code, 4584
community colleges created pursuant to Chapter 3354. of the 4585
Revised Code, university branches created pursuant to Chapter 4586
3355. of the Revised Code, technical colleges created pursuant to 4587
Chapter 3357. of the Revised Code, and state community colleges 4588
created pursuant to Chapter 3358. of the Revised Code. 4589

       Sec. 4123.351. (A) The administrator of workers' 4590
compensation shall require every self-insuring employer to pay a 4591
contribution, calculated under this section, to the self-insuring 4592
employers' guaranty fund established pursuant to this section. The 4593
fund shall provide for payment of compensation and benefits to 4594
employees of the self-insuring employer in order to cover any 4595
default in payment by that employer. 4596

       (B) The bureau of workers' compensation shall operate the 4597
self-insuring employers' guaranty fund for self-insuring 4598
employers. The ~~administrator~~workers' compensation board of 4599
directors, based upon recommendations of the workers' compensation 4600
actuarial committee, annually shall establish the contributions 4601
due from self-insuring employers for the fund at rates as low as 4602
possible but such as will assure sufficient moneys to guarantee 4603
the payment of any claims against the fund. The bureau's operation 4604
of the fund is not subject to sections 3929.10 to 3929.18 of the 4605
Revised Code or to regulation by the superintendent of insurance. 4606

       (C) If a self-insuring employer defaults, the bureau shall 4607
recover the amounts paid as a result of the default from the 4608
self-insuring employers' guaranty fund. If a self-insuring 4609
employer defaults and is in compliance with this section for the 4610
payment of contributions to the fund, such self-insuring employer 4611
is entitled to the immunity conferred by section 4123.74 of the 4612
Revised Code for any claim arising during any period the employer 4613
is in compliance with this section. 4614

       (D)(1) There is hereby established a self-insuring employers' 4615
guaranty fund, which shall be in the custody of the treasurer of 4616
state and which shall be separate from the other funds established 4617
and administered pursuant to this chapter. The fund shall consist 4618
of contributions and other payments made by self-insuring 4619
employers under this section. All investment earnings of the fund 4620
shall be credited to the fund. The bureau shall make disbursements 4621
from the fund pursuant to this section. 4622

       (2) The administrator ~~of workers' compensation~~ has the same 4623
powers to invest any of the surplus or reserve belonging to the 4624
fund as are delegated to ~~him~~the administrator under section 4625
4123.44 of the Revised Code with respect to the state insurance 4626
fund. The ~~administrator~~board shall apply interest earned solely 4627
to the reduction of assessments for contributions from 4628
self-insuring employers and to the payments required due to 4629
defaults. 4630

       (3) If the ~~administrator~~board determines that reinsurance of 4631
the risks of the fund is necessary to assure solvency of the fund, 4632
hethe board may: 4633

       (a) Enter into contracts for the purchase of reinsurance 4634
coverage of the risks of the fund with any company or agency 4635
authorized by law to issue contracts of reinsurance; 4636

       (b) ~~Pay~~Require the administrator to pay the cost of 4637
reinsurance from the fund; 4638

       (c) Include the costs of reinsurance as a liability and 4639
estimated liability of the fund. 4640

       (E) The administrator, with the advice and consent of the 4641
~~workers' compensation oversight commission~~board, may adopt rules 4642
pursuant to Chapter 119. of the Revised Code for the 4643
implementation of this section, including a rule, notwithstanding 4644
division (C) of this section, requiring self-insuring employers to 4645
provide security in addition to the contribution to the 4646
self-insuring employers' guaranty fund required by this section. 4647
The additional security required by the rule, as the administrator 4648
determines appropriate, shall be sufficient and adequate to 4649
provide for financial assurance to meet the obligations of 4650
self-insuring employers under this chapter and Chapter 4121. of 4651
the Revised Code. 4652

       (F) The purchase of coverage under this section by 4653
self-insuring employers is valid notwithstanding the prohibitions 4654
contained in division (A) of section 4123.82 of the Revised Code 4655
and is in addition to the indemnity contracts that self-insuring 4656
employers may purchase pursuant to division (B) of section 4123.82 4657
of the Revised Code. 4658

       (G) The administrator, on behalf of the self-insuring 4659
employers' guaranty fund, has the rights of reimbursement and 4660
subrogation and shall collect from a defaulting self-insuring 4661
employer or other liable person all amounts hethe administrator 4662
has paid or reasonably expects to pay from the fund on account of 4663
the defaulting self-insuring employer. 4664

       (H) The assessments for contributions, the administration of 4665
the self-insuring employers' guaranty fund, the investment of the 4666
money in the fund, and the payment of liabilities incurred by the 4667
fund do not create any liability upon the state. 4668

       Except for a gross abuse of discretion, neither the ~~oversight~~ 4669
~~commission~~board nor the actuarial committee, nor the individual 4670
members thereof, nor the administrator shall incur any obligation 4671
or liability respecting the assessments for contributions, the 4672
administration of the self-insuring employers' guaranty fund, the 4673
investment of the fund, or the payment of liabilities therefrom. 4674

       Sec. 4123.37. In this section "amenable employer" ~~means an~~ 4675
~~employer subject to~~has the same meaning as "employer" as defined 4676
in division ~~(B)(2)~~(O) of section ~~4123.01~~4123.32 of the Revised 4677
Code. 4678

       If the administrator of workers' compensation finds that any 4679
person, firm, or private corporation, including any public service 4680
corporation, is, or has been at any time after January 1, 1923, an 4681
amenable employer and has not complied with section 4123.35 of the 4682
Revised Code the administrator shall determine the period during 4683
which the person, firm, or corporation was an amenable employer 4684
and shall forthwith give notice of the determination to the 4685
employer. Within twenty days thereafter the employer shall furnish 4686
the bureau with the payroll covering the period included in the 4687
determination and, if the employer is an amenable employer at the 4688
time of the determination, shall pay a premium security deposit 4689
for the eight months next succeeding the date of the determination 4690
and shall pay into the state insurance fund the amount of premium 4691
applicable to such payroll. 4692

       If the employer does not furnish the payroll and pay the 4693
applicable premium and premium security deposit within the twenty 4694
days, the administrator shall forthwith make an assessment of the 4695
premium due from the employer for the period the administrator 4696
determined the employer to be an amenable employer including the 4697
premium security deposit according to section 4123.32 of the 4698
Revised Code if the employer is an amenable employer at the time 4699
of the determination, basing the assessment upon the information 4700
in the possession of the administrator. 4701

       The administrator shall give to the employer assessed written 4702
notice of the assessment. The notice shall be mailed to the 4703
employer at ~~his~~the employer's residence or usual place of 4704
business by certified mail. Unless the employer to whom the notice 4705
of assessment is directed files with the bureau within twenty days 4706
after receipt thereof, a petition in writing, verified under oath 4707
by the employer, or ~~his~~the employer's authorized agent having 4708
knowledge of the facts, setting forth with particularity the items 4709
of the assessment objected to, together with the reason for the 4710
objections, the assessment shall become conclusive and the amount 4711
thereof shall be due and payable from the employer so assessed to 4712
the state insurance fund. When a petition objecting to an 4713
assessment is filed the bureau shall assign a time and place for 4714
the hearing of the same and shall notify the petitioner thereof by 4715
certified mail. When an employer files a petition the assessment 4716
made by the administrator shall become due and payable ten days 4717
after notice of the finding made at the hearing has been sent by 4718
certified mail to the party assessed. An appeal may be taken from 4719
any finding to the court of common pleas of Franklin county upon 4720
the execution by the party assessed of a bond to the state in 4721
double the amount found due and ordered paid by the bureau 4722
conditioned that the party will pay any judgment and costs 4723
rendered against it for the premium. 4724

       When no petition objecting to an assessment is filed or when 4725
a finding is made affirming or modifying an assessment after 4726
hearing, a certified copy of the assessment as affirmed or 4727
modified may be filed by the administrator in the office of the 4728
clerk of the court of common pleas in any county in which the 4729
employer has property or in which the employer has a place of 4730
business. The clerk, immediately upon the filing of the 4731
assessment, shall enter a judgment for the state against the 4732
employer in the amount shown on the assessment. The judgment may 4733
be filed by the clerk in a loose leaf book entitled "special 4734
judgments for state insurance fund." The judgment shall bear the 4735
same rate of interest, have the same effect as other judgments, 4736
and be given the same preference allowed by law on other judgments 4737
rendered for claims for taxes. An assessment or judgment under 4738
this section shall not be a bar to the adjustment of the 4739
employer's account upon the employer furnishing ~~his~~the employer's 4740
payroll records to the bureau. 4741

       The administrator, for good cause shown, may waive a default 4742
in the payment of premium where the default is of less than sixty 4743
days' duration, and upon payment by the employer of the premium 4744
for the period, hethe employer and ~~his~~the employer's employees 4745
are entitled to all of the benefits and immunities provided by 4746
this chapter. 4747

       Sec. 4123.38. Every employer mentioned in division (B)(1) of 4748
section 4123.01 of the Revised Code, except for boards of county 4749
hospital trustees that are self-insurers under section 4123.35 of 4750
the Revised Code, shall contribute to the public insurance fund 4751
the amount of money ~~determined~~assessed by the administrator of 4752
workers' compensation~~, and the manner of determining contributions~~ 4753
~~and the classifications of employers is as provided in~~pursuant to 4754
sections 4123.39 to 4123.41 and 4123.48 of the Revised Code. 4755

       Sec. 4123.39. The bureau of workers' compensation board of 4756
directors, based upon recommendations of the workers' compensation 4757
actuarial committee, shall determine the total amount of money to 4758
be contributed by the state and all the counties therein, 4759
including the taxing districts located within the counties. The 4760
administrator of workers' compensation shall determine the amount 4761
of money to be contributed under section 4123.38 of the Revised 4762
Code by the state itself and each county and each taxing district 4763
within each county. In fixing the amount of contribution to be 4764
made by ~~the~~a county~~, for such county~~ and for the taxing districts 4765
located therein, the administrator shall use the contribution 4766
rates developed by the board, based upon recommendations of the 4767
actuarial committee. The board, based upon recommendations of the 4768
actuarial committee, in developing contribution rates, shall 4769
classify counties and other taxing districts into such groups as 4770
will equitably determine the contributions in accordance with the 4771
relative degree of hazard, and also merit rate such individual 4772
counties, taxing districts, or groups of taxing districts in 4773
accordance with their individual accident experience so as 4774
ultimately to provide for each taxing subdivision contributing an 4775
amount sufficient to meet its individual obligations and to 4776
maintain a solvent public insurance fund. 4777

       The ~~administrator~~board shall classify hospitals owned by a 4778
political subdivision or subdivisions as a group and merit rate 4779
each individual hospital according to its individual accident 4780
experience as provided in the rules of the ~~administrator~~board 4781
adopts based upon recommendations of the actuarial committee. 4782

       A children's home or other such public institution, or any 4783
other public activity maintained and operated by two or more 4784
counties or parts of counties, shall be considered as a county for 4785
the purpose of this chapter. 4786

       The contribution to the state insurance fund of the state and 4787
its departments, agencies, and instrumentalities shall be paid 4788
from appropriations made by the general assembly for that purpose. 4789

       The ~~administrator~~board, based upon recommendations of the 4790
actuarial committee, shall develop and make available to counties 4791
and taxing districts and the district activities and institutions 4792
mentioned in this section a plan that groups, for rating purposes, 4793
counties, districts, and such activities and institutions of 4794
similar size and risk, and pools the risks of those counties, 4795
districts, activities, and institutions within the group. In no 4796
event shall this be construed as granting to such counties, 4797
districts, activities, or institutions status as self-insuring 4798
employers. 4799

       Sec. 4123.40. On or before the first day of July of every 4800
year, the administrator of workers' compensation shall estimate 4801
the gross payroll of all state employers for the succeeding 4802
biennium or fiscal year. 4803

       The bureau of workers' compensation board of directors, based 4804
upon recommendations of the workers' compensation actuarial 4805
committee and based upon information provided by the 4806
administrator, shall determine and certify for the office of 4807
budget and management that rate or rates which when applied to the 4808
gross payroll estimate will produce an amount equal to the 4809
estimated cost of awards or payments to be made during the like 4810
fiscal period, as determined by the ~~administrator~~board. 4811

       The rate certified shall be applied and made a part of the 4812
gross payroll calculation for the period for which the foregoing 4813
estimates have been made, in conformity with section 125.21 of the 4814
Revised Code. The amounts collected shall be remitted to the 4815
bureau as provided in section 125.21 of the Revised Code. 4816

       If the amounts remitted to the bureau for a fiscal period are 4817
greater or less than actual awards or payments for the like period 4818
by reason of an error in the prior estimates of gross payroll or 4819
awards or payments, the overage or shortage shall be included by 4820
the ~~administrator~~board in determining the rate for the next 4821
succeeding fiscal period. 4822

       In fixing the amount of contribution to be made by the state 4823
and each of its departments, agencies, and instrumentalities, the 4824
~~administrator~~board, based upon recommendations of the actuarial 4825
committee, shall classify departments, agencies, and 4826
instrumentalities into such groups as will equitably determine the 4827
contributions in accordance with their individual accident 4828
experience so that the state and its departments, agencies, and 4829
instrumentalities contribute an amount sufficient to meet 4830
individual obligations and maintain a solvent public insurance 4831
fund. 4832

       Moneys collected from state employers shall not be used to 4833
pay compensation or other benefits attributable to service of 4834
persons as employees of counties or taxing districts therein, nor 4835
shall moneys collected from counties and taxing districts therein 4836
be used to pay compensation or other benefits attributable to 4837
service of persons as employees of the state. 4838

       Sec. 4123.41. (A) By the first day of January of each year, 4839
the bureau of workers' compensation shall furnish to the county 4840
auditor of each county and the chief fiscal officer of each taxing 4841
district in a county and of each district activity and institution 4842
mentioned in section 4123.39 of the Revised Code forms containing 4843
the premium rates applicable to the county, district, district 4844
activity, or institution as an employer, on which to report the 4845
amount of money expended by the county, district, district 4846
activity, or institution during the previous twelve calendar 4847
months for the services of employees under this chapter. 4848

       (B) Each county auditor and each fiscal officer of a 4849
district, district activity, and institution shall calculate on 4850
the form it receives from the bureau under division (A) of this 4851
section the premium due as its proper contribution to the public 4852
insurance fund and issue a warrant in favor of the bureau for the 4853
amount due from the county, district, district activity, or 4854
institution to the public insurance fund according to the 4855
following schedule: 4856

       (1) On or before the fifteenth day of May of each year, no 4857
less than forty-five per cent of the amount due; 4858

       (2) On or before the first day of September of each year, no 4859
less than the total amount due. 4860

       The legislative body of any county, district, district 4861
activity, or institution may reimburse the fund from which the 4862
contribution is made by transferring to the fund from any other 4863
fund of the county, district, district activity, or institution, 4864
the proportionate amount of the contribution that should be 4865
chargeable to the fund, whether the fund is derived from taxation 4866
or otherwise. The proportionate amount of the contribution 4867
chargeable to the fund may be based on payroll, relative exposure, 4868
relative loss experience, or any combination of these factors, as 4869
determined by the legislative body. Within sixty days before a 4870
legislative body changes the method used for calculating the 4871
proportionate amount of the contribution chargeable to the fund, 4872
it shall notify, consult with, and give information supporting the 4873
change to any elected official affected by the change. A transfer 4874
made pursuant to division (B)(2) of this section is not subject to 4875
section 5705.16 of the Revised Code. 4876

       (C) The bureau may investigate the correctness of the 4877
information provided by the county auditor and chief fiscal 4878
officer under division (B) of this section, and if the bureau 4879
determines at any time that the county, district, district 4880
activity, or institution has not reported the correct information, 4881
the administrator of workers' compensation may make deductions or 4882
additions as the facts warrant and take those facts into 4883
consideration in determining the current or future contributions 4884
to be made by the county, district, district activity, or 4885
institution. If the county, district, district activity, or 4886
institution does not furnish the report in the time required by 4887
this section, the administrator may fix the amount of contribution 4888
the county, district, district activity, or institution must make 4889
and certify that amount for payment. 4890

       (D) The administrator shall provide a discount to any county, 4891
district, district activity, or institution that pays its total 4892
amount due to the public insurance fund on or before the fifteenth 4893
day of May of each year as its proper contribution for premiums. 4894
The ~~administrator~~bureau of workers' compensation board of 4895
directors, based upon recommendations of the workers' compensation 4896
actuarial committee, shall ~~base~~determine the discount provided 4897
under this division onbased upon the savings generated by the 4898
early payment to the public insurance fund. The administrator may 4899
provide the discount through a refund to the county, district, 4900
district activity, or institution or an offset against the future 4901
contributions due to the public insurance fund from the county, 4902
district, district activity, or institution. 4903

       (E) The administrator may impose an interest penalty for late 4904
payment of any amount due from a county, district, district 4905
activity, and institution at the interest rate established by the 4906
state tax commissioner pursuant to section 5703.47 of the Revised 4907
Code. 4908

       Sec. 4123.411. (A) For the purpose of carrying out sections 4909
4123.412 to 4123.418 of the Revised Code, the ~~administrator~~bureau 4910
of workers' compensation board of directors, ~~with the advice and~~ 4911
~~consent~~based upon recommendations of the workers' compensation 4912
~~oversight commission~~actuarial committee, shall levy an assessment 4913
against all employers at a rate, of at least five but not to 4914
exceed ten cents per one hundred dollars of payroll, such rate to 4915
be determined annually for each employer group listed in divisions 4916
(A)(1) to (3) of this section, which will produce an amount no 4917
greater than the amount the ~~administrator~~board, based upon 4918
recommendations of the actuarial committee, estimates to be 4919
necessary to carry out such sections for the period for which the 4920
assessment is levied. In the event the amount produced by the 4921
assessment is not sufficient to carry out such sections the 4922
additional amount necessary shall be provided from the income 4923
produced as a result of investments made pursuant to section 4924
4123.44 of the Revised Code. 4925

       Assessments shall be levied according to the following 4926
schedule: 4927

       (1) Private fund employers, except self-insuring 4928
employers--in January and July of each year upon gross payrolls of 4929
the preceding six months; 4930

       (2) Counties and taxing district employers therein, except 4931
county hospitals that are self-insuring employers--in January of 4932
each year upon gross payrolls of the preceding twelve months; 4933

       (3) The state as an employer--in January, April, July, and 4934
October of each year upon gross payrolls of the preceding three 4935
months. 4936

       Amounts assessed in accordance with this section shall be 4937
collected from each employer as prescribed in rules the 4938
administrator adopts. 4939

       The moneys derived from the assessment provided for in this 4940
section shall be credited to the disabled workers' relief fund 4941
created by section 4123.412 of the Revised Code. The ~~administrator~~ 4942
board, based upon recommendations of the actuarial committee, 4943
shall establish by rule classifications of employers within 4944
divisions (A)(1) to (3) of this section and shall determine rates 4945
for each class so as to fairly apportion the costs of carrying out 4946
sections 4123.412 to 4123.418 of the Revised Code. 4947

       (B) For all injuries and disabilities occurring on or after 4948
January 1, 1987, the ~~administrator~~board, for the purposes of 4949
carrying out sections 4123.412 to 4123.418 of the Revised Code, 4950
shall levy an assessment against all employers at a rate per one 4951
hundred dollars of payroll, such rate to be determined annually 4952
for each classification of employer in each employer group listed 4953
in divisions (A)(1) to (3) of this section, which will produce an 4954
amount no greater than the amount the ~~administrator~~board, based 4955
upon recommendations of the actuarial committee, estimates to be 4956
necessary to carry out such sections for the period for which the 4957
assessment is levied. The board, based upon recommendations of the 4958
actuarial committee, annually shall establish the contributions 4959
due from employers for the disabled workers' relief fund at rates 4960
as low as possible but that will assure sufficient moneys to 4961
guarantee the payment of any claims against that fund. 4962

       Amounts assessed in accordance with this division shall be 4963
billed at the same time premiums are billed and credited to the 4964
disabled workers' relief fund created by section 4123.412 of the 4965
Revised Code. The ~~administrator~~board, based upon recommendations 4966
of the actuarial committee, shall determine the rates for each 4967
class in the same manner as hethe board fixes the rates for 4968
premiums pursuant to section 4123.29 of the Revised Code. 4969

       (C) For a self-insuring employer, the bureau of workers' 4970
compensation shall pay to employees who are participants 4971
regardless of the date of injury, any amounts due to the 4972
participants under section 4123.414 of the Revised Code and shall 4973
bill the self-insuring employer, semiannually, for all amounts 4974
paid to a participant. 4975

       Sec. 4123.419. The assessment rate established pursuant to 4976
section 4123.411 of the Revised Code, subject to the limits set 4977
forth in that section, shall be adequate to provide the amounts 4978
estimated as necessary by the ~~administrator~~bureau of workers' 4979
compensation board of directors, based upon recommendations of the 4980
workers' compensation actuarial committee, to carry out the 4981
provisions of sections 4123.412 to 4123.418 of the Revised Code, 4982
and in addition to provide moneys to reimburse the general revenue 4983
fund for moneys appropriated by Section 2 of H.B. No. 1131 of the 4984
103rd general assembly or by the 104th and succeeding general 4985
assemblies for disabled workers' relief. When the additional 4986
moneys are available in whole or part for the purpose of making 4987
the reimbursement, the director of budget and management shall 4988
certify the amount to the bureau of workers' compensation which 4989
shall thereupon cause the moneys to be paid to the general revenue 4990
fund from the disabled workers' relief fund except that any 4991
amounts due because of the state's obligation as an employer 4992
pursuant to section 4123.411 of the Revised Code and not paid to 4993
the disabled workers' relief fund shall be deducted from any such 4994
reimbursement. 4995

       Sec. 4123.44. The voting members of the bureau of workers' 4996
compensation ~~oversight commission~~board of directors, the 4997
administrator of workers' compensation, and the bureau of workers' 4998
compensation chief investment officer are the trustees of the 4999
state insurance fund. The administrator ~~of workers' compensation~~, 5000
in accordance with sections 4121.126 and 4121.127 of the Revised 5001
Code and the investment ~~objectives, policies, and criteria~~ 5002
~~established~~policy approved by the ~~workers' compensation oversight~~ 5003
~~commission~~board pursuant to section 4121.12 of the Revised Code, 5004
and in consultation with the bureau of workers' compensation chief 5005
investment officer, may invest any of the surplus or reserve 5006
belonging to the state insurance fund. The administrator and the 5007
bureau of workers' compensation chief investment officer shall not 5008
deviate from the investment policy approved by the board without 5009
the approval of the workers' compensation investment committee and 5010
the board. 5011

       The administrator shall not invest in any type of investment 5012
specified in divisions ~~(G)(6)(a)~~(B)(1) to ~~(j)~~(10) of section 5013
~~4121.12~~4123.442 of the Revised Code. 5014

       The administrator and other fiduciaries shall discharge their 5015
duties with respect to the funds with the care, skill, prudence, 5016
and diligence under the circumstances then prevailing that a 5017
prudent person acting in a like capacity and familiar with such 5018
matters would use in the conduct of an enterprise of a like 5019
character and with like aims, and by diversifying the investments 5020
of the assets of the funds so as to minimize the risk of large 5021
losses, unless under the circumstances it is clearly prudent not 5022
to do so. 5023

       To facilitate investment of the funds, the administrator may 5024
establish a partnership, trust, limited liability company, 5025
corporation, including a corporation exempt from taxation under 5026
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1, as 5027
amended, or any other legal entity authorized to transact business 5028
in this state. 5029

       When reporting on the performance of investments, the 5030
administrator shall comply with the performance presentation 5031
standards established by the association for investment management 5032
and research. 5033

       All investments shall be purchased at current market prices 5034
and the evidences of title to the investments shall be placed in 5035
the custody of the treasurer of state, who is hereby designated as 5036
custodian, or in the custody of the treasurer of state's 5037
authorized agent. Evidences of title of the investments so 5038
purchased may be deposited by the treasurer of state for 5039
safekeeping with an authorized agent selected by the treasurer of 5040
state who is a qualified trustee under section 135.18 of the 5041
Revised Code. The treasurer of state or the agent shall collect 5042
the principal, dividends, distributions, and interest as they 5043
become due and payable and place them when collected into the 5044
state insurance fund. 5045

       The treasurer of state shall pay for investments purchased by 5046
the administrator on receipt of written or electronic instructions 5047
from the administrator or the administrator's designated agent 5048
authorizing the purchase, and pending receipt of the evidence of 5049
title of the investment by the treasurer of state or the treasurer 5050
of state's authorized agent. The administrator may sell 5051
investments held by the administrator, and the treasurer of state 5052
or the treasurer of state's authorized agent shall accept payment 5053
from the purchaser and deliver evidence of title of the investment 5054
to the purchaser, on receipt of written or electronic instructions 5055
from the administrator or the administrator's designated agent 5056
authorizing the sale, and pending receipt of the moneys for the 5057
investments. The amount received shall be placed in the state 5058
insurance fund. The administrator and the treasurer of state may 5059
enter into agreements to establish procedures for the purchase and 5060
sale of investments under this division and the custody of the 5061
investments. 5062

       No purchase or sale of any investment shall be made under 5063
this section, except as authorized by the administrator. 5064

       Any statement of financial position distributed by the 5065
administrator shall include the fair value, as of the statement 5066
date, of all investments held by the administrator under this 5067
section. 5068

       When in the judgment of the administrator it is necessary to 5069
provide available funds for the payment of compensation or 5070
benefits under this chapter, the administrator may borrow money 5071
from any available source and pledge as security a sufficient 5072
amount of bonds or other securities in which the state insurance 5073
fund is invested. The aggregate unpaid amount of loans existing at 5074
any one time for money so borrowed shall not exceed ten million 5075
dollars. The bonds or other securities so pledged as security for 5076
such loans to the administrator shall be the sole security for the 5077
payment of the principal and interest of any such loan. The 5078
administrator shall not be personally liable for the payment of 5079
the principal or the interest of any such loan. No such loan shall 5080
be made for a longer period of time than one year. Such loans may 5081
be renewed but no one renewal shall be for a period in excess of 5082
one year. Such loans shall bear such rate of interest as the 5083
administrator determines and in negotiating the loans, the 5084
administrator shall endeavor to secure as favorable interest rates 5085
and terms as circumstances will permit. 5086

       The treasurer of state may deliver to the person or 5087
governmental agency making such loan, the bonds or other 5088
securities which are to be pledged by the administrator as 5089
security for such loan, upon receipt by the treasurer of state of 5090
an order of the administrator authorizing such loan. Upon payment 5091
of any such loan by the administrator, the bonds or other 5092
securities pledged as security therefor shall be returned to the 5093
treasurer of state as custodian of such bonds. 5094

       The administrator may pledge with the treasurer of state such 5095
amount of bonds or other securities in which the state insurance 5096
fund is invested as is reasonably necessary as security for any 5097
certificates issued, or paid out, by the treasurer of state upon 5098
any warrants drawn by the administrator. 5099

       The administrator may secure investment information services, 5100
consulting services, and other like services to facilitate 5101
investment of the surplus and reserve belonging to the state 5102
insurance fund. The administrator shall pay the expense of 5103
securing such services from the state insurance fund. 5104

       Sec. 4123.441. (A) The ~~bureau~~administrator of workers' 5105
compensation, with the advice and consent of the bureau of 5106
workers' compensation ~~oversight commission~~board of directors 5107
shall employ a person or designate an employee of the bureau of 5108
workers' compensation who is designated as a chartered financial 5109
analyst by the CFA institute and who is licensed by the division 5110
of securities in the department of commerce as a bureau of 5111
workers' compensation chief investment officer to be the chief 5112
investment officer for the bureau of workers' compensation. After 5113
ninety days after ~~the effective date of this section~~September 29, 5114
2005, the bureau of workers' compensation may not employ a bureau 5115
of workers' compensation chief investment officer, as defined in 5116
section 1707.01 of the Revised Code, who does not hold a valid 5117
bureau of workers' compensation chief investment officer license 5118
issued by the division of securities in the department of 5119
commerce. The ~~oversight commission~~board shall notify the division 5120
of securities of the department of commerce in writing of its 5121
designation and of any change in its designation within ten 5122
calendar days after the designation or change. 5123

       (B) The bureau of workers' compensation chief investment 5124
officer shall reasonably supervise employees of the bureau who 5125
handle investment of assets of funds specified in this chapter and 5126
Chapters 4121., 4127., and 4131. of the Revised Code with a view 5127
toward preventing violations of Chapter 1707. of the Revised Code, 5128
the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. 1, the 5129
"Securities Act of 1933," 48 Stat. 74, 15 U.S.C. 77a, the 5130
"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a, 5131
and the rules and regulations adopted under those statutes. This 5132
duty of reasonable supervision shall include the adoption, 5133
implementation, and enforcement of written policies and procedures 5134
reasonably designed to prevent employees of the bureau who handle 5135
investment of assets of the funds specified in this chapter and 5136
Chapters 4121., 4127., and 4131. of the Revised Code, from 5137
misusing material, nonpublic information in violation of those 5138
laws, rules, and regulations. 5139

       For purposes of this division, no bureau of workers' 5140
compensation chief investment officer shall be considered to have 5141
failed to satisfy the officer's duty of reasonable supervision if 5142
the officer has done all of the following: 5143

       (1) Adopted and implemented written procedures, and a system 5144
for applying the procedures, that would reasonably be expected to 5145
prevent and detect, insofar as practicable, any violation by 5146
employees handling investments of assets of the funds specified in 5147
this chapter and Chapters 4121., 4127., and 4131. of the Revised 5148
Code; 5149

       (2) Reasonably discharged the duties and obligations 5150
incumbent on the bureau of workers' compensation chief investment 5151
officer by reason of the established procedures and the system for 5152
applying the procedures when the officer had no reasonable cause 5153
to believe that there was a failure to comply with the procedures 5154
and systems; 5155

       (3) Reviewed, at least annually, the adequacy of the policies 5156
and procedures established pursuant to this section and the 5157
effectiveness of their implementation. 5158

       (C) The bureau of workers' compensation chief investment 5159
officer shall establish and maintain a policy to monitor and 5160
evaluate the effectiveness of securities transactions executed on 5161
behalf of the bureau. 5162

       Sec. 4123.442. When developing the investment policy for the 5163
investment of the assets of the funds specified in this chapter 5164
and Chapters 4121., 4127., and 4131. of the Revised Code, the 5165
workers' compensation investment committee shall do all of the 5166
following: 5167

       (A) Specify the asset allocation targets and ranges, risk 5168
factors, asset class benchmarks, time horizons, total return 5169
objectives, and performance evaluation guidelines; 5170

       (B) Prohibit investing the assets of those funds, directly or 5171
indirectly, in vehicles that target any of the following: 5172

       (1) Coins; 5173

       (2) Artwork; 5174

       (3) Horses; 5175

       (4) Jewelry or gems; 5176

       (5) Stamps; 5177

       (6) Antiques; 5178

       (7) Artifacts; 5179

       (8) Collectibles; 5180

       (9) Memorabilia; 5181

       (10) Similar unregulated investments that are not commonly 5182
part of an institutional portfolio, that lack liquidity, and that 5183
lack readily determinable valuation. 5184

       (C) Specify that the administrator of workers' compensation 5185
may invest in an investment class only if the bureau of workers' 5186
compensation board of directors, by a majority vote, opens that 5187
class; 5188

       (D) Prohibit investing the assets of those funds in any class 5189
of investments the board, by majority vote, closed, or any 5190
specific investment in which the board prohibits the administrator 5191
from investing; 5192

       (E) Not specify in the investment policy that the 5193
administrator or employees of the bureau of workers' compensation 5194
are prohibited from conducting business with an investment 5195
management firm, any investment management professional associated 5196
with that firm, any third party solicitor associated with that 5197
firm, or any political action committee controlled by that firm or 5198
controlled by an investment management professional of that firm 5199
based on criteria that are more restrictive than the restrictions 5200
described in divisions (Y) and (Z) of section 3517.13 of the 5201
Revised Code. 5202

       Sec. 4123.47. (A) The administrator of workers' compensation 5203
shall have actuarial audits of the state insurance fund and all 5204
other funds specified in this chapter and Chapters 4121., 4127., 5205
and 4131. of the Revised Code made at least once each year. The 5206
audits shall be made and certified by recognized insurance 5207
actuaries who shall be selected ~~as the administrator determines~~by 5208
the bureau of workers' compensation board of directors. The audits 5209
shall cover the premium rates, classifications, and all other 5210
matters involving the administration of the state insurance fund 5211
and all other funds specified in this chapter and Chapters 4121., 5212
4127., and 4131. of the Revised Code. The expense of the audits 5213
shall be paid from the state insurance fund. The administrator 5214
shall make copies of the audits available to the workers' 5215
compensation audit committee at no charge and to the public at 5216
cost. 5217

       (B) The auditor of state annually shall conduct an audit of 5218
the administration of this chapter by the industrial commission 5219
and the bureau of workers' compensation and the safety and hygiene 5220
fund. The cost of the audit shall be charged to the administrative 5221
costs of the bureau as defined in section 4123.341 of the Revised 5222
Code. The audit shall include audits of all fiscal activities, 5223
claims processing and handling, and employer premium collections. 5224
The auditor shall prepare a report of the audit together with 5225
recommendations and transmit copies of the report to the 5226
industrial commission, the ~~workers' compensation oversight~~ 5227
~~commission~~board, the administrator, the governor, and to the 5228
general assembly. The auditor shall make copies of the report 5229
available to the public at cost. 5230

       ~~(C) The administrator may retain the services of a recognized~~ 5231
~~actuary on a consulting basis for the purpose of evaluating the~~ 5232
~~actuarial soundness of premium rates and classifications and all~~ 5233
~~other matters involving the administration of the state insurance~~ 5234
~~fund. The expense of services provided by the actuary shall be~~ 5235
~~paid from the state insurance fund.~~ 5236

       Sec. 4123.50. (A) Each member of a firm, and the president, 5237
secretary, general manager, or managing agent of each private 5238
corporation, including any public service corporation mentioned in 5239
section 4123.01 of the Revised Code or publicly owned utility, 5240
shall cause the firm or corporation to comply with section 4123.35 5241
of the Revised Code and, for self-insuring employers, to comply 5242
with the assessment based upon paid compensation provisions of 5243
this chapter and Chapter 4121. of the Revised Code. No person 5244
mentioned in section 4123.01 of the Revised Code and no member of 5245
the firms and no officer of the corporations or publicly owned 5246
utilities referred to in this section shall fail to comply with 5247
section 4123.35 of the Revised Code and, for self-insuring 5248
employers, to comply with the assessment based upon paid 5249
compensation provisions of this chapter and Chapter 4121. of the 5250
Revised Code. All fines collected for a violation of this section 5251
shall be paid to the general fund of the political subdivision 5252
where the case is prosecuted. 5253

       (B) The administrator of workers' compensation, with the 5254
advice and consent of the bureau of workers' compensation 5255
~~oversight commission~~board of directors, shall adopt rules 5256
governing treatment of employers found in violation of division 5257
(A) of this section. The rules shall cover enforcement and 5258
prosecution procedures and methods and grounds for settlement of 5259
liability of a noncomplying employer. 5260

       Sec. 4123.511. (A) Within seven days after receipt of any 5261
claim under this chapter, the bureau of workers' compensation 5262
shall notify the claimant and the employer of the claimant of the 5263
receipt of the claim and of the facts alleged therein. If the 5264
bureau receives from a person other than the claimant written or 5265
facsimile information or information communicated verbally over 5266
the telephone indicating that an injury or occupational disease 5267
has occurred or been contracted which may be compensable under 5268
this chapter, the bureau shall notify the employee and the 5269
employer of the information. If the information is provided 5270
verbally over the telephone, the person providing the information 5271
shall provide written verification of the information to the 5272
bureau according to division (E) of section 4123.84 of the Revised 5273
Code. The receipt of the information in writing or facsimile, or 5274
if initially by telephone, the subsequent written verification, 5275
and the notice by the bureau shall be considered an application 5276
for compensation under section 4123.84 or 4123.85 of the Revised 5277
Code, provided that the conditions of division (E) of section 5278
4123.84 of the Revised Code apply to information provided verbally 5279
over the telephone. Upon receipt of a claim, the bureau shall 5280
advise the claimant of the claim number assigned and the 5281
claimant's right to representation in the processing of a claim or 5282
to elect no representation. If the bureau determines that a claim 5283
is determined to be a compensable lost-time claim, the bureau 5284
shall notify the claimant and the employer of the availability of 5285
rehabilitation services. No bureau or industrial commission 5286
employee shall directly or indirectly convey any information in 5287
derogation of this right. This section shall in no way abrogate 5288
the bureau's responsibility to aid and assist a claimant in the 5289
filing of a claim and to advise the claimant of the claimant's 5290
rights under the law. 5291

       The administrator of workers' compensation shall assign all 5292
claims and investigations to the bureau service office from which 5293
investigation and determination may be made most expeditiously. 5294

       The bureau shall investigate the facts concerning an injury 5295
or occupational disease and ascertain such facts in whatever 5296
manner is most appropriate and may obtain statements of the 5297
employee, employer, attending physician, and witnesses in whatever 5298
manner is most appropriate. 5299

       The administrator ~~of workers' compensation~~, with the advice 5300
and consent of the bureau of workers' compensation ~~oversight~~ 5301
~~commission~~board of directors, may adopt rules that identify 5302
specified medical conditions that have a historical record of 5303
being allowed whenever included in a claim. The administrator may 5304
grant immediate allowance of any medical condition identified in 5305
those rules upon the filing of a claim involving that medical 5306
condition and may make immediate payment of medical bills for any 5307
medical condition identified in those rules that is included in a 5308
claim. If an employer contests the allowance of a claim involving 5309
any medical condition identified in those rules, and the claim is 5310
disallowed, payment for the medical condition included in that 5311
claim shall be charged to and paid from the surplus fund created 5312
under section 4123.34 of the Revised Code. 5313

       (B)(1) Except as provided in division (B)(2) of this section, 5314
in claims other than those in which the employer is a 5315
self-insuring employer, if the administrator determines under 5316
division (A) of this section that a claimant is or is not entitled 5317
to an award of compensation or benefits, the administrator shall 5318
issue an order no later than twenty-eight days after the sending 5319
of the notice under division (A) of this section, granting or 5320
denying the payment of the compensation or benefits, or both as is 5321
appropriate to the claimant. Notwithstanding the time limitation 5322
specified in this division for the issuance of an order, if a 5323
medical examination of the claimant is required by statute, the 5324
administrator promptly shall schedule the claimant for that 5325
examination and shall issue an order no later than twenty-eight 5326
days after receipt of the report of the examination. The 5327
administrator shall notify the claimant and the employer of the 5328
claimant and their respective representatives in writing of the 5329
nature of the order and the amounts of compensation and benefit 5330
payments involved. The employer or claimant may appeal the order 5331
pursuant to division (C) of this section within fourteen days 5332
after the date of the receipt of the order. The employer and 5333
claimant may waive, in writing, their rights to an appeal under 5334
this division. 5335

       (2) Notwithstanding the time limitation specified in division 5336
(B)(1) of this section for the issuance of an order, if the 5337
employer certifies a claim for payment of compensation or 5338
benefits, or both, to a claimant, and the administrator has 5339
completed the investigation of the claim, the payment of benefits 5340
or compensation, or both, as is appropriate, shall commence upon 5341
the later of the date of the certification or completion of the 5342
investigation and issuance of the order by the administrator, 5343
provided that the administrator shall issue the order no later 5344
than the time limitation specified in division (B)(1) of this 5345
section. 5346

       (3) If an appeal is made under division (B)(1) or (2) of this 5347
section, the administrator shall forward the claim file to the 5348
appropriate district hearing officer within seven days of the 5349
appeal. In contested claims other than state fund claims, the 5350
administrator shall forward the claim within seven days of the 5351
administrator's receipt of the claim to the industrial commission, 5352
which shall refer the claim to an appropriate district hearing 5353
officer for a hearing in accordance with division (C) of this 5354
section. 5355

       (C) If an employer or claimant timely appeals the order of 5356
the administrator issued under division (B) of this section or in 5357
the case of other contested claims other than state fund claims, 5358
the commission shall refer the claim to an appropriate district 5359
hearing officer according to rules the commission adopts under 5360
section 4121.36 of the Revised Code. The district hearing officer 5361
shall notify the parties and their respective representatives of 5362
the time and place of the hearing. 5363

       The district hearing officer shall hold a hearing on a 5364
disputed issue or claim within forty-five days after the filing of 5365
the appeal under this division and issue a decision within seven 5366
days after holding the hearing. The district hearing officer shall 5367
notify the parties and their respective representatives in writing 5368
of the order. Any party may appeal an order issued under this 5369
division pursuant to division (D) of this section within fourteen 5370
days after receipt of the order under this division. 5371

       (D) Upon the timely filing of an appeal of the order of the 5372
district hearing officer issued under division (C) of this 5373
section, the commission shall refer the claim file to an 5374
appropriate staff hearing officer according to its rules adopted 5375
under section 4121.36 of the Revised Code. The staff hearing 5376
officer shall hold a hearing within forty-five days after the 5377
filing of an appeal under this division and issue a decision 5378
within seven days after holding the hearing under this division. 5379
The staff hearing officer shall notify the parties and their 5380
respective representatives in writing of the staff hearing 5381
officer's order. Any party may appeal an order issued under this 5382
division pursuant to division (E) of this section within fourteen 5383
days after receipt of the order under this division. 5384

       (E) Upon the filing of a timely appeal of the order of the 5385
staff hearing officer issued under division (D) of this section, 5386
the commission or a designated staff hearing officer, on behalf of 5387
the commission, shall determine whether the commission will hear 5388
the appeal. If the commission or the designated staff hearing 5389
officer decides to hear the appeal, the commission or the 5390
designated staff hearing officer shall notify the parties and 5391
their respective representatives in writing of the time and place 5392
of the hearing. The commission shall hold the hearing within 5393
forty-five days after the filing of the notice of appeal and, 5394
within seven days after the conclusion of the hearing, the 5395
commission shall issue its order affirming, modifying, or 5396
reversing the order issued under division (D) of this section. The 5397
commission shall notify the parties and their respective 5398
representatives in writing of the order. If the commission or the 5399
designated staff hearing officer determines not to hear the 5400
appeal, within fourteen days after the filing of the notice of 5401
appeal, the commission or the designated staff hearing officer 5402
shall issue an order to that effect and notify the parties and 5403
their respective representatives in writing of that order. 5404

       Except as otherwise provided in this chapter and Chapters 5405
4121., 4127., and 4131. of the Revised Code, any party may appeal 5406
an order issued under this division to the court pursuant to 5407
section 4123.512 of the Revised Code within sixty days after 5408
receipt of the order, subject to the limitations contained in that 5409
section. 5410

       (F) Every notice of an appeal from an order issued under 5411
divisions (B), (C), (D), and (E) of this section shall state the 5412
names of the claimant and employer, the number of the claim, the 5413
date of the decision appealed from, and the fact that the 5414
appellant appeals therefrom. 5415

       (G) All of the following apply to the proceedings under 5416
divisions (C), (D), and (E) of this section: 5417

       (1) The parties shall proceed promptly and without 5418
continuances except for good cause; 5419

       (2) The parties, in good faith, shall engage in the free 5420
exchange of information relevant to the claim prior to the conduct 5421
of a hearing according to the rules the commission adopts under 5422
section 4121.36 of the Revised Code; 5423

       (3) The administrator is a party and may appear and 5424
participate at all administrative proceedings on behalf of the 5425
state insurance fund. However, in cases in which the employer is 5426
represented, the administrator shall neither present arguments nor 5427
introduce testimony that is cumulative to that presented or 5428
introduced by the employer or the employer's representative. The 5429
administrator may file an appeal under this section on behalf of 5430
the state insurance fund; however, except in cases arising under 5431
section 4123.343 of the Revised Code, the administrator only may 5432
appeal questions of law or issues of fraud when the employer 5433
appears in person or by representative. 5434

       (H) Except as provided in section 4121.63 of the Revised Code 5435
and division (J) of this section, payments of compensation to a 5436
claimant or on behalf of a claimant as a result of any order 5437
issued under this chapter shall commence upon the earlier of the 5438
following: 5439

       (1) Fourteen days after the date the administrator issues an 5440
order under division (B) of this section, unless that order is 5441
appealed; 5442

       (2) The date when the employer has waived the right to appeal 5443
a decision issued under division (B) of this section; 5444

       (3) If no appeal of an order has been filed under this 5445
section or to a court under section 4123.512 of the Revised Code, 5446
the expiration of the time limitations for the filing of an appeal 5447
of an order; 5448

       (4) The date of receipt by the employer of an order of a 5449
district hearing officer, a staff hearing officer, or the 5450
industrial commission issued under division (C), (D), or (E) of 5451
this section. 5452

       The administrator immediately shall charge the compensation 5453
payments to an employer's experience upon payment of that 5454
compensation, subject to the adjustment specified in division (H) 5455
of section 4123.512 of the Revised Code. 5456

       (I) NoPayments of medical benefits payable under this 5457
chapter or Chapter 4121., 4127., or 4131. of the Revised Code ~~are~~ 5458
~~payable until~~shall commence upon the earlier of the following: 5459

       (1) The date of the issuance of the staff hearing officer's 5460
order under division (D) of this section; 5461

       (2) The date of the final administrative or judicial 5462
determination. 5463

       The administrator immediately shall charge the medical 5464
benefit payments to an employer's experience upon payment of those 5465
medical benefits, subject to the adjustment specified in division 5466
(H) of section 4123.512 of the Revised Code. 5467

       (J) Upon the final administrative or judicial determination 5468
under this section or section 4123.512 of the Revised Code of an 5469
appeal of an order to pay compensation, if a claimant is found to 5470
have received compensation pursuant to a prior order which is 5471
reversed upon subsequent appeal, the claimant's employer, if a 5472
self-insuring employer, or the bureau, shall withhold from any 5473
amount to which the claimant becomes entitled pursuant to any 5474
claim, past, present, or future, under Chapter 4121., 4123., 5475
4127., or 4131. of the Revised Code, the amount of previously paid 5476
compensation to the claimant which, due to reversal upon appeal, 5477
the claimant is not entitled, pursuant to the following criteria: 5478

       (1) No withholding for the first twelve weeks of temporary 5479
total disability compensation pursuant to section 4123.56 of the 5480
Revised Code shall be made; 5481

       (2) Forty per cent of all awards of compensation paid 5482
pursuant to sections 4123.56 and 4123.57 of the Revised Code, 5483
until the amount overpaid is refunded; 5484

       (3) Twenty-five per cent of any compensation paid pursuant to 5485
section 4123.58 of the Revised Code until the amount overpaid is 5486
refunded; 5487

       (4) If, pursuant to an appeal under section 4123.512 of the 5488
Revised Code, the court of appeals or the supreme court reverses 5489
the allowance of the claim, then no amount of any compensation 5490
will be withheld. 5491

       The administrator and self-insuring employers, as 5492
appropriate, are subject to the repayment schedule of this 5493
division only with respect to an order to pay compensation that 5494
was properly paid under a previous order, but which is 5495
subsequently reversed upon an administrative or judicial appeal. 5496
The administrator and self-insuring employers are not subject to, 5497
but may utilize, the repayment schedule of this division, or any 5498
other lawful means, to collect payment of compensation made to a 5499
person who was not entitled to the compensation due to fraud as 5500
determined by the administrator or the industrial commission. 5501

       (K) If a staff hearing officer or the commission fails to 5502
issue a decision or the commission fails to refuse to hear an 5503
appeal within the time periods required by this section, payments 5504
to a claimant shall cease until the staff hearing officer or 5505
commission issues a decision or hears the appeal, unless the 5506
failure was due to the fault or neglect of the employer or the 5507
employer agrees that the payments should continue for a longer 5508
period of time. 5509

       (L) Except as otherwise provided in this section or section 5510
4123.522 of the Revised Code, no appeal is timely filed under this 5511
section unless the appeal is filed with the time limits set forth 5512
in this section. 5513

       (M) No person who is not an employee of the bureau or 5514
commission or who is not by law given access to the contents of a 5515
claims file shall have a file in the person's possession. 5516

       (N) Upon application of a party who resides in an area in 5517
which an emergency or disaster is declared, the industrial 5518
commission and hearing officers of the commission may waive the 5519
time frame within which claims and appeals of claims set forth in 5520
this section must be filed upon a finding that the applicant was 5521
unable to comply with a filing deadline due to an emergency or a 5522
disaster. 5523

       As used in this division: 5524

       (1) "Emergency" means any occasion or instance for which the 5525
governor of Ohio or the president of the United States publicly 5526
declares an emergency and orders state or federal assistance to 5527
save lives and protect property, the public health and safety, or 5528
to lessen or avert the threat of a catastrophe. 5529

       (2) "Disaster" means any natural catastrophe or fire, flood, 5530
or explosion, regardless of the cause, that causes damage of 5531
sufficient magnitude that the governor of Ohio or the president of 5532
the United States, through a public declaration, orders state or 5533
federal assistance to alleviate damage, loss, hardship, or 5534
suffering that results from the occurrence. 5535

       Sec. 4123.512. (A) The claimant or the employer may appeal 5536
an order of the industrial commission made under division (E) of 5537
section 4123.511 of the Revised Code in any injury or occupational 5538
disease case, other than a decision as to the extent of disability 5539
to the court of common pleas of the county in which the injury was 5540
inflicted or in which the contract of employment was made if the 5541
injury occurred outside the state, or in which the contract of 5542
employment was made if the exposure occurred outside the state. If 5543
no common pleas court has jurisdiction for the purposes of an 5544
appeal by the use of the jurisdictional requirements described in 5545
this division, the appellant may use the venue provisions in the 5546
Rules of Civil Procedure to vest jurisdiction in a court. If the 5547
claim is for an occupational disease, the appeal shall be to the 5548
court of common pleas of the county in which the exposure which 5549
caused the disease occurred. Like appeal may be taken from an 5550
order of a staff hearing officer made under division (D) of 5551
section 4123.511 of the Revised Code from which the commission has 5552
refused to hear an appeal. The appellant shall file the notice of 5553
appeal with a court of common pleas within sixty days after the 5554
date of the receipt of the order appealed from or the date of 5555
receipt of the order of the commission refusing to hear an appeal 5556
of a staff hearing officer's decision under division (D) of 5557
section 4123.511 of the Revised Code. The filing of the notice of 5558
the appeal with the court is the only act required to perfect the 5559
appeal. 5560

       If an action has been commenced in a court of a county other 5561
than a court of a county having jurisdiction over the action, the 5562
court, upon notice by any party or upon its own motion, shall 5563
transfer the action to a court of a county having jurisdiction. 5564

       Notwithstanding anything to the contrary in this section, if 5565
the commission determines under section 4123.522 of the Revised 5566
Code that an employee, employer, or their respective 5567
representatives have not received written notice of an order or 5568
decision which is appealable to a court under this section and 5569
which grants relief pursuant to section 4123.522 of the Revised 5570
Code, the party granted the relief has sixty days from receipt of 5571
the order under section 4123.522 of the Revised Code to file a 5572
notice of appeal under this section. 5573

       (B) The notice of appeal shall state the names of the 5574
claimant and the employer, the number of the claim, the date of 5575
the order appealed from, and the fact that the appellant appeals 5576
therefrom. 5577

       The administrator of workers' compensation, the claimant, and 5578
the employer shall be parties to the appeal and the court, upon 5579
the application of the commission, shall make the commission a 5580
party. The party filing the appeal shall serve a copy of the 5581
notice of appeal on the administrator at the central office of the 5582
bureau of workers' compensation in Columbus. The administrator 5583
shall notify the employer that if the employer fails to become an 5584
active party to the appeal, then the administrator may act on 5585
behalf of the employer and the results of the appeal could have an 5586
adverse effect upon the employer's premium rates. 5587

       (C) The attorney general or one or more of the attorney 5588
general's assistants or special counsel designated by the attorney 5589
general shall represent the administrator and the commission. In 5590
the event the attorney general or the attorney general's 5591
designated assistants or special counsel are absent, the 5592
administrator or the commission shall select one or more of the 5593
attorneys in the employ of the administrator or the commission as 5594
the administrator's attorney or the commission's attorney in the 5595
appeal. Any attorney so employed shall continue the representation 5596
during the entire period of the appeal and in all hearings thereof 5597
except where the continued representation becomes impractical. 5598

       (D) Upon receipt of notice of appeal, the clerk of courts 5599
shall provide notice to all parties who are appellees and to the 5600
commission. 5601

       The claimant shall, within thirty days after the filing of 5602
the notice of appeal, file a petition containing a statement of 5603
facts in ordinary and concise language showing a cause of action 5604
to participate or to continue to participate in the fund and 5605
setting forth the basis for the jurisdiction of the court over the 5606
action. Further pleadings shall be had in accordance with the 5607
Rules of Civil Procedure, provided that service of summons on such 5608
petition shall not be required and provided that the claimant may 5609
not dismiss the complaint without the employer's consent if the 5610
employer is the party that filed the notice of appeal to court 5611
pursuant to this section. The clerk of the court shall, upon 5612
receipt thereof, transmit by certified mail a copy thereof to each 5613
party named in the notice of appeal other than the claimant. Any 5614
party may file with the clerk prior to the trial of the action a 5615
deposition of any physician taken in accordance with the 5616
provisions of the Revised Code, which deposition may be read in 5617
the trial of the action even though the physician is a resident of 5618
or subject to service in the county in which the trial is had. The 5619
bureau of workers' compensation shall pay the cost of the 5620
stenographic deposition filed in court and of copies of the 5621
stenographic deposition for each party from the surplus fund and 5622
charge the costs thereof against the unsuccessful party if the 5623
claimant's right to participate or continue to participate is 5624
finally sustained or established in the appeal. In the event the 5625
deposition is taken and filed, the physician whose deposition is 5626
taken is not required to respond to any subpoena issued in the 5627
trial of the action. The court, or the jury under the instructions 5628
of the court, if a jury is demanded, shall determine the right of 5629
the claimant to participate or to continue to participate in the 5630
fund upon the evidence adduced at the hearing of the action. 5631

       (E) The court shall certify its decision to the commission 5632
and the certificate shall be entered in the records of the court. 5633
Appeals from the judgment are governed by the law applicable to 5634
the appeal of civil actions. 5635

       (F) The cost of any legal proceedings authorized by this 5636
section, including an attorney's fee to the claimant's attorney to 5637
be fixed by the trial judge, based upon the effort expended, in 5638
the event the claimant's right to participate or to continue to 5639
participate in the fund is established upon the final 5640
determination of an appeal, shall be taxed against the employer or 5641
the commission if the commission or the administrator rather than 5642
the employer contested the right of the claimant to participate in 5643
the fund. The attorney's fee shall not exceed forty-two hundred 5644
dollars. 5645

       (G) If the finding of the court or the verdict of the jury is 5646
in favor of the claimant's right to participate in the fund, the 5647
commission and the administrator shall thereafter proceed in the 5648
matter of the claim as if the judgment were the decision of the 5649
commission, subject to the power of modification provided by 5650
section 4123.52 of the Revised Code. 5651

       (H) An appeal from an order issued under division (E) of 5652
section 4123.511 of the Revised Code or any action filed in court 5653
in a case in which an award of compensation or benefits has been 5654
made shall not stay the payment of compensation or benefits under 5655
the award or payment of compensation or benefits for subsequent 5656
periods of total disability during the pendency of the appeal. If, 5657
in a final administrative or judicial action, it is determined 5658
that payments of compensation or benefits, or both, made to or on 5659
behalf of a claimant should not have been made, the amount thereof 5660
shall be charged to the surplus fund under division ~~(B)~~(A) of 5661
section 4123.34 of the Revised Code. In the event the employer is 5662
a state risk, the amount shall not be charged to the employer's 5663
experience, and the administrator shall adjust the employer's 5664
account accordingly. In the event the employer is a self-insuring 5665
employer, the self-insuring employer shall deduct the amount from 5666
the paid compensation the self-insuring employer reports to the 5667
administrator under division (L) of section 4123.35 of the Revised 5668
Code. 5669

       A self-insuring employer may elect to pay compensation and 5670
benefits under this section directly to an employee or an 5671
employee's dependents by filing an application with the bureau of 5672
workers' compensation not more than one hundred eighty days and 5673
not less than ninety days before the first day of the employer's 5674
next six-month coverage period. If the self-insuring employer 5675
timely files the application, the application is effective on the 5676
first day of the employer's next six-month coverage period, 5677
provided that the administrator shall compute the employer's 5678
assessment for the surplus fund due with respect to the period 5679
during which that application was filed without regard to the 5680
filing of the application. On and after the effective date of the 5681
employer's election, the self-insuring employer shall pay directly 5682
to an employee or to an employee's dependents compensation and 5683
benefits under this section regardless of the date of the injury 5684
or occupational disease, and the employer shall receive no money 5685
or credits from the surplus fund on account of those payments and 5686
shall not be required to pay any amounts into the surplus fund on 5687
account of this section. The election made under this division is 5688
irrevocable. 5689

       All actions and proceedings under this section which are the 5690
subject of an appeal to the court of common pleas or the court of 5691
appeals shall be preferred over all other civil actions except 5692
election causes, irrespective of position on the calendar. 5693

       This section applies to all decisions of the commission or 5694
the administrator on November 2, 1959, and all claims filed 5695
thereafter are governed by sections 4123.511 and 4123.512 of the 5696
Revised Code. 5697

       Any action pending in common pleas court or any other court 5698
on January 1, 1986, under this section is governed by former 5699
sections 4123.514, 4123.515, 4123.516, and 4123.519 and section 5700
4123.522 of the Revised Code. 5701

       Sec. 4123.57. Partial disability compensation shall be paid 5702
as follows. 5703

       Except as provided in this section, not earlier than 5704
twenty-six weeks after the date of termination of the latest 5705
period of payments under section 4123.56 of the Revised Code, or 5706
not earlier than twenty-six weeks after the date of the injury or 5707
contraction of an occupational disease in the absence of payments 5708
under section 4123.56 of the Revised Code, the employee may file 5709
an application with the bureau of workers' compensation for the 5710
determination of the percentage of the employee's permanent 5711
partial disability resulting from an injury or occupational 5712
disease. 5713

       Whenever the application is filed, the bureau shall send a 5714
copy of the application to the employee's employer or the 5715
employer's representative and shall schedule the employee for a 5716
medical examination by the bureau medical section. The bureau 5717
shall send a copy of the report of the medical examination to the 5718
employee, the employer, and their representatives. Thereafter, the 5719
administrator of workers' compensation shall review the employee's 5720
claim file and make a tentative order as the evidence before the 5721
administrator at the time of the making of the order warrants. If 5722
the administrator determines that there is a conflict of evidence, 5723
the administrator shall send the application, along with the 5724
claimant's file, to the district hearing officer who shall set the 5725
application for a hearing. 5726

       The administrator shall notify the employee, the employer, 5727
and their representatives, in writing, of the tentative order and 5728
of the parties' right to request a hearing. Unless the employee, 5729
the employer, or their representative notifies the administrator, 5730
in writing, of an objection to the tentative order within twenty 5731
days after receipt of the notice thereof, the tentative order 5732
shall go into effect and the employee shall receive the 5733
compensation provided in the order. In no event shall there be a 5734
reconsideration of a tentative order issued under this division. 5735

       If the employee, the employer, or their representatives 5736
timely notify the administrator of an objection to the tentative 5737
order, the matter shall be referred to a district hearing officer 5738
who shall set the application for hearing with written notices to 5739
all interested persons. Upon referral to a district hearing 5740
officer, the employer may obtain a medical examination of the 5741
employee, pursuant to rules of the industrial commission. 5742

       (A) The district hearing officer, upon the application, shall 5743
determine the percentage of the employee's permanent disability, 5744
except as is subject to division (B) of this section, based upon 5745
that condition of the employee resulting from the injury or 5746
occupational disease and causing permanent impairment evidenced by 5747
medical or clinical findings reasonably demonstrable. The employee 5748
shall receive sixty-six and two-thirds per cent of the employee's 5749
average weekly wage, but not more than a maximum of thirty-three 5750
and one-third per cent of the statewide average weekly wage as 5751
defined in division (C) of section 4123.62 of the Revised Code, 5752
per week regardless of the average weekly wage, for the number of 5753
weeks which equals the percentage of two hundred weeks. Except on 5754
application for reconsideration, review, or modification, which is 5755
filed within ten days after the date of receipt of the decision of 5756
the district hearing officer, in no instance shall the former 5757
award be modified unless it is found from medical or clinical 5758
findings that the condition of the claimant resulting from the 5759
injury has so progressed as to have increased the percentage of 5760
permanent partial disability. A staff hearing officer shall hear 5761
an application for reconsideration filed and the staff hearing 5762
officer's decision is final. An employee may file an application 5763
for a subsequent determination of the percentage of the employee's 5764
permanent disability. If such an application is filed, the bureau 5765
shall send a copy of the application to the employer or the 5766
employer's representative. No sooner than sixty days from the date 5767
of the mailing of the application to the employer or the 5768
employer's representative, the administrator shall review the 5769
application. The administrator may require a medical examination 5770
or medical review of the employee. The administrator shall issue a 5771
tentative order based upon the evidence before the administrator, 5772
provided that if the administrator requires a medical examination 5773
or medical review, the administrator shall not issue the tentative 5774
order until the completion of the examination or review. 5775

       The employer may obtain a medical examination of the employee 5776
and may submit medical evidence at any stage of the process up to 5777
a hearing before the district hearing officer, pursuant to rules 5778
of the commission. The administrator shall notify the employee, 5779
the employer, and their representatives, in writing, of the nature 5780
and amount of any tentative order issued on an application 5781
requesting a subsequent determination of the percentage of an 5782
employee's permanent disability. An employee, employer, or their 5783
representatives may object to the tentative order within twenty 5784
days after the receipt of the notice thereof. If no timely 5785
objection is made, the tentative order shall go into effect. In no 5786
event shall there be a reconsideration of a tentative order issued 5787
under this division. If an objection is timely made, the 5788
application for a subsequent determination shall be referred to a 5789
district hearing officer who shall set the application for a 5790
hearing with written notice to all interested persons. No 5791
application for subsequent percentage determinations on the same 5792
claim for injury or occupational disease shall be accepted for 5793
review by the district hearing officer unless supported by 5794
substantial evidence of new and changed circumstances developing 5795
since the time of the hearing on the original or last 5796
determination. 5797

       No award shall be made under this division based upon a 5798
percentage of disability which, when taken with all other 5799
percentages of permanent disability, exceeds one hundred per cent. 5800
If the percentage of the permanent disability of the employee 5801
equals or exceeds ninety per cent, compensation for permanent 5802
partial disability shall be paid for two hundred weeks. 5803

       Compensation payable under this division accrues and is 5804
payable to the employee from the date of last payment of 5805
compensation, or, in cases where no previous compensation has been 5806
paid, from the date of the injury or the date of the diagnosis of 5807
the occupational disease. 5808

       When an award under this division has been made prior to the 5809
death of an employee, all unpaid installments accrued or to accrue 5810
under the provisions of the award are payable to the surviving 5811
spouse, or if there is no surviving spouse, to the dependent 5812
children of the employee, and if there are no children surviving, 5813
then to other dependents as the administrator determines. 5814

       (B) In cases included in the following schedule the 5815
compensation payable per week to the employee is the statewide 5816
average weekly wage as defined in division (C) of section 4123.62 5817
of the Revised Code per week and shall continue during the periods 5818
provided in the following schedule: 5819

       For the loss of a first finger, commonly known as a thumb, 5820
sixty weeks. 5821

       For the loss of a second finger, commonly called index 5822
finger, thirty-five weeks. 5823

       For the loss of a third finger, thirty weeks. 5824

       For the loss of a fourth finger, twenty weeks. 5825

       For the loss of a fifth finger, commonly known as the little 5826
finger, fifteen weeks. 5827

       The loss of a second, or distal, phalange of the thumb is 5828
considered equal to the loss of one half of such thumb; the loss 5829
of more than one half of such thumb is considered equal to the 5830
loss of the whole thumb. 5831

       The loss of the third, or distal, phalange of any finger is 5832
considered equal to the loss of one-third of the finger. 5833

       The loss of the middle, or second, phalange of any finger is 5834
considered equal to the loss of two-thirds of the finger. 5835

       The loss of more than the middle and distal phalanges of any 5836
finger is considered equal to the loss of the whole finger. In no 5837
case shall the amount received for more than one finger exceed the 5838
amount provided in this schedule for the loss of a hand. 5839

       For the loss of the metacarpal bone (bones of the palm) for 5840
the corresponding thumb, or fingers, add ten weeks to the number 5841
of weeks under this division. 5842

       For ankylosis (total stiffness of) or contractures (due to 5843
scars or injuries) which makes any of the fingers, thumbs, or 5844
parts of either useless, the same number of weeks apply to the 5845
members or parts thereof as given for the loss thereof. 5846

       If the claimant has suffered the loss of two or more fingers 5847
by amputation or ankylosis and the nature of the claimant's 5848
employment in the course of which the claimant was working at the 5849
time of the injury or occupational disease is such that the 5850
handicap or disability resulting from the loss of fingers, or loss 5851
of use of fingers, exceeds the normal handicap or disability 5852
resulting from the loss of fingers, or loss of use of fingers, the 5853
administrator may take that fact into consideration and increase 5854
the award of compensation accordingly, but the award made shall 5855
not exceed the amount of compensation for loss of a hand. 5856

       For the loss of a hand, one hundred seventy-five weeks. 5857

       For the loss of an arm, two hundred twenty-five weeks. 5858

       For the loss of a great toe, thirty weeks. 5859

       For the loss of one of the toes other than the great toe, ten 5860
weeks. 5861

       The loss of more than two-thirds of any toe is considered 5862
equal to the loss of the whole toe. 5863

       The loss of less than two-thirds of any toe is considered no 5864
loss, except as to the great toe; the loss of the great toe up to 5865
the interphalangeal joint is co-equal to the loss of one-half of 5866
the great toe; the loss of the great toe beyond the 5867
interphalangeal joint is considered equal to the loss of the whole 5868
great toe. 5869

       For the loss of a foot, one hundred fifty weeks. 5870

       For the loss of a leg, two hundred weeks. 5871

       For the loss of the sight of an eye, one hundred twenty-five 5872
weeks. 5873

       For the permanent partial loss of sight of an eye, the 5874
portion of one hundred twenty-five weeks as the administrator in 5875
each case determines, based upon the percentage of vision actually 5876
lost as a result of the injury or occupational disease, but, in no 5877
case shall an award of compensation be made for less than 5878
twenty-five per cent loss of uncorrected vision. "Loss of 5879
uncorrected vision" means the percentage of vision actually lost 5880
as the result of the injury or occupational disease. 5881

       For the permanent and total loss of hearing of one ear, 5882
twenty-five weeks; but in no case shall an award of compensation 5883
be made for less than permanent and total loss of hearing of one 5884
ear. 5885

       For the permanent and total loss of hearing, one hundred 5886
twenty-five weeks; but, except pursuant to the next preceding 5887
paragraph, in no case shall an award of compensation be made for 5888
less than permanent and total loss of hearing. 5889

       In case an injury or occupational disease results in serious 5890
facial or head disfigurement which either impairs or may in the 5891
future impair the opportunities to secure or retain employment, 5892
the administrator shall make an award of compensation as it deems 5893
proper and equitable, in view of the nature of the disfigurement, 5894
and not to exceed the sum of ten thousand dollars. For the 5895
purpose of making the award, it is not material whether the 5896
employee is gainfully employed in any occupation or trade at the 5897
time of the administrator's determination. 5898

       When an award under this division has been made prior to the 5899
death of an employee all unpaid installments accrued or to accrue 5900
under the provisions of the award shall be payable to the 5901
surviving spouse, or if there is no surviving spouse, to the 5902
dependent children of the employee and if there are no such 5903
children, then to such dependents as the administrator determines. 5904

       When an employee has sustained the loss of a member by 5905
severance, but no award has been made on account thereof prior to 5906
the employee's death, the administrator shall make an award in 5907
accordance with this division for the loss which shall be payable 5908
to the surviving spouse, or if there is no surviving spouse, to 5909
the dependent children of the employee and if there are no such 5910
children, then to such dependents as the administrator determines. 5911

       (C) Compensation for partial impairment under divisions (A) 5912
and (B) of this section is in addition to the compensation paid 5913
the employee pursuant to section 4123.56 of the Revised Code. A 5914
claimant may receive compensation under divisions (A) and (B) of 5915
this section. 5916

       In all cases arising under division (B) of this section, if 5917
it is determined by any one of the following: (1) the amputee 5918
clinic at University hospital, Ohio state university; (2) the 5919
rehabilitation services commission; (3) an amputee clinic or 5920
prescribing physician approved by the administrator or the 5921
administrator's designee, that an injured or disabled employee is 5922
in need of an artificial appliance, or in need of a repair 5923
thereof, regardless of whether the appliance or its repair will be 5924
serviceable in the vocational rehabilitation of the injured 5925
employee, and regardless of whether the employee has returned to 5926
or can ever again return to any gainful employment, the bureau 5927
shall pay the cost of the artificial appliance or its repair out 5928
of the surplus created by division ~~(B)~~(A) of section 4123.34 of 5929
the Revised Code. 5930

       In those cases where a rehabilitation services commission 5931
recommendation that an injured or disabled employee is in need of 5932
an artificial appliance would conflict with their state plan, 5933
adopted pursuant to the "Rehabilitation Act of 1973," 87 Stat. 5934
355, 29 U.S.C.A. 701, the administrator or the administrator's 5935
designee or the bureau may obtain a recommendation from an amputee 5936
clinic or prescribing physician that they determine appropriate. 5937

       (D) If an employee of a state fund employer makes application 5938
for a finding and the administrator finds that the employee has 5939
contracted silicosis as defined in division (X), or coal miners' 5940
pneumoconiosis as defined in division (Y), or asbestosis as 5941
defined in division (AA) of section 4123.68 of the Revised Code, 5942
and that a change of such employee's occupation is medically 5943
advisable in order to decrease substantially further exposure to 5944
silica dust, asbestos, or coal dust and if the employee, after the 5945
finding, has changed or shall change the employee's occupation to 5946
an occupation in which the exposure to silica dust, asbestos, or 5947
coal dust is substantially decreased, the administrator shall 5948
allow to the employee an amount equal to fifty per cent of the 5949
statewide average weekly wage per week for a period of thirty 5950
weeks, commencing as of the date of the discontinuance or change, 5951
and for a period of one hundred weeks immediately following the 5952
expiration of the period of thirty weeks, the employee shall 5953
receive sixty-six and two-thirds per cent of the loss of wages 5954
resulting directly and solely from the change of occupation but 5955
not to exceed a maximum of an amount equal to fifty per cent of 5956
the statewide average weekly wage per week. No such employee is 5957
entitled to receive more than one allowance on account of 5958
discontinuance of employment or change of occupation and benefits 5959
shall cease for any period during which the employee is employed 5960
in an occupation in which the exposure to silica dust, asbestos, 5961
or coal dust is not substantially less than the exposure in the 5962
occupation in which the employee was formerly employed or for any 5963
period during which the employee may be entitled to receive 5964
compensation or benefits under section 4123.68 of the Revised Code 5965
on account of disability from silicosis, asbestosis, or coal 5966
miners' pneumoconiosis. An award for change of occupation for a 5967
coal miner who has contracted coal miners' pneumoconiosis may be 5968
granted under this division even though the coal miner continues 5969
employment with the same employer, so long as the coal miner's 5970
employment subsequent to the change is such that the coal miner's 5971
exposure to coal dust is substantially decreased and a change of 5972
occupation is certified by the claimant as permanent. The 5973
administrator may accord to the employee medical and other 5974
benefits in accordance with section 4123.66 of the Revised Code. 5975

       (E) If a firefighter or police officer makes application for 5976
a finding and the administrator finds that the firefighter or 5977
police officer has contracted a cardiovascular and pulmonary 5978
disease as defined in division (W) of section 4123.68 of the 5979
Revised Code, and that a change of the firefighter's or police 5980
officer's occupation is medically advisable in order to decrease 5981
substantially further exposure to smoke, toxic gases, chemical 5982
fumes, and other toxic vapors, and if the firefighter, or police 5983
officer, after the finding, has changed or changes occupation to 5984
an occupation in which the exposure to smoke, toxic gases, 5985
chemical fumes, and other toxic vapors is substantially decreased, 5986
the administrator shall allow to the firefighter or police officer 5987
an amount equal to fifty per cent of the statewide average weekly 5988
wage per week for a period of thirty weeks, commencing as of the 5989
date of the discontinuance or change, and for a period of 5990
seventy-five weeks immediately following the expiration of the 5991
period of thirty weeks the administrator shall allow the 5992
firefighter or police officer sixty-six and two-thirds per cent of 5993
the loss of wages resulting directly and solely from the change of 5994
occupation but not to exceed a maximum of an amount equal to fifty 5995
per cent of the statewide average weekly wage per week. No such 5996
firefighter or police officer is entitled to receive more than one 5997
allowance on account of discontinuance of employment or change of 5998
occupation and benefits shall cease for any period during which 5999
the firefighter or police officer is employed in an occupation in 6000
which the exposure to smoke, toxic gases, chemical fumes, and 6001
other toxic vapors is not substantially less than the exposure in 6002
the occupation in which the firefighter or police officer was 6003
formerly employed or for any period during which the firefighter 6004
or police officer may be entitled to receive compensation or 6005
benefits under section 4123.68 of the Revised Code on account of 6006
disability from a cardiovascular and pulmonary disease. The 6007
administrator may accord to the firefighter or police officer 6008
medical and other benefits in accordance with section 4123.66 of 6009
the Revised Code. 6010

       (F) An order issued under this section is appealable pursuant 6011
to section 4123.511 of the Revised Code but is not appealable to 6012
court under section 4123.512 of the Revised Code. 6013

       Sec. 4123.65. (A) A state fund employer or the employee of 6014
such an employer may file an application with the administrator of 6015
workers' compensation for approval of a final settlement of a 6016
claim under this chapter. The application shall include the 6017
settlement agreement, and except as otherwise specified in this 6018
division, be signed by the claimant and employer, and clearly set 6019
forth the circumstances by reason of which the proposed settlement 6020
is deemed desirable and that the parties agree to the terms of the 6021
settlement agreement. A claimant may file an application without 6022
an employer's signature in the following situations: 6023

       (1) The employer is no longer doing business in Ohio; 6024

       (2) The claim no longer is in the employer's industrial 6025
accident or occupational disease experience as provided in 6026
division ~~(B)~~(A) of section 4123.34 of the Revised Code and the 6027
claimant no longer is employed with that employer; 6028

       (3) The employer has failed to comply with section 4123.35 of 6029
the Revised Code. 6030

       If a claimant files an application without an employer's 6031
signature, and the employer still is doing business in this state, 6032
the administrator shall send written notice of the application to 6033
the employer immediately upon receipt of the application. If the 6034
employer fails to respond to the notice within thirty days after 6035
the notice is sent, the application need not contain the 6036
employer's signature. 6037

       If a state fund employer or an employee of such an employer 6038
has not filed an application for a final settlement under this 6039
division, the administrator may file an application on behalf of 6040
the employer or the employee, provided that the administrator 6041
gives notice of the filing to the employer and the employee and to 6042
the representative of record of the employer and of the employee 6043
immediately upon the filing. An application filed by the 6044
administrator shall contain all of the information and signatures 6045
required of an employer or an employee who files an application 6046
under this division. Every self-insuring employer that enters into 6047
a final settlement agreement with an employee shall mail, within 6048
seven days of executing the agreement, a copy of the agreement to 6049
the administrator and the employee's representative. The 6050
administrator shall place the agreement into the claimant's file. 6051

       (B) Except as provided in divisions (C) and (D) of this 6052
section, a settlement agreed to under this section is binding upon 6053
all parties thereto and as to items, injuries, and occupational 6054
diseases to which the settlement applies. 6055

       (C) No settlement agreed to under division (A) of this 6056
section or agreed to by a self-insuring employer and the 6057
self-insuring employer's employee shall take effect until thirty 6058
days after the administrator approves the settlement for state 6059
fund employees and employers, or after the self-insuring employer 6060
and employee sign the final settlement agreement. During the 6061
thirty-day period, the employer, employee, or administrator, for 6062
state fund settlements, and the employer or employee, for 6063
self-insuring settlements, may withdraw consent to the settlement 6064
by an employer providing written notice to the employer's employee 6065
and the administrator or by an employee providing written notice 6066
to the employee's employer and the administrator, or by the 6067
administrator providing written notice to the state fund employer 6068
and employee. If an employee dies during the thirty-day waiting 6069
period following the approval of a settlement, the settlement can 6070
be voided by any party for good cause shown. 6071

       (D) At the time of agreement to any final settlement 6072
agreement under division (A) of this section or agreement between 6073
a self-insuring employer and the self-insuring employer's 6074
employee, the administrator, for state fund settlements, and the 6075
self-insuring employer, for self-insuring settlements, immediately 6076
shall send a copy of the agreement to the industrial commission 6077
who shall assign the matter to a staff hearing officer. The staff 6078
hearing officer shall determine, within the time limitations 6079
specified in division (C) of this section, whether the settlement 6080
agreement is or is not a gross miscarriage of justice. If the 6081
staff hearing officer determines within that time period that the 6082
settlement agreement is clearly unfair, the staff hearing officer 6083
shall issue an order disapproving the settlement agreement. If the 6084
staff hearing officer determines that the settlement agreement is 6085
not clearly unfair or fails to act within those time limits, the 6086
settlement agreement is approved. 6087

       (E) A settlement entered into under this section may pertain 6088
to one or more claims of a claimant, or one or more parts of a 6089
claim, or the compensation or benefits pertaining to either, or 6090
any combination thereof, provided that nothing in this section 6091
shall be interpreted to require a claimant to enter into a 6092
settlement agreement for every claim that has been filed with the 6093
bureau of workers' compensation by that claimant under Chapter 6094
4121., 4123., 4127., or 4131. of the Revised Code. 6095

       (F) A settlement entered into under this section is not 6096
appealable under section 4123.511 or 4123.512 of the Revised Code. 6097

       Sec. 4123.66. (A) In addition to the compensation provided 6098
for in this chapter, the administrator of workers' compensation 6099
shall disburse and pay from the state insurance fund the amounts 6100
for medical, nurse, and hospital services and medicine as the 6101
administrator deems proper and, in case death ensues from the 6102
injury or occupational disease, the administrator shall disburse 6103
and pay from the fund reasonable funeral expenses in an amount not 6104
to exceed fifty-five hundred dollars. The bureau of workers' 6105
compensation shall reimburse anyone, whether dependent, volunteer, 6106
or otherwise, who pays the funeral expenses of any employee whose 6107
death ensues from any injury or occupational disease as provided 6108
in this section. The administrator may adopt rules, with the 6109
advice and consent of the bureau of workers' compensation 6110
~~oversight commission~~board of directors, with respect to 6111
furnishing medical, nurse, and hospital service and medicine to 6112
injured or disabled employees entitled thereto, and for the 6113
payment therefor. In case an injury or industrial accident that 6114
injures an employee also causes damage to the employee's 6115
eyeglasses, artificial teeth or other denture, or hearing aid, or 6116
in the event an injury or occupational disease makes it necessary 6117
or advisable to replace, repair, or adjust the same, the bureau 6118
shall disburse and pay a reasonable amount to repair or replace 6119
the same. 6120

       (B)(1) If an employer or a welfare plan has provided to or on 6121
behalf of an employee any benefits or compensation for an injury 6122
or occupational disease and that injury or occupational disease is 6123
determined compensable under this chapter, the employer or a 6124
welfare plan may request that the administrator reimburse the 6125
employer or welfare plan for the amount the employer or welfare 6126
plan paid to or on behalf of the employee in compensation or 6127
benefits. The administrator shall reimburse the employer or 6128
welfare plan for the compensation and benefits paid if, at the 6129
time the employer or welfare plan provides the benefits or 6130
compensation to or on behalf of employee, the injury or 6131
occupational disease had not been determined to be compensable 6132
under this chapter and if the employee was not receiving 6133
compensation or benefits under this chapter for that injury or 6134
occupational disease. The administrator shall reimburse the 6135
employer or welfare plan in the amount that the administrator 6136
would have paid to or on behalf of the employee under this chapter 6137
if the injury or occupational disease originally would have been 6138
determined compensable under this chapter. If the employer is a 6139
merit-rated employer, the ~~administrator~~board, based upon 6140
recommendations of the workers' compensation actuarial committee, 6141
shall adjust the amount of premium next due from the employer 6142
according to the amount the administrator pays the employer. The 6143
administrator shall adopt rules, in accordance with Chapter 119. 6144
of the Revised Code, to implement this division. 6145

       (2) As used in this division, "welfare plan" has the same 6146
meaning as in division (1) of 29 U.S.C.A. 1002. 6147

       Sec. 4123.75. Any employee whose employer has failed to 6148
comply with section 4123.35 of the Revised Code, who has been 6149
injured or has suffered an occupational disease in the course of 6150
~~his~~the employee's employment, which was not purposely 6151
self-inflicted, or ~~his~~the employee's dependents in case death has 6152
ensued, may file ~~his~~an application with the industrial commission 6153
or the bureau of workers' compensation for compensation and the 6154
administrator of workers' compensation shall determine the 6155
application for compensation in like manner as in other claims and 6156
shall make an award to the claimant as hethe employee would be 6157
entitled to receive if the employer had complied with section 6158
4123.35 of the Revised Code. Payment of the claim shall be made 6159
promptly from the statutory surplus fund. Payment shall not bar 6160
any action under section 4123.77 of the Revised Code. If a 6161
recovery is made in an action under section 4123.77 of the Revised 6162
Code any funds paid from the state insurance fund under this 6163
section shall be repaid by the claimant. The administrator shall 6164
institute proceedings to recover from the employer any moneys paid 6165
from the surplus fund and to secure the employer's payment of the 6166
award. The employer shall pay the award in the manner and amount 6167
fixed thereby or shall furnish to the bureau a bond, in an amount 6168
and with sureties as the bureau requires, to pay the employee the 6169
award in the manner and amount fixed thereby. 6170

       An order of the administrator issued under this section is 6171
appealable pursuant to section 4123.511 and 4123.512 of the 6172
Revised Code. In the event payments are made to a claimant which 6173
should not have been made under the final decision in the appeal 6174
of the claim, the amount of the payments shall be charged to the 6175
surplus fund created under division ~~(B)~~(A) of section 4123.34 of 6176
the Revised Code. In the event recovery is made from the 6177
noncomplying employer, the sums that are recovered shall be paid 6178
into the surplus fund. 6179

       If the employer fails to pay the compensation to the person 6180
entitled thereto, or fails to furnish the bond, within a period of 6181
ten days after notification of the award, the award constitutes a 6182
liquidated claim for damages against the employer in the amount 6183
ascertained and fixed by the administrator or commission, and the 6184
administrator shall certify the same to the attorney general who 6185
shall forthwith institute a civil action against the employer in 6186
the name of the state for the collection of the award. In the 6187
action it is sufficient for the plaintiff to set forth a copy of 6188
the record of proceedings of the commission or bureau relative to 6189
the claims certified by the administrator to the attorney general 6190
and to state that there is due to plaintiff on account of the 6191
finding and award of the commission or bureau a specified sum 6192
which plaintiff claims with interest. A certified copy of the 6193
record of proceedings in the claim shall be attached to the 6194
complaint and constitutes prima-facie evidence of the truth of the 6195
facts therein contained. Further proceedings shall be as provided 6196
in the Rules of Civil Procedure. As soon as the issues are made up 6197
in any such case, it shall be placed at the head of the trial 6198
docket and shall be first in order for trial. The cause of action 6199
provided in this section and the cause of action provided by 6200
section 4123.37 of the Revised Code may be joined in one action 6201
against an employer, and the amount of any premium paid or 6202
recovered from the employer for the period not exceeding six 6203
months during which the injury or disease, or injury or disease 6204
resulting in death, occurred shall be credited against the amount 6205
of any judgment for compensation recovered pursuant to this 6206
section. The amount recovered in the action from the employer 6207
shall be paid into the surplus fund created under division ~~(B)~~(A) 6208
of section 4123.34 of the Revised Code up to the amount paid out 6209
of the surplus fund and the balance into the state insurance fund. 6210
Any employee of a self-insuring employer, in the event of the 6211
failure of ~~his~~the employer to pay the compensation or furnish the 6212
medical, surgical, nursing, and hospital services and attention or 6213
funeral expenses, may file ~~his~~an application with the commission 6214
or the bureau for the purpose of having the amount of the 6215
compensation and the medical, surgical, nursing, and hospital 6216
services and attention or funeral expenses determined; and 6217
thereupon like proceedings shall be had before the bureau and with 6218
like effect as provided in this section. 6219

       The administrator shall adopt and publish rules governing the 6220
procedure before the bureau and commission provided in this 6221
section and shall prescribe the form of notices and the manner of 6222
serving the same in all claims for compensation arising under this 6223
section. Any suit, action, proceeding, or award brought or made 6224
against any employer under this section may be compromised by the 6225
administrator, or the suit, action, or proceeding may be 6226
prosecuted to final judgment as in the administrator's discretion 6227
may best subserve the interests of the state insurance fund. 6228

       A final judgment against the employer recovered in the manner 6229
provided in this section entitles the claimant to the compensation 6230
provided in this chapter for the injury, occupational disease, or 6231
death and the compensation shall be paid from the surplus fund 6232
created by section 4123.34 of the Revised Code, and any sum 6233
recovered on account of the judgment shall be paid to the bureau 6234
and credited to the fund the administrator designates. 6235

       Sec. 4123.80. No agreement by an employee to waive an 6236
employee's rights to compensation under this chapter is valid, 6237
except that: 6238

       (A) An employee who is blind may waive the compensation that 6239
may become due to the employee for injury or disability in cases 6240
where the injury or disability may be directly caused by or due to 6241
the employee's blindness. The administrator of workers' 6242
compensation, with the advice and consent of the bureau of 6243
workers' compensation ~~oversight commission~~board of directors, may 6244
adopt and enforce rules governing the employment of such persons 6245
and the inspection of their places of employment. 6246

       (B) An employee may waive the employee's rights to 6247
compensation or benefits as authorized pursuant to division (C)(3) 6248
of section 4123.01 or section 4123.15 of the Revised Code. 6249

       No agreement by an employee to pay any portion of the premium 6250
paid by the employee's employer into the state insurance fund is 6251
valid. 6252

       Sec. 4123.82. (A) All contracts and agreements are void 6253
which undertake to indemnify or insure an employer against loss or 6254
liability for the payment of compensation to workers or their 6255
dependents for death, injury, or occupational disease occasioned 6256
in the course of the workers' employment, or which provide that 6257
the insurer shall pay the compensation, or which indemnify the 6258
employer against damages when the injury, disease, or death arises 6259
from the failure to comply with any lawful requirement for the 6260
protection of the lives, health, and safety of employees, or when 6261
the same is occasioned by the willful act of the employer or any 6262
of ~~his~~the employer's officers or agents, or by which it is agreed 6263
that the insurer shall pay any such damages. No license or 6264
authority to enter into any such agreements or issue any such 6265
policies of insurance shall be granted or issued by any public 6266
authority in this state. Any corporation organized or admitted 6267
under the laws of this state to transact liability insurance as 6268
defined in section 3929.01 of the Revised Code may by amendment of 6269
its articles of incorporation or by original articles of 6270
incorporation, provide therein for the authority and purpose to 6271
make insurance in states, territories, districts, and counties, 6272
other than the state of Ohio, and in the state of Ohio in respect 6273
of contracts permitted by division (B) of this section, 6274
indemnifying employers against loss or liability for payment of 6275
compensation to workers and employees and their dependents for 6276
death, injury, or occupational disease occasioned in the course of 6277
the employment and to insure and indemnify employers against loss, 6278
expense, and liability by risk of bodily injury or death by 6279
accident, disability, sickness, or disease suffered by workers and 6280
employees for which the employer may be liable or has assumed 6281
liability. 6282

       (B) Notwithstanding division (A) of this section: 6283

       (1) No contract because of that division is void which 6284
undertakes to indemnify a self-insuring employer against all or 6285
part of such employer's loss in excess of at least fifty thousand 6286
dollars from any one disaster or event arising out of the 6287
employer's liability under this chapter, but no insurance 6288
corporation shall, directly or indirectly, represent an employer 6289
in the settlement, adjudication, determination, allowance, or 6290
payment of claims. The superintendent of insurance shall enforce 6291
this prohibition by such disciplinary orders directed against the 6292
offending insurance corporation as the superintendent of insurance 6293
deems appropriate in the circumstances and the administrator of 6294
workers' compensation shall enforce this prohibition by such 6295
disciplinary orders directed against the offending employer as the 6296
administrator deems appropriate in the circumstances, which orders 6297
may include revocation of the insurance corporation's right to 6298
enter into indemnity contracts and revocation of the employer's 6299
status as a self-insuring employer. 6300

       (2) The administrator may enter into a contract of indemnity 6301
with any such employer upon such terms, payment of such premium, 6302
and for such amount and form of indemnity as the administrator 6303
determines and the ~~administrator~~bureau of workers' compensation 6304
board of directors may procure reinsurance of the liability of the 6305
public and private funds under this chapter, or any part of the 6306
liability in respect of either or both of the funds, upon such 6307
terms and premiums or other payments from the fund or funds as the 6308
administrator deems prudent in the maintenance of a solvent fund 6309
or funds from year to year. When making the finding of fact which 6310
the administrator is required by section 4123.35 of the Revised 6311
Code to make with respect to the financial ability of an employer, 6312
no contract of indemnity, or the ability of the employer to 6313
procure such a contract, shall be considered as increasing the 6314
financial ability of the employer. 6315

       Sec. 4123.92. Upon the request of the industrial commission 6316
or the administrator of workers' compensation, the attorney 6317
general, or under ~~his~~the attorney general's direction the 6318
prosecuting attorney of any county in cases arising within the 6319
county, shall institute and prosecute the necessary actions or 6320
proceedings for the enforcement of this chapter, or for the 6321
recovery of any money due the state insurance fund, or any 6322
penalty, and shall defend in like manner all suits, actions, or 6323
proceedings brought against the administrator, the bureau of 6324
workers' compensation ~~oversight commission~~board of directors, 6325
industrial commission, or the members of the ~~oversight commission~~ 6326
board, or industrial commission in their official capacity. 6327

       Sec. 4125.05. (A) Not later than thirty days after ~~the~~ 6328
~~effective date of this section~~November 5, 2004, or not later than 6329
thirty days after the formation of a professional employer 6330
organization, whichever date occurs later, a professional employer 6331
organization operating in this state shall register with the 6332
administrator of the bureau of workers' compensation on forms 6333
provided by the administrator. Following initial registration, 6334
each professional employer organization shall register with the 6335
administrator annually on or before the thirty-first day of 6336
December. 6337

        (B) Initial registration and each annual registration renewal 6338
shall include all of the following: 6339

        (1) A list of each of the professional employer 6340
organization's client employers current as of the date of 6341
registration for purposes of initial registration or current as of 6342
the date of annual registration renewal, or within fourteen days 6343
of adding or releasing a client, that includes the client 6344
employer's name, address, federal tax identification number, and 6345
bureau of workers' compensation risk number; 6346

        (2) A fee as determined by the administrator; 6347

        (3) The name or names under which the professional employer 6348
organization conducts business; 6349

        (4) The address of the professional employer organization's 6350
principal place of business and the address of each office it 6351
maintains in this state; 6352

        (5) The professional employer organization's taxpayer or 6353
employer identification number; 6354

        (6) A list of each state in which the professional employer 6355
organization has operated in the preceding five years, and the 6356
name, corresponding with each state, under which the professional 6357
employer organization operated in each state, including any 6358
alternative names, names of predecessors, and if known, successor 6359
business entities. 6360

        (C)(1) The administrator, with the advice and consent of the 6361
bureau of workers' compensation ~~oversight commission~~board of 6362
directors, shall adopt rules in accordance with Chapter 119. of 6363
the Revised Code to require, except as otherwise specified in 6364
division (C)(2) of this section, a professional employer 6365
organization to provide security in the form of a bond or letter 6366
of credit assignable to the Ohio bureau of workers' compensation 6367
not to exceed an amount equal to the premiums and assessments 6368
incurred for the two most recent payroll periods, prior to any 6369
discounts or dividends, to meet the financial obligations of the 6370
professional employer organization pursuant to this chapter and 6371
Chapters 4121. and 4123. of the Revised Code. 6372

       (2) As an alternative to providing security in the form of a 6373
bond or letter of credit, the administrator shall permit a 6374
professional employer organization to make periodic payments of 6375
prospective premiums and assessments to the bureau or to submit 6376
proof of being certified by either a nationally recognized 6377
organization that certifies professional employer organizations or 6378
by a government entity approved by the administrator. 6379

       (3) A professional employer organization may appeal the 6380
amount of the security required pursuant to rules adopted under 6381
division (C)(1) of this section in accordance with section 6382
4123.291 of the Revised Code. 6383

       (D) Notwithstanding division (C) of this section, a 6384
professional employer organization that qualifies for 6385
self-insurance or retrospective rating under section 4123.29 or 6386
4123.35 of the Revised Code shall abide by the financial 6387
disclosure and security requirements pursuant to those sections 6388
and the rules adopted under those sections in place of the 6389
requirements specified in division (C) of this section or 6390
specified in rules adopted pursuant to that division. 6391

       (E) Except to the extent necessary for the administrator to 6392
administer the statutory duties of the administrator and for 6393
employees of the state to perform their official duties, all 6394
records, reports, client lists, and other information obtained 6395
from a professional employer organization under divisions (A) and 6396
(B) of this section are confidential and shall be considered trade 6397
secrets and shall not be published or open to public inspection. 6398

       (F) The list described in division (B)(1) of this section 6399
shall be considered a trade secret. 6400

        (G) The administrator shall establish the fee described in 6401
division (B)(2) of this section in an amount that does not exceed 6402
the cost of the administration of the initial and renewal 6403
registration process. 6404

       Sec. 4127.07. Every employer shall contribute to the public 6405
work-relief employees' compensation fund the amount of money 6406
determined by the ~~administrator~~bureau of workers' compensation 6407
board of directors, ~~with the advice and consent~~based upon 6408
recommendations of the workers' compensation ~~oversight commission~~ 6409
actuarial committee. The contributions may be made in whole or in 6410
part out of any relief funds or any other available public funds, 6411
regardless of the manner in which the funds were raised. The 6412
officer of any employer having charge of the expenditures of funds 6413
for relief purposes, shall set aside and maintain as a special 6414
fund out of which contributions to the work-relief employees' 6415
compensation fund may be made, an amount equal to the percentage 6416
of the work-relief funds as the ~~administrator~~board, based upon 6417
recommendations of the actuarial committee, determines on an 6418
actuarial basis as is reasonably necessary to cover the premium 6419
obligations of the employer. The manner of determining the 6420
contributions and classifications of employers, shall be the same 6421
as is provided in sections 4123.39 to 4123.41 and 4123.48 of the 6422
Revised Code, and such sections shall apply in so far as they are 6423
applicable to the employers, but rates of premium shall be applied 6424
to insure solvency of the public work-relief employees' 6425
compensation fund at all times. 6426

       The state relief commission or any other state agency having 6427
supervision or control of work-relief employees, either directly 6428
or through agencies, shall file reports and make payments of 6429
premiums out of any fund under its control or supervision, in the 6430
amount and manner, and at the time, as is determined by the 6431
~~administrator~~board, based upon recommendations of the actuarial 6432
committee; and the furnishing of the reports and the payment of 6433
the premiums by the state agency, for work-relief employees, shall 6434
relieve the state of the obligations set forth in sections 6435
4123.40, 4123.41, and 4123.48 of the Revised Code, with respect to 6436
contributing to the public work-relief employees' compensation 6437
fund for work-relief employees. 6438

       Sec. 4127.08. The administrator of workers' compensation, 6439
under special circumstances and with the advice and consent of the 6440
bureau of workers' compensation ~~oversight commission~~board of 6441
directors, may adjust the rate of disbursements of compensation of 6442
benefits, which shall not in any instance exceed the maximum 6443
reimbursable relief award established by the state which the 6444
claimant would have been entitled to had hethe claimant not been 6445
injured. 6446

       Sec. 4131.04. (A) For the purpose of sections 4131.01 to 6447
4131.06 of the Revised Code, each subscriber shall pay premiums 6448
upon the basis and at the intervals determined by the 6449
administrator of workers' compensation, with the advice and 6450
consent of the bureau of workers' compensation ~~oversight~~ 6451
~~commission~~board of directors. 6452

       (B) The ~~administrator~~board, based upon recommendations of 6453
the workers' compensation actuarial committee, shall fix and 6454
maintain for each class of occupation and type of mining the 6455
lowest possible rates of premiums consistent with the maintenance 6456
of a solvent fund and the creation and maintenance of a reasonable 6457
surplus after providing for payment to maturity of all liabilities 6458
insured pursuant to the federal act. 6459

       (C) The ~~administrator~~board, based upon recommendations of 6460
the actuarial committee, may adjust the rates of premium at any 6461
time. Each adjustment order shall become effective on the date 6462
prescribed by ~~him~~the board. 6463

       (D) The administrator, by rule, may prescribe procedures for 6464
subscription, payroll reporting, premium payment, termination of 6465
subscription, reinstatement, and all other matters pertinent to 6466
subscriber participation in the coal-workers pneumoconiosis fund. 6467

       (E) In addition to premiums required to be paid into the 6468
fund, the ~~administrator, with the advice and consent of the~~ 6469
~~oversight commission,~~board, based upon recommendations of the 6470
actuarial committee, shall fix and may adjust at any time an 6471
additional premium for the cost of administering the fund. The 6472
additional premium shall be paid by each subscriber as a part of 6473
the subscriber's total premium payment. 6474

       Sec. 4131.06. (A) The collection of premiums, the 6475
administration and investment of the coal-workers pneumoconiosis 6476
fund, and the payment of benefits therefrom shall not create any 6477
liability upon the state. 6478

       (B) Except for a gross abuse of discretion, the industrial 6479
commission and the individual members thereof, the bureau of 6480
workers' compensation ~~oversight commission~~board of directors and 6481
the individual members thereof, the workers' compensation 6482
actuarial committee and the individual members thereof, and the 6483
administrator of workers' compensation shall not incur any 6484
obligation or liability respecting the collection of premiums, the 6485
administration or investment of the fund, or the payment of 6486
benefits therefrom. 6487

       Sec. 4131.13. (A) For the relief of persons who are entitled 6488
to receive benefits by virtue of the federal act, there is hereby 6489
established a marine industry fund, which shall be separate from 6490
the funds established and administered pursuant to Chapter 4123. 6491
of the Revised Code. The marine industry fund shall consist of 6492
premiums and other payments thereto by marine industry employers 6493
who apply to the bureau of workers' compensation for permission to 6494
subscribe to the fund to insure the payment of benefits required 6495
by the federal act. 6496

       By rule, the administrator of workers' compensation shall 6497
establish criteria for the acceptance or rejection of applications 6498
by marine industry employers who apply to subscribe to the fund. 6499

       (B) The marine industry fund shall be in the custody of the 6500
treasurer of state. The bureau shall make disbursements from the 6501
fund to those persons entitled to payment therefrom and in the 6502
amounts required pursuant to the federal act. The auditor of state 6503
annually shall complete a fiscal audit of the fund. All investment 6504
earnings of the fund shall be credited to the fund. 6505

       (C) The administrator shall have the same powers to invest 6506
any of the surplus or reserve belonging to the marine industry 6507
fund as are delegated to him under section 4123.44 of the Revised 6508
Code with respect to the state insurance fund. 6509

       (D) If the ~~administrator~~bureau of workers' compensation 6510
board of directors determines that reinsurance of the risks of the 6511
marine industry fund is necessary to assure solvency of the fund, 6512
hethe board may: 6513

       (1) Enter into contracts for the purchase of reinsurance 6514
coverage of the risks of the fund with any company or agency 6515
authorized by law to issue contracts of reinsurance; 6516

       (2) ~~Pay~~Require the administrator to pay the cost of 6517
reinsurance from the fund; 6518

       (3) Include the costs of reinsurance as a liability and 6519
estimated liability of the fund. 6520

       (E) For the purpose of maintaining the solvency of the marine 6521
industry fund, the administrator may borrow money from the state 6522
insurance fund as is necessary. Money borrowed from the state 6523
insurance fund shall be repaid from the marine industry fund 6524
together with an appropriate interest rate not to exceed the 6525
average yield of fixed income investments of the state insurance 6526
fund for the six-month period ended on the last day of the month 6527
preceding the month in which the money is borrowed. Loans made 6528
pursuant to this division are a proper investment of the surplus 6529
or reserve of the state insurance fund. 6530

       (F) In no event shall any of the assets of any of the funds 6531
created and administered pursuant to Chapter 4123. of the Revised 6532
Code be disbursed in payment of any cost or obligation of or 6533
insured by the marine industry fund. This division shall not be 6534
construed to prohibit as a proper investment loans made from the 6535
state insurance fund to the marine industry fund pursuant to 6536
division (E) of this section. 6537

       Sec. 4131.14. (A) For the purpose of sections 4131.11 to 6538
4131.16 of the Revised Code, each subscriber shall pay premiums 6539
upon the basis and at the intervals determined by the 6540
administrator of workers' compensation, with the advice and 6541
consent of the bureau of workers' compensation ~~oversight~~ 6542
~~commission~~board of directors. 6543

       (B) The ~~administrator~~board, based upon recommendations of 6544
the workers' compensation actuarial committee, shall fix and 6545
maintain for each class of occupation and type of business the 6546
lowest possible rates of premiums consistent with the maintenance 6547
of a solvent fund and the creation and maintenance of a reasonable 6548
surplus after providing for payment to maturity of all liabilities 6549
insured pursuant to the federal act. The ~~administrator~~board, 6550
based upon recommendations of the actuarial committee, by rule, 6551
may provide for merit rating of subscribers. 6552

       (C) The ~~administrator~~board, ~~with the advice and consent~~ 6553
based upon recommendations of the ~~oversight commission~~actuarial 6554
committee, may adjust the rates of premium at any time. Each 6555
adjustment order is effective on the date prescribed by the 6556
~~administrator~~board. 6557

       (D) The administrator, by rule adopted pursuant to Chapter 6558
119. of the Revised Code, may prescribe procedures for 6559
subscription, payroll reporting, premium payment, payment of an 6560
advance security deposit by subscribers to secure payments of 6561
premiums when due, termination of subscription, reinstatement, and 6562
all other matters pertinent to subscriber participation in the 6563
marine industry fund. 6564

       (E) In addition to premiums required to be paid into the 6565
fund, the ~~administrator~~board, ~~with the advice and consent~~based 6566
upon recommendations of the ~~oversight commission,~~actuarial 6567
committee, shall fix and may adjust at any time an additional 6568
premium for the cost of administering the fund. The additional 6569
premium shall be paid by each subscriber as a part of the 6570
subscriber's total premium payment. 6571

       Sec. 4131.16. (A) The collection of premiums, the 6572
administration and investment of the marine industry fund, and the 6573
payment of benefits therefrom shall not create any liability upon 6574
the state. 6575

       (B) Except for a gross abuse of discretion, the industrial 6576
commission and the individual members thereof, the bureau of 6577
workers' compensation ~~oversight commission~~board of directors and 6578
the individual members thereof, the workers' compensation 6579
actuarial committee and the individual members thereof, and the 6580
administrator of workers' compensation shall not incur any 6581
obligation or liability respecting the collection of premiums, the 6582
administration or investment of the fund, or the payment of 6583
benefits therefrom. 6584

       Sec. 4167.02. (A) The administrator of worker's compensation 6585
shall operate and enforce the public employment risk reduction 6586
program created by this chapter. 6587

       (B) The administrator shall do all of the following: 6588

       (1) Adopt rules, with the advice and consent of the bureau of 6589
workers' compensation ~~oversight commission~~board of directors and 6590
in accordance with Chapter 119. of the Revised Code, for the 6591
administration and enforcement of this chapter, including rules 6592
covering standards the administrator shall follow in issuing an 6593
emergency temporary Ohio employment risk reduction standard under 6594
section 4167.08 of the Revised Code and a temporary variance and a 6595
variance from an Ohio employment risk reduction standard or part 6596
thereof under section 4167.09 of the Revised Code; 6597

       (2) Do all things necessary and appropriate for the 6598
administration and enforcement of this chapter. 6599

       (C) In carrying out the responsibilities of this chapter, the 6600
administrator may use, with the consent of any federal, state, or 6601
local agency, the services, facilities, and personnel of such 6602
agency, with or without reimbursement, and may retain or contract 6603
with experts, consultants, and organizations for services or 6604
personnel on such terms as the administrator determines 6605
appropriate. 6606

       Sec. 4167.07. (A) The administrator of workers' 6607
compensation, with the advice and consent of the bureau of 6608
workers' compensation ~~oversight commission~~board of directors, 6609
shall adopt rules that establish employment risk reduction 6610
standards. Except as provided in division (B) of this section, in 6611
adopting these rules, the administrator shall do both of the 6612
following: 6613

       (1) By no later than July 1, 1994, adopt as a rule and an 6614
Ohio employment risk reduction standard every federal occupational 6615
safety and health standard then adopted by the United States 6616
secretary of labor pursuant to the "Occupational Safety and Health 6617
Act of 1970," 84 Stat. 1590, 29 U.S.C.A. 651, as amended; 6618

       (2) By no later than one hundred twenty days after the United 6619
States secretary of labor adopts, modifies, or revokes any federal 6620
occupational safety and health standard, by rule do one of the 6621
following: 6622

       (a) Adopt the federal occupational safety and health standard 6623
as a rule and an Ohio employment risk reduction standard; 6624

       (b) Amend the existing rule and Ohio employment risk 6625
reduction standard to conform to the modification of the federal 6626
occupational safety and health standard; 6627

       (c) Rescind the existing rule and Ohio employment risk 6628
reduction standard that corresponds to the federal occupational 6629
safety and health standard the United States secretary of labor 6630
revoked. 6631

       (B) The administrator, with the advice and consent of the 6632
bureau of workers' compensation ~~oversight commission~~board of 6633
directors, may decline to adopt any federal occupational safety 6634
and health standard as a rule and an Ohio employment risk 6635
reduction standard or to modify or rescind any existing rule and 6636
Ohio employment risk reduction standard to conform to any federal 6637
occupational safety and health standard modified or revoked by the 6638
United States secretary of labor or may adopt as a rule and an 6639
Ohio employment risk reduction standard any occupational safety 6640
and health standard that is not covered under the federal law or 6641
that differs from one adopted or modified by the United States 6642
secretary of labor, if the administrator determines that existing 6643
rules and Ohio employment risk reduction standards provide 6644
protection at least as effective as that which would be provided 6645
by the existing, new, or modified federal occupational safety and 6646
health standard or if the administrator determines that local 6647
conditions warrant a different standard from that of the existing 6648
federal occupational safety and health standard or from standards 6649
the United States secretary of labor adopts, modifies, or revokes. 6650

       (C) In adopting, modifying, or rescinding any rule or Ohio 6651
employment risk reduction standard dealing with toxic materials or 6652
harmful physical agents, the administrator, with the advice and 6653
consent of the bureau of workers' compensation ~~oversight~~ 6654
~~commission~~board of directors, shall do all of the following: 6655

       (1) Set the employment risk reduction standard to most 6656
adequately assure, to the extent technologically feasible and on 6657
the basis of the best available evidence, that no public employee 6658
will suffer material impairment of health or functional capacity 6659
as a result of the hazards dealt with by the rule or Ohio 6660
employment risk reduction standard for the period of the public 6661
employee's working life; 6662

       (2) Base the development of these rules and Ohio employment 6663
risk reduction standards on research, demonstrations, experiments, 6664
and other information as is appropriate and upon the technological 6665
feasibility of the rule and standard, using the latest available 6666
scientific data in the field and the experience gained in the 6667
workplace under this chapter and other health and safety laws, to 6668
establish the highest degree of safety and health for the public 6669
employee; 6670

       (3) Whenever practicable, express the rule and Ohio 6671
employment risk reduction standard in terms of objective criteria 6672
and of the performance desired; 6673

       (4) Prescribe the use of labels or other appropriate forms of 6674
warning as are necessary to ensure that public employees are 6675
apprised of all hazards to which they are exposed, relevant 6676
symptoms and appropriate emergency treatment, and proper 6677
conditions and precautions of safe use or exposure where 6678
appropriate; 6679

       (5) Prescribe suitable protective equipment and control 6680
procedures to be used in connection with the hazards; 6681

       (6) Provide for measuring or monitoring public employee 6682
exposure in a manner necessary for the protection of the public 6683
employees; 6684

       (7) Where appropriate, prescribe the type and frequency of 6685
medical examinations or other tests the public employer shall make 6686
available, at the cost of the public employer, to the public 6687
employees exposed to the hazards in order to determine any adverse 6688
effect from the exposure. 6689

       (D) In determining the priority for adopting rules and Ohio 6690
employment risk reduction standards under this section, the 6691
administrator shall give due regard to the urgency of need and 6692
recommendations of the department of health regarding that need 6693
for mandatory employment risk reduction standards for particular 6694
trades, crafts, occupations, services, and workplaces. 6695

       (E)(1) Except for rules adopted under division (A) of this 6696
section, the administrator, with the advice and consent of the 6697
bureau of workers' compensation ~~oversight commission~~board of 6698
directors, shall adopt all rules under this section in accordance 6699
with Chapter 119. of the Revised Code, provided that 6700
notwithstanding that chapter, the administrator may delay the 6701
effective date of any rule or Ohio employment risk reduction 6702
standard for the period the administrator determines necessary to 6703
ensure that affected public employers and public employees will be 6704
informed of the adoption, modification, or rescission of the rule 6705
and Ohio employment risk reduction standard and have the 6706
opportunity to familiarize themselves with the specific 6707
requirements of the rule and standard. In no case, however, shall 6708
the administrator delay the effective date of a rule adopted 6709
pursuant to Chapter 119. of the Revised Code in excess of ninety 6710
days beyond the otherwise required effective date. 6711

       (2) In regard to the rules for which the administrator does 6712
not have to comply with Chapter 119. of the Revised Code, the 6713
administrator shall file two certified copies of the rules and 6714
Ohio employment risk reduction standards adopted with the 6715
secretary of state and the director of the legislative service 6716
commission. 6717

       Sec. 4167.08. (A) In the event of an emergency or unusual 6718
situation, the administrator of workers' compensation shall issue 6719
an emergency temporary Ohio employment risk reduction standard to 6720
take immediate effect upon publication in newspapers of general 6721
circulation in Cleveland, Columbus, Cincinnati, and Toledo if the 6722
administrator finds both of the following: 6723

       (1) Public employees are exposed to grave danger from 6724
exposure to substances or agents determined to be toxic or 6725
physically harmful or from new hazards; 6726

       (2) The emergency temporary Ohio employment risk reduction 6727
standard is necessary to protect employees from the danger. 6728

       (B)(1) Except as provided in division (B)(2) of this section 6729
an emergency temporary Ohio employment risk reduction standard 6730
issued by the administrator under division (A) of this section 6731
shall be in effect no longer than fifteen days, unless the 6732
~~commission~~bureau of workers' compensation board of directors 6733
approves the emergency temporary Ohio employment risk reduction 6734
standard as issued by the administrator, in which case, the 6735
emergency temporary Ohio employment risk reduction standard shall 6736
be in effect no longer than one hundred twenty days after the date 6737
the administrator issues it. 6738

       (2) The administrator may renew an emergency temporary Ohio 6739
employment risk reduction standard that has been approved by the 6740
~~workers' compensation oversight commission~~board for an additional 6741
time period not to exceed one hundred days if the administrator 6742
finds that the conditions identified in divisions (A)(1) and (2) 6743
of this section continue to exist. 6744

       On or before the expiration date of the emergency temporary 6745
Ohio employment risk reduction standard or renewal thereof, if the 6746
conditions identified in divisions (A)(1) and (2) of this section 6747
continue to exist, the administrator, with the advice and consent 6748
of the ~~oversight commission~~board, shall adopt a permanent Ohio 6749
employment risk reduction standard pursuant to section 4167.07 of 6750
the Revised Code as a rule to replace the emergency temporary Ohio 6751
employment risk reduction standard. 6752

       Sec. 4167.09. (A) Any public employer affected by a proposed 6753
rule or Ohio employment risk reduction standard or any provision 6754
of a standard proposed under section 4167.07 or 4167.08 of the 6755
Revised Code may apply to the administrator of workers' 6756
compensation for an order granting a temporary variance from the 6757
standard or provision. The application for the order and any 6758
extension of the order shall contain a reasonable application fee, 6759
as determined by the bureau of workers' compensation ~~oversight~~ 6760
~~commission~~board of directors, and all of the following 6761
information: 6762

       (1) A specification of the Ohio public employment risk 6763
reduction standard or provision of it from which the public 6764
employer seeks the temporary variance; 6765

       (2) A representation by the public employer, supported by 6766
representations from qualified persons having firsthand knowledge 6767
of the facts represented, that the public employer is unable to 6768
comply with the Ohio employment risk reduction standard or 6769
provision of it and a detailed statement of the reasons for the 6770
inability to comply; 6771

       (3) A statement of the steps that the public employer has 6772
taken and will take, with dates specified, to protect employees 6773
against the hazard covered by the standard; 6774

       (4) A statement of when the public employer expects to be 6775
able to comply fully with the Ohio employment risk reduction 6776
standard and what steps the public employer has taken and will 6777
take, with dates specified, to come into full compliance with the 6778
standard; 6779

       (5) A certification that the public employer has informed the 6780
public employer's public employees of the application by giving a 6781
copy of the application to the public employee representative, if 6782
any, and by posting a statement giving a summary of the 6783
application and specifying where a copy of the application may be 6784
examined at the place or places where notices to public employees 6785
are normally posted, and by any other appropriate means of public 6786
employee notification. The public employer also shall inform the 6787
public employer's public employees of their rights to a hearing 6788
under section 4167.15 of the Revised Code. The certification also 6789
shall contain a description of how public employees have been 6790
informed of the application and of their rights to a hearing. 6791

       (B) The administrator shall issue an order providing for a 6792
temporary variance if the public employer files an application 6793
that meets the requirements of division (A) of this section and 6794
establishes that all of the following pertaining to the public 6795
employer are true: 6796

       (1) The public employer is unable to comply with the Ohio 6797
employment risk reduction standard or a provision of it by its 6798
effective date because of the unavailability of professional or 6799
technical personnel or of materials and equipment needed to come 6800
into compliance with the Ohio employment risk reduction standard 6801
or provision of it or because necessary construction or alteration 6802
of facilities cannot be completed by the effective date of the 6803
standard. 6804

       (2) The public employer is taking all available steps to 6805
safeguard the public employer's public employees against the 6806
hazards covered by the Ohio employment risk reduction standard. 6807

       (3) The public employer has an effective program for coming 6808
into compliance with the Ohio employment risk reduction standard 6809
as quickly as practicable. 6810

       (4) The granting of the variance will not create an imminent 6811
danger of death or serious physical harm to public employees. 6812

       (C)(1) If the administrator issues an order providing for a 6813
temporary variance under division (B) of this section, the 6814
administrator shall prescribe the practices, means, methods, 6815
operations, and processes that the public employer must adopt and 6816
use while the order is in effect and state in detail the public 6817
employer's program for coming into compliance with the Ohio 6818
employment risk reduction standard. The administrator may issue 6819
the order only after providing notice to affected public employees 6820
and their public employee representative, if any, and an 6821
opportunity for a hearing pursuant to section 4167.15 of the 6822
Revised Code, provided that the administrator may issue one 6823
interim order granting a temporary order to be effective until a 6824
decision on a hearing is made. Except as provided in division 6825
(C)(2) of this section, no temporary variance may be in effect for 6826
longer than the period needed by the public employer to achieve 6827
compliance with the Ohio employment risk reduction standard or one 6828
year, whichever is shorter. 6829

       (2) The administrator may renew an order issued under 6830
division (C) of this section up to two times provided that the 6831
requirements of divisions (A), (B), and (C)(1) of this section and 6832
section 4167.15 of the Revised Code are met and the public 6833
employer files an application for renewal with the administrator 6834
at least ninety days prior to the expiration date of the order. 6835

       (D) Any public employer affected by an Ohio employment risk 6836
reduction standard or any provision of it proposed, adopted, or 6837
otherwise issued under section 4167.07 or 4167.08 of the Revised 6838
Code may apply to the administrator for an order granting a 6839
variance from the standard or provision. The administrator shall 6840
provide affected public employees and their public employee 6841
representative, if any, notice of the application and shall 6842
provide an opportunity for a hearing pursuant to section 4167.15 6843
of the Revised Code. The administrator shall issue the order 6844
granting the variance if the public employer files an application 6845
that meets the requirements of division (B) of this section, and 6846
after an opportunity for a hearing pursuant to section 4167.15 of 6847
the Revised Code, and if the public employer establishes to the 6848
satisfaction of the administrator that the conditions, practices, 6849
means, methods, operations, or processes used or proposed to be 6850
used by the public employer will provide employment and places of 6851
employment to the public employer's public employees that are as 6852
safe and healthful as those that would prevail if the public 6853
employer complied with the Ohio employment risk reduction 6854
standard. The administrator shall prescribe in the order granting 6855
the variance the conditions the public employer must maintain, and 6856
the practices, means, methods, operations, and processes the 6857
public employer must adopt and utilize in lieu of the Ohio 6858
employment risk reduction standard that would otherwise apply. The 6859
administrator may modify or revoke the order upon application of 6860
the public employer, public employee, or public employee 6861
representative, or upon the administrator's own motion in the 6862
manner prescribed for the issuance of an order under this division 6863
at any time during six months after the date of issuance of the 6864
order. 6865

       Sec. 4167.11. (A) In order to further the purposes of this 6866
chapter, the administrator of workers' compensation shall develop 6867
and maintain, for public employers and public employees, an 6868
effective program of collection, compilation, and analysis of 6869
employment risk reduction statistics. 6870

       (B) To implement and maintain division (A) of this section, 6871
the administrator, with the advice and consent of the bureau of 6872
workers' compensation ~~oversight commission~~board of directors, 6873
shall adopt rules in accordance with Chapter 119. of the Revised 6874
Code that extend to all of the following: 6875

       (1) Requiring each public employer to make, keep, and 6876
preserve, and make available to the administrator, reports and 6877
records regarding the public employer's activities, as determined 6878
by the rule that are necessary or appropriate for the enforcement 6879
of this chapter or for developing information regarding the causes 6880
and prevention of occupational accidents and illnesses. The rule 6881
shall prescribe which of these reports and records shall or may be 6882
furnished to public employees and public employee representatives. 6883

       (2) Requiring every public employer, through posting of 6884
notices or other appropriate means, to keep their public employees 6885
informed of public employees' rights and obligations under this 6886
chapter, including the provisions of applicable Ohio employment 6887
risk reduction standards; 6888

       (3) Requiring public employers to maintain accurate records 6889
of public employee exposure to potentially toxic materials, 6890
carcinogenic materials, and harmful physical agents that are 6891
required to be monitored or measured under rules adopted under the 6892
guidelines of division (C) of section 4167.07 of the Revised Code. 6893
The rule shall provide public employees or public employee 6894
representatives an opportunity to observe the monitoring or 6895
measuring, and to have access on request to the records thereof, 6896
and may provide public employees or public employee 6897
representatives an opportunity to participate in and to undertake 6898
their own monitoring or measuring. The rules also shall permit 6899
each current or former public employee to have access to the 6900
records that indicate their own exposure to toxic materials, 6901
carcinogenic materials, or harmful agents. 6902

       (C) The administrator shall obtain any information under 6903
division (B) of this section with a minimum burden upon the public 6904
employer and shall, to the maximum extent feasible, reduce 6905
unnecessary duplication of efforts in obtaining the information. 6906

       Sec. 4167.14. (A) Any court of common pleas has 6907
jurisdiction, upon petition of the administrator of workers' 6908
compensation, to restrain any conditions or practices in any 6909
places of employment that present a danger that could reasonably 6910
be expected to cause death or serious harm or contribute 6911
significantly to occupationally related illness immediately or 6912
before the imminence of the danger can be eliminated through the 6913
enforcement procedures provided in this chapter. Any order issued 6914
under this section may require that steps be taken as necessary to 6915
avoid, correct, or remove the imminent danger and prohibit the 6916
employment or presence of any individual in locations or under 6917
conditions where the imminent danger exists, except individuals 6918
whose presence is necessary to avoid, correct, or remove the 6919
imminent danger. 6920

       (B) Upon the filing of a petition under division (A) of this 6921
section, the court of common pleas may grant injunctive relief or 6922
a temporary restraining order pending the outcome of an 6923
enforcement proceeding pursuant to this chapter, except that no 6924
temporary restraining order issued without notice is effective for 6925
a period longer than five calendar days. 6926

       (C) If the administrator or the administrator's designee 6927
responsible for inspections determines that the imminent danger as 6928
described in division (A) of this section is such that immediate 6929
action is necessary, and further determines that there is not 6930
sufficient time in light of the nature, severity, and imminence of 6931
the danger to seek and obtain a temporary restraining order or 6932
injunction, the administrator or the administrator's designee 6933
immediately shall file a petition with the court under division 6934
(A) of this section and issue an order requiring action to be 6935
taken as is necessary to avoid, correct, or remove the imminent 6936
danger. 6937

       The administrator, with the advice and consent of the bureau 6938
of workers' compensation ~~oversight commission~~board of directors, 6939
shall adopt rules, in accordance with Chapter 119. of the Revised 6940
Code, to permit a public employer expeditious informal 6941
reconsideration of any order issued by the administrator under 6942
this division. Unless the administrator reverses an order pursuant 6943
to the informal reconsideration, the order remains in effect 6944
pending the court's determination under this section. If the 6945
administrator modifies an order pursuant to the informal 6946
reconsideration, the administrator shall provide the court with 6947
whom the administrator filed the petition under this section with 6948
a copy of the modified order. The modified order remains in effect 6949
pending the court's determination under this section. 6950

       Section 101.02. That existing sections 102.02, 102.06, 6951
109.981, 119.01, 1707.01, 3345.12, 4121.01, 4121.12, 4121.121, 6952
4121.122, 4121.125, 4121.126, 4121.128, 4121.37, 4121.441, 6953
4121.48, 4121.61, 4121.67, 4121.70, 4123.01, 4123.025, 4123.21, 6954
4123.25, 4123.29, 4123.291, 4123.311, 4123.32, 4123.34, 4123.341, 6955
4123.342, 4123.35, 4123.351, 4123.37, 4123.38, 4123.39, 4123.40, 6956
4123.41, 4123.411, 4123.412, 4123.419, 4123.44, 4123.441, 4123.47, 6957
4123.50, 4123.511, 4123.512, 4123.57, 4123.65, 4123.66, 4123.75, 6958
4123.80, 4123.82, 4123.92, 4125.05, 4127.07, 4127.08, 4131.04, 6959
4131.06, 4131.13, 4131.14, 4131.16, 4167.02, 4167.07, 4167.08, 6960
4167.09, 4167.11, and 4167.14 of the Revised Care are hereby 6961
repealed. 6962

       Section 105.01. That sections 4121.06 and 4121.123 of the 6963
Revised Code are hereby repealed. 6964

       Section 201.10. All items in this section are hereby 6965
appropriated out of any moneys in the state treasury to the credit 6966
of the designated fund. For all appropriations made in this act, 6967
those in the first column are for fiscal year 2008, and those in 6968
the second column are for fiscal year 2009. 6969

FND AI AI TITLE Appropriations 6970

BWC BUREAU OF WORKERS' COMPENSATION 6971

Workers' Compensation Fund Group 6972

023 855-401 William Green Lease Payments to OBA $ 20,436,600 $ 20,686,500 6973

023 855-407 Claims, Risk & Medical Management $ 140,367,719 $ 140,367,719 6974

023 855-408 Fraud Prevention $ 11,772,551 $ 11,772,551 6975

023 855-409 Administrative Services $ 122,962,388 $ 122,962,388 6976

023 855-410 Attorney General Payments $ 4,444,085 $ 4,444,085 6977

822 855-606 Coal Workers' Fund $ 91,894 $ 91,894 6978

823 855-608 Marine Industry $ 53,952 $ 53,952 6979

825 855-605 Disabled Workers Relief Fund $ 488,282 $ 492,500 6980
826 855-609 Safety & Hygiene Operating $ 20,734,750 $ 20,734,750 6981
826 855-610 Safety Grants Program $ 4,000,000 $ 4,000,000 6982
829 855-604 Long Term Care Loan Program $ 2,000,000 $ 2,000,000 6983

TOTAL WCF Workers' Compensation 6984

Fund Group $ 327,352,221 $ 327,606,339 6985

Federal Special Revenue Fund Group 6986

349 855-601 OSHA Enforcement $ 1,604,140 $ 1,604,140 6987

TOTAL FED Federal Special Revenue Fund Group $ 1,604,140 $ 1,604,140 6988

TOTAL ALL BUDGET FUND GROUPS $ 328,956,361 $ 329,210,479 6989

       WILLIAM GREEN LEASE PAYMENTS 6990

       The foregoing appropriation item 855-401, William Green Lease 6991
Payments to OBA, shall be used for lease payments to the Ohio 6992
Building Authority, and these appropriations shall be used to meet 6993
all payments at the times they are required to be made during the 6994
period from July 1, 2007, to June 30, 2009, by the Bureau of 6995
Workers' Compensation to the Ohio Building Authority pursuant to 6996
leases and agreements made under Chapter 152. of the Revised Code 6997
and Section 6 of Am. Sub. H.B. 743 of the 118th General Assembly. 6998
Of the amounts received in Fund 023, appropriation item 855-401, 6999
William Green Lease Payments to OBA, up to $41,123,100 shall be 7000
restricted for lease rental payments to the Ohio Building 7001
Authority. If it is determined that additional appropriations are 7002
necessary for such purpose, such amounts are hereby appropriated. 7003

       Notwithstanding any other provision of law to the contrary, 7004
all tenants of the William Green Building not funded by the 7005
Workers' Compensation Fund (Fund 023) shall pay their fair share 7006
of the costs of lease payments to the Workers' Compensation Fund 7007
(Fund 023) by intrastate transfer voucher. 7008

       WORKERS' COMPENSATION FRAUD UNIT 7009

       The Workers' Compensation Section Fund (Fund 195) shall 7010
receive payments from the Bureau of Workers' Compensation at the 7011
beginning of each quarter of each fiscal year to fund expenses of 7012
the Workers' Compensation Fraud Unit of the Attorney General's 7013
Office. Of the foregoing appropriation item 855-410, Attorney 7014
General Payments, $4,444,085 in fiscal year 2008 and $4,444,085 in 7015
fiscal year 2009 shall be used to provide these payments. 7016

       SAFETY AND HYGIENE 7017

       Notwithstanding section 4121.37 of the Revised Code, the 7018
Administrator of Workers' Compensation shall transfer moneys from 7019
the State Insurance Fund so that appropriation item 855-609, 7020
Safety and Hygiene Operating, is provided $20,734,750 in fiscal 7021
year 2008 and $20,734,750 in fiscal year 2009. 7022

       OSHA ON-SITE CONSULTATION PROGRAM 7023

        The Bureau of Workers' Compensation may designate a portion 7024
of appropriation item 855-609, Safety and Hygiene Operating, to be 7025
used to match federal funding for the federal Occupational Safety 7026
and Health Administration's (OSHA) on-site consultation program. 7027

       VOCATIONAL REHABILITATION 7028

       The Bureau of Workers' Compensation and the Rehabilitation 7029
Services Commission shall enter into an interagency agreement for 7030
the provision of vocational rehabilitation services and staff to 7031
mutually eligible clients. The bureau shall provide $605,407 in 7032
fiscal year 2008 and $605,407 in fiscal year 2009 from the State 7033
Insurance Fund to fund vocational rehabilitation services and 7034
staff in accordance with the interagency agreement. 7035

       FUND BALANCE 7036

       Any unencumbered cash balance in excess of $45,000,000 in the 7037
Workers' Compensation Fund (Fund 023) on the thirtieth day of June 7038
of each fiscal year shall be used to reduce the administrative 7039
cost rate charged to employers to cover appropriations for Bureau 7040
of Workers' Compensation operations. 7041

       HOLDING ACCOUNT 7042

       On July 1, 2007, or as soon as possible thereafter, the 7043
Director of Budget and Management shall transfer the remaining 7044
cash balance in the Camera Center Fund (Fund R46) to the 7045
Administrative Fund (Fund 023). After the transfer, the Camera 7046
Center Fund is abolished. 7047

       REIMBURSEMENT RATE FOR MANAGED CARE ORGANIZATIONS 7048

       The Administrator of Workers' Compensation shall perform an 7049
assessment of the Health Partnership Program that shall include 7050
all of the following: 7051

       (A) The adequacy and appropriateness of the compensation 7052
arrangement between the Bureau of Workers' Compensation and the 7053
managed care organizations participating in the program; 7054

       (B) The scope and quality of the services provided by managed 7055
care organizations; 7056

       (C) The achieved claim cost avoidance; 7057

       (D) The increased return to work ratios. 7058

       The Administrator may enter into contracts with outside 7059
consultants to perform the assessment required under this section. 7060
The Administrator, as appropriate, may work with the committees 7061
created under section 4121.123 of the Revised Code, as enacted by 7062
this act, and shall provide a summary of the assessment and shall 7063
present recommendations based on the assessment to the Bureau of 7064
Workers' Compensation Board of Directors not later than ninety 7065
days after the last member of the board is appointed in accordance 7066
with section 4121.12 of the Revised Code, as amended by this act. 7067

       GROUP RATING AUDIT AND ASSESSMENT 7068

       The Administrator of Workers' Compensation shall perform an 7069
assessment of the group rating program that shall include all of 7070
the following: 7071

       (A) The actuarial soundness of the group rating program; 7072

       (B) The impact of the program on Ohio businesses, including 7073
both participating and nonparticipating businesses; 7074

       (C) The rating equity of the program; 7075

       (D) The impact of the group rating program on the State 7076
Insurance Fund as a whole; 7077

       (E) The impact of the program on base rates. 7078

       The Administrator may enter into contracts with outside 7079
consultants to perform the assessment required under this section. 7080
The Administrator, as appropriate, may work with the committees 7081
created under section 4121.123 of the Revised Code, as enacted by 7082
this act, and shall provide a summary of the assessment and shall 7083
present recommendations based on the assessment to the Bureau of 7084
Workers' Compensation Board of Directors not later than ninety 7085
days after the last member of the board is appointed in accordance 7086
with section 4121.12 of the Revised Code, as amended by this act. 7087

       Section 303.10. Law contained in the main operating 7088
appropriations act of the 127th General Assembly that applies 7089
generally to the appropriations made in that act also applies 7090
generally to the appropriations made in this act. 7091

       Section 403.03. That Section 4 of Am. Sub. H.B. 516 of the 7092
125th General Assembly, as amended by Am. Sub. H.B. 66 and Sub. 7093
S.B. 124 of the 126th General Assembly, be amended to read as 7094
follows: 7095

       Sec. 4. The following agencies shall be retained pursuant to 7096
division (D) of section 101.83 of the Revised Code and shall 7097
expire on December 31, 2010: 7098

REVISED CODE OR 7099
UNCODIFIED 7100
AGENCY NAME SECTION 7101

Administrator, Interstate Compact on Mental Health 5119.50 7102
Administrator, Interstate Compact on 5103.20 7103
Placement of Children 7104
Advisory Board of Governor's Office of Faith-Based and Community Initiatives 107.12 7105
Advisory Boards to the EPA for Air Pollution 121.13 7106
Advisory Boards to the EPA for Water Pollution 121.13 7107
Advisory Committee of the State Veterinary Medical Licensing Board 4741.03(D)(3) 7108
Advisory Committee on Livestock Exhibitions 901.71 7109
Advisory Council on Amusement Ride Safety 1711.51 7110

Advisory Board of Directors for Prison Labor 5145.162 7111

Advisory Council for Each Wild, Scenic, or Recreational River Area 1517.18 7112
Advisory Councils or Boards for State Departments 107.18 or 121.13 7113
Advisory Group to the Ohio Water Resources Council 1521.19(C) 7114
Alzheimer's Disease Task Force 173.04(F) 7115
AMBER Alert Advisory Committee 5502.521 7116
Apprenticeship Council 4139.02 7117

Armory Board of Control 5911.09 7118

Automated Title Processing Board 4505.09(C)(1) 7119
Banking Commission 1123.01 7120
Board of Directors of the Ohio Health Reinsurance Program 3924.08 7121

Board of Voting Machine Examiners 3506.05(B) 7122

Brain Injury Advisory Committee 3304.231 7123

Capitol Square Review and Advisory Board 105.41 7124

Child Support Guideline Advisory Council 3119.024 7125

Children's Trust Fund Board 3109.15 7126
Citizens Advisory Committee (BMV) 4501.025 7127

Citizen's Advisory Councils (Dept. of Mental Retardation and Developmental Disabilities) 5123.092 7128

Clean Ohio Trail Advisory Board 1519.06 7129

Coastal Resources Advisory Council 1506.12 7130

Commission on African-American Males 4112.12 7131

Commission on Hispanic-Latino Affairs 121.31 7132
Commission on Minority Health 3701.78 7133
Committee on Prescriptive Governance 4723.49 7134

Commodity Advisory Commission 926.32 7135

Community Mental Retardation and Developmental Disabilities Trust Fund Advisory Council 5123.353 7136
Community Oversight Council 3311.77 7137
Compassionate Care Task Force Section 3, H.B. 474, 124th GA 7138

Continuing Education Committee (for Sheriffs) 109.80 7139

Coordinating Committee, Agricultural Commodity Marketing Programs 924.14 7140

Council on Alcohol and Drug Addiction Services 3793.09 7141

Council on Unreclaimed Strip Mined Lands 1513.29 7142
Council to Advise on the Establishment and Implementation of the Birth Defects Information System 3705.34 7143

County Sheriffs' Standard Car-Marking and Uniform Commission 311.25 7144
Credit Union Council 1733.329 7145

Criminal Sentencing Advisory Committee 181.22 7146

Day-Care Advisory Council 5104.08 7147
Dentist Loan Repayment Advisory Board 3702.92 7148

Development Financing Advisory Council 122.40 7149
Education Commission of the States (Interstate Compact for Education) 3301.48 7150

Electrical Safety Inspector Advisory Committee 3783.08 7151
Emergency Response Commission 3750.02 7152

Engineering Experiment Station Advisory Committee 3335.27 7153
Environmental Education Council 3745.21 7154

EPA Advisory Boards or Councils 121.13 7155
Farmland Preservation Advisory Board 901.23 7156
Financial Planning & Supervision Commission for Municipal Corporation, County, or Township 118.05 7157
Financial Planning & Supervision Commission for School District 3316.05 7158

Forestry Advisory Council 1503.40 7159
Governance Authority for a State University or College 3345.75 7160
Governor's Advisory Council on Physical Fitness, Wellness, & Sports 3701.77 7161

Governor's Council on People with Disabilities 3303.41 7162
Governor's Residence Advisory Commission 107.40 7163
Great Lakes Commission (Great Lakes Basin Compact) 6161.01 7164
Gubernatorial Transition Committee 107.29 7165
Head Start Partnership Study Council Section 41.35, H.B. 95, 125th GA 7166

Hemophilia Advisory Subcommittee 3701.0210 7167
Housing Trust Fund Advisory Committee 175.25 7168

Industrial Commission Nominating Council 4121.04 7169

Industrial Technology and Enterprise Advisory Council 122.29 7170
Infant Hearing Screening Subcommittee 3701.507 7171

Insurance Agent Education Advisory Council 3905.483 7172
Interagency Council on Hispanic/Latino Affairs 121.32(J) 7173
Interstate Mining Commission (Interstate Mining Compact) 1514.30 7174
Interstate Rail Passenger Advisory Council (Interstate High Speed Intercity Rail Passenger Network Compact) 4981.35 7175
Joint Council on MR/DD 101.37 7176

Joint Select Committee on Volume Cap 133.021 7177

Labor-Management Government Advisory Council 4121.70 7178

Legal Rights Service Commission 5123.60 7179
Legislative Task Force on Redistricting, Reapportionment, and Demographic Research 103.51 7180

Maternal and Child Health Council 3701.025 7181

Medically Handicapped Children's Medical Advisory Council 3701.025 7182
Midwest Interstate Passenger Rail Compact Commission (Ohio members) 4981.361 7183
Military Activation Task Force 5902.15 7184

Milk Sanitation Board 917.03 7185

Mine Subsidence Insurance Governing Board 3929.51 7186
Minority Development Financing Board 122.72 7187

Multi-Agency Radio Communications Systems Steering Committee Sec. 21, H.B. 790, 120th GA 7188

Multidisciplinary Council 3746.03 7189
Muskingum River Advisory Council 1501.25 7190

National Museum of Afro-American History and Culture Planning Committee 149.303 7191

Ohio Advisory Council for the Aging 173.03 7192
Ohio Aerospace & Defense Advisory Council 122.98 7193

Ohio Arts Council 3379.02 7194

Ohio Business Gateway Steering Committee 5703.57 7195

Ohio Cemetery Dispute Resolution Commission 4767.05 7196
Ohio Civil Rights Commission Advisory Agencies and Conciliation Councils 4112.04(B) 7197
Ohio Commercial Insurance Joint Underwriting Association Board Of Governors 3930.03 7198
Ohio Commercial Market Assistance Plan Executive Committee 3930.02 7199

Ohio Commission on Dispute Resolution and Conflict Management 179.02 7200
Ohio Commission to Reform Medicaid Section 59.29, H.B. 95, 125th GA 7201
Ohio Community Service Council 121.40 7202
Ohio Council for Interstate Adult Offender Supervision 5149.22 7203
Ohio Cultural Facilities Commission 3383.02 7204
Ohio Developmental Disabilities Council 5123.35 7205

Ohio Expositions Commission 991.02 7206

Ohio Family and Children First Cabinet Council 121.37 7207

Ohio Geology Advisory Council 1505.11 7208

Ohio Grape Industries Committee 924.51 7209
Ohio Hepatitis C Advisory Commission 3701.92 7210
Ohio Historic Site Preservation Advisory Board 149.301 7211

Ohio Historical Society Board of Trustees 149.30 7212
Ohio Judicial Conference 105.91 7213

Ohio Lake Erie Commission 1506.21 7214
Ohio Medical Malpractice Commission Section 4, S.B. 281, 124th GA and Section 3, S.B. 86, 125th GA 7215

Ohio Medical Quality Foundation 3701.89 7216

Ohio Parks and Recreation Council 1541.40 7217

Ohio Peace Officer Training Commission 109.71 7218

Ohio Public Defender Commission 120.01 7219
Ohio Public Library Information Network Board Sec. 69, H.B. 117, 121st GA, as amended by H.B. 284, 121st GA 7220

Ohio Quarter Horse Development Commission 3769.086 7221

Ohio Small Government Capital Improvements Commission 164.02 7222

Ohio Soil and Water Conservation Commission 1515.02 7223

Ohio Standardbred Development Commission 3769.085 7224

Ohio Steel Industry Advisory Council 122.97 7225

Ohio Teacher Education and Licensure Advisory Council 3319.28(D) 7226

Ohio Thoroughbred Racing Advisory Committee 3769.084 7227

Ohio Tuition Trust Authority 3334.03 7228

Ohio University College of Osteopathic Medicine Advisory Committee 3337.10 7229

Ohio Vendors Representative Committee 3304.34 7230

Ohio War Orphans Scholarship Board 5910.02 7231

Ohio Water Advisory Council 1521.031 7232
Ohio Water Resources Council 1521.19 7233
Ohioana Library Association, Martha Kinney Cooper Memorial 3375.62 7234

Oil and Gas Commission 1509.35 7235
Operating Committee, Agricultural Commodity Marketing Programs 924.07 7236

Organized Crime Investigations Commission 177.01 7237

Pharmacy and Therapeutics Committee of the Dept. of Job and Family Services 5111.81 7238

Physician Loan Repayment Advisory Board 3702.81 7239
Power Siting Board 4906.02 7240
Prequalification Review Board 5525.07 7241

Private Water Systems Advisory Council 3701.346 7242

Public Employment Risk Reduction Advisory Commission 4167.02 7243
Public Health Council 3701.33 7244

Public Utilities Commission Nominating Council 4901.021 7245
Public Utility Property Tax Study Committee 5727.85 7246
Radiation Advisory Council 3748.20 7247

Reclamation Commission 1513.05 7248

Recreation and Resources Commission 1501.04 7249

Recycling and Litter Prevention Advisory Council 1502.04 7250

Rehabilitation Services Commission Consumer Advisory Committee 3304.24 7251

Savings & Loans Associations & Savings Banks Board 1181.16 7252
Schools and Ministerial Lands Divestiture Committee 501.041 7253
Second Chance Trust Fund Advisory Committee 2108.17 7254

~~Services Committee of the Workers' Compensation System~~ ~~4121.06~~ 7255

Small Business Stationary Source Technical and Environmental Compliance Assistance Council 3704.19 7256

Solid Waste Management Advisory Council 3734.51 7257
State Agency Coordinating Group 1521.19 7258

State Board of Emergency Medical Services Subcommittees 4765.04 7259

State Council of Uniform State Laws 105.21 7260

State Committee for the Purchase of Products and Services Provided by Persons with Severe Disabilities 4115.32 7261

State Criminal Sentencing Commission 181.21 7262

State Fire Commission 3737.81 7263

State Racing Commission 3769.02 7264
State Victims Assistance Advisory Committee 109.91 7265

Student Tuition Recovery Authority 3332.081 7266

Tax Credit Authority 122.17 7267

Technical Advisory Committee to Assist the Director of the Ohio Coal Development Office 1551.35 7268

Technical Advisory Council on Oil and Gas 1509.38 7269

Transportation Review Advisory Council 5512.07 7270
Unemployment Compensation Review Commission 4141.06 7271

Unemployment Compensation Advisory Council 4141.08 7272

Utility Radiological Safety Board 4937.02 7273
Vehicle Management Commission 125.833 7274

Veterans Advisory Committee 5902.02(K) 7275
Volunteer Fire Fighters' Dependents Fund Boards (Private and Public) 146.02 7276

Water and Sewer Commission 1525.11(C) 7277

Waterways Safety Council 1547.73 7278

Wildlife Council 1531.03 7279

~~Workers' Compensation System Oversight Commission~~ ~~4121.12~~ 7280

~~Workers' Compensation Oversight Commission Nominating Committee~~ ~~4121.123~~ 7281

       Section 403.04. That existing Section 4 of Am. Sub. H.B. 516 7282
of the 125th General Assembly, as amended by Am. Sub. H.B. 66 and 7283
Sub. S.B. 124 of the 126th General Assembly, is hereby repealed. 7284

       Section 403.10. That Section 3 of Am. H.B. 67 of the 126th 7285
General Assembly, as amended by Am. Sub. H.B. 66 of the 126th 7286
General Assembly, be amended to read as follows: 7287

       Sec. 3. All items in this section are hereby appropriated 7288
out of any moneys in the state treasury to the credit of the 7289
designated fund. For all appropriations made in this act, those in 7290
the first column are for fiscal year 2006, and those in the second 7291
column are for fiscal year 2007. 7292

FND AI AI TITLE Appropriations 7293

BWC BUREAU OF WORKERS' COMPENSATION 7294

Workers' Compensation Fund Group 7295

023 855-401 William Green Lease Payments to OBA $ 19,736,600 $ 20,125,900 7296

023 855-407 Claims, Risk & Medical Management $ 140,052,037 $ 140,052,037 7297

023 855-408 Fraud Prevention $ 11,713,797 $ 11,713,797 7298

023 855-409 Administrative Services $ 119,246,553 $ 119,246,553 7299

023 855-410 Attorney General Payments $ 4,314,644 $ 4,314,644 7300

822 855-606 Coal Workers' Fund $ 91,894 $ 91,894 7301

823 855-608 Marine Industry $ 53,952 $ 53,952 7302

825 855-605 Disabled Workers Relief Fund $ 693,764 $ 693,764 7303
826 855-609 Safety & Hygiene Operating $ 20,130,820 $ 20,130,820 7304
826 855-610 Safety Grants Program $ 4,000,000 $ 4,000,000 7305

TOTAL WCF Workers' Compensation 7306

Fund Group $ 320,034,061 $ 320,423,361 7307

Federal Special Revenue Fund Group 7308

349 855-601 OSHA Enforcement $ 1,527,750 $ 1,604,140 7309

TOTAL FED Federal Special Revenue Fund Group $ 1,527,750 $ 1,604,140 7310

TOTAL ALL BUDGET FUND GROUPS $ 321,561,811 $ 322,027,501 7311

       WILLIAM GREEN LEASE PAYMENTS 7312

       The foregoing appropriation item 855-401, William Green Lease 7313
Payments to OBA, shall be used for lease payments to the Ohio 7314
Building Authority, and these appropriations shall be used to meet 7315
all payments at the times they are required to be made during the 7316
period from July 1, 2005, to June 30, 2007, by the Bureau of 7317
Workers' Compensation to the Ohio Building Authority pursuant to 7318
leases and agreements made under Chapter 152. of the Revised Code 7319
and Section 6 of Am. Sub. H.B. 743 of the 118th General Assembly. 7320
Of the amounts received in Fund 023, appropriation item 855-401, 7321
William Green Lease Payments to OBA, up to $39,862,500 shall be 7322
restricted for lease rental payments to the Ohio Building 7323
Authority. If it is determined that additional appropriations are 7324
necessary for such purpose, such amounts are hereby appropriated. 7325

       Notwithstanding any other provision of law to the contrary, 7326
all tenants of the William Green Building not funded by the 7327
Workers' Compensation Fund (Fund 023) shall pay their fair share 7328
of the costs of lease payments to the Workers' Compensation Fund 7329
(Fund 023) by intrastate transfer voucher. 7330

       ~~WORKERS' COMPENSATION OVERSIGHT COMMISSION~~ 7331

       ~~Of the foregoing appropriation item 855-409, Administrative~~ 7332
~~Services, up to $18,000 per calendar year shall be used to pay the~~ 7333
~~annual compensation of each investment expert member of the~~ 7334
~~Workers' Compensation Oversight Commission, as provided in~~ 7335
~~divisions (D) and (F) of section 4121.12 of the Revised Code. Each~~ 7336
~~investment expert member shall also receive reasonable and~~ 7337
~~necessary expenses while engaged in the performance of his or her~~ 7338
~~duties, as provided in division (F) of section 4121.12 of the~~ 7339
~~Revised Code.~~ 7340

       WORKERS' COMPENSATION FRAUD UNIT 7341

       The Workers' Compensation Section Fund (Fund 195) shall 7342
receive payments from the Bureau of Workers' Compensation at the 7343
beginning of each quarter of each fiscal year to fund expenses of 7344
the Workers' Compensation Fraud Unit of the Attorney General's 7345
Office. Of the foregoing appropriation item 855-410, Attorney 7346
General Payments, $773,151 in fiscal year 2006 and $773,151 in 7347
fiscal year 2007 shall be used to provide these payments. 7348

       SAFETY AND HYGIENE 7349

       Notwithstanding section 4121.37 of the Revised Code, the 7350
Administrator of Workers' Compensation shall transfer moneys from 7351
the State Insurance Fund so that appropriation item 855-609, 7352
Safety and Hygiene Operating, is provided $20,130,820 in fiscal 7353
year 2006 and $20,130,820 in fiscal year 2007. 7354

       LONG-TERM CARE LOAN FUND 7355

        Upon the request of the Administrator of the Bureau of 7356
Workers' Compensation and with the advice and consent of the 7357
Bureau of Workers' Compensation Oversight Commission, the Director 7358
of Budget and Management shall transfer cash in the amounts 7359
requested from the Safety and Hygiene Operating Fund (Fund 826) to 7360
the Long-Term Care Loan Fund (Fund 829) created in section 4121.48 7361
of the Revised Code. The amounts transferred are hereby 7362
appropriated. 7363

       OSHA ON-SITE CONSULTATION PROGRAM 7364

        The Bureau of Workers' Compensation may designate a portion 7365
of appropriation item 855-609, Safety and Hygiene Operating, to be 7366
used to match federal funding for the federal Occupational Safety 7367
and Health Administration's (OSHA) on-site consultation program. 7368

       VOCATIONAL REHABILITATION 7369

       The Bureau of Workers' Compensation and the Rehabilitation 7370
Services Commission shall enter into an interagency agreement for 7371
the provision of vocational rehabilitation services and staff to 7372
mutually eligible clients. The bureau shall provide $587,774 in 7373
fiscal year 2006 and $605,407 in fiscal year 2007 from the State 7374
Insurance Fund to fund vocational rehabilitation services and 7375
staff in accordance with the interagency agreement. 7376

       FUND BALANCE 7377

       Any unencumbered cash balance in excess of $45,000,000 in the 7378
Workers' Compensation Fund (Fund 023) on the thirtieth day of June 7379
of each fiscal year shall be used to reduce the administrative 7380
cost rate charged to employers to cover appropriations for Bureau 7381
of Workers' Compensation operations. 7382

       OSHA ENFORCEMENT FUND TRANSFER 7383

        On July 1, 2005, or as soon thereafter as possible, the 7384
Director of Budget and Management shall transfer the OSHA 7385
Enforcement Fund (Fund 349) from the Department of Commerce to the 7386
Bureau of Workers' Compensation. At the request of the Director of 7387
the Department of Commerce, the Director of Budget and Management 7388
may cancel encumbrances in this fund from appropriation item 7389
800-626, OSHA Enforcement, within the budget of the Department of 7390
Commerce, and reestablish those encumbrances or parts of those 7391
encumbrances in fiscal year 2006 for the same purpose and to the 7392
same vendor to appropriation item 855-601, OSHA Enforcement, 7393
within the budget of the Bureau of Workers' Compensation. As 7394
determined by the Director of Budget and Management, the 7395
appropriation authority necessary to reestablish encumbrances or 7396
parts of encumbrances in fiscal year 2006 for the Bureau of 7397
Workers' Compensation is hereby granted. 7398

       Section 403.11. That existing Section 3 of Am. H.B. 67 of the 7399
126th General Assembly, as amended by Am. Sub. H.B. 66 of the 7400
126th General Assembly, is hereby repealed. 7401

       Section 512.10. The governor shall not appoint any individual 7402
who is a member of the Workers' Compensation Oversight Commission 7403
on the effective date of this section to serve as a member of the 7404
Bureau of Workers' Compensation Board of Directors. The Oversight 7405
Commission is hereby abolished on the date the Governor appoints 7406
the last member to the Board in accordance with this section. The 7407
Board shall supersede the Oversight Commission and its members and 7408
succeed to and have and perform all the duties, powers, and 7409
obligations pertaining to the duties, powers, and obligations of 7410
the Oversight Commission and its members. For the purpose of the 7411
institution, conduct, and completion of matters relating to its 7412
succession, the Board is deemed to be the continuation of and 7413
successor under law to the Oversight Commission and its members. 7414
All rules, actions, determinations, commitments, resolutions, 7415
decisions, and agreements pertaining to those duties, powers, 7416
obligations, functions, and rights in force or in effect on the 7417
effective date of this section shall continue in force and effect 7418
subject to any further lawful action thereon by the Board. 7419
Wherever the Oversight Commission or its members are referred to 7420
in any provision of law, or in any agreement or document that 7421
pertains to those duties, powers, obligations, functions, and 7422
rights, the reference is to the Board. 7423

       All authorized obligations and supplements thereto of the 7424
Oversight Commission and its members pertaining to the duties, 7425
powers, and obligations transferred are binding on the Board, and 7426
nothing in this act impairs the obligations or rights thereunder 7427
or under any contract. The abolition of the Oversight Commission 7428
and the transfer of the Oversight Commission's duties, powers, and 7429
obligations do not affect the validity of agreements or 7430
obligations made by the Oversight Commission or its members 7431
pursuant to Chapters 4121., 4123., 4125., 4127., 4131., and 4167. 7432
of the Revised Code or any other provisions of law. 7433

       In connection with the transfer of duties, powers, 7434
obligations, functions, and rights and abolition of the Oversight 7435
Commission, all real property and interest therein, documents, 7436
books, money, papers, records, machinery, furnishings, office 7437
equipment, furniture, and all other property over which the 7438
Oversight Commission has control pertaining to the duties, powers, 7439
and obligations transferred and the rights of the Oversight 7440
Commission to enforce or receive any of the aforesaid is 7441
automatically transferred to the Board without necessity for 7442
further action on the part of the Board. Additionally, all 7443
appropriations or reappropriations made to the Oversight 7444
Commission for the purposes of the performance of its duties, 7445
powers, and obligations, are transferred to the Board to the 7446
extent of the remaining unexpended or unencumbered balance 7447
thereof, whether allocated or unallocated, and whether obligated 7448
or unobligated. 7449

       Section 512.20. The Bureau of Workers' Compensation Board of 7450
Directors shall appoint the members of the Workers' Compensation 7451
Audit Committee, Workers' Compensation Actuarial Committee, and 7452
the Workers' Compensation Investment Committee in accordance with 7453
section 4121.123 of the Revised Code, as enacted by this act, not 7454
later than ninety days after the effective date of this section. 7455

       Section 512.30. On the effective date of this section, the 7456
Workers' Compensation Oversight Commission Nominating Committee 7457
and the Services Committee are hereby abolished. 7458

       Section 512.40. On the effective date of section 4121.122 of 7459
the Revised Code, as amended by this act, the Internal Security 7460
Committee is hereby abolished and the employees of the Bureau of 7461
Workers' Compensation who provided assistance to the Committee are 7462
hereby transferred to the Office of the Deputy Inspector General 7463
of the Bureau of Workers' Compensation and Industrial Commission 7464
beginning the first pay period after the effective date of section 7465
121.51 of the Revised Code, as enacted by this act. 7466

       Section 603.10. The items of law contained in this act, and 7467
their applications, are severable. If any item of law contained in 7468
this act, or if any application of any item of law contained in 7469
this act, is held invalid, the invalidity does not affect other 7470
items of law contained in this act and their applications that can 7471
be given effect without the invalid item of law or application. 7472

       Section 606.10. An item that composes the whole or part of an 7473
uncodified section contained in this act has no effect after June 7474
30, 2009, unless the context clearly indicates otherwise. 7475

       Section 609.03. Except as otherwise specifically provided in 7476
this act, the codified sections of law amended or enacted in this 7477
act, and the items of law of which the codified sections of law 7478
amended or enacted in this act are composed, are subject to the 7479
referendum. Therefore, under Ohio Constitution, Article II, 7480
Section 1c and section 1.471 of the Revised Code, the codified 7481
sections of law amended or enacted by this act, and the items of 7482
law of which the codified sections of law as amended or enacted by 7483
this act are composed, take effect on the ninety-first day after 7484
this act is filed with the Secretary of State. If, however, a 7485
referendum petition is filed against any such codified section of 7486
law as amended or enacted by this act, or against any item of law 7487
of which any such codified section of law as amended or enacted by 7488
this act is composed, the codified section of law as amended or 7489
enacted, or item of law, unless rejected at the referendum, takes 7490
effect at the earliest time permitted by law. 7491

       Section 612.03. The codified section of law amended or 7492
enacted by this act that is listed in this section, and the items 7493
of law of which such section as amended or enacted by this act are 7494
composed, are not subject to the referendum. Therefore, under Ohio 7495
Constitution, Article II, Section 1d and section 1.471 of the 7496
Revised Code, such section as amended or enacted by this act, and 7497
the items of law of which such section as amended or enacted by 7498
this act are composed, go into immediate effect when this act 7499
becomes law. 7500

       Section 4121.12 of the Revised Code. 7501

       Section 612.09. The repeal and reenactment of section 7502
4123.123 of the Revised Code is not subject to the referendum. 7503
Therefore, under Ohio Constitution, Article II, Section 1d and 7504
section 1.471 of the Revised Code, section 4123.123 of the Revised 7505
Code takes effect sixty days after the effective date of this 7506
section. 7507

       Section 615.03. The uncodified sections of law contained in 7508
this act, and the items of law of which the uncodified sections of 7509
law contained in this act are composed, are not subject to the 7510
referendum. Therefore, under Ohio Constitution, Article II, 7511
Section 1d and section 1.471 of the Revised Code, the uncodified 7512
sections of law contained in this act, and the items of law of 7513
which the uncodified sections of law contained in this act are 7514
composed, go into immediate effect when this act becomes law. 7515

       Section 618.03. Section 4 of Am. Sub. H.B. 516 of the 125th 7516
General Assembly is presented in this act as a composite of the 7517
section as amended by both Am. Sub. H.B. 66 and Sub. S.B. 124 of 7518
the 126th General Assembly. The General Assembly, applying the 7519
principle stated in division (B) of section 1.52 of the Revised 7520
Code that amendments are to be harmonized if reasonably capable of 7521
simultaneous operation, finds that the composite is the resulting 7522
version of the section in effect prior to the effective date of 7523
the section as presented in this act. 7524

Section 101.01. That sections 102.02, 102.06, 109.981,	36
119.01, 1707.01, 3345.12, 4121.01, 4121.12, 4121.121, 4121.122,	37
4121.125, 4121.126, 4121.128, 4121.37, 4121.441, 4121.48, 4121.61,	38
4121.67, 4121.70, 4123.01, 4123.025, 4123.21, 4123.25, 4123.29,	39
4123.291, 4123.311, 4123.32, 4123.34, 4123.341, 4123.342, 4123.35,	40
4123.351, 4123.37, 4123.38, 4123.39, 4123.40, 4123.41, 4123.411,	41
4123.419, 4123.44, 4123.441, 4123.47, 4123.50, 4123.511, 4123.512,	42
4123.57, 4123.65, 4123.66, 4123.75, 4123.80, 4123.82, 4123.92,	43
4125.05, 4127.07, 4127.08, 4131.04, 4131.06, 4131.13, 4131.14,	44
4131.16, 4167.02, 4167.07, 4167.08, 4167.09, 4167.11, and 4167.14	45
be amended; and new section 4121.123 and sections 121.51,	46
4123.321, and 4123.442 of the Revised Code be enacted to read as	47
follows:	48

Sec. 102.02. (A) Except as otherwise provided in division	49
(H) of this section, all of the following shall file with the	50
appropriate ethics commission the disclosure statement described	51
in this division on a form prescribed by the appropriate	52
commission: every person who is elected to or is a candidate for a	53
state, county, or city office and every person who is appointed to	54
fill a vacancy for an unexpired term in such an elective office;	55
all members of the state board of education; the director,	56
assistant directors, deputy directors, division chiefs, or persons	57
of equivalent rank of any administrative department of the state;	58
the president or other chief administrative officer of every state	59
institution of higher education as defined in section 3345.011 of	60
the Revised Code; the executive director and the members of the	61
capitol square review and advisory board appointed or employed	62
pursuant to section 105.41 of the Revised Code; the chief	63
executive officer and the members of the board of each state	64
retirement system; each employee of a state retirement board who	65
is a state retirement system investment officer licensed pursuant	66
to section 1707.163 of the Revised Code; the members of the Ohio	67
retirement study council appointed pursuant to division (C) of	68
section 171.01 of the Revised Code; employees of the Ohio	69
retirement study council, other than employees who perform purely	70
administrative or clerical functions; the administrator of	71
workers' compensation and each voting member of the bureau of	72
workers' compensation ~~oversight commission~~board of directors; the	73
chief investment officer of the bureau of workers' compensation;	74
all members of the board of commissioners on grievances and	75
discipline of the supreme court and the ethics commission created	76
under section 102.05 of the Revised Code; every business manager,	77
treasurer, or superintendent of a city, local, exempted village,	78
joint vocational, or cooperative education school district or an	79
educational service center; every person who is elected to or is a	80
candidate for the office of member of a board of education of a	81
city, local, exempted village, joint vocational, or cooperative	82
education school district or of a governing board of an	83
educational service center that has a total student count of	84
twelve thousand or more as most recently determined by the	85
department of education pursuant to section 3317.03 of the Revised	86
Code; every person who is appointed to the board of education of a	87
municipal school district pursuant to division (B) or (F) of	88
section 3311.71 of the Revised Code; all members of the board of	89
directors of a sanitary district that is established under Chapter	90
6115. of the Revised Code and organized wholly for the purpose of	91
providing a water supply for domestic, municipal, and public use,	92
and that includes two municipal corporations in two counties;	93
every public official or employee who is paid a salary or wage in	94
accordance with schedule C of section 124.15 or schedule E-2 of	95
section 124.152 of the Revised Code; members of the board of	96
trustees and the executive director of the tobacco use prevention	97
and control foundation; members of the board of trustees and the	98
executive director of the southern Ohio agricultural and community	99
development foundation; and every other public official or	100
employee who is designated by the appropriate ethics commission	101
pursuant to division (B) of this section.	102

(1) The name of the person filing the statement and each	104
member of the person's immediate family and all names under which	105
the person or members of the person's immediate family do	106
business;	107

(2)(a) Subject to divisions (A)(2)(b) and (c) of this section	108
and except as otherwise provided in section 102.022 of the Revised	109
Code, identification of every source of income, other than income	110
from a legislative agent identified in division (A)(2)(b) of this	111
section, received during the preceding calendar year, in the	112
person's own name or by any other person for the person's use or	113
benefit, by the person filing the statement, and a brief	114
description of the nature of the services for which the income was	115
received. If the person filing the statement is a member of the	116
general assembly, the statement shall identify the amount of every	117
source of income received in accordance with the following ranges	118
of amounts: zero or more, but less than one thousand dollars; one	119
thousand dollars or more, but less than ten thousand dollars; ten	120
thousand dollars or more, but less than twenty-five thousand	121
dollars; twenty-five thousand dollars or more, but less than fifty	122
thousand dollars; fifty thousand dollars or more, but less than	123
one hundred thousand dollars; and one hundred thousand dollars or	124
more. Division (A)(2)(a) of this section shall not be construed to	125
require a person filing the statement who derives income from a	126
business or profession to disclose the individual items of income	127
that constitute the gross income of that business or profession,	128
except for those individual items of income that are attributable	129
to the person's or, if the income is shared with the person, the	130
partner's, solicitation of services or goods or performance,	131
arrangement, or facilitation of services or provision of goods on	132
behalf of the business or profession of clients, including	133
corporate clients, who are legislative agents. A person who files	134
the statement under this section shall disclose the identity of	135
and the amount of income received from a person who the public	136
official or employee knows or has reason to know is doing or	137
seeking to do business of any kind with the public official's or	138
employee's agency.	139

(b) If the person filing the statement is a member of the	140
general assembly, the statement shall identify every source of	141
income and the amount of that income that was received from a	142
legislative agent during the preceding calendar year, in the	143
person's own name or by any other person for the person's use or	144
benefit, by the person filing the statement, and a brief	145
description of the nature of the services for which the income was	146
received. Division (A)(2)(b) of this section requires the	147
disclosure of clients of attorneys or persons licensed under	148
section 4732.12 of the Revised Code, or patients of persons	149
certified under section 4731.14 of the Revised Code, if those	150
clients or patients are legislative agents. Division (A)(2)(b) of	151
this section requires a person filing the statement who derives	152
income from a business or profession to disclose those individual	153
items of income that constitute the gross income of that business	154
or profession that are received from legislative agents.	155

(c) Except as otherwise provided in division (A)(2)(c) of	156
this section, division (A)(2)(a) of this section applies to	157
attorneys, physicians, and other persons who engage in the	158
practice of a profession and who, pursuant to a section of the	159
Revised Code, the common law of this state, a code of ethics	160
applicable to the profession, or otherwise, generally are required	161
not to reveal, disclose, or use confidences of clients, patients,	162
or other recipients of professional services except under	163
specified circumstances or generally are required to maintain	164
those types of confidences as privileged communications except	165
under specified circumstances. Division (A)(2)(a) of this section	166
does not require an attorney, physician, or other professional	167
subject to a confidentiality requirement as described in division	168
(A)(2)(c) of this section to disclose the name, other identity, or	169
address of a client, patient, or other recipient of professional	170
services if the disclosure would threaten the client, patient, or	171
other recipient of professional services, would reveal details of	172
the subject matter for which legal, medical, or professional	173
advice or other services were sought, or would reveal an otherwise	174
privileged communication involving the client, patient, or other	175
recipient of professional services. Division (A)(2)(a) of this	176
section does not require an attorney, physician, or other	177
professional subject to a confidentiality requirement as described	178
in division (A)(2)(c) of this section to disclose in the brief	179
description of the nature of services required by division	180
(A)(2)(a) of this section any information pertaining to specific	181
professional services rendered for a client, patient, or other	182
recipient of professional services that would reveal details of	183
the subject matter for which legal, medical, or professional	184
advice was sought or would reveal an otherwise privileged	185
communication involving the client, patient, or other recipient of	186
professional services.	187

(3) The name of every corporation on file with the secretary	188
of state that is incorporated in this state or holds a certificate	189
of compliance authorizing it to do business in this state, trust,	190
business trust, partnership, or association that transacts	191
business in this state in which the person filing the statement or	192
any other person for the person's use and benefit had during the	193
preceding calendar year an investment of over one thousand dollars	194
at fair market value as of the thirty-first day of December of the	195
preceding calendar year, or the date of disposition, whichever is	196
earlier, or in which the person holds any office or has a	197
fiduciary relationship, and a description of the nature of the	198
investment, office, or relationship. Division (A)(3) of this	199
section does not require disclosure of the name of any bank,	200
savings and loan association, credit union, or building and loan	201
association with which the person filing the statement has a	202
deposit or a withdrawable share account.	203

(4) All fee simple and leasehold interests to which the	204
person filing the statement holds legal title to or a beneficial	205
interest in real property located within the state, excluding the	206
person's residence and property used primarily for personal	207
recreation;	208

(5) The names of all persons residing or transacting business	209
in the state to whom the person filing the statement owes, in the	210
person's own name or in the name of any other person, more than	211
one thousand dollars. Division (A)(5) of this section shall not be	212
construed to require the disclosure of debts owed by the person	213
resulting from the ordinary conduct of a business or profession or	214
debts on the person's residence or real property used primarily	215
for personal recreation, except that the superintendent of	216
financial institutions shall disclose the names of all	217
state-chartered savings and loan associations and of all service	218
corporations subject to regulation under division (E)(2) of	219
section 1151.34 of the Revised Code to whom the superintendent in	220
the superintendent's own name or in the name of any other person	221
owes any money, and that the superintendent and any deputy	222
superintendent of banks shall disclose the names of all	223
state-chartered banks and all bank subsidiary corporations subject	224
to regulation under section 1109.44 of the Revised Code to whom	225
the superintendent or deputy superintendent owes any money.	226

(6) The names of all persons residing or transacting business	227
in the state, other than a depository excluded under division	228
(A)(3) of this section, who owe more than one thousand dollars to	229
the person filing the statement, either in the person's own name	230
or to any person for the person's use or benefit. Division (A)(6)	231
of this section shall not be construed to require the disclosure	232
of clients of attorneys or persons licensed under section 4732.12	233
or 4732.15 of the Revised Code, or patients of persons certified	234
under section 4731.14 of the Revised Code, nor the disclosure of	235
debts owed to the person resulting from the ordinary conduct of a	236
business or profession.	237

(7) Except as otherwise provided in section 102.022 of the	238
Revised Code, the source of each gift of over seventy-five	239
dollars, or of each gift of over twenty-five dollars received by a	240
member of the general assembly from a legislative agent, received	241
by the person in the person's own name or by any other person for	242
the person's use or benefit during the preceding calendar year,	243
except gifts received by will or by virtue of section 2105.06 of	244
the Revised Code, or received from spouses, parents, grandparents,	245
children, grandchildren, siblings, nephews, nieces, uncles, aunts,	246
brothers-in-law, sisters-in-law, sons-in-law, daughters-in-law,	247
fathers-in-law, mothers-in-law, or any person to whom the person	248
filing the statement stands in loco parentis, or received by way	249
of distribution from any inter vivos or testamentary trust	250
established by a spouse or by an ancestor;	251

(8) Except as otherwise provided in section 102.022 of the	252
Revised Code, identification of the source and amount of every	253
payment of expenses incurred for travel to destinations inside or	254
outside this state that is received by the person in the person's	255
own name or by any other person for the person's use or benefit	256
and that is incurred in connection with the person's official	257
duties, except for expenses for travel to meetings or conventions	258
of a national or state organization to which any state agency,	259
including, but not limited to, any legislative agency or state	260
institution of higher education as defined in section 3345.011 of	261
the Revised Code, pays membership dues, or any political	262
subdivision or any office or agency of a political subdivision	263
pays membership dues;	264

(9) Except as otherwise provided in section 102.022 of the	265
Revised Code, identification of the source of payment of expenses	266
for meals and other food and beverages, other than for meals and	267
other food and beverages provided at a meeting at which the person	268
participated in a panel, seminar, or speaking engagement or at a	269
meeting or convention of a national or state organization to which	270
any state agency, including, but not limited to, any legislative	271
agency or state institution of higher education as defined in	272
section 3345.011 of the Revised Code, pays membership dues, or any	273
political subdivision or any office or agency of a political	274
subdivision pays membership dues, that are incurred in connection	275
with the person's official duties and that exceed one hundred	276
dollars aggregated per calendar year;	277

(10) If the disclosure statement is filed by a public	278
official or employee described in division (B)(2) of section	279
101.73 of the Revised Code or division (B)(2) of section 121.63 of	280
the Revised Code who receives a statement from a legislative	281
agent, executive agency lobbyist, or employer that contains the	282
information described in division (F)(2) of section 101.73 of the	283
Revised Code or division (G)(2) of section 121.63 of the Revised	284
Code, all of the nondisputed information contained in the	285
statement delivered to that public official or employee by the	286
legislative agent, executive agency lobbyist, or employer under	287
division (F)(2) of section 101.73 or (G)(2) of section 121.63 of	288
the Revised Code.	289

A person may file a statement required by this section in	290
person or by mail. A person who is a candidate for elective office	291
shall file the statement no later than the thirtieth day before	292
the primary, special, or general election at which the candidacy	293
is to be voted on, whichever election occurs soonest, except that	294
a person who is a write-in candidate shall file the statement no	295
later than the twentieth day before the earliest election at which	296
the person's candidacy is to be voted on. A person who holds	297
elective office shall file the statement on or before the	298
fifteenth day of April of each year unless the person is a	299
candidate for office. A person who is appointed to fill a vacancy	300
for an unexpired term in an elective office shall file the	301
statement within fifteen days after the person qualifies for	302
office. Other persons shall file an annual statement on or before	303
the fifteenth day of April or, if appointed or employed after that	304
date, within ninety days after appointment or employment. No	305
person shall be required to file with the appropriate ethics	306
commission more than one statement or pay more than one filing fee	307
for any one calendar year.	308

The appropriate ethics commission, for good cause, may extend	309
for a reasonable time the deadline for filing a statement under	310
this section.	311

A statement filed under this section is subject to public	312
inspection at locations designated by the appropriate ethics	313
commission except as otherwise provided in this section.	314

(B) The Ohio ethics commission, the joint legislative ethics	315
committee, and the board of commissioners on grievances and	316
discipline of the supreme court, using the rule-making procedures	317
of Chapter 119. of the Revised Code, may require any class of	318
public officials or employees under its jurisdiction and not	319
specifically excluded by this section whose positions involve a	320
substantial and material exercise of administrative discretion in	321
the formulation of public policy, expenditure of public funds,	322
enforcement of laws and rules of the state or a county or city, or	323
the execution of other public trusts, to file an annual statement	324
on or before the fifteenth day of April under division (A) of this	325
section. The appropriate ethics commission shall send the public	326
officials or employees written notice of the requirement by the	327
fifteenth day of February of each year the filing is required	328
unless the public official or employee is appointed after that	329
date, in which case the notice shall be sent within thirty days	330
after appointment, and the filing shall be made not later than	331
ninety days after appointment.	332

Except for disclosure statements filed by members of the	333
board of trustees and the executive director of the tobacco use	334
prevention and control foundation and members of the board of	335
trustees and the executive director of the southern Ohio	336
agricultural and community development foundation, disclosure	337
statements filed under this division with the Ohio ethics	338
commission by members of boards, commissions, or bureaus of the	339
state for which no compensation is received other than reasonable	340
and necessary expenses shall be kept confidential. Disclosure	341
statements filed with the Ohio ethics commission under division	342
(A) of this section by business managers, treasurers, and	343
superintendents of city, local, exempted village, joint	344
vocational, or cooperative education school districts or	345
educational service centers shall be kept confidential, except	346
that any person conducting an audit of any such school district or	347
educational service center pursuant to section 115.56 or Chapter	348
117. of the Revised Code may examine the disclosure statement of	349
any business manager, treasurer, or superintendent of that school	350
district or educational service center. The Ohio ethics commission	351
shall examine each disclosure statement required to be kept	352
confidential to determine whether a potential conflict of interest	353
exists for the person who filed the disclosure statement. A	354
potential conflict of interest exists if the private interests of	355
the person, as indicated by the person's disclosure statement,	356
might interfere with the public interests the person is required	357
to serve in the exercise of the person's authority and duties in	358
the person's office or position of employment. If the commission	359
determines that a potential conflict of interest exists, it shall	360
notify the person who filed the disclosure statement and shall	361
make the portions of the disclosure statement that indicate a	362
potential conflict of interest subject to public inspection in the	363
same manner as is provided for other disclosure statements. Any	364
portion of the disclosure statement that the commission determines	365
does not indicate a potential conflict of interest shall be kept	366
confidential by the commission and shall not be made subject to	367
public inspection, except as is necessary for the enforcement of	368
Chapters 102. and 2921. of the Revised Code and except as	369
otherwise provided in this division.	370

(C) No person shall knowingly fail to file, on or before the	371
applicable filing deadline established under this section, a	372
statement that is required by this section.	373

(D) No person shall knowingly file a false statement that is	374
required to be filed under this section.	375

(E)(1) Except as provided in divisions (E)(2) and (3) of this	376
section, the statement required by division (A) or (B) of this	377
section shall be accompanied by a filing fee of forty dollars.	378

(2) The statement required by division (A) of this section	379
shall be accompanied by the following filing fee to be paid by the	380
person who is elected or appointed to, or is a candidate for, any	381
of the following offices:	382

For state office, except member of the		383
state board of education	$65	384
For office of member of general assembly	$40	385
For county office	$40	386
For city office	$25	387
For office of member of the state board		388
of education	$25	389
For office of member of a city, local,		390
exempted village, or cooperative		391
education board of		392
education or educational service		393
center governing board	$20	394
For position of business manager,		395
treasurer, or superintendent of a		396
city, local, exempted village, joint		397
vocational, or cooperative education		398
school district or		399
educational service center	$20	400

(3) No judge of a court of record or candidate for judge of a	401
court of record, and no referee or magistrate serving a court of	402
record, shall be required to pay the fee required under division	403
(E)(1) or (2) or (F) of this section.	404

(4) For any public official who is appointed to a nonelective	405
office of the state and for any employee who holds a nonelective	406
position in a public agency of the state, the state agency that is	407
the primary employer of the state official or employee shall pay	408
the fee required under division (E)(1) or (F) of this section.	409

(F) If a statement required to be filed under this section is	410
not filed by the date on which it is required to be filed, the	411
appropriate ethics commission shall assess the person required to	412
file the statement a late filing fee of ten dollars for each day	413
the statement is not filed, except that the total amount of the	414
late filing fee shall not exceed two hundred fifty dollars.	415

(G)(1) The appropriate ethics commission other than the Ohio	416
ethics commission shall deposit all fees it receives under	417
divisions (E) and (F) of this section into the general revenue	418
fund of the state.	419

(2) The Ohio ethics commission shall deposit all receipts,	420
including, but not limited to, fees it receives under divisions	421
(E) and (F) of this section and all moneys it receives from	422
settlements under division (G) of section 102.06 of the Revised	423
Code, into the Ohio ethics commission fund, which is hereby	424
created in the state treasury. All moneys credited to the fund	425
shall be used solely for expenses related to the operation and	426
statutory functions of the commission.	427

(H) Division (A) of this section does not apply to a person	428
elected or appointed to the office of precinct, ward, or district	429
committee member under Chapter 3517. of the Revised Code; a	430
presidential elector; a delegate to a national convention; village	431
or township officials and employees; any physician or psychiatrist	432
who is paid a salary or wage in accordance with schedule C of	433
section 124.15 or schedule E-2 of section 124.152 of the Revised	434
Code and whose primary duties do not require the exercise of	435
administrative discretion; or any member of a board, commission,	436
or bureau of any county or city who receives less than one	437
thousand dollars per year for serving in that position.	438