Am. H. B. No. 100 As Reported by the House Insurance Committee

As Reported by the House Insurance Committee

127th General Assembly

Regular Session

2007-2008

Am. H. B. No. 100

Representative Brinkman

A BILL

To amend sections 102.02, 102.06, 109.981, 111.15, 1
119.01, 131.02, 1707.01, 3345.12, 4121.01, 2
4121.03, 4121.12, 4121.121, 4121.122, 4121.125, 3
4121.126, 4121.128, 4121.13, 4121.32, 4121.37, 4
4121.40, 4121.441, 4121.48, 4121.61, 4121.67, 5
4121.70, 4123.25, 4123.29, 4123.291, 4123.311, 6
4123.32, 4123.34, 4123.341, 4123.342, 4123.35, 7
4123.351, 4123.37, 4123.411, 4123.44, 4123.441, 8
4123.47, 4123.50, 4123.511, 4123.512, 4123.66, 9
4123.80, 4123.82, 4123.92, 4125.05, 4127.07, 10
4127.08, 4131.04, 4131.06, 4131.13, 4131.14, 11
4131.16, 4167.02, 4167.07, 4167.08, 4167.09, 12
4167.11, and 4167.14; to enact new section 13
4121.123 and sections 121.52 to 121.56, 4121.75 to 14
4121.79, 4123.321, 4123.442, and 4123.592; to 15
repeal sections 4121.06, 4121.123, and 4121.131 of 16
the Revised Code; to amend Section 4 of Am. Sub. 17
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 of the 24
Workers' Compensation System; to create the 25
Workers' Compensation Council, Bureau of Workers' 26
Compensation Board of Directors, and specified 27
working committees, to transfer the powers and 28
duties of the Oversight Commission to the Board 29
and the working committees, to make other changes 30
in the Workers' Compensation Law, to make 31
appropriations for the Bureau of Workers' 32
Compensation and the Industrial Commission for the 33
biennium beginning July 1, 2007, and ending June 34
30, 2009, and to provide authorization and 35
conditions for the operation of the Bureau's and 36
the Commission's programs. 37

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

       Section 101.01. That sections 102.02, 102.06, 109.981, 38
111.15, 119.01, 131.02, 1707.01, 3345.12, 4121.01, 4121.03, 39
4121.12, 4121.121, 4121.122, 4121.125, 4121.126, 4121.128, 40
4121.13, 4121.32, 4121.37, 4121.40, 4121.441, 4121.48, 4121.61, 41
4121.67, 4121.70, 4123.25, 4123.29, 4123.291, 4123.311, 4123.32, 42
4123.34, 4123.341, 4123.342, 4123.35, 4123.351, 4123.37, 4123.411, 43
4123.44, 4123.441, 4123.47, 4123.50, 4123.511, 4123.512, 4123.66, 44
4123.80, 4123.82, 4123.92, 4125.05, 4127.07, 4127.08, 4131.04, 45
4131.06, 4131.13, 4131.14, 4131.16, 4167.02, 4167.07, 4167.08, 46
4167.09, 4167.11, and 4167.14 be amended; and new section 4121.123 47
and sections 121.52, 121.53, 121.54, 121.55, 121.56, 4121.75, 48
4121.76, 4121.77, 4121.78, 4121.79, 4123.321, 4123.442, and 49
4123.592 of the Revised Code be enacted to read as follows: 50

       Sec. 102.02. (A) Except as otherwise provided in division 51
(H) of this section, all of the following shall file with the 52
appropriate ethics commission the disclosure statement described 53
in this division on a form prescribed by the appropriate 54
commission: every person who is elected to or is a candidate for a 55
state, county, or city office and every person who is appointed to 56
fill a vacancy for an unexpired term in such an elective office; 57
all members of the state board of education; the director, 58
assistant directors, deputy directors, division chiefs, or persons 59
of equivalent rank of any administrative department of the state; 60
the president or other chief administrative officer of every state 61
institution of higher education as defined in section 3345.011 of 62
the Revised Code; the executive director and the members of the 63
capitol square review and advisory board appointed or employed 64
pursuant to section 105.41 of the Revised Code; the chief 65
executive officer and the members of the board of each state 66
retirement system; each employee of a state retirement board who 67
is a state retirement system investment officer licensed pursuant 68
to section 1707.163 of the Revised Code; the members of the Ohio 69
retirement study council appointed pursuant to division (C) of 70
section 171.01 of the Revised Code; employees of the Ohio 71
retirement study council, other than employees who perform purely 72
administrative or clerical functions; the administrator of 73
workers' compensation and each ~~voting~~ member of the bureau of 74
workers' compensation ~~oversight commission~~board of directors; the 75
bureau of workers' compensation director of investments; the chief 76
investment officer of the bureau of workers' compensation; all 77
members of the board of commissioners on grievances and discipline 78
of the supreme court and the ethics commission created under 79
section 102.05 of the Revised Code; every business manager, 80
treasurer, or superintendent of a city, local, exempted village, 81
joint vocational, or cooperative education school district or an 82
educational service center; every person who is elected to or is a 83
candidate for the office of member of a board of education of a 84
city, local, exempted village, joint vocational, or cooperative 85
education school district or of a governing board of an 86
educational service center that has a total student count of 87
twelve thousand or more as most recently determined by the 88
department of education pursuant to section 3317.03 of the Revised 89
Code; every person who is appointed to the board of education of a 90
municipal school district pursuant to division (B) or (F) of 91
section 3311.71 of the Revised Code; all members of the board of 92
directors of a sanitary district that is established under Chapter 93
6115. of the Revised Code and organized wholly for the purpose of 94
providing a water supply for domestic, municipal, and public use, 95
and that includes two municipal corporations in two counties; 96
every public official or employee who is paid a salary or wage in 97
accordance with schedule C of section 124.15 or schedule E-2 of 98
section 124.152 of the Revised Code; members of the board of 99
trustees and the executive director of the tobacco use prevention 100
and control foundation; members of the board of trustees and the 101
executive director of the southern Ohio agricultural and community 102
development foundation; and every other public official or 103
employee who is designated by the appropriate ethics commission 104
pursuant to division (B) of this section. 105

       The disclosure statement shall include all of the following: 106

       (1) The name of the person filing the statement and each 107
member of the person's immediate family and all names under which 108
the person or members of the person's immediate family do 109
business; 110

       (2)(a) Subject to divisions (A)(2)(b) and (c) of this section 111
and except as otherwise provided in section 102.022 of the Revised 112
Code, identification of every source of income, other than income 113
from a legislative agent identified in division (A)(2)(b) of this 114
section, received during the preceding calendar year, in the 115
person's own name or by any other person for the person's use or 116
benefit, by the person filing the statement, and a brief 117
description of the nature of the services for which the income was 118
received. If the person filing the statement is a member of the 119
general assembly, the statement shall identify the amount of every 120
source of income received in accordance with the following ranges 121
of amounts: zero or more, but less than one thousand dollars; one 122
thousand dollars or more, but less than ten thousand dollars; ten 123
thousand dollars or more, but less than twenty-five thousand 124
dollars; twenty-five thousand dollars or more, but less than fifty 125
thousand dollars; fifty thousand dollars or more, but less than 126
one hundred thousand dollars; and one hundred thousand dollars or 127
more. Division (A)(2)(a) of this section shall not be construed to 128
require a person filing the statement who derives income from a 129
business or profession to disclose the individual items of income 130
that constitute the gross income of that business or profession, 131
except for those individual items of income that are attributable 132
to the person's or, if the income is shared with the person, the 133
partner's, solicitation of services or goods or performance, 134
arrangement, or facilitation of services or provision of goods on 135
behalf of the business or profession of clients, including 136
corporate clients, who are legislative agents. A person who files 137
the statement under this section shall disclose the identity of 138
and the amount of income received from a person who the public 139
official or employee knows or has reason to know is doing or 140
seeking to do business of any kind with the public official's or 141
employee's agency. 142

       (b) If the person filing the statement is a member of the 143
general assembly, the statement shall identify every source of 144
income and the amount of that income that was received from a 145
legislative agent during the preceding calendar year, in the 146
person's own name or by any other person for the person's use or 147
benefit, by the person filing the statement, and a brief 148
description of the nature of the services for which the income was 149
received. Division (A)(2)(b) of this section requires the 150
disclosure of clients of attorneys or persons licensed under 151
section 4732.12 of the Revised Code, or patients of persons 152
certified under section 4731.14 of the Revised Code, if those 153
clients or patients are legislative agents. Division (A)(2)(b) of 154
this section requires a person filing the statement who derives 155
income from a business or profession to disclose those individual 156
items of income that constitute the gross income of that business 157
or profession that are received from legislative agents. 158

       (c) Except as otherwise provided in division (A)(2)(c) of 159
this section, division (A)(2)(a) of this section applies to 160
attorneys, physicians, and other persons who engage in the 161
practice of a profession and who, pursuant to a section of the 162
Revised Code, the common law of this state, a code of ethics 163
applicable to the profession, or otherwise, generally are required 164
not to reveal, disclose, or use confidences of clients, patients, 165
or other recipients of professional services except under 166
specified circumstances or generally are required to maintain 167
those types of confidences as privileged communications except 168
under specified circumstances. Division (A)(2)(a) of this section 169
does not require an attorney, physician, or other professional 170
subject to a confidentiality requirement as described in division 171
(A)(2)(c) of this section to disclose the name, other identity, or 172
address of a client, patient, or other recipient of professional 173
services if the disclosure would threaten the client, patient, or 174
other recipient of professional services, would reveal details of 175
the subject matter for which legal, medical, or professional 176
advice or other services were sought, or would reveal an otherwise 177
privileged communication involving the client, patient, or other 178
recipient of professional services. Division (A)(2)(a) of this 179
section does not require an attorney, physician, or other 180
professional subject to a confidentiality requirement as described 181
in division (A)(2)(c) of this section to disclose in the brief 182
description of the nature of services required by division 183
(A)(2)(a) of this section any information pertaining to specific 184
professional services rendered for a client, patient, or other 185
recipient of professional services that would reveal details of 186
the subject matter for which legal, medical, or professional 187
advice was sought or would reveal an otherwise privileged 188
communication involving the client, patient, or other recipient of 189
professional services. 190

       (3) The name of every corporation on file with the secretary 191
of state that is incorporated in this state or holds a certificate 192
of compliance authorizing it to do business in this state, trust, 193
business trust, partnership, or association that transacts 194
business in this state in which the person filing the statement or 195
any other person for the person's use and benefit had during the 196
preceding calendar year an investment of over one thousand dollars 197
at fair market value as of the thirty-first day of December of the 198
preceding calendar year, or the date of disposition, whichever is 199
earlier, or in which the person holds any office or has a 200
fiduciary relationship, and a description of the nature of the 201
investment, office, or relationship. Division (A)(3) of this 202
section does not require disclosure of the name of any bank, 203
savings and loan association, credit union, or building and loan 204
association with which the person filing the statement has a 205
deposit or a withdrawable share account. 206

       (4) All fee simple and leasehold interests to which the 207
person filing the statement holds legal title to or a beneficial 208
interest in real property located within the state, excluding the 209
person's residence and property used primarily for personal 210
recreation; 211

       (5) The names of all persons residing or transacting business 212
in the state to whom the person filing the statement owes, in the 213
person's own name or in the name of any other person, more than 214
one thousand dollars. Division (A)(5) of this section shall not be 215
construed to require the disclosure of debts owed by the person 216
resulting from the ordinary conduct of a business or profession or 217
debts on the person's residence or real property used primarily 218
for personal recreation, except that the superintendent of 219
financial institutions shall disclose the names of all 220
state-chartered savings and loan associations and of all service 221
corporations subject to regulation under division (E)(2) of 222
section 1151.34 of the Revised Code to whom the superintendent in 223
the superintendent's own name or in the name of any other person 224
owes any money, and that the superintendent and any deputy 225
superintendent of banks shall disclose the names of all 226
state-chartered banks and all bank subsidiary corporations subject 227
to regulation under section 1109.44 of the Revised Code to whom 228
the superintendent or deputy superintendent owes any money. 229

       (6) The names of all persons residing or transacting business 230
in the state, other than a depository excluded under division 231
(A)(3) of this section, who owe more than one thousand dollars to 232
the person filing the statement, either in the person's own name 233
or to any person for the person's use or benefit. Division (A)(6) 234
of this section shall not be construed to require the disclosure 235
of clients of attorneys or persons licensed under section 4732.12 236
or 4732.15 of the Revised Code, or patients of persons certified 237
under section 4731.14 of the Revised Code, nor the disclosure of 238
debts owed to the person resulting from the ordinary conduct of a 239
business or profession. 240

       (7) Except as otherwise provided in section 102.022 of the 241
Revised Code, the source of each gift of over seventy-five 242
dollars, or of each gift of over twenty-five dollars received by a 243
member of the general assembly from a legislative agent, received 244
by the person in the person's own name or by any other person for 245
the person's use or benefit during the preceding calendar year, 246
except gifts received by will or by virtue of section 2105.06 of 247
the Revised Code, or received from spouses, parents, grandparents, 248
children, grandchildren, siblings, nephews, nieces, uncles, aunts, 249
brothers-in-law, sisters-in-law, sons-in-law, daughters-in-law, 250
fathers-in-law, mothers-in-law, or any person to whom the person 251
filing the statement stands in loco parentis, or received by way 252
of distribution from any inter vivos or testamentary trust 253
established by a spouse or by an ancestor; 254

       (8) Except as otherwise provided in section 102.022 of the 255
Revised Code, identification of the source and amount of every 256
payment of expenses incurred for travel to destinations inside or 257
outside this state that is received by the person in the person's 258
own name or by any other person for the person's use or benefit 259
and that is incurred in connection with the person's official 260
duties, except for expenses for travel to meetings or conventions 261
of a national or state organization to which any state agency, 262
including, but not limited to, any legislative agency or state 263
institution of higher education as defined in section 3345.011 of 264
the Revised Code, pays membership dues, or any political 265
subdivision or any office or agency of a political subdivision 266
pays membership dues; 267

       (9) Except as otherwise provided in section 102.022 of the 268
Revised Code, identification of the source of payment of expenses 269
for meals and other food and beverages, other than for meals and 270
other food and beverages provided at a meeting at which the person 271
participated in a panel, seminar, or speaking engagement or at a 272
meeting or convention of a national or state organization to which 273
any state agency, including, but not limited to, any legislative 274
agency or state institution of higher education as defined in 275
section 3345.011 of the Revised Code, pays membership dues, or any 276
political subdivision or any office or agency of a political 277
subdivision pays membership dues, that are incurred in connection 278
with the person's official duties and that exceed one hundred 279
dollars aggregated per calendar year; 280

       (10) If the disclosure statement is filed by a public 281
official or employee described in division (B)(2) of section 282
101.73 of the Revised Code or division (B)(2) of section 121.63 of 283
the Revised Code who receives a statement from a legislative 284
agent, executive agency lobbyist, or employer that contains the 285
information described in division (F)(2) of section 101.73 of the 286
Revised Code or division (G)(2) of section 121.63 of the Revised 287
Code, all of the nondisputed information contained in the 288
statement delivered to that public official or employee by the 289
legislative agent, executive agency lobbyist, or employer under 290
division (F)(2) of section 101.73 or (G)(2) of section 121.63 of 291
the Revised Code. 292

       A person may file a statement required by this section in 293
person or by mail. A person who is a candidate for elective office 294
shall file the statement no later than the thirtieth day before 295
the primary, special, or general election at which the candidacy 296
is to be voted on, whichever election occurs soonest, except that 297
a person who is a write-in candidate shall file the statement no 298
later than the twentieth day before the earliest election at which 299
the person's candidacy is to be voted on. A person who holds 300
elective office shall file the statement on or before the 301
fifteenth day of April of each year unless the person is a 302
candidate for office. A person who is appointed to fill a vacancy 303
for an unexpired term in an elective office shall file the 304
statement within fifteen days after the person qualifies for 305
office. Other persons shall file an annual statement on or before 306
the fifteenth day of April or, if appointed or employed after that 307
date, within ninety days after appointment or employment. No 308
person shall be required to file with the appropriate ethics 309
commission more than one statement or pay more than one filing fee 310
for any one calendar year. 311

       The appropriate ethics commission, for good cause, may extend 312
for a reasonable time the deadline for filing a statement under 313
this section. 314

       A statement filed under this section is subject to public 315
inspection at locations designated by the appropriate ethics 316
commission except as otherwise provided in this section. 317

       (B) The Ohio ethics commission, the joint legislative ethics 318
committee, and the board of commissioners on grievances and 319
discipline of the supreme court, using the rule-making procedures 320
of Chapter 119. of the Revised Code, may require any class of 321
public officials or employees under its jurisdiction and not 322
specifically excluded by this section whose positions involve a 323
substantial and material exercise of administrative discretion in 324
the formulation of public policy, expenditure of public funds, 325
enforcement of laws and rules of the state or a county or city, or 326
the execution of other public trusts, to file an annual statement 327
on or before the fifteenth day of April under division (A) of this 328
section. The appropriate ethics commission shall send the public 329
officials or employees written notice of the requirement by the 330
fifteenth day of February of each year the filing is required 331
unless the public official or employee is appointed after that 332
date, in which case the notice shall be sent within thirty days 333
after appointment, and the filing shall be made not later than 334
ninety days after appointment. 335

       Except for disclosure statements filed by members of the 336
board of trustees and the executive director of the tobacco use 337
prevention and control foundation and members of the board of 338
trustees and the executive director of the southern Ohio 339
agricultural and community development foundation, disclosure 340
statements filed under this division with the Ohio ethics 341
commission by members of boards, commissions, or bureaus of the 342
state for which no compensation is received other than reasonable 343
and necessary expenses shall be kept confidential. Disclosure 344
statements filed with the Ohio ethics commission under division 345
(A) of this section by business managers, treasurers, and 346
superintendents of city, local, exempted village, joint 347
vocational, or cooperative education school districts or 348
educational service centers shall be kept confidential, except 349
that any person conducting an audit of any such school district or 350
educational service center pursuant to section 115.56 or Chapter 351
117. of the Revised Code may examine the disclosure statement of 352
any business manager, treasurer, or superintendent of that school 353
district or educational service center. The Ohio ethics commission 354
shall examine each disclosure statement required to be kept 355
confidential to determine whether a potential conflict of interest 356
exists for the person who filed the disclosure statement. A 357
potential conflict of interest exists if the private interests of 358
the person, as indicated by the person's disclosure statement, 359
might interfere with the public interests the person is required 360
to serve in the exercise of the person's authority and duties in 361
the person's office or position of employment. If the commission 362
determines that a potential conflict of interest exists, it shall 363
notify the person who filed the disclosure statement and shall 364
make the portions of the disclosure statement that indicate a 365
potential conflict of interest subject to public inspection in the 366
same manner as is provided for other disclosure statements. Any 367
portion of the disclosure statement that the commission determines 368
does not indicate a potential conflict of interest shall be kept 369
confidential by the commission and shall not be made subject to 370
public inspection, except as is necessary for the enforcement of 371
Chapters 102. and 2921. of the Revised Code and except as 372
otherwise provided in this division. 373

       (C) No person shall knowingly fail to file, on or before the 374
applicable filing deadline established under this section, a 375
statement that is required by this section. 376

       (D) No person shall knowingly file a false statement that is 377
required to be filed under this section. 378

       (E)(1) Except as provided in divisions (E)(2) and (3) of this 379
section, the statement required by division (A) or (B) of this 380
section shall be accompanied by a filing fee of forty dollars. 381

       (2) The statement required by division (A) of this section 382
shall be accompanied by the following filing fee to be paid by the 383
person who is elected or appointed to, or is a candidate for, any 384
of the following offices: 385

For state office, except member of the 386

state board of education $65 387

For office of member of general assembly $40 388

For county office $40 389

For city office $25 390

For office of member of the state board 391

of education $25 392

For office of member of a city, local, 393

exempted village, or cooperative 394

education board of 395

education or educational service 396

center governing board $20 397

For position of business manager, 398

treasurer, or superintendent of a 399

city, local, exempted village, joint 400

vocational, or cooperative education 401

school district or 402

educational service center $20 403

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

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

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

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

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

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

       Sec. 102.06. (A) The appropriate ethics commission shall 442
receive and may initiate complaints against persons subject to 443
this chapter concerning conduct alleged to be in violation of this 444
chapter or section 2921.42 or 2921.43 of the Revised Code. All 445
complaints except those by the commission shall be by affidavit 446
made on personal knowledge, subject to the penalties of perjury. 447
Complaints by the commission shall be by affidavit, based upon 448
reasonable cause to believe that a violation has occurred. 449

       (B) The appropriate ethics commission shall investigate 450
complaints, may investigate charges presented to it, and may 451
request further information, including the specific amount of 452
income from a source, from any person filing with the commission a 453
statement required by section 102.02 or 102.021 of the Revised 454
Code, if the information sought is directly relevant to a 455
complaint or charges received by the commission pursuant to this 456
section. This information is confidential, except that the 457
commission, in its discretion, may share information gathered in 458
the course of any investigation with, or disclose the information 459
to, the inspector general, any appropriate prosecuting authority, 460
any law enforcement agency, or any other appropriate ethics 461
commission. If the accused person is a member of the public 462
employees retirement board, state teachers retirement board, 463
school employees retirement board, board of trustees of the Ohio 464
police and fire pension fund, or state highway patrol retirement 465
board, or is a ~~voting~~ member of the bureau of workers' 466
compensation ~~oversight commission~~board of directors, the 467
appropriate ethics commission, in its discretion, also may share 468
information gathered in the course of an investigation with, or 469
disclose the information to, the attorney general and the auditor 470
of state. The person so requested shall furnish the information to 471
the commission, unless within fifteen days from the date of the 472
request the person files an action for declaratory judgment 473
challenging the legitimacy of the request in the court of common 474
pleas of the county of the person's residence, the person's place 475
of employment, or Franklin county. The requested information need 476
not be furnished to the commission during the pendency of the 477
judicial proceedings. Proceedings of the commission in connection 478
with the declaratory judgment action shall be kept confidential 479
except as otherwise provided by this section. Before the 480
commission proceeds to take any formal action against a person who 481
is the subject of an investigation based on charges presented to 482
the commission, a complaint shall be filed against the person. If 483
the commission finds that a complaint is not frivolous, and there 484
is reasonable cause to believe that the facts alleged in a 485
complaint constitute a violation of section 102.02, 102.021, 486
102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised Code, 487
it shall hold a hearing. If the commission does not so find, it 488
shall dismiss the complaint and notify the accused person in 489
writing of the dismissal of the complaint. The commission shall 490
not make a report of its finding unless the accused person 491
requests a report. Upon the request of the accused person, the 492
commission shall make a public report of its finding. The person 493
against whom the complaint is directed shall be given reasonable 494
notice by certified mail of the date, time, and place of the 495
hearing and a statement of the charges and the law directly 496
involved and shall be given the opportunity to be represented by 497
counsel, to have counsel appointed for the person if the person is 498
unable to afford counsel without undue hardship, to examine the 499
evidence against the person, to produce evidence and to call and 500
subpoena witnesses in the person's defense, to confront the 501
person's accusers, and to cross-examine witnesses. The commission 502
shall have a stenographic record made of the hearing. The hearing 503
shall be closed to the public. 504

       (C)(1)(a) If, upon the basis of the hearing, the appropriate 505
ethics commission finds by a preponderance of the evidence that 506
the facts alleged in the complaint are true and constitute a 507
violation of section 102.02, 102.021, 102.03, 102.04, 102.07, 508
2921.42, or 2921.43 of the Revised Code, it shall report its 509
findings to the appropriate prosecuting authority for proceedings 510
in prosecution of the violation and to the appointing or employing 511
authority of the accused. If the accused person is a member of the 512
public employees retirement board, state teachers retirement 513
board, school employees retirement board, board of trustees of the 514
Ohio police and fire pension fund, or state highway patrol 515
retirement board, the commission also shall report its findings to 516
the Ohio retirement study council. 517

       (b) If the Ohio ethics commission reports its findings to the 518
appropriate prosecuting authority under division (C)(1)(a) of this 519
section and the prosecuting authority has not initiated any 520
official action on those findings within ninety days after 521
receiving the commission's report of them, the commission may 522
publicly comment that no official action has been taken on its 523
findings, except that the commission shall make no comment in 524
violation of the Rules of Criminal Procedure or about any 525
indictment that has been sealed pursuant to any law or those 526
rules. The commission shall make no comment regarding the merits 527
of its findings. As used in division (C)(1)(b) of this section, 528
"official action" means prosecution, closure after investigation, 529
or grand jury action resulting in a true bill of indictment or no 530
true bill of indictment. 531

       (2) If the appropriate ethics commission does not find by a 532
preponderance of the evidence that the facts alleged in the 533
complaint are true and constitute a violation of section 102.02, 534
102.021, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the 535
Revised Code or if the commission has not scheduled a hearing 536
within ninety days after the complaint is filed or has not finally 537
disposed of the complaint within six months after it has been 538
heard, it shall dismiss the complaint and notify the accused 539
person in writing of the dismissal of the complaint. The 540
commission shall not make a report of its finding unless the 541
accused person requests a report. Upon the request of the accused 542
person, the commission shall make a public report of the finding, 543
but in this case all evidence and the record of the hearing shall 544
remain confidential unless the accused person also requests that 545
the evidence and record be made public. Upon request by the 546
accused person, the commission shall make the evidence and the 547
record available for public inspection. 548

       (D) The appropriate ethics commission, or a member of the 549
commission, may administer oaths, and the commission may issue 550
subpoenas to any person in the state compelling the attendance of 551
witnesses and the production of relevant papers, books, accounts, 552
and records. The commission shall issue subpoenas to compel the 553
attendance of witnesses and the production of documents upon the 554
request of an accused person. Section 101.42 of the Revised Code 555
shall govern the issuance of these subpoenas insofar as 556
applicable. Upon the refusal of any person to obey a subpoena or 557
to be sworn or to answer as a witness, the commission may apply to 558
the court of common pleas of Franklin county under section 2705.03 559
of the Revised Code. The court shall hold proceedings in 560
accordance with Chapter 2705. of the Revised Code. The commission 561
or the accused person may take the depositions of witnesses 562
residing within or without the state in the same manner as 563
prescribed by law for the taking of depositions in civil actions 564
in the court of common pleas. 565

       (E) At least once each year, the Ohio ethics commission shall 566
report on its activities of the immediately preceding year to the 567
majority and minority leaders of the senate and house of 568
representatives of the general assembly. The report shall indicate 569
the total number of complaints received, initiated, and 570
investigated by the commission, the total number of complaints for 571
which formal hearings were held, and the total number of 572
complaints for which formal prosecution was recommended or 573
requested by the commission. The report also shall indicate the 574
nature of the inappropriate conduct alleged in each complaint and 575
the governmental entity with which any employee or official that 576
is the subject of a complaint was employed at the time of the 577
alleged inappropriate conduct. 578

       (F) All papers, records, affidavits, and documents upon any 579
complaint, inquiry, or investigation relating to the proceedings 580
of the appropriate ethics commission shall be sealed and are 581
private and confidential, except as otherwise provided in this 582
section and section 102.07 of the Revised Code. 583

       (G)(1) When a complaint or charge is before it, the Ohio 584
ethics commission or the appropriate prosecuting authority, in 585
consultation with the person filing the complaint or charge, the 586
accused, and any other person the commission or prosecuting 587
authority considers necessary, may compromise or settle the 588
complaint or charge with the agreement of the accused. The 589
compromise or settlement may include mediation, restitution, 590
rescission of affected contracts, forfeiture of any benefits 591
resulting from a violation or potential violation of law, 592
resignation of a public official or employee, or any other relief 593
that is agreed upon between the commission or prosecuting 594
authority and the accused. 595

       (2) Any settlement agreement entered into under division 596
(G)(1) of this section shall be in writing and be accompanied by a 597
statement of the findings of the commission or prosecuting 598
authority and the reasons for entering into the agreement. The 599
commission or prosecuting authority shall retain the agreement and 600
statement in the commission's or prosecuting authority's office 601
and, in the commission's or prosecuting authority's discretion, 602
may make the agreement, the statement, and any supporting 603
information public, unless the agreement provides otherwise. 604

       (3) If a settlement agreement is breached by the accused, the 605
commission or prosecuting authority, in the commission's or 606
prosecuting authority's discretion, may rescind the agreement and 607
reinstitute any investigation, hearing, or prosecution of the 608
accused. No information obtained from the accused in reaching the 609
settlement that is not otherwise discoverable from the accused 610
shall be used in any proceeding before the commission or by the 611
appropriate prosecuting authority in prosecuting the violation. 612
Notwithstanding any other section of the Revised Code, if a 613
settlement agreement is breached, any statute of limitations for a 614
violation of this chapter or section 2921.42 or 2921.43 of the 615
Revised Code is tolled from the date the complaint or charge is 616
filed until the date the settlement agreement is breached. 617

       Sec. 109.981. If a ~~voting~~ member of the bureau of workers' 618
compensation ~~oversight commission~~board of directors breaches the 619
member's fiduciary duty to the bureau of workers' compensation, 620
the attorney general may maintain a civil action against the board 621
member for harm resulting from that breach. Notwithstanding 622
section 4121.128 of the Revised Code, after being informed of an 623
allegation that the entire ~~oversight commission~~board has breached 624
its fiduciary duty, the ~~oversight commission~~board may retain 625
independent legal counsel, including legal counsel provided by the 626
~~oversight commission's~~board's fiduciary insurance carrier, to 627
advise the board and to represent the board. The attorney general 628
may recover damages or be granted injunctive relief, which shall 629
include the enjoinment of specified activities and the removal of 630
the member from the board. Any damages awarded shall be paid to 631
the bureau. The authority to maintain a civil action created by 632
this section is in addition to any authority the attorney general 633
possesses under any other provision of the Revised Code. 634

       Sec. 111.15. (A) As used in this section: 635

       (1) "Rule" includes any rule, regulation, bylaw, or standard 636
having a general and uniform operation adopted by an agency under 637
the authority of the laws governing the agency; any appendix to a 638
rule; and any internal management rule. "Rule" does not include 639
any guideline adopted pursuant to section 3301.0714 of the Revised 640
Code, any order respecting the duties of employees, any finding, 641
any determination of a question of law or fact in a matter 642
presented to an agency, or any rule promulgated pursuant to 643
Chapter 119., section 4141.14, division (C)(1) or (2) of section 644
5117.02, or section 5703.14 of the Revised Code. "Rule" includes 645
any amendment or rescission of a rule. 646

       (2) "Agency" means any governmental entity of the state and 647
includes, but is not limited to, any board, department, division, 648
commission, bureau, society, council, institution, state college 649
or university, community college district, technical college 650
district, or state community college. "Agency" does not include 651
the general assembly, the controlling board, the adjutant 652
general's department, or any court. 653

       (3) "Internal management rule" means any rule, regulation, 654
bylaw, or standard governing the day-to-day staff procedures and 655
operations within an agency. 656

       (4) "Substantive revision" has the same meaning as in 657
division (J) of section 119.01 of the Revised Code. 658

       (B)(1) Any rule, other than a rule of an emergency nature, 659
adopted by any agency pursuant to this section shall be effective 660
on the tenth day after the day on which the rule in final form and 661
in compliance with division (B)(3) of this section is filed as 662
follows: 663

       (a) The rule shall be filed in electronic form with both the 664
secretary of state and the director of the legislative service 665
commission; 666

       (b) The rule shall be filed in electronic form with the joint 667
committee on agency rule review. Division (B)(1)(b) of this 668
section does not apply to any rule to which division (D) of this 669
section does not apply. 670

       An agency that adopts or amends a rule that is subject to 671
division (D) of this section shall assign a review date to the 672
rule that is not later than five years after its effective date. 673
If no review date is assigned to a rule, or if a review date 674
assigned to a rule exceeds the five-year maximum, the review date 675
for the rule is five years after its effective date. A rule with a 676
review date is subject to review under section 119.032 of the 677
Revised Code. This paragraph does not apply to a rule of a state 678
college or university, community college district, technical 679
college district, or state community college. 680

       If all filings are not completed on the same day, the rule 681
shall be effective on the tenth day after the day on which the 682
latest filing is completed. If an agency in adopting a rule 683
designates an effective date that is later than the effective date 684
provided for by division (B)(1) of this section, the rule if filed 685
as required by such division shall become effective on the later 686
date designated by the agency. 687

       Any rule that is required to be filed under division (B)(1) 688
of this section is also subject to division (D) of this section if 689
not exempted by division (D)(1), (2), (3), (4), (5), (6), (7), or 690
(8) of this section. 691

       If a rule incorporates a text or other material by reference, 692
the agency shall comply with sections 121.71 to 121.76 of the 693
Revised Code. 694

       (2) A rule of an emergency nature necessary for the immediate 695
preservation of the public peace, health, or safety shall state 696
the reasons for the necessity. The emergency rule, in final form 697
and in compliance with division (B)(3) of this section, shall be 698
filed in electronic form with the secretary of state, the director 699
of the legislative service commission, and the joint committee on 700
agency rule review. The emergency rule is effective immediately 701
upon completion of the latest filing, except that if the agency in 702
adopting the emergency rule designates an effective date, or date 703
and time of day, that is later than the effective date and time 704
provided for by division (B)(2) of this section, the emergency 705
rule if filed as required by such division shall become effective 706
at the later date, or later date and time of day, designated by 707
the agency. 708

       An emergency rule becomes invalid at the end of the ninetieth 709
day it is in effect. Prior to that date, the agency may file the 710
emergency rule as a nonemergency rule in compliance with division 711
(B)(1) of this section. The agency may not refile the emergency 712
rule in compliance with division (B)(2) of this section so that, 713
upon the emergency rule becoming invalid under such division, the 714
emergency rule will continue in effect without interruption for 715
another ninety-day period. 716

       (3) An agency shall file a rule under division (B)(1) or (2) 717
of this section in compliance with the following standards and 718
procedures: 719

       (a) The rule shall be numbered in accordance with the 720
numbering system devised by the director for the Ohio 721
administrative code. 722

       (b) The rule shall be prepared and submitted in compliance 723
with the rules of the legislative service commission. 724

       (c) The rule shall clearly state the date on which it is to 725
be effective and the date on which it will expire, if known. 726

       (d) Each rule that amends or rescinds another rule shall 727
clearly refer to the rule that is amended or rescinded. Each 728
amendment shall fully restate the rule as amended. 729

       If the director of the legislative service commission or the 730
director's designee gives an agency notice pursuant to section 731
103.05 of the Revised Code that a rule filed by the agency is not 732
in compliance with the rules of the legislative service 733
commission, the agency shall within thirty days after receipt of 734
the notice conform the rule to the rules of the commission as 735
directed in the notice. 736

       (C) All rules filed pursuant to divisions (B)(1)(a) and (2) 737
of this section shall be recorded by the secretary of state and 738
the director under the title of the agency adopting the rule and 739
shall be numbered according to the numbering system devised by the 740
director. The secretary of state and the director shall preserve 741
the rules in an accessible manner. Each such rule shall be a 742
public record open to public inspection and may be transmitted to 743
any law publishing company that wishes to reproduce it. 744

       (D) At least sixty-five days before a board, commission, 745
department, division, or bureau of the government of the state 746
files a rule under division (B)(1) of this section, it shall file 747
the full text of the proposed rule in electronic form with the 748
joint committee on agency rule review, and the proposed rule is 749
subject to legislative review and invalidation under division (I) 750
of section 119.03 of the Revised Code. If a state board, 751
commission, department, division, or bureau makes a substantive 752
revision in a proposed rule after it is filed with the joint 753
committee, the state board, commission, department, division, or 754
bureau shall promptly file the full text of the proposed rule in 755
its revised form in electronic form with the joint committee. The 756
latest version of a proposed rule as filed with the joint 757
committee supersedes each earlier version of the text of the same 758
proposed rule. Except as provided in division (F) of this section, 759
a state board, commission, department, division, or bureau shall 760
also file the rule summary and fiscal analysis prepared under 761
section 121.24 or 127.18 of the Revised Code, or both, in 762
electronic form along with a proposed rule, and along with a 763
proposed rule in revised form, that is filed under this division. 764

       As used in this division, "commission" includes the public 765
utilities commission when adopting rules under a federal or state 766
statute. 767

       This division does not apply to any of the following: 768

       (1) A proposed rule of an emergency nature; 769

       (2) A rule proposed under section 1121.05, 1121.06, 1155.18, 770
1163.22, 1349.33, 1707.201, 1733.412, 4123.29, 4123.34, 4123.341, 771
4123.342, 4123.40, or 4123.411~~, 4123.44, or 4123.442~~ of the 772
Revised Code; 773

       (3) A rule proposed by an agency other than a board, 774
commission, department, division, or bureau of the government of 775
the state; 776

       (4) A proposed internal management rule of a board, 777
commission, department, division, or bureau of the government of 778
the state; 779

       (5) Any proposed rule that must be adopted verbatim by an 780
agency pursuant to federal law or rule, to become effective within 781
sixty days of adoption, in order to continue the operation of a 782
federally reimbursed program in this state, so long as the 783
proposed rule contains both of the following: 784

       (a) A statement that it is proposed for the purpose of 785
complying with a federal law or rule; 786

       (b) A citation to the federal law or rule that requires 787
verbatim compliance. 788

       (6) An initial rule proposed by the director of health to 789
impose safety standards and quality-of-care standards with respect 790
to a health service specified in section 3702.11 of the Revised 791
Code, or an initial rule proposed by the director to impose 792
quality standards on a facility listed in division (A)(4) of 793
section 3702.30 of the Revised Code, if section 3702.12 of the 794
Revised Code requires that the rule be adopted under this section; 795

       (7) A rule of the state lottery commission pertaining to 796
instant game rules. 797

       If a rule is exempt from legislative review under division 798
(D)(5) of this section, and if the federal law or rule pursuant to 799
which the rule was adopted expires, is repealed or rescinded, or 800
otherwise terminates, the rule is thereafter subject to 801
legislative review under division (D) of this section. 802

       (E) Whenever a state board, commission, department, division, 803
or bureau files a proposed rule or a proposed rule in revised form 804
under division (D) of this section, it shall also file the full 805
text of the same proposed rule or proposed rule in revised form in 806
electronic form with the secretary of state and the director of 807
the legislative service commission. Except as provided in division 808
(F) of this section, a state board, commission, department, 809
division, or bureau shall file the rule summary and fiscal 810
analysis prepared under section 121.24 or 127.18 of the Revised 811
Code, or both, in electronic form along with a proposed rule or 812
proposed rule in revised form that is filed with the secretary of 813
state or the director of the legislative service commission. 814

       (F) Except as otherwise provided in this division, the 815
auditor of state or the auditor of state's designee is not 816
required to file a rule summary and fiscal analysis along with a 817
proposed rule, or proposed rule in revised form, that the auditor 818
of state proposes under section 117.12, 117.19, 117.38, or 117.43 819
of the Revised Code and files under division (D) or (E) of this 820
section. If, however, the auditor of state or the designee 821
prepares a rule summary and fiscal analysis of the original 822
version of such a proposed rule for purposes of complying with 823
section 121.24 of the Revised Code, the auditor of state or 824
designee shall file the rule summary and fiscal analysis in 825
electronic form along with the original version of the proposed 826
rule filed under division (D) or (E) of this section. 827

       Sec. 119.01. As used in sections 119.01 to 119.13 of the 828
Revised Code: 829

       (A)(1) "Agency" means, except as limited by this division, 830
any official, board, or commission having authority to promulgate 831
rules or make adjudications in the civil service commission, the 832
division of liquor control, the department of taxation, the 833
industrial commission, the bureau of workers' compensation, the 834
functions of any administrative or executive officer, department, 835
division, bureau, board, or commission of the government of the 836
state specifically made subject to sections 119.01 to 119.13 of 837
the Revised Code, and the licensing functions of any 838
administrative or executive officer, department, division, bureau, 839
board, or commission of the government of the state having the 840
authority or responsibility of issuing, suspending, revoking, or 841
canceling licenses. 842

       Except as otherwise provided in division (I) of this section, 843
sections 119.01 to 119.13 of the Revised Code do not apply to the 844
public utilities commission. Sections 119.01 to 119.13 of the 845
Revised Code do not apply to the utility radiological safety 846
board; to the controlling board; to actions of the superintendent 847
of financial institutions and the superintendent of insurance in 848
the taking possession of, and rehabilitation or liquidation of, 849
the business and property of banks, savings and loan associations, 850
savings banks, credit unions, insurance companies, associations, 851
reciprocal fraternal benefit societies, and bond investment 852
companies; to any action taken by the division of securities under 853
section 1707.201 of the Revised Code; or to any action that may be 854
taken by the superintendent of financial institutions under 855
section 1113.03, 1121.06, 1121.10, 1125.09, 1125.12, 1125.18, 856
1157.01, 1157.02, 1157.10, 1165.01, 1165.02, 1165.10, 1349.33, 857
1733.35, 1733.361, 1733.37, or 1761.03 of the Revised Code. 858

       Sections 119.01 to 119.13 of the Revised Code do not apply to 859
actions of the industrial commission or the bureau of workers' 860
compensation under sections 4123.01 to 4123.94 of the Revised Code 861
with respect to all matters of adjudication, ~~and~~or to the actions 862
of the industrial commission, bureau of workers' compensation 863
board of directors, and bureau of workers' compensation under 864
~~division (D) of section 4121.32,~~ sections 4123.29, 4123.34, 865
4123.341, 4123.342, 4123.40, 4123.411, ~~4123.44, and 4123.442~~ 866
4127.07, divisions (B), (C), and (E) of section 4131.04, and 867
divisions (B), (C), and (E) of section 4131.14 of the Revised Code 868
with respect to all matters concerning the establishment of 869
premium, contribution, and assessment rates. 870

       (2) "Agency" also means any official or work unit having 871
authority to promulgate rules or make adjudications in the 872
department of job and family services, but only with respect to 873
both of the following: 874

       (a) The adoption, amendment, or rescission of rules that 875
section 5101.09 of the Revised Code requires be adopted in 876
accordance with this chapter; 877

       (b) The issuance, suspension, revocation, or cancellation of 878
licenses. 879

       (B) "License" means any license, permit, certificate, 880
commission, or charter issued by any agency. "License" does not 881
include any arrangement whereby a person, institution, or entity 882
furnishes medicaid services under a provider agreement with the 883
department of job and family services pursuant to Title XIX of the 884
"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as 885
amended. 886

       (C) "Rule" means any rule, regulation, or standard, having a 887
general and uniform operation, adopted, promulgated, and enforced 888
by any agency under the authority of the laws governing such 889
agency, and includes any appendix to a rule. "Rule" does not 890
include any internal management rule of an agency unless the 891
internal management rule affects private rights and does not 892
include any guideline adopted pursuant to section 3301.0714 of the 893
Revised Code. 894

       (D) "Adjudication" means the determination by the highest or 895
ultimate authority of an agency of the rights, duties, privileges, 896
benefits, or legal relationships of a specified person, but does 897
not include the issuance of a license in response to an 898
application with respect to which no question is raised, nor other 899
acts of a ministerial nature. 900

       (E) "Hearing" means a public hearing by any agency in 901
compliance with procedural safeguards afforded by sections 119.01 902
to 119.13 of the Revised Code. 903

       (F) "Person" means a person, firm, corporation, association, 904
or partnership. 905

       (G) "Party" means the person whose interests are the subject 906
of an adjudication by an agency. 907

       (H) "Appeal" means the procedure by which a person, aggrieved 908
by a finding, decision, order, or adjudication of any agency, 909
invokes the jurisdiction of a court. 910

       (I) "Rule-making agency" means any board, commission, 911
department, division, or bureau of the government of the state 912
that is required to file proposed rules, amendments, or 913
rescissions under division (D) of section 111.15 of the Revised 914
Code and any agency that is required to file proposed rules, 915
amendments, or rescissions under divisions (B) and (H) of section 916
119.03 of the Revised Code. "Rule-making agency" includes the 917
public utilities commission. "Rule-making agency" does not include 918
any state-supported college or university. 919

       (J) "Substantive revision" means any addition to, elimination 920
from, or other change in a rule, an amendment of a rule, or a 921
rescission of a rule, whether of a substantive or procedural 922
nature, that changes any of the following: 923

       (1) That which the rule, amendment, or rescission permits, 924
authorizes, regulates, requires, prohibits, penalizes, rewards, or 925
otherwise affects; 926

       (2) The scope or application of the rule, amendment, or 927
rescission. 928

       (K) "Internal management rule" means any rule, regulation, or 929
standard governing the day-to-day staff procedures and operations 930
within an agency. 931

       Sec. 121.52. There is hereby created in the office of the 932
inspector general the office of deputy inspector general for the 933
bureau of workers' compensation and industrial commission. The 934
inspector general shall appoint the deputy inspector general, and 935
the deputy inspector general shall serve at the pleasure of the 936
inspector general. A person employed as the deputy inspector 937
general shall have the same qualifications as those specified in 938
section 121.49 of the Revised Code for the inspector general. The 939
inspector general shall provide professional and clerical 940
assistance to the deputy inspector general. The inspector general 941
shall certify to the director of budget and management the costs 942
incurred by the deputy inspector general, including the salaries 943
of the employees assisting the deputy inspector general. The 944
director of budget and management shall transfer the amount 945
certified to the deputy inspector general for BWC fund, which is 946
hereby created in the state treasury, from the appropriation made 947
to the bureau of workers' compensation from which expenditures for 948
general administrative purposes are made. The inspector general 949
shall use that fund to pay costs incurred by the deputy inspector 950
general. 951

       Sec. 121.53. (A) The deputy inspector general for the bureau 952
of workers' compensation and the industrial commission shall do 953
all of the following: 954

       (1) Investigate wrongful acts or omissions that have been 955
committed by or are being committed by officers or employees of 956
the bureau of workers' compensation and the industrial commission; 957

       (2) Perform the same duties regarding matters concerning 958
officers or employees of the bureau or the industrial commission 959
as those specified in sections 121.42 and 121.45 of the Revised 960
Code for the inspector general; 961

       (3) Investigate any activities that may constitute fraud that 962
allegedly have been or are being committed by a participant in the 963
workers' compensation system; 964

       (4) After conducting an investigation for fraud under 965
division (A)(3) of this section, report any suspected acts of 966
fraud to the inspector general; 967

       (5) Receive complaints under section 121.55 of the Revised 968
Code alleging that wrongful acts and omissions have been committed 969
or are being committed by an officer or employee of the bureau or 970
industrial commission or alleging activities that may constitute 971
fraud that have been or are being committed by a participant in 972
the workers' compensation system; 973

       (6) Determine whether the information contained in complaints 974
received under section 121.55 of the Revised Code allege facts 975
that give reasonable cause to investigate, and, if so, investigate 976
the complaint to determine if there is reasonable cause to believe 977
that an alleged wrongful act or omission has been committed or is 978
being committed by an officer or employee of the bureau or 979
commission or that activities that may constitute fraud have been 980
or are being committed by a participant. 981

       (7) Exercise the same powers and duties as those specified in 982
section 121.43 of the Revised Code for the inspector general. 983

       (B) All investigations conducted and reports issued by the 984
deputy inspector general are subject to section 121.44 of the 985
Revised Code. 986

       (C) If the inspector general receives a report from the 987
deputy inspector general under division (A)(4) of this section, 988
the inspector general shall report the allegation of fraud to the 989
administrator of workers' compensation or the industrial 990
commission only if the inspector general believes that reporting 991
the allegation has the potential to stop fraud. 992

       (D) As used in this section and sections 121.54 and 121.55 of 993
the Revised Code, "participant in the workers' compensation 994
system" means any of the following persons or entities: 995

       (1) An employer subject to Chapter 4121., 4123., 4125., 996
4127., or 4131. of the Revised Code; 997

       (2) A claimant for compensation or benefits under Chapter 998
4121., 4123., 4127., or 4131. of the Revised Code; 999

       (3) A health care provider or managed care organization that 1000
provides services under Chapter 4121., 4123., 4127., or 4131. of 1001
the Revised Code; 1002

       (4) A person investing the assets of the funds specified in 1003
Chapters 4121., 4123., 4127., and 4131. of the Revised Code. 1004

       Sec. 121.54. The members of the industrial commission, bureau 1005
of workers' compensation board of directors, workers' compensation 1006
audit committee, workers' compensation actuarial committee, and 1007
workers' compensation investment committee, and the administrator 1008
of workers' compensation, employees of the industrial commission 1009
and the bureau of workers' compensation, and any participant in 1010
the workers' compensation system shall cooperate with and provide 1011
assistance to the deputy inspector general in the performance of 1012
any investigation conducted by the deputy inspector general. In 1013
particular, those persons shall make their premises, equipment, 1014
personnel, books, records, and papers readily available to the 1015
deputy inspector general. In the course of an investigation, the 1016
deputy inspector general may do any of the following: 1017

       (A) Question any of those persons employed by the industrial 1018
commission or the administrator and any other person transacting 1019
business with the industrial commission, the board, the audit 1020
committee, the actuarial committee, the investment committee, the 1021
administrator, or the bureau; 1022

       (B) Question any participant in the workers' compensation 1023
system; 1024

       (C) Inspect and copy any books, records, or papers in the 1025
possession of a person or participant questioned pursuant to 1026
division (A) or (B) of this section, taking care to preserve the 1027
confidentiality of information contained in responses to questions 1028
or the books, records, or papers that are made confidential by 1029
law. 1030

        In performing any investigation, the deputy inspector general 1031
shall avoid interfering with the ongoing operations of the 1032
entities being investigated, except insofar as is reasonably 1033
necessary to successfully complete the investigation. 1034

       Sec. 121.55. Any person who knows or has reasonable cause to 1035
believe that an officer or employee of the bureau of workers' 1036
compensation or the industrial commission has committed, or is in 1037
the process of committing, a wrongful act or omission, or who 1038
knows or has reasonable cause to believe that a participant in the 1039
workers' compensation system has committed, or is in the process 1040
of committing, an activity that may constitute fraud, may prepare 1041
and file a complaint with the deputy inspector general for the 1042
bureau of workers' compensation and industrial commission. The 1043
person shall include all of the following information in the 1044
complaint: 1045

       (A) The identity of the person making the report; 1046

       (B) The identity of the officer or employee who allegedly 1047
committed or is committing the wrongful act or omission, or the 1048
participant who allegedly committed or is committing an act that 1049
may constitute fraud; 1050

       (C) A description of the wrongful act or omission or the 1051
activity that may constitute fraud; 1052

       (D) An explanation of how the person reporting knew or came 1053
to the person's reasonable cause to believe that the officer or 1054
employee committed or is in the process of committing the wrongful 1055
act or omission, or that the participant committed or is 1056
committing an act that may constitute fraud. 1057

       The preparation and filing of the complaint described in this 1058
section is in addition to any other report of the wrongful act or 1059
omission or the activity that may constitute fraud that the person 1060
is required by law to make. 1061

       The inspector general shall prescribe a form for complaints 1062
under this section. The inspector general shall provide a blank 1063
copy of the form to any person, free of charge. No complaint is 1064
defective, however, because it is not made on the form prescribed 1065
by the inspector general. 1066

       Sec. 121.56. At the conclusion of an investigation conducted 1067
by the deputy inspector general for the bureau of workers' 1068
compensation and industrial commission, the deputy inspector 1069
general shall deliver to the board, the administrator, the 1070
commission, and the governor any case for which remedial action is 1071
necessary. The deputy inspector general shall maintain a public 1072
record of its activities to the extent permitted under sections 1073
121.52 to 121.56 of the Revised Code, ensuring that the rights of 1074
the parties involved in each case are protected. The inspector 1075
general shall include in the annual report required under section 1076
121.48 of the Revised Code a summary of the activities of the 1077
deputy inspector general during the previous year. 1078

       No person shall disclose any information that is designated 1079
as confidential in accordance with section 121.44 of the Revised 1080
Code or any confidential information that is acquired in the 1081
course of an investigation conducted under section 121.53 of the 1082
Revised Code to any person who is not legally entitled to 1083
disclosure of that information. 1084

       Sec. 131.02. (A) Except as otherwise provided in section 1085
4123.37 and division ~~(J)~~(K) of section 4123.511 of the Revised 1086
Code, whenever any amount is payable to the state, the officer, 1087
employee, or agent responsible for administering the law under 1088
which the amount is payable shall immediately proceed to collect 1089
the amount or cause the amount to be collected and shall pay the 1090
amount into the state treasury or into the appropriate custodial 1091
fund in the manner set forth pursuant to section 113.08 of the 1092
Revised Code. Except as otherwise provided in this division, if 1093
the amount is not paid within forty-five days after payment is 1094
due, the officer, employee, or agent shall certify the amount due 1095
to the attorney general, in the form and manner prescribed by the 1096
attorney general, and notify the director of budget and management 1097
thereof. In the case of an amount payable by a student enrolled in 1098
a state institution of higher education, the amount shall be 1099
certified within the later of forty-five days after the amount is 1100
due or the tenth day after the beginning of the next academic 1101
semester, quarter, or other session following the session for 1102
which the payment is payable. The attorney general may assess the 1103
collection cost to the amount certified in such manner and amount 1104
as prescribed by the attorney general. 1105

       For the purposes of this section, the attorney general and 1106
the officer, employee, or agent responsible for administering the 1107
law under which the amount is payable shall agree on the time a 1108
payment is due, and that agreed upon time shall be one of the 1109
following times: 1110

        (1) If a law, including an administrative rule, of this state 1111
prescribes the time a payment is required to be made or reported, 1112
when the payment is required by that law to be paid or reported. 1113

        (2) If the payment is for services rendered, when the 1114
rendering of the services is completed. 1115

        (3) If the payment is reimbursement for a loss, when the loss 1116
is incurred. 1117

        (4) In the case of a fine or penalty for which a law or 1118
administrative rule does not prescribe a time for payment, when 1119
the fine or penalty is first assessed. 1120

        (5) If the payment arises from a legal finding, judgment, or 1121
adjudication order, when the finding, judgment, or order is 1122
rendered or issued. 1123

        (6) If the payment arises from an overpayment of money by the 1124
state to another person, when the overpayment is discovered. 1125

        (7) The date on which the amount for which an individual is 1126
personally liable under section 5735.35, section 5739.33, or 1127
division (G) of section 5747.07 of the Revised Code is determined. 1128

        (8) Upon proof of claim being filed in a bankruptcy case. 1129

       (9) Any other appropriate time determined by the attorney 1130
general and the officer, employee, or agent responsible for 1131
administering the law under which the amount is payable on the 1132
basis of statutory requirements or ordinary business processes of 1133
the state agency to which the payment is owed. 1134

       (B)(1) The attorney general shall give immediate notice by 1135
mail or otherwise to the party indebted of the nature and amount 1136
of the indebtedness. 1137

       (2) If the amount payable to this state arises from a tax 1138
levied under Chapter 5733., 5739., 5741., 5747., or 5751. of the 1139
Revised Code, the notice also shall specify all of the following: 1140

       (a) The assessment or case number; 1141

       (b) The tax pursuant to which the assessment is made; 1142

       (c) The reason for the liability, including, if applicable, 1143
that a penalty or interest is due; 1144

       (d) An explanation of how and when interest will be added to 1145
the amount assessed; 1146

       (e) That the attorney general and tax commissioner, acting 1147
together, have the authority, but are not required, to compromise 1148
the claim and accept payment over a reasonable time, if such 1149
actions are in the best interest of the state. 1150

       (C) The attorney general shall collect the claim or secure a 1151
judgment and issue an execution for its collection. 1152

       (D) Each claim shall bear interest, from the day on which the 1153
claim became due, at the rate per annum required by section 1154
5703.47 of the Revised Code. 1155

       (E) The attorney general and the chief officer of the agency 1156
reporting a claim, acting together, may do any of the following if 1157
such action is in the best interests of the state: 1158

       (1) Compromise the claim; 1159

       (2) Extend for a reasonable period the time for payment of 1160
the claim by agreeing to accept monthly or other periodic 1161
payments. The agreement may require security for payment of the 1162
claim. 1163

       (3) Add fees to recover the cost of processing checks or 1164
other draft instruments returned for insufficient funds and the 1165
cost of providing electronic payment options. 1166

       (F)(1) Except as provided in division (F)(2) of this section, 1167
if the attorney general finds, after investigation, that any claim 1168
due and owing to the state is uncollectible, the attorney general, 1169
with the consent of the chief officer of the agency reporting the 1170
claim, may do the following: 1171

        (a) Sell, convey, or otherwise transfer the claim to one or 1172
more private entities for collection; 1173

        (b) Cancel the claim or cause it to be canceled. 1174

        (2) The attorney general shall cancel or cause to be canceled 1175
an unsatisfied claim on the date that is forty years after the 1176
date the claim is certified. 1177

       (3) No initial action shall be commenced to collect any tax 1178
payable to the state that is administered by the tax commissioner, 1179
whether or not such tax is subject to division (B) of this 1180
section, or any penalty, interest, or additional charge on such 1181
tax, after the expiration of the period ending on the later of the 1182
dates specified in divisions (F)(3)(a) and (b) of this section, 1183
provided that such period shall be extended by the period of any 1184
stay to such collection or by any other period to which the 1185
parties mutually agree. If the initial action in aid of execution 1186
is commenced before the later of the dates specified in divisions 1187
(F)(3)(a) and (b) of this section, any and all subsequent actions 1188
may be pursued in aid of execution of judgment for as long as the 1189
debt exists. 1190

       (a) Seven years after the assessment of the tax, penalty, 1191
interest, or additional charge is issued. 1192

       (b) Four years after the assessment of the tax, penalty, 1193
interest, or additional charge becomes final. For the purposes of 1194
division (F)(3)(b) of this section, the assessment becomes final 1195
at the latest of the following: upon expiration of the period to 1196
petition for reassessment, or if applicable, to appeal a final 1197
determination of the commissioner or decision of the board of tax 1198
appeals or a court, or, if applicable, upon decision of the United 1199
States supreme court. 1200

       For the purposes of division (F)(3) of this section, an 1201
initial action to collect a tax debt is commenced at the time when 1202
any action, including any action in aid of execution on a 1203
judgment, commences after a certified copy of the tax 1204
commissioner's entry making an assessment final has been filed in 1205
the office of the clerk of court of common pleas in the county in 1206
which the taxpayer resides or has its principal place of business 1207
in this state, or in the office of the clerk of court of common 1208
pleas of Franklin county, as provided in section 5739.13, 5741.14, 1209
5747.13, or 5751.09 of the Revised Code or in any other applicable 1210
law requiring such a filing. If an assessment has not been issued 1211
and there is no time limitation on the issuance of an assessment 1212
under applicable law, an action to collect a tax debt commences 1213
when the action is filed in the courts of this state to collect 1214
the liability. 1215

       (4) If information contained in a claim that is sold, 1216
conveyed, or transferred to a private entity pursuant to this 1217
section is confidential pursuant to federal law or a section of 1218
the Revised Code that implements a federal law governing 1219
confidentiality, such information remains subject to that law 1220
during and following the sale, conveyance, or transfer. 1221

       Sec. 1707.01. As used in this chapter: 1222

       (A) Whenever the context requires it, "division" or "division 1223
of securities" may be read as "director of commerce" or as 1224
"commissioner of securities." 1225

       (B) "Security" means any certificate or instrument, or any 1226
oral, written, or electronic agreement, understanding, or 1227
opportunity, that represents title to or interest in, or is 1228
secured by any lien or charge upon, the capital, assets, profits, 1229
property, or credit of any person or of any public or governmental 1230
body, subdivision, or agency. It includes shares of stock, 1231
certificates for shares of stock, an uncertificated security, 1232
membership interests in limited liability companies, voting-trust 1233
certificates, warrants and options to purchase securities, 1234
subscription rights, interim receipts, interim certificates, 1235
promissory notes, all forms of commercial paper, evidences of 1236
indebtedness, bonds, debentures, land trust certificates, fee 1237
certificates, leasehold certificates, syndicate certificates, 1238
endowment certificates, interests in or under profit-sharing or 1239
participation agreements, interests in or under oil, gas, or 1240
mining leases, preorganization or reorganization subscriptions, 1241
preorganization certificates, reorganization certificates, 1242
interests in any trust or pretended trust, any investment 1243
contract, any life settlement interest, any instrument evidencing 1244
a promise or an agreement to pay money, warehouse receipts for 1245
intoxicating liquor, and the currency of any government other than 1246
those of the United States and Canada, but sections 1707.01 to 1247
1707.45 of the Revised Code do not apply to the sale of real 1248
estate. 1249

       (C)(1) "Sale" has the full meaning of "sale" as applied by or 1250
accepted in courts of law or equity, and includes every 1251
disposition, or attempt to dispose, of a security or of an 1252
interest in a security. "Sale" also includes a contract to sell, 1253
an exchange, an attempt to sell, an option of sale, a solicitation 1254
of a sale, a solicitation of an offer to buy, a subscription, or 1255
an offer to sell, directly or indirectly, by agent, circular, 1256
pamphlet, advertisement, or otherwise. 1257

       (2) "Sell" means any act by which a sale is made. 1258

       (3) The use of advertisements, circulars, or pamphlets in 1259
connection with the sale of securities in this state exclusively 1260
to the purchasers specified in division (D) of section 1707.03 of 1261
the Revised Code is not a sale when the advertisements, circulars, 1262
and pamphlets describing and offering those securities bear a 1263
readily legible legend in substance as follows: "This offer is 1264
made on behalf of dealers licensed under sections 1707.01 to 1265
1707.45 of the Revised Code, and is confined in this state 1266
exclusively to institutional investors and licensed dealers." 1267

       (4) The offering of securities by any person in conjunction 1268
with a licensed dealer by use of advertisement, circular, or 1269
pamphlet is not a sale if that person does not otherwise attempt 1270
to sell securities in this state. 1271

       (5) Any security given with, or as a bonus on account of, any 1272
purchase of securities is conclusively presumed to constitute a 1273
part of the subject of that purchase and has been "sold." 1274

       (6) "Sale" by an owner, pledgee, or mortgagee, or by a person 1275
acting in a representative capacity, includes sale on behalf of 1276
such party by an agent, including a licensed dealer or 1277
salesperson. 1278

       (D) "Person," except as otherwise provided in this chapter, 1279
means a natural person, firm, partnership, limited partnership, 1280
partnership association, syndicate, joint-stock company, 1281
unincorporated association, trust or trustee except where the 1282
trust was created or the trustee designated by law or judicial 1283
authority or by a will, and a corporation or limited liability 1284
company organized under the laws of any state, any foreign 1285
government, or any political subdivision of a state or foreign 1286
government. 1287

       (E)(1) "Dealer," except as otherwise provided in this 1288
chapter, means every person, other than a salesperson, who engages 1289
or professes to engage, in this state, for either all or part of 1290
the person's time, directly or indirectly, either in the business 1291
of the sale of securities for the person's own account, or in the 1292
business of the purchase or sale of securities for the account of 1293
others in the reasonable expectation of receiving a commission, 1294
fee, or other remuneration as a result of engaging in the purchase 1295
and sale of securities. "Dealer" does not mean any of the 1296
following: 1297

       (a) Any issuer, including any officer, director, employee, or 1298
trustee of, or member or manager of, or partner in, or any general 1299
partner of, any issuer, that sells, offers for sale, or does any 1300
act in furtherance of the sale of a security that represents an 1301
economic interest in that issuer, provided no commission, fee, or 1302
other similar remuneration is paid to or received by the issuer 1303
for the sale; 1304

       (b) Any licensed attorney, public accountant, or firm of such 1305
attorneys or accountants, whose activities are incidental to the 1306
practice of the attorney's, accountant's, or firm's profession; 1307

       (c) Any person that, for the account of others, engages in 1308
the purchase or sale of securities that are issued and outstanding 1309
before such purchase and sale, if a majority or more of the equity 1310
interest of an issuer is sold in that transaction, and if, in the 1311
case of a corporation, the securities sold in that transaction 1312
represent a majority or more of the voting power of the 1313
corporation in the election of directors; 1314

       (d) Any person that brings an issuer together with a 1315
potential investor and whose compensation is not directly or 1316
indirectly based on the sale of any securities by the issuer to 1317
the investor; 1318

       (e) Any bank; 1319

       (f) Any person that the division of securities by rule 1320
exempts from the definition of "dealer" under division (E)(1) of 1321
this section. 1322

       (2) "Licensed dealer" means a dealer licensed under this 1323
chapter. 1324

       (F)(1) "Salesman" or "salesperson" means every natural 1325
person, other than a dealer, who is employed, authorized, or 1326
appointed by a dealer to sell securities within this state. 1327

       (2) The general partners of a partnership, and the executive 1328
officers of a corporation or unincorporated association, licensed 1329
as a dealer are not salespersons within the meaning of this 1330
definition, nor are clerical or other employees of an issuer or 1331
dealer that are employed for work to which the sale of securities 1332
is secondary and incidental; but the division of securities may 1333
require a license from any such partner, executive officer, or 1334
employee if it determines that protection of the public 1335
necessitates the licensing. 1336

       (3) "Licensed salesperson" means a salesperson licensed under 1337
this chapter. 1338

       (G) "Issuer" means every person who has issued, proposes to 1339
issue, or issues any security. 1340

       (H) "Director" means each director or trustee of a 1341
corporation, each trustee of a trust, each general partner of a 1342
partnership, except a partnership association, each manager of a 1343
partnership association, and any person vested with managerial or 1344
directory power over an issuer not having a board of directors or 1345
trustees. 1346

       (I) "Incorporator" means any incorporator of a corporation 1347
and any organizer of, or any person participating, other than in a 1348
representative or professional capacity, in the organization of an 1349
unincorporated issuer. 1350

       (J) "Fraud," "fraudulent," "fraudulent acts," "fraudulent 1351
practices," or "fraudulent transactions" means anything recognized 1352
on or after July 22, 1929, as such in courts of law or equity; any 1353
device, scheme, or artifice to defraud or to obtain money or 1354
property by means of any false pretense, representation, or 1355
promise; any fictitious or pretended purchase or sale of 1356
securities; and any act, practice, transaction, or course of 1357
business relating to the purchase or sale of securities that is 1358
fraudulent or that has operated or would operate as a fraud upon 1359
the seller or purchaser. 1360

       (K) Except as otherwise specifically provided, whenever any 1361
classification or computation is based upon "par value," as 1362
applied to securities without par value, the average of the 1363
aggregate consideration received or to be received by the issuer 1364
for each class of those securities shall be used as the basis for 1365
that classification or computation. 1366

       (L)(1) "Intangible property" means patents, copyrights, 1367
secret processes, formulas, services, good will, promotion and 1368
organization fees and expenses, trademarks, trade brands, trade 1369
names, licenses, franchises, any other assets treated as 1370
intangible according to generally accepted accounting principles, 1371
and securities, accounts receivable, or contract rights having no 1372
readily determinable value. 1373

       (2) "Tangible property" means all property other than 1374
intangible property and includes securities, accounts receivable, 1375
and contract rights, when the securities, accounts receivable, or 1376
contract rights have a readily determinable value. 1377

       (M) "Public utilities" means those utilities defined in 1378
sections 4905.02, 4905.03, 4907.02, and 4907.03 of the Revised 1379
Code; in the case of a foreign corporation, it means those 1380
utilities defined as public utilities by the laws of its domicile; 1381
and in the case of any other foreign issuer, it means those 1382
utilities defined as public utilities by the laws of the situs of 1383
its principal place of business. The term always includes 1384
railroads whether or not they are so defined as public utilities. 1385

       (N) "State" means any state of the United States, any 1386
territory or possession of the United States, the District of 1387
Columbia, and any province of Canada. 1388

       (O) "Bank" means any bank, trust company, savings and loan 1389
association, savings bank, or credit union that is incorporated or 1390
organized under the laws of the United States, any state of the 1391
United States, Canada, or any province of Canada and that is 1392
subject to regulation or supervision by that country, state, or 1393
province. 1394

       (P) "Include," when used in a definition, does not exclude 1395
other things or persons otherwise within the meaning of the term 1396
defined. 1397

       (Q)(1) "Registration by description" means that the 1398
requirements of section 1707.08 of the Revised Code have been 1399
complied with. 1400

       (2) "Registration by qualification" means that the 1401
requirements of sections 1707.09 and 1707.11 of the Revised Code 1402
have been complied with. 1403

       (3) "Registration by coordination" means that there has been 1404
compliance with section 1707.091 of the Revised Code. Reference in 1405
this chapter to registration by qualification also includes 1406
registration by coordination unless the context otherwise 1407
indicates. 1408

       (R) "Intoxicating liquor" includes all liquids and compounds 1409
that contain more than three and two-tenths per cent of alcohol by 1410
weight and are fit for use for beverage purposes. 1411

       (S) "Institutional investor" means any corporation, bank, 1412
insurance company, pension fund or pension fund trust, employees' 1413
profit-sharing fund or employees' profit-sharing trust, any 1414
association engaged, as a substantial part of its business or 1415
operations, in purchasing or holding securities, or any trust in 1416
respect of which a bank is trustee or cotrustee. "Institutional 1417
investor" does not include any business entity formed for the 1418
primary purpose of evading sections 1707.01 to 1707.45 of the 1419
Revised Code. 1420

       (T) A reference to a statute of the United States or to a 1421
rule, regulation, or form promulgated by the securities and 1422
exchange commission or by another federal agency means the 1423
statute, rule, regulation, or form as it exists at the time of the 1424
act, omission, event, or transaction to which it is applied under 1425
this chapter. 1426

       (U) "Securities and exchange commission" means the securities 1427
and exchange commission established by the Securities Exchange Act 1428
of 1934. 1429

       (V)(1) "Control bid" means the purchase of or offer to 1430
purchase any equity security of a subject company from a resident 1431
of this state if either of the following applies: 1432

       (a) After the purchase of that security, the offeror would be 1433
directly or indirectly the beneficial owner of more than ten per 1434
cent of any class of the issued and outstanding equity securities 1435
of the issuer. 1436

       (b) The offeror is the subject company, there is a pending 1437
control bid by a person other than the issuer, and the number of 1438
the issued and outstanding shares of the subject company would be 1439
reduced by more than ten per cent. 1440

       (2) For purposes of division (V)(1) of this section, "control 1441
bid" does not include any of the following: 1442

       (a) A bid made by a dealer for the dealer's own account in 1443
the ordinary course of business of buying and selling securities; 1444

       (b) An offer to acquire any equity security solely in 1445
exchange for any other security, or the acquisition of any equity 1446
security pursuant to an offer, for the sole account of the 1447
offeror, in good faith and not for the purpose of avoiding the 1448
provisions of this chapter, and not involving any public offering 1449
of the other security within the meaning of Section 4 of Title I 1450
of the "Securities Act of 1933," 48 Stat. 77, 15 U.S.C.A. 77d(2), 1451
as amended; 1452

       (c) Any other offer to acquire any equity security, or the 1453
acquisition of any equity security pursuant to an offer, for the 1454
sole account of the offeror, from not more than fifty persons, in 1455
good faith and not for the purpose of avoiding the provisions of 1456
this chapter. 1457

       (W) "Offeror" means a person who makes, or in any way 1458
participates or aids in making, a control bid and includes persons 1459
acting jointly or in concert, or who intend to exercise jointly or 1460
in concert any voting rights attached to the securities for which 1461
the control bid is made and also includes any subject company 1462
making a control bid for its own securities. 1463

       (X)(1) "Investment adviser" means any person who, for 1464
compensation, engages in the business of advising others, either 1465
directly or through publications or writings, as to the value of 1466
securities or as to the advisability of investing in, purchasing, 1467
or selling securities, or who, for compensation and as a part of 1468
regular business, issues or promulgates analyses or reports 1469
concerning securities. 1470

       (2) "Investment adviser" does not mean any of the following: 1471

       (a) Any attorney, accountant, engineer, or teacher, whose 1472
performance of investment advisory services described in division 1473
(X)(1) of this section is solely incidental to the practice of the 1474
attorney's, accountant's, engineer's, or teacher's profession; 1475

       (b) A publisher of any bona fide newspaper, news magazine, or 1476
business or financial publication of general and regular 1477
circulation; 1478

       (c) A person who acts solely as an investment adviser 1479
representative; 1480

       (d) A bank holding company, as defined in the "Bank Holding 1481
Company Act of 1956," 70 Stat. 133, 12 U.S.C. 1841, that is not an 1482
investment company; 1483

       (e) A bank, or any receiver, conservator, or other 1484
liquidating agent of a bank; 1485

       (f) Any licensed dealer or licensed salesperson whose 1486
performance of investment advisory services described in division 1487
(X)(1) of this section is solely incidental to the conduct of the 1488
dealer's or salesperson's business as a licensed dealer or 1489
licensed salesperson and who receives no special compensation for 1490
the services; 1491

       (g) Any person, the advice, analyses, or reports of which do 1492
not relate to securities other than securities that are direct 1493
obligations of, or obligations guaranteed as to principal or 1494
interest by, the United States, or securities issued or guaranteed 1495
by corporations in which the United States has a direct or 1496
indirect interest, and that have been designated by the secretary 1497
of the treasury as exempt securities as defined in the "Securities 1498
Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78c; 1499

       (h) Any person that is excluded from the definition of 1500
investment adviser pursuant to section 202(a)(11)(A) to (E) of the 1501
"Investment Advisers Act of 1940," 15 U.S.C. 80b-2(a)(11), or that 1502
has received an order from the securities and exchange commission 1503
under section 202(a)(11)(F) of the "Investment Advisers Act of 1504
1940," 15 U.S.C. 80b-2(a)(11)(F), declaring that the person is not 1505
within the intent of section 202(a)(11) of the Investment Advisers 1506
Act of 1940. 1507

       (i) A person who acts solely as a state retirement system 1508
investment officer or as a bureau of workers' compensation chief 1509
investment officer; 1510

       (j) Any other person that the division designates by rule, if 1511
the division finds that the designation is necessary or 1512
appropriate in the public interest or for the protection of 1513
investors or clients and consistent with the purposes fairly 1514
intended by the policy and provisions of this chapter. 1515

       (Y)(1) "Subject company" means an issuer that satisfies both 1516
of the following: 1517

       (a) Its principal place of business or its principal 1518
executive office is located in this state, or it owns or controls 1519
assets located within this state that have a fair market value of 1520
at least one million dollars. 1521

       (b) More than ten per cent of its beneficial or record equity 1522
security holders are resident in this state, more than ten per 1523
cent of its equity securities are owned beneficially or of record 1524
by residents in this state, or more than one thousand of its 1525
beneficial or record equity security holders are resident in this 1526
state. 1527

       (2) The division of securities may adopt rules to establish 1528
more specific application of the provisions set forth in division 1529
(Y)(1) of this section. Notwithstanding the provisions set forth 1530
in division (Y)(1) of this section and any rules adopted under 1531
this division, the division, by rule or in an adjudicatory 1532
proceeding, may make a determination that an issuer does not 1533
constitute a "subject company" under division (Y)(1) of this 1534
section if appropriate review of control bids involving the issuer 1535
is to be made by any regulatory authority of another jurisdiction. 1536

       (Z) "Beneficial owner" includes any person who directly or 1537
indirectly through any contract, arrangement, understanding, or 1538
relationship has or shares, or otherwise has or shares, the power 1539
to vote or direct the voting of a security or the power to dispose 1540
of, or direct the disposition of, the security. "Beneficial 1541
ownership" includes the right, exercisable within sixty days, to 1542
acquire any security through the exercise of any option, warrant, 1543
or right, the conversion of any convertible security, or 1544
otherwise. Any security subject to any such option, warrant, 1545
right, or conversion privilege held by any person shall be deemed 1546
to be outstanding for the purpose of computing the percentage of 1547
outstanding securities of the class owned by that person, but 1548
shall not be deemed to be outstanding for the purpose of computing 1549
the percentage of the class owned by any other person. A person 1550
shall be deemed the beneficial owner of any security beneficially 1551
owned by any relative or spouse or relative of the spouse residing 1552
in the home of that person, any trust or estate in which that 1553
person owns ten per cent or more of the total beneficial interest 1554
or serves as trustee or executor, any corporation or entity in 1555
which that person owns ten per cent or more of the equity, and any 1556
affiliate or associate of that person. 1557

       (AA) "Offeree" means the beneficial or record owner of any 1558
security that an offeror acquires or offers to acquire in 1559
connection with a control bid. 1560

       (BB) "Equity security" means any share or similar security, 1561
or any security convertible into any such security, or carrying 1562
any warrant or right to subscribe to or purchase any such 1563
security, or any such warrant or right, or any other security 1564
that, for the protection of security holders, is treated as an 1565
equity security pursuant to rules of the division of securities. 1566

       (CC)(1) "Investment adviser representative" means a 1567
supervised person of an investment adviser, provided that the 1568
supervised person has more than five clients who are natural 1569
persons other than excepted persons defined in division (EE) of 1570
this section, and that more than ten per cent of the supervised 1571
person's clients are natural persons other than excepted persons 1572
defined in division (EE) of this section. "Investment adviser 1573
representative" does not mean any of the following: 1574

       (a) A supervised person that does not on a regular basis 1575
solicit, meet with, or otherwise communicate with clients of the 1576
investment adviser; 1577

       (b) A supervised person that provides only investment 1578
advisory services described in division (X)(1) of this section by 1579
means of written materials or oral statements that do not purport 1580
to meet the objectives or needs of specific individuals or 1581
accounts; 1582

       (c) Any other person that the division designates by rule, if 1583
the division finds that the designation is necessary or 1584
appropriate in the public interest or for the protection of 1585
investors or clients and is consistent with the provisions fairly 1586
intended by the policy and provisions of this chapter. 1587

       (2) For the purpose of the calculation of clients in division 1588
(CC)(1) of this section, a natural person and the following 1589
persons are deemed a single client: Any minor child of the natural 1590
person; any relative, spouse, or relative of the spouse of the 1591
natural person who has the same principal residence as the natural 1592
person; all accounts of which the natural person or the persons 1593
referred to in division (CC)(2) of this section are the only 1594
primary beneficiaries; and all trusts of which the natural person 1595
or persons referred to in division (CC)(2) of this section are the 1596
only primary beneficiaries. Persons who are not residents of the 1597
United States need not be included in the calculation of clients 1598
under division (CC)(1) of this section. 1599

       (3) If subsequent to March 18, 1999, amendments are enacted 1600
or adopted defining "investment adviser representative" for 1601
purposes of the Investment Advisers Act of 1940 or additional 1602
rules or regulations are promulgated by the securities and 1603
exchange commission regarding the definition of "investment 1604
adviser representative" for purposes of the Investment Advisers 1605
Act of 1940, the division of securities shall, by rule, adopt the 1606
substance of the amendments, rules, or regulations, unless the 1607
division finds that the amendments, rules, or regulations are not 1608
necessary for the protection of investors or in the public 1609
interest. 1610

       (DD) "Supervised person" means a natural person who is any of 1611
the following: 1612

       (1) A partner, officer, or director of an investment adviser, 1613
or other person occupying a similar status or performing similar 1614
functions with respect to an investment adviser; 1615

       (2) An employee of an investment adviser; 1616

       (3) A person who provides investment advisory services 1617
described in division (X)(1) of this section on behalf of the 1618
investment adviser and is subject to the supervision and control 1619
of the investment adviser. 1620

       (EE) "Excepted person" means a natural person to whom any of 1621
the following applies: 1622

       (1) Immediately after entering into the investment advisory 1623
contract with the investment adviser, the person has at least 1624
seven hundred fifty thousand dollars under the management of the 1625
investment adviser. 1626

       (2) The investment adviser reasonably believes either of the 1627
following at the time the investment advisory contract is entered 1628
into with the person: 1629

       (a) The person has a net worth, together with assets held 1630
jointly with a spouse, of more than one million five hundred 1631
thousand dollars. 1632

       (b) The person is a qualified purchaser as defined in 1633
division (FF) of this section. 1634

       (3) Immediately prior to entering into an investment advisory 1635
contract with the investment adviser, the person is either of the 1636
following: 1637

       (a) An executive officer, director, trustee, general partner, 1638
or person serving in a similar capacity, of the investment 1639
adviser; 1640

       (b) An employee of the investment adviser, other than an 1641
employee performing solely clerical, secretarial, or 1642
administrative functions or duties for the investment adviser, 1643
which employee, in connection with the employee's regular 1644
functions or duties, participates in the investment activities of 1645
the investment adviser, provided that, for at least twelve months, 1646
the employee has been performing such nonclerical, nonsecretarial, 1647
or nonadministrative functions or duties for or on behalf of the 1648
investment adviser or performing substantially similar functions 1649
or duties for or on behalf of another company. 1650

       If subsequent to March 18, 1999, amendments are enacted or 1651
adopted defining "excepted person" for purposes of the Investment 1652
Advisers Act of 1940 or additional rules or regulations are 1653
promulgated by the securities and exchange commission regarding 1654
the definition of "excepted person" for purposes of the Investment 1655
Advisers Act of 1940, the division of securities shall, by rule, 1656
adopt the substance of the amendments, rules, or regulations, 1657
unless the division finds that the amendments, rules, or 1658
regulations are not necessary for the protection of investors or 1659
in the public interest. 1660

       (FF)(1) "Qualified purchaser" means either of the following: 1661

       (a) A natural person who owns not less than five million 1662
dollars in investments as defined by rule by the division of 1663
securities; 1664

       (b) A natural person, acting for the person's own account or 1665
accounts of other qualified purchasers, who in the aggregate owns 1666
and invests on a discretionary basis, not less than twenty-five 1667
million dollars in investments as defined by rule by the division 1668
of securities. 1669

       (2) If subsequent to March 18, 1999, amendments are enacted 1670
or adopted defining "qualified purchaser" for purposes of the 1671
Investment Advisers Act of 1940 or additional rules or regulations 1672
are promulgated by the securities and exchange commission 1673
regarding the definition of "qualified purchaser" for purposes of 1674
the Investment Advisers Act of 1940, the division of securities 1675
shall, by rule, adopt the amendments, rules, or regulations, 1676
unless the division finds that the amendments, rules, or 1677
regulations are not necessary for the protection of investors or 1678
in the public interest. 1679

       (GG)(1) "Purchase" has the full meaning of "purchase" as 1680
applied by or accepted in courts of law or equity and includes 1681
every acquisition of, or attempt to acquire, a security or an 1682
interest in a security. "Purchase" also includes a contract to 1683
purchase, an exchange, an attempt to purchase, an option to 1684
purchase, a solicitation of a purchase, a solicitation of an offer 1685
to sell, a subscription, or an offer to purchase, directly or 1686
indirectly, by agent, circular, pamphlet, advertisement, or 1687
otherwise. 1688

       (2) "Purchase" means any act by which a purchase is made. 1689

       (3) Any security given with, or as a bonus on account of, any 1690
purchase of securities is conclusively presumed to constitute a 1691
part of the subject of that purchase. 1692

       (HH) "Life settlement interest" means the entire interest or 1693
any fractional interest in an insurance policy or certificate of 1694
insurance, or in an insurance benefit under such a policy or 1695
certificate, that is the subject of a life settlement contract. 1696

       For purposes of this division, "life settlement contract" 1697
means an agreement for the purchase, sale, assignment, transfer, 1698
devise, or bequest of any portion of the death benefit or 1699
ownership of any life insurance policy or contract, in return for 1700
consideration or any other thing of value that is less than the 1701
expected death benefit of the life insurance policy or contract. 1702
"Life settlement contract" includes a viatical settlement contract 1703
as defined in section 3916.01 of the Revised Code, but does not 1704
include any of the following: 1705

       (1) A loan by an insurer under the terms of a life insurance 1706
policy, including, but not limited to, a loan secured by the cash 1707
value of the policy; 1708

       (2) An agreement with a bank that takes an assignment of a 1709
life insurance policy as collateral for a loan; 1710

       (3) The provision of accelerated benefits as defined in 1711
section 3915.21 of the Revised Code; 1712

       (4) Any agreement between an insurer and a reinsurer; 1713

       (5) An agreement by an individual to purchase an existing 1714
life insurance policy or contract from the original owner of the 1715
policy or contract, if the individual does not enter into more 1716
than one life settlement contract per calendar year; 1717

       (6) The initial purchase of an insurance policy or 1718
certificate of insurance from its owner by a viatical settlement 1719
provider, as defined in section 3916.01 of the Revised Code, that 1720
is licensed under Chapter 3916. of the Revised Code. 1721

       (II) "State retirement system" means the public employees 1722
retirement system, Ohio police and fire pension fund, state 1723
teachers retirement system, school employees retirement system, 1724
and state highway patrol retirement system. 1725

        (JJ) "State retirement system investment officer" means an 1726
individual employed by a state retirement system as a chief 1727
investment officer, assistant investment officer, or the person in 1728
charge of a class of assets or in a position that is substantially 1729
equivalent to chief investment officer, assistant investment 1730
officer, or person in charge of a class of assets. 1731

       (KK) "Bureau of workers' compensation chief investment 1732
officer" means an individual employed by the ~~bureau~~administrator 1733
of workers' compensation as a chief investment officer or in a 1734
position that is substantially equivalent to a chief investment 1735
officer. 1736

       Sec. 3345.12. (A) As used in this section and sections 1737
3345.07 and 3345.11 of the Revised Code, in other sections of the 1738
Revised Code that make reference to this section unless the 1739
context does not permit, and in related bond proceedings unless 1740
otherwise expressly provided: 1741

       (1) "State university or college" means each of the state 1742
universities identified in section 3345.011 of the Revised Code 1743
and the northeastern Ohio universities college of medicine, and 1744
includes its board of trustees. 1745

       (2) "Institution of higher education" or "institution" means 1746
a state university or college, or a community college district, 1747
technical college district, university branch district, or state 1748
community college, and includes the applicable board of trustees 1749
or, in the case of a university branch district, any other 1750
managing authority. 1751

       (3) "Housing and dining facilities" means buildings, 1752
structures, and other improvements, and equipment, real estate, 1753
and interests in real estate therefor, to be used for or in 1754
connection with dormitories or other living quarters and 1755
accommodations, or related dining halls or other food service and 1756
preparation facilities, for students, members of the faculty, 1757
officers, or employees of the institution of higher education, and 1758
their spouses and families. 1759

       (4) "Auxiliary facilities" means buildings, structures, and 1760
other improvements, and equipment, real estate, and interests in 1761
real estate therefor, to be used for or in connection with student 1762
activity or student service facilities, housing and dining 1763
facilities, dining halls, and other food service and preparation 1764
facilities, vehicular parking facilities, bookstores, athletic and 1765
recreational facilities, faculty centers, auditoriums, assembly 1766
and exhibition halls, hospitals, infirmaries and other medical and 1767
health facilities, research, and continuing education facilities. 1768

       (5) "Education facilities" means buildings, structures, and 1769
other improvements, and equipment, real estate, and interests in 1770
real estate therefor, to be used for or in connection with, 1771
classrooms or other instructional facilities, libraries, 1772
administrative and office facilities, and other facilities, other 1773
than auxiliary facilities, to be used directly or indirectly for 1774
or in connection with the conduct of the institution of higher 1775
education. 1776

       (6) "Facilities" means housing and dining facilities, 1777
auxiliary facilities, or education facilities, and includes any 1778
one, part of, or any combination of such facilities, and further 1779
includes site improvements, utilities, machinery, furnishings, and 1780
any separate or connected buildings, structures, improvements, 1781
sites, open space and green space areas, utilities or equipment to 1782
be used in, or in connection with the operation or maintenance of, 1783
or supplementing or otherwise related to the services or 1784
facilities to be provided by, such facilities. 1785

       (7) "Obligations" means bonds or notes or other evidences of 1786
obligation, including interest coupons pertaining thereto, 1787
authorized to be issued under this section or section 3345.07, 1788
3345.11, 3354.121, 3355.091, 3357.112, or 3358.10 of the Revised 1789
Code. 1790

       (8) "Bond service charges" means principal, including any 1791
mandatory sinking fund or redemption requirements for the 1792
retirement of obligations, interest, or interest equivalent and 1793
other accreted amounts, and any call premium required to be paid 1794
on obligations. 1795

       (9) "Bond proceedings" means the resolutions, trust 1796
agreement, indenture, and other agreements and credit enhancement 1797
facilities, and amendments and supplements to the foregoing, or 1798
any one or more or combination thereof, authorizing, awarding, or 1799
providing for the terms and conditions applicable to, or providing 1800
for the security or liquidity of, obligations, and the provisions 1801
contained in those obligations. 1802

       (10) "Costs of facilities" means the costs of acquiring, 1803
constructing, reconstructing, rehabilitating, remodeling, 1804
renovating, enlarging, improving, equipping, or furnishing 1805
facilities, and the financing thereof, including the cost of 1806
clearance and preparation of the site and of any land to be used 1807
in connection with facilities, the cost of any indemnity and 1808
surety bonds and premiums on insurance, all related direct 1809
administrative expenses and allocable portions of direct costs of 1810
the institution of higher education or state agency, cost of 1811
engineering, architectural services, design, plans, specifications 1812
and surveys, estimates of cost, legal fees, fees and expenses of 1813
trustees, depositories, bond registrars, and paying agents for the 1814
obligations, cost of issuance of the obligations and financing 1815
costs and fees and expenses of financial advisers and consultants 1816
in connection therewith, interest on the obligations from the date 1817
thereof to the time when interest is to be covered by available 1818
receipts or other sources other than proceeds of the obligations, 1819
amounts necessary to establish reserves as required by the bond 1820
proceedings, costs of audits, the reimbursements of all moneys 1821
advanced or applied by or borrowed from the institution or others, 1822
from whatever source provided, including any temporary advances 1823
from state appropriations, for the payment of any item or items of 1824
cost of facilities, and all other expenses necessary or incident 1825
to planning or determining feasibility or practicability with 1826
respect to facilities, and such other expenses as may be necessary 1827
or incident to the acquisition, construction, reconstruction, 1828
rehabilitation, remodeling, renovation, enlargement, improvement, 1829
equipment, and furnishing of facilities, the financing thereof and 1830
the placing of them in use and operation, including any one, part 1831
of, or combination of such classes of costs and expenses. 1832

       (11) "Available receipts" means all moneys received by the 1833
institution of higher education, including income, revenues, and 1834
receipts from the operation, ownership, or control of facilities, 1835
grants, gifts, donations, and pledges and receipts therefrom, 1836
receipts from fees and charges, and the proceeds of the sale of 1837
obligations, including proceeds of obligations issued to refund 1838
obligations previously issued, but excluding any special fee, and 1839
receipts therefrom, charged pursuant to division (D) of section 1840
154.21 of the Revised Code. 1841

       (12) "Credit enhancement facilities" has the meaning given in 1842
division (H) of section 133.01 of the Revised Code. 1843

       (13) "Financing costs" has the meaning given in division (K) 1844
of section 133.01 of the Revised Code. 1845

       (14) "Interest" or "interest equivalent" has the meaning 1846
given in division (R) of section 133.01 of the Revised Code. 1847

       (B) Obligations issued under section 3345.07 or 3345.11 of 1848
the Revised Code by a state university or college shall be 1849
authorized by resolution of its board of trustees. Obligations 1850
issued by any other institution of higher education shall be 1851
authorized by resolution of its board of trustees, or managing 1852
directors in the case of certain university branch districts, as 1853
applicable. Sections 9.96 and 9.98 to 9.983 of the Revised Code 1854
apply to obligations. Obligations may be issued to pay costs of 1855
facilities even if the institution anticipates the possibility of 1856
a future state appropriation to pay all or a portion of such 1857
costs. 1858

       (C) Obligations shall be secured by a pledge of and lien on 1859
all or such part of the available receipts of the institution of 1860
higher education as it provides for in the bond proceedings, 1861
excluding moneys raised by taxation and state appropriations. Such 1862
pledge and lien may be made prior to all other expenses, claims, 1863
or payments, excepting any pledge of such available receipts 1864
previously made to the contrary and except as provided by any 1865
existing restrictions on the use thereof, or such pledge and lien 1866
may be made subordinate to such other expenses, claims, or 1867
payments, as provided in the bond proceedings. Obligations may be 1868
additionally secured by covenants of the institution to make, fix, 1869
adjust, collect, and apply such charges, rates, fees, rentals, and 1870
other items of available receipts as will produce pledged 1871
available receipts sufficient to meet bond service charges, 1872
reserve, and other requirements provided for in the bond 1873
proceedings. Notwithstanding this and any other sections of the 1874
Revised Code, the holders or owners of the obligations shall not 1875
be given the right and shall have no right to have excises or 1876
taxes levied by the general assembly for the payment of bond 1877
service charges thereon, and each such obligation shall bear on 1878
its face a statement to that effect and to the effect that the 1879
right to such payment is limited to the available receipts and 1880
special funds pledged to such purpose under the bond proceedings. 1881

       All pledged available receipts and funds and the proceeds of 1882
obligations are trust funds and, subject to the provisions of this 1883
section and the applicable bond proceedings, shall be held, 1884
deposited, invested, reinvested, disbursed, applied, and used to 1885
such extent, in such manner, at such times, and for such purposes, 1886
as are provided in the bond proceedings. 1887

       (D) The bond proceedings for obligations shall provide for 1888
the purpose thereof and the principal amount or maximum principal 1889
amount, and provide for or authorize the manner of determining the 1890
principal maturity or maturities, the sale price including any 1891
permitted discount, the interest rate or rates, which may be a 1892
variable rate or rates, or the maximum interest rate, the date of 1893
the obligations and the date or dates of payment of interest 1894
thereon, their denominations, the manner of sale thereof, and the 1895
establishment within or without the state of a place or places of 1896
payment of bond service charges. The bond proceedings also shall 1897
provide for a pledge of and lien on available receipts of the 1898
institution of higher education as provided in division (C) of 1899
this section, and a pledge of and lien on such fund or funds 1900
provided in the bond proceedings arising from available receipts, 1901
which pledges and liens may provide for parity with obligations 1902
theretofore or thereafter issued by the institution. The available 1903
receipts so pledged and thereafter received by the institution and 1904
the funds so pledged are immediately subject to the lien of such 1905
pledge without any physical delivery thereof or further act, and 1906
the lien of any such pledge is valid and binding against all 1907
parties having claims of any kind against the institution, 1908
irrespective of whether such parties have notice thereof, and 1909
shall create a perfected security interest for all purposes of 1910
Chapter 1309. of the Revised Code, without the necessity for 1911
separation or delivery of funds or for the filing or recording of 1912
the bond proceedings by which such pledge is created or any 1913
certificate, statement, or other document with respect thereto; 1914
and the pledge of such available receipts and funds shall be 1915
effective and the money therefrom and thereof may be applied to 1916
the purposes for which pledged without necessity for any act of 1917
appropriation. 1918

       (E) The bond proceedings may contain additional provisions 1919
customary or appropriate to the financing or to the obligations or 1920
to particular obligations, including: 1921

       (1) The acquisition, construction, reconstruction, equipment, 1922
furnishing, improvement, operation, alteration, enlargement, 1923
maintenance, insurance, and repair of facilities, and the duties 1924
of the institution of higher education with reference thereto; 1925

       (2) The terms of the obligations, including provisions for 1926
their redemption prior to maturity at the option of the 1927
institution of higher education at such price or prices and under 1928
such terms and conditions as are provided in the bond proceedings; 1929

       (3) Limitations on the purposes to which the proceeds of the 1930
obligations may be applied; 1931

       (4) The rates or rentals or other charges for the use of or 1932
right to use the facilities financed by the obligations, or other 1933
properties the revenues or receipts from which are pledged to the 1934
obligations, and rules for assuring use and occupancy thereof, 1935
including limitations upon the right to modify such rates, 1936
rentals, other charges, or regulations; 1937

       (5) The use and expenditure of the pledged available receipts 1938
in such manner and to such extent as shall be determined, which 1939
may include provision for the payment of the expenses of 1940
operation, maintenance, and repair of facilities so that such 1941
expenses, or part thereof, shall be paid or provided as a charge 1942
prior or subsequent to the payment of bond service charges and any 1943
other payments required to be made by the bond proceedings; 1944

       (6) Limitations on the issuance of additional obligations; 1945

       (7) The terms of any trust agreement or indenture securing 1946
the obligations or under which the same may be issued; 1947

       (8) The deposit, investment, and application of funds, and 1948
the safeguarding of funds on hand or on deposit without regard to 1949
Chapter 131. or 135. of the Revised Code, and any bank or trust 1950
company or other financial institution that acts as depository of 1951
any moneys under the bond proceedings shall furnish such 1952
indemnifying bonds or pledge such securities as required by the 1953
bond proceedings or otherwise by the institution of higher 1954
education; 1955

       (9) The binding effect of any or every provision of the bond 1956
proceedings upon such officer, board, commission, authority, 1957
agency, department, or other person or body as may from time to 1958
time have the authority under law to take such actions as may be 1959
necessary to perform all or any part of the duty required by such 1960
provision; 1961

       (10) Any provision that may be made in a trust agreement or 1962
indenture; 1963

       (11) Any other or additional agreements with respect to the 1964
facilities of the institution of higher education, their 1965
operation, the available receipts and funds pledged, and insurance 1966
of facilities and of the institution, its officers and employees. 1967

       (F) Such obligations may have the seal of the institution of 1968
higher education or a facsimile thereof affixed thereto or printed 1969
thereon and shall be executed by such officers as are designated 1970
in the bond proceedings, which execution may be by facsimile 1971
signatures. Any obligations may be executed by an officer who, on 1972
the date of execution, is the proper officer although on the date 1973
of such obligations such person was not the proper officer. In 1974
case any officer whose signature or a facsimile of whose signature 1975
appears on any such obligation ceases to be such officer before 1976
delivery thereof, such signature or facsimile is nevertheless 1977
valid and sufficient for all purposes as if the person had 1978
remained such officer until such delivery; and in case the seal of 1979
the institution has been changed after a facsimile of the seal has 1980
been imprinted on such obligations, such facsimile seal continues 1981
to be sufficient as to such obligations and obligations issued in 1982
substitution or exchange therefor. 1983

       (G) All such obligations are negotiable instruments and 1984
securities under Chapter 1308. of the Revised Code, subject to the 1985
provisions of the bond proceedings as to registration. The 1986
obligations may be issued in coupon or in registered form, or 1987
both. Provision may be made for the registration of any 1988
obligations with coupons attached thereto as to principal alone or 1989
as to both principal and interest, their exchange for obligations 1990
so registered, and for the conversion or reconversion into 1991
obligations with coupons attached thereto of any obligations 1992
registered as to both principal and interest, and for reasonable 1993
charges for such registration, exchange, conversion, and 1994
reconversion. 1995

       (H) Pending preparation of definitive obligations, the 1996
institution of higher education may issue interim receipts or 1997
certificates which shall be exchanged for such definitive 1998
obligations. 1999

       (I) Such obligations may be secured additionally by a trust 2000
agreement or indenture between the institution of higher education 2001
and a corporate trustee, which may be any trust company or bank 2002
having the powers of a trust company within or without this state 2003
but authorized to exercise trust powers within this state. Any 2004
such agreement or indenture may contain the resolution authorizing 2005
the issuance of the obligations, any provisions that may be 2006
contained in the bond proceedings as authorized by this section, 2007
and other provisions which are customary or appropriate in an 2008
agreement or indenture of such type, including: 2009

       (1) Maintenance of each pledge, trust agreement, and 2010
indenture, or other instrument comprising part of the bond 2011
proceedings until the institution of higher education has fully 2012
paid the bond service charges on the obligations secured thereby, 2013
or provision therefor has been made; 2014

       (2) In the event of default in any payments required to be 2015
made by the bond proceedings, or any other agreement of the 2016
institution of higher education made as a part of the contract 2017
under which the obligations were issued, enforcement of such 2018
payments or agreement by mandamus, the appointment of a receiver, 2019
suit in equity, action at law, or any combination of the 2020
foregoing; 2021

       (3) The rights and remedies of the holders of obligations and 2022
of the trustee, and provisions for protecting and enforcing them, 2023
including limitations on rights of individual holders of 2024
obligations; 2025

       (4) The replacement of any obligations that become mutilated 2026
or are destroyed, lost, or stolen; 2027

       (5) Such other provisions as the trustee and the institution 2028
of higher education agree upon, including limitations, conditions, 2029
or qualifications relating to any of the foregoing. 2030

       (J) Each duty of the institution of higher education and its 2031
officers or employees, undertaken pursuant to the bond proceedings 2032
or any related agreement or lease made under authority of law, is 2033
hereby established as a duty of such institution, and of each such 2034
officer or employee having authority to perform such duty, 2035
specially enjoined by law resulting from an office, trust, or 2036
station within the meaning of section 2731.01 of the Revised Code. 2037
The persons who are at the time the members of the board of 2038
trustees or the managing directors of the institution or its 2039
officers or employees are not liable in their personal capacities 2040
on such obligations, or lease, or other agreement of the 2041
institution. 2042

       (K) The authority to issue obligations includes authority to: 2043

       (1) Issue obligations in the form of bond anticipation notes 2044
and to renew them from time to time by the issuance of new notes. 2045
Such notes are payable solely from the available receipts and 2046
funds that may be pledged to the payment of such bonds, or from 2047
the proceeds of such bonds or renewal notes, or both, as the 2048
institution of higher education provides in its resolution 2049
authorizing such notes. Such notes may be additionally secured by 2050
covenants of the institution to the effect that it will do such or 2051
all things necessary for the issuance of such bonds or renewal 2052
notes in appropriate amount, and either exchange such bonds or 2053
renewal notes therefor or apply the proceeds thereof to the extent 2054
necessary, to make full payment of the bond service charges on 2055
such notes at the time or times contemplated, as provided in such 2056
resolution. Subject to the provisions of this division, all 2057
references to obligations in this section apply to such 2058
anticipation notes. 2059

       (2) Issue obligations to refund, including funding and 2060
retirement of, obligations previously issued to pay costs of 2061
facilities. Such obligations may be issued in amounts sufficient 2062
for payment of the principal amount of the obligations to be so 2063
refunded, any redemption premiums thereon, principal maturities of 2064
any obligations maturing prior to the redemption of any other 2065
obligations on a parity therewith to be so refunded, interest 2066
accrued or to accrue to the maturity date or dates of redemption 2067
of such obligations, and any expenses incurred or to be incurred 2068
in connection with such refunding or the issuance of the 2069
obligations. 2070

       (L) Obligations are lawful investments for banks, societies 2071
for savings, savings and loan associations, deposit guarantee 2072
associations, trust companies, trustees, fiduciaries, insurance 2073
companies, including domestic for life and domestic not for life, 2074
trustees or other officers having charge of sinking and bond 2075
retirement or other special funds of political subdivisions and 2076
taxing districts of this state, the commissioners of the sinking 2077
fund, the administrator of workers' compensation in accordance 2078
with the investment policy ~~established~~approved by the bureau of 2079
workers' compensation ~~oversight commission~~board of directors 2080
pursuant to section 4121.12 of the Revised Code, the state 2081
teachers retirement system, the public employees retirement 2082
system, the school employees retirement system, and the Ohio 2083
police and fire pension fund, notwithstanding any other provisions 2084
of the Revised Code or rules adopted pursuant thereto by any state 2085
agency with respect to investments by them, and are also 2086
acceptable as security for the deposit of public moneys. 2087

       (M) All facilities purchased, acquired, constructed, or owned 2088
by an institution of higher education, or financed in whole or in 2089
part by obligations issued by an institution, and used for the 2090
purposes of the institution or other publicly owned and controlled 2091
college or university, is public property used exclusively for a 2092
public purpose, and such property and the income therefrom is 2093
exempt from all taxation and assessment within this state, 2094
including ad valorem and excise taxes. The obligations, the 2095
transfer thereof, and the income therefrom, including any profit 2096
made on the sale thereof, are at all times free from taxation 2097
within the state. The transfer of tangible personal property by 2098
lease under authority of this section or section 3345.07, 3345.11, 2099
3354.121, 3355.091, 3357.112, or 3358.10 of the Revised Code is 2100
not a sale as used in Chapter 5739. of the Revised Code. 2101

       (N) The authority granted by this section is cumulative with 2102
the authority granted to institutions of higher education under 2103
Chapter 154. of the Revised Code, and nothing in this section 2104
impairs or limits the authority granted by Chapter 154. of the 2105
Revised Code. In any lease, agreement, or commitment made by an 2106
institution of higher education under Chapter 154. of the Revised 2107
Code, it may agree to restrict or subordinate any pledge it may 2108
thereafter make under authority of this section. 2109

       (O) Title to lands acquired under this section and sections 2110
3345.07 and 3345.11 of the Revised Code by a state university or 2111
college shall be taken in the name of the state. 2112

       (P) Except where costs of facilities are to be paid in whole 2113
or in part from funds appropriated by the general assembly, 2114
section 125.81 of the Revised Code and the requirement for 2115
certification with respect thereto under section 153.04 of the 2116
Revised Code do not apply to such facilities. 2117

       (Q) A state university or college may sell or lease lands or 2118
interests in land owned by it or by the state for its use, or 2119
facilities authorized to be acquired or constructed by it under 2120
section 3345.07 or 3345.11 of the Revised Code, to permit the 2121
purchasers or lessees thereof to acquire, construct, equip, 2122
furnish, reconstruct, alter, enlarge, remodel, renovate, 2123
rehabilitate, improve, maintain, repair, or maintain and operate 2124
thereon and to provide by lease or otherwise to such institution, 2125
facilities authorized in section 3345.07 or 3345.11 of the Revised 2126
Code. Such land or interests therein shall be sold for such 2127
appraised value, or leased, and on such terms as the board of 2128
trustees determines. All deeds or other instruments relating to 2129
such sales or leases shall be executed by such officer of the 2130
state university or college as the board of trustees designates. 2131
The state university or college shall hold, invest, or use the 2132
proceeds of such sales or leases for the same purposes for which 2133
proceeds of borrowings may be used under sections 3345.07 and 2134
3345.11 of the Revised Code. 2135

       (R) An institution of higher education may pledge available 2136
receipts, to the extent permitted by division (C) of this section 2137
with respect to obligations, to secure the payments to be made by 2138
it under any lease, lease with option to purchase, or 2139
lease-purchase agreement authorized under this section or section 2140
3345.07, 3345.11, 3354.121, 3355.091, 3357.112, or 3358.10 of the 2141
Revised Code. 2142

       Sec. 4121.01. (A) As used in sections 4121.01 to 4121.29 of 2143
the Revised Code: 2144

       (1) "Place of employment" means every place, whether indoors 2145
or out, or underground, and the premises appurtenant thereto, 2146
where either temporarily or permanently any industry, trade, or 2147
business is carried on, or where any process or operation, 2148
directly or indirectly related to any industry, trade, or 2149
business, is carried on and where any person is directly or 2150
indirectly employed by another for direct or indirect gain or 2151
profit, but does not include any place where persons are employed 2152
in private domestic service or agricultural pursuits which do not 2153
involve the use of mechanical power. 2154

       (2) "Employment" means any trade, occupation, or process of 2155
manufacture or any method of carrying on such trade, occupation, 2156
or process of manufacture in which any person may be engaged, 2157
except in such private domestic service or agricultural pursuits 2158
as do not involve the use of mechanical power. 2159

       (3) "Employer" means every person, firm, corporation, agent, 2160
manager, representative, or other person having control or custody 2161
of any employment, place of employment, or employee. 2162

       (4) "Employee" means every person who may be required or 2163
directed by any employer, in consideration of direct or indirect 2164
gain or profit, to engage in any employment, or to go, or work, or 2165
be at any time in any place of employment. 2166

       (5) "Frequenter" means every person, other than an employee, 2167
who may go in or be in a place of employment under circumstances 2168
which render the person other than a trespasser. 2169

       (6) "Deputy" means any person employed by the industrial 2170
commission or the bureau of workers' compensation, designated as a 2171
deputy by the commission or the administrator of workers' 2172
compensation, who possesses special, technical, scientific, 2173
managerial, professional, or personal abilities or qualities in 2174
matters within the jurisdiction of the commission or the bureau, 2175
and who may be engaged in the performance of duties under the 2176
direction of the commission or the bureau calling for the exercise 2177
of such abilities or qualities. 2178

       (7) "Order" means any decision, rule, regulation, direction, 2179
requirement, or standard, or any other determination or decision 2180
that the bureau is empowered to and does make. 2181

       (8) "General order" means an order that applies generally 2182
throughout the state to all persons, employments, or places of 2183
employment, or all persons, employments, or places of employment 2184
of a class under the jurisdiction of the bureau. All other orders 2185
shall be considered special orders. 2186

       (9) "Local order" means any ordinance, order, rule, or 2187
determination of the legislative authority of any municipal 2188
corporation, or any trustees, or board or officers of any 2189
municipal corporation upon any matter over which the bureau has 2190
jurisdiction. 2191

       (10) "Welfare" means comfort, decency, and moral well-being. 2192

       (11) "Safe" or "safety," as applied to any employment or a 2193
place of employment, means such freedom from danger to the life, 2194
health, safety, or welfare of employees or frequenters as the 2195
nature of the employment will reasonably permit, including 2196
requirements as to the hours of labor with relation to the health 2197
and welfare of employees. 2198

       (12) "Employee organization" means any labor or bona fide 2199
organization in which employees participate and that exists for 2200
the purpose, in whole or in part, of dealing with employers 2201
concerning grievances, labor disputes, wages, hours, terms, and 2202
other conditions of employment. 2203

       (B) As used in the Revised Code: 2204

       (1) "Industrial commission" means the chairperson of the 2205
three-member industrial commission created pursuant to section 2206
4121.02 of the Revised Code when the context refers to the 2207
authority vested in the chairperson as the chief executive officer 2208
of the three-member industrial commission pursuant to divisions 2209
(A), (B), (C), and (D) of section 4121.03 of the Revised Code. 2210

       (2) "Industrial commission" means the three-member industrial 2211
commission created pursuant to section 4121.02 of the Revised Code 2212
when the context refers to the authority vested in the 2213
three-member industrial commission pursuant to division (E) of 2214
section 4121.03 of the Revised Code. 2215

       (3) "Industrial commission" means the industrial commission 2216
as a state agency when the context refers to the authority vested 2217
in the industrial commission as a state agency. 2218

       Sec. 4121.03. (A) The governor shall appoint from among the 2219
members of the industrial commission the chairperson of the 2220
industrial commission. The chairperson shall serve as chairperson 2221
at the pleasure of the governor. The chairperson is the head of 2222
the commission and its chief executive officer. 2223

       (B) The chairperson shall appoint, after consultation with 2224
other commission members and obtaining the approval of at least 2225
one other commission member, an executive director of the 2226
commission. The executive director shall serve at the pleasure of 2227
the chairperson. The executive director, under the direction of 2228
the chairperson, shall perform all of the following duties: 2229

       (1) Act as chief administrative officer for the commission; 2230

       (2) Ensure that all commission personnel follow the rules of 2231
the commission; 2232

       (3) Ensure that all orders, awards, and determinations are 2233
properly heard and signed, prior to attesting to the documents; 2234

       (4) Coordinate, to the fullest extent possible, commission 2235
activities with the bureau of workers' compensation activities; 2236

       (5) Do all things necessary for the efficient and effective 2237
implementation of the duties of the commission. 2238

       The responsibilities assigned to the executive director of 2239
the commission do not relieve the chairperson from final 2240
responsibility for the proper performance of the acts specified in 2241
this division. 2242

       (C) The chairperson shall do all of the following: 2243

       (1) Except as otherwise provided in this division, employ, 2244
promote, supervise, remove, and establish the compensation of all 2245
employees as needed in connection with the performance of the 2246
commission's duties under this chapter and Chapters 4123., 4127., 2247
and 4131. of the Revised Code and may assign to them their duties 2248
to the extent necessary to achieve the most efficient performance 2249
of its functions, and to that end may establish, change, or 2250
abolish positions, and assign and reassign duties and 2251
responsibilities of every employee of the commission. The civil 2252
service status of any person employed by the commission prior to 2253
November 3, 1989, is not affected by this section. Personnel 2254
employed by the bureau or the commission who are subject to 2255
Chapter 4117. of the Revised Code shall retain all of their rights 2256
and benefits conferred pursuant to that chapter as it presently 2257
exists or is hereafter amended and nothing in this chapter or 2258
Chapter 4123. of the Revised Code shall be construed as 2259
eliminating or interfering with Chapter 4117. of the Revised Code 2260
or the rights and benefits conferred under that chapter to public 2261
employees or to any bargaining unit. 2262

       (2) Hire district and staff hearing officers after 2263
consultation with other commission members and obtaining the 2264
approval of at least one other commission member; 2265

       (3) Fire staff and district hearing officers when the 2266
chairperson finds appropriate after obtaining the approval of at 2267
least one other commission member; 2268

       (4) Maintain the office for the commission in Columbus; 2269

       (5) To the maximum extent possible, use electronic data 2270
processing equipment for the issuance of orders immediately 2271
following a hearing, scheduling of hearings and medical 2272
examinations, tracking of claims, retrieval of information, and 2273
any other matter within the commission's jurisdiction, and shall 2274
provide and input information into the electronic data processing 2275
equipment as necessary to effect the success of the claims 2276
tracking system established pursuant to division (B)(15) of 2277
section 4121.121 of the Revised Code; 2278

       (6) Exercise all administrative and nonadjudicatory powers 2279
and duties conferred upon the commission by Chapters 4121., 4123., 2280
4127., and 4131. of the Revised Code; 2281

       (7) Approve all contracts for special services. 2282

       (D) The chairperson is responsible for all administrative 2283
matters and may secure for the commission facilities, equipment, 2284
and supplies necessary to house the commission, any employees, and 2285
files and records under the commission's control and to discharge 2286
any duty imposed upon the commission by law, the expense thereof 2287
to be audited and paid in the same manner as other state expenses. 2288
For that purpose, the chairperson, separately from the budget 2289
prepared by the administrator of workers' compensation, shall 2290
prepare and submit to the office of budget and management a budget 2291
for each biennium according to sections 101.532 and 107.03 of the 2292
Revised Code. The budget submitted shall cover the costs of the 2293
commission and staff and district hearing officers in the 2294
discharge of any duty imposed upon the chairperson, the 2295
commission, and hearing officers by law. 2296

       (E) A majority of the commission constitutes a quorum to 2297
transact business. No vacancy impairs the rights of the remaining 2298
members to exercise all of the powers of the commission, so long 2299
as a majority remains. Any investigation, inquiry, or hearing that 2300
the commission may hold or undertake may be held or undertaken by 2301
or before any one member of the commission, or before one of the 2302
deputies of the commission, except as otherwise provided in this 2303
chapter and Chapters 4123., 4127., and 4131. of the Revised Code. 2304
Every order made by a member, or by a deputy, when approved and 2305
confirmed by a majority of the members, and so shown on its record 2306
of proceedings, is the order of the commission. The commission may 2307
hold sessions at any place within the state. The commission is 2308
responsible for all of the following: 2309

       (1) Establishing the overall adjudicatory policy and 2310
management of the commission under this chapter and Chapters 2311
4123., 4127., and 4131. of the Revised Code, except for those 2312
administrative matters within the jurisdiction of the chairperson, 2313
bureau of workers' compensation, and the administrator of workers' 2314
compensation under those chapters; 2315

       (2) Hearing appeals and reconsiderations under this chapter 2316
and ~~chapters~~Chapters 4123., 4127., and 4131. of the Revised Code; 2317

       (3) Engaging in rulemaking where required by this chapter or 2318
Chapter 4123., 4127., or 4131. of the Revised Code, adopting all 2319
of those rules, except those rules concerning adjudicatory 2320
matters, in accordance with Chapter 119. of the Revised Code, and, 2321
at the time the commission submits any proposed rules to the joint 2322
committee on agency rule review, submitting a copy of those 2323
proposed rules to the workers' compensation council for its review 2324
of the rules under section 4121.79 of the Revised Code. 2325

       Sec. 4121.12. (A) There is hereby created the bureau of 2326
workers' compensation ~~oversight commission~~board of directors 2327
consisting of eleven members~~, of which members~~to be appointed by 2328
the governor ~~shall appoint five~~ with the advice and consent of the 2329
senate. ~~Of the five members the governor appoints,~~ ~~two~~One member 2330
shall be ~~individuals~~an individual who, on account of ~~their~~the 2331
individual's previous vocation, employment, or affiliations, can 2332
be classed as a representative of employees~~, at least one of whom~~ 2333
~~is representative of employees who are members of an~~; two members 2334
shall be individuals who, on account of their previous vocation, 2335
employment, or affiliations, can be classed as representatives of 2336
employee ~~organization~~organizations and at least one of these two 2337
individuals shall be a member of the executive committee of the 2338
largest statewide labor federation; ~~two~~three members shall be 2339
individuals who, on account of their previous vocation, 2340
employment, or affiliations, can be classed as ~~representative~~ 2341
representatives of employers, one of whom represents self-insuring 2342
employers ~~and~~, one of whom ~~has experience as an employer in~~ 2343
~~compliance with section 4123.35 of the Revised Code other than a~~ 2344
~~self-insuring employer~~is a state fund employer who employs one 2345
hundred or more employees, and one of ~~those two representatives~~ 2346
~~also shall represent employers whose employees are not members of~~ 2347
~~an employee organization~~whom is a state fund employer who employs 2348
less than one hundred employees; two members shall be individuals 2349
who, on account of their vocation, employment, or affiliations, 2350
can be classed as investment and securities experts who have 2351
direct experience in the management, analysis, supervision, or 2352
investment of assets, have experience with state workers' 2353
compensation funds or state pension funds, and are residents of 2354
this state; one member who shall be a certified public accountant; 2355
one member who shall be an actuary who is a member in good 2356
standing with the American academy of actuaries or who is an 2357
associate or fellow with the society of actuaries; and one member 2358
shall represent the public and also be an individual who, on 2359
~~account of~~prior to the individual's ~~previous vocation,~~ 2360
~~employment, or affiliations, cannot be classed as either~~ 2361
~~predominantly representative of employees or of employers~~ 2362
appointment, has received compensation or benefits under this 2363
chapter or Chapter 4123., 4127., or 4131. of the Revised Code. The 2364
governor shall select the chairperson of the ~~commission~~board who 2365
shall serve as chairperson at the pleasure of the governor. No 2366
~~more than three members appointed by the governor shall belong to~~ 2367
~~or be affiliated with the same political party.~~ 2368

       ~~Each~~None of ~~these five~~the members of the board, within one 2369
year immediately preceding the member's appointment, shall have at 2370
~~least three years' experience in the field of insurance, finance,~~ 2371
been employed by the bureau of workers' compensation~~, law,~~ 2372
~~accounting, actuarial, personnel, investments, or data processing,~~ 2373
or ~~in the management of an organization whose size is commensurate~~ 2374
~~with that of the bureau of workers' compensation. At least one of~~ 2375
~~these five members shall be an attorney licensed under Chapter~~ 2376
~~4705. of the Revised Code to practice law in this state~~by any 2377
person, partnership, or corporation that has provided to the 2378
bureau services of a financial or investment nature, including the 2379
management, analysis, supervision, or investment of assets. 2380

       (B) The governor shall appoint the initial members to the 2381
board not later than sixty days after the effective date of this 2382
amendment. Of the initial appointments made to the ~~commission~~ 2383
board, the governor shall appoint ~~one~~the member who represents 2384
employees ~~to a term ending one year after September 1, 1995~~, one 2385
member who represents employers ~~to a term ending two years after~~ 2386
~~September 1, 1995~~, and the member who represents the public to a 2387
term ending ~~three years~~one year after ~~September 1, 1995,~~the 2388
effective date of this amendment; one member who represents 2389
~~employees~~employers, one member who represents employee 2390
organizations, one member who is an investment and securities 2391
expert, and the member who is a certified public accountant to a 2392
term ending ~~four~~two years after ~~September 1, 1995,~~the effective 2393
date of this amendment; and one member who represents employers, 2394
one member who represents employee organizations, one member who 2395
is an investment and securities expert, and the member who is an 2396
actuary to a term ending ~~five~~three years after ~~September 1, 1995~~ 2397
the effective date of this amendment. Thereafter, terms of office 2398
shall be for three years, with each term ending on the same day of 2399
the same month as did the term that it succeeds. Each member shall 2400
hold office from the date of the member's appointment until the 2401
end of the term for which the member was appointed. 2402

       ~~The governor shall not appoint any person to more than two~~ 2403
~~full terms of office on the commission. This restriction does not~~ 2404
~~prevent the governor from appointing a person to fill a vacancy~~ 2405
~~caused by the death, resignation, or removal of a commission~~ 2406
~~member and also appointing that person twice to full terms on the~~ 2407
~~commission, or from appointing a person previously appointed to~~ 2408
~~fill less than a full term twice to full terms on the commission~~ 2409
Members of the board serve at the pleasure of the governor and may 2410
be removed from the board by the governor. Members may be 2411
reappointed. Any member appointed to fill a vacancy occurring 2412
prior to the expiration date of the term for which the member's 2413
predecessor was appointed shall hold office as a member for the 2414
remainder of that term. A member shall continue in office 2415
subsequent to the expiration date of the member's term until a 2416
successor takes office or until a period of sixty days has 2417
elapsed, whichever occurs first. 2418

       (C) ~~In making appointments to the commission, the governor~~ 2419
~~shall select the members from the list of names submitted by the~~ 2420
~~workers' compensation oversight commission nominating committee~~ 2421
~~pursuant to this division. Within fourteen days after the governor~~ 2422
~~calls the initial meeting of the nominating committee pursuant to~~ 2423
~~division (C) of section 4121.123 of the Revised Code, the~~ 2424
~~nominating committee shall submit to the governor, for the initial~~ 2425
~~appointments, a list containing four separate names for each of~~ 2426
~~the members on the commission. Within fourteen days after the~~ 2427
~~submission of the list, the governor shall appoint individuals~~ 2428
~~from the list.~~ 2429

       ~~For the appointment of the member who is representative of~~ 2430
~~employees who are members of an employee organization, both for~~ 2431
~~initial appointments and for the filling of vacancies, the list of~~ 2432
~~four names submitted by the nominating committee shall be~~ 2433
~~comprised of four individuals who are members of the executive~~ 2434
~~committee of the largest statewide labor federation.~~ 2435

       ~~Thereafter, within sixty days after a vacancy occurring as a~~ 2436
~~result of the expiration of a term and within thirty days after~~ 2437
~~other vacancies occurring on the commission, the nominating~~ 2438
~~committee shall submit a list containing four names for each~~ 2439
~~vacancy. Within fourteen days after the submission of the list,~~ 2440
~~the governor shall appoint individuals from the list. With respect~~ 2441
~~to the filling of vacancies, the nominating committee shall~~ 2442
~~provide the governor with a list of four individuals who are, in~~ 2443
~~the judgment of the nominating committee, the most fully qualified~~ 2444
~~to accede to membership on the commission. The nominating~~ 2445
~~committee shall not include the name of an individual upon the~~ 2446
~~list for the filling of vacancies if the appointment of that~~ 2447
~~individual by the governor would result in more than three members~~ 2448
~~of the commission belonging to or being affiliated with the same~~ 2449
~~political party. The committee shall include on the list for the~~ 2450
~~filling of vacancies only the names of attorneys admitted to~~ 2451
~~practice law in this state if, to fulfill the requirement of~~ 2452
~~division (A) of section 4121.12 of the Revised Code, the vacancy~~ 2453
~~must be filled by an attorney.~~ 2454

       ~~In order for the name of an individual to be submitted to the~~ 2455
~~governor under this division, the nominating committee shall~~ 2456
~~approve the individual by an affirmative vote of a majority of its~~ 2457
~~members.~~ 2458

       ~~(D) The commission shall also consist of two members, known~~ 2459
~~as the investment expert members. One investment expert member~~ 2460
~~shall be appointed by the treasurer of state and one investment~~ 2461
~~expert member shall be jointly appointed by the speaker of the~~ 2462
~~house of representatives and the president of the senate. Each~~ 2463
~~investment expert member shall have the following qualifications:~~ 2464

       ~~(1) Be a resident of this state;~~ 2465

       ~~(2) Within the three years immediately preceding the~~ 2466
~~appointment, not have been employed by the bureau of workers'~~ 2467
~~compensation or by any person, partnership, or corporation that~~ 2468
~~has provided to the bureau services of a financial or investment~~ 2469
~~nature, including the management, analysis, supervision, or~~ 2470
~~investment of assets;~~ 2471

       ~~(3) Have direct experience in the management, analysis,~~ 2472
~~supervision, or investment of assets.~~ 2473

       ~~Terms of office of the investment expert members shall be for~~ 2474
~~three years, with each term ending on the same day of the same~~ 2475
~~month as did the term that it succeeds. Each member shall hold~~ 2476
~~office for the date of the member's appointment until the end of~~ 2477
~~the term for which the member was appointed. The president,~~ 2478
~~speaker, and treasurer shall not appoint any person to more than~~ 2479
~~two full terms of office on the commission. This restriction does~~ 2480
~~not prevent the president, speaker, and treasurer from appointing~~ 2481
~~a person to fill a vacancy caused by the death, resignation, or~~ 2482
~~removal of a commission member and also appointing that person~~ 2483
~~twice to full terms on the commission, or from appointing a person~~ 2484
~~previously appointed to fill less than a full term twice to full~~ 2485
~~terms on the commission. Any investment expert member appointed to~~ 2486
~~fill a vacancy occurring prior to the expiration of the term for~~ 2487
~~which the member's predecessor was appointed shall hold office~~ 2488
~~until the end of that term. The member shall continue in office~~ 2489
~~subsequent to the expiration date of the member's term until the~~ 2490
~~member's successor takes office or until a period of sixty days~~ 2491
~~has elapsed, whichever occurs first.~~ 2492

       ~~The investment expert members of the oversight commission~~ 2493
~~shall vote only on investment matters.~~ 2494

       ~~(E) The remaining four members of the commission shall be the~~ 2495
~~chairperson and ranking minority member of the standing committees~~ 2496
~~of the house of representatives and of the senate to which~~ 2497
~~legislation concerning this chapter and Chapters 4123., 4127., and~~ 2498
~~4131. of the Revised Code normally are referred, or a designee of~~ 2499
~~the chairperson or ranking minority member, provided that the~~ 2500
~~designee is a member of the standing committee. Legislative~~ 2501
~~members shall serve during the session of the general assembly to~~ 2502
~~which they are elected and for as long as they are members of the~~ 2503
~~general assembly. Legislative members shall serve in an advisory~~ 2504
~~capacity to the commission and shall have no voting rights on~~ 2505
~~matters coming before the commission. Membership on the commission~~ 2506
~~by legislative members shall not be deemed as holding a public~~ 2507
~~office.~~ 2508

       ~~(F)~~ All members of the ~~commission~~board shall receive their 2509
reasonable and necessary expenses pursuant to section 126.31 of 2510
the Revised Code while engaged in the performance of their duties 2511
as members~~. Members appointed by the governor~~ and ~~the investment~~ 2512
~~expert members~~ also shall receive an annual salary not to exceed 2513
~~eighteen~~sixty thousand dollars in total, payable on the following 2514
basis: 2515

       (1) Except as provided in division ~~(F)~~(C)(2) of this section, 2516
a member shall receive two thousand five hundred dollars during a 2517
month in which the member attends one or more meetings of the 2518
~~commission~~board and shall receive no payment during a month in 2519
which the member attends no meeting of the ~~commission~~board. 2520

       (2) A member may receive no more than ~~the annual eighteen~~ 2521
thirty thousand ~~dollar salary~~dollars per year to compensate the 2522
member for attending meetings of the board, regardless of the 2523
number of meetings held by the ~~commission~~board during a year or 2524
the number of meetings in excess of ~~nine~~twelve within a year that 2525
the member attends. 2526

       (3) Except as provided in division (C)(4) of this section, if 2527
a member serves on the workers' compensation audit committee, 2528
workers' compensation actuarial committee, or the workers' 2529
compensation investment committee, the member shall receive two 2530
thousand five hundred dollars during a month in which the member 2531
attends one or more meetings of the committee on which the member 2532
serves and shall receive no payment during any month in which the 2533
member attends no meeting of that committee. 2534

        (4) A member may receive no more than thirty thousand dollars 2535
per year to compensate the member for attending meetings of any of 2536
the committees specified in division (C)(3) of this section, 2537
regardless of the number of meetings held by a committee during a 2538
year or the number of committees on which a member serves. 2539

       The chairperson of the ~~commission~~board shall set the meeting 2540
dates of the ~~commission~~board as necessary to perform the duties 2541
of the ~~commission~~board under this chapter and Chapters 4123., 2542
4125., 4127., ~~and~~ 4131., and 4167. of the Revised Code. The 2543
~~commission~~board shall meet at least ~~nine~~twelve times ~~during the~~ 2544
~~period commencing on the first day of September and ending on the~~ 2545
~~thirty-first day of August of the following~~a year. The 2546
administrator of workers' compensation shall provide professional 2547
and clerical assistance to the ~~commission~~board, as the ~~commission~~ 2548
board considers appropriate. 2549

       ~~(G)~~(D) Before entering upon the duties of office, each 2550
appointed member of the board shall take an oath of office as 2551
required by sections 3.22 and 3.23 of the Revised Code and file in 2552
the office of the secretary of state the bond required under 2553
section 4121.127 of the Revised Code. 2554

       (E) The ~~commission~~board shall: 2555

       (1) Establish the overall administrative policy for the 2556
bureau for the purposes of this chapter and Chapters 4123., 4125., 2557
4127., 4131., and 4167. of the Revised Code; 2558

       (2) Review progress of the bureau in meeting its cost and 2559
quality objectives and in complying with this chapter and Chapters 2560
4123., 4125., 4127., ~~and~~ 4131., and 4167. of the Revised Code; 2561

       ~~(2) Issue~~(3) Submit an annual report ~~on the cost and quality~~ 2562
~~objectives of the bureau~~ to the president of the senate, the 2563
speaker of the house of representatives, ~~and~~ the governor;, and 2564
the workers' compensation council and include all of the following 2565
in that report: 2566

       (a) An evaluation of the cost and quality objectives of the 2567
bureau; 2568

       (b) A statement of the net assets available for the provision 2569
of compensation and benefits under this chapter and Chapters 2570
4123., 4127., and 4131. of the Revised Code as of the last day of 2571
the fiscal year; 2572

       (c) A statement of any changes that occurred in the net 2573
assets available, including employer premiums and net investment 2574
income, for the provision of compensation and benefits and payment 2575
of administrative expenses, between the first and last day of the 2576
fiscal year immediately preceding the date of the report; 2577

       (d) The following information for each of the six consecutive 2578
fiscal years occurring previous to the report: 2579

       (i) A schedule of the net assets available for compensation 2580
and benefits; 2581

       (ii) The annual cost of the payment of compensation and 2582
benefits; 2583

       (iii) Annual administrative expenses incurred; 2584

       (iv) Annual employer premiums allocated for the provision of 2585
compensation and benefits. 2586

       (e) A description of any significant changes that occurred 2587
during the six years for which the board provided the information 2588
required under division (E)(3)(d) of this section that affect the 2589
ability of the board to compare that information from year to 2590
year. 2591

       ~~(3)~~(4) Review all independent financial audits of the bureau. 2592
The administrator shall provide access to records of the bureau to 2593
facilitate the review required under this division. 2594

       ~~(4)~~(5) Study issues as requested by the administrator or the 2595
governor; 2596

       ~~(5)~~(6) Contract with anall of the following: 2597

       (a) An independent actuarial firm to assist the ~~commission~~ 2598
board in making recommendations to the administrator regarding 2599
premium rates; 2600

       ~~(6) Establish objectives, policies, and criteria for the~~ 2601
~~administration of the investment program that include asset~~ 2602
~~allocation targets and ranges, risk factors, asset class~~ 2603
~~benchmarks, time horizons, total return objectives, and~~ 2604
~~performance evaluation guidelines, and monitor the administrator's~~ 2605
~~progress in implementing the objectives, policies, and criteria on~~ 2606
~~a quarterly basis. The commission shall not specify in the~~ 2607
~~objectives, policies, and criteria that the administrator or~~ 2608
~~employees of the bureau are prohibited from conducting business~~ 2609
~~with an investment management firm, any investment management~~ 2610
~~professional associated with that firm, any third party solicitor~~ 2611
~~associated with that firm, or any political action committee~~ 2612
~~controlled by that firm or controlled by an investment management~~ 2613
~~professional of that firm based on criteria that are more~~ 2614
~~restrictive than the restrictions described in divisions (Y) and~~ 2615
~~(Z) of section 3517.13 of the Revised Code. The commission shall~~ 2616
~~review~~ 2617

       (b) An outside investment counsel to assist the workers' 2618
compensation investment committee in fulfilling its duties; 2619

       (c) An independent fiduciary counsel to assist the board in 2620
the performance of its duties. 2621

       (7) Approve the investment policy developed by the workers' 2622
compensation investment committee pursuant to section 4121.123 of 2623
the Revised Code if the policy satisfies the requirements 2624
specified in section 4123.442 of the Revised Code. 2625

       (8) Review and publish the ~~objectives, policies, and criteria~~ 2626
investment policy no less than annually and ~~shall~~ make copies 2627
available to interested parties. ~~The commission shall prohibit~~ 2628

       (9) Prohibit, on a prospective basis, any specific investment 2629
it finds to be contrary to ~~its~~the investment ~~objectives,~~ 2630
~~policies, and criteria.~~ 2631

       ~~The objectives, policies, and criteria adopted by the~~ 2632
~~commission for the operation of the investment program shall~~ 2633
~~prohibit investing assets of funds, directly or indirectly, in~~ 2634
~~vehicles that target any of the following:~~ 2635

       ~~(a) Coins;~~ 2636

       ~~(b) Artwork;~~ 2637

       ~~(c) Horses;~~ 2638

       ~~(d) Jewelry or gems;~~ 2639

       ~~(e) Stamps;~~ 2640

       ~~(f) Antiques;~~ 2641

       ~~(g) Artifacts;~~ 2642

       ~~(h) Collectibles;~~ 2643

       ~~(i) Memorabilia;~~ 2644

       ~~(j) Similar unregulated investments that are not commonly~~ 2645
~~part of an institutional portfolio, that lack liquidity, and that~~ 2646
~~lack readily determinable valuation~~policy approved by the board. 2647

       ~~(7) Specify in the objectives, policies, and criteria for the~~ 2648
~~investment program that the administrator is permitted~~(10) Vote 2649
to open each investment class and allow the administrator to 2650
invest in an investment class only if the ~~commission~~board, by a 2651
majority vote, opens that class~~. After the commission opens~~; 2652

       (11) After opening a class but prior to the administrator 2653
investing in that class, ~~the commission shall~~ adopt rules 2654
establishing due diligence standards for employees of the bureau 2655
to follow when investing in that class and ~~shall~~ establish 2656
policies and procedures to review and monitor the performance and 2657
value of each investment class~~. The commission shall submit~~; 2658

       (12) Submit a report annually on the performance and value of 2659
each investment class to the governor, the president and minority 2660
leader of the senate, and the speaker and minority leader of the 2661
house of representatives. ~~The commission may vote to close any~~ 2662
~~investment class.~~ 2663

       ~~(8)~~(13) Advise and consent on all of the following: 2664

       (a) Administrative rules the administrator submits to it 2665
pursuant to division (B)(5) of section 4121.121 of the Revised 2666
Code for the classification of occupations or industries, for 2667
premium rates and contributions, for the amount to be credited to 2668
the surplus fund, for rules and systems of rating, rate revisions, 2669
and merit rating; 2670

       (b) ~~The overall policy of the bureau of workers' compensation~~ 2671
~~as set by the administrator;~~ 2672

       ~~(c)~~ The duties and authority conferred upon the administrator 2673
pursuant to section 4121.37 of the Revised Code; 2674

       ~~(d)~~(c) Rules the administrator adopts for the health 2675
partnership program and the qualified health plan system, as 2676
provided in sections 4121.44, 4121.441, and 4121.442 of the 2677
Revised Code; 2678

       ~~(e)~~(d) Rules the administrator submits to it pursuant to 2679
Chapter 4167. of the Revised Code regarding the public employment 2680
risk reduction program and the protection of public health care 2681
workers from exposure incidents. 2682

        As used in this division, "public health care worker" and 2683
"exposure incident" have the same meanings as in section 4167.25 2684
of the Revised Code. 2685

       ~~(9)~~(14) Perform all duties required under ~~section 4121.125~~ 2686
this chapter and Chapters 4123., 4125., 4127., 4131., and 4167. of 2687
the Revised Code; 2688

       (15) Meet with the governor on an annual basis to discuss the 2689
administrator's performance of the duties specified in this 2690
chapter and Chapters 4123., 4125., 4127., 4131., and 4167. of the 2691
Revised Code; 2692

       (16) Adopt all rules, except those rules concerning 2693
adjudicatory matters, that the board is required to adopt under 2694
this chapter and Chapters 4123., 4125., 4127., and 4131. of the 2695
Revised Code in accordance with Chapter 119. of the Revised Code 2696
and, at the time the board submits any proposed rules or any rules 2697
for which the board gives advice and consent to the joint 2698
committee on agency rule review, submit a copy of those rules to 2699
the workers' compensation council for its review of those rules 2700
under section 4121.79 of the Revised Code; 2701

       (17) Develop and participate in a bureau of workers' 2702
compensation board of directors education program that consists of 2703
all of the following: 2704

       (a) An orientation component for newly appointed members; 2705

       (b) A continuing education component for board members who 2706
have served for at least one year; 2707

       (c) A curriculum that includes education about each of the 2708
following topics: 2709

       (i) Board member duties and responsibilities; 2710

       (ii) Compensation and benefits paid pursuant to this chapter 2711
and Chapters 4123., 4127., and 4131. of the Revised Code; 2712

       (iii) Ethics; 2713

       (iv) Governance processes and procedures; 2714

       (v) Actuarial soundness; 2715

       (vi) Investments; 2716

       (vii) Any other subject matter the board believes is 2717
reasonably related to the duties of a board member. 2718

       (18) Submit the program developed pursuant to division 2719
(E)(17) of this section to the workers' compensation council for 2720
approval; 2721

       (19) Hold all sessions, classes, and other events for the 2722
program developed pursuant to division (E)(17) of this section in 2723
this state. 2724

       ~~(H)~~(F) The board may do both of the following: 2725

       (1) Vote to close any investment class; 2726

       (2) Create any committees in addition to the workers' 2727
compensation audit committee, the workers' compensation actuarial 2728
committee, and the workers' compensation investment committee that 2729
the board determines are necessary to assist the board in 2730
performing its duties. 2731

       (G) The office of a member of the ~~commission~~board who is 2732
convicted of or pleads guilty to a felony, a theft offense as 2733
defined in section 2913.01 of the Revised Code, or a violation of 2734
section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2735
2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code 2736
shall be deemed vacant. The vacancy shall be filled in the same 2737
manner as the original appointment. A person who has pleaded 2738
guilty to or been convicted of an offense of that nature is 2739
ineligible to be a member of the ~~commission~~board. A member who 2740
receives a bill of indictment for any of the offenses specified in 2741
this section shall be automatically suspended from the ~~commission~~ 2742
board pending resolution of the criminal matter. 2743

       ~~(I) As used in this section, "employee organization" means~~ 2744
~~any labor or bona fide organization in which employees participate~~ 2745
~~and which exists for the purpose, in whole or in part, of dealing~~ 2746
~~with employers concerning grievances, labor disputes, wages,~~ 2747
~~hours, terms and other conditions of employment~~ 2748

       (H) For the purposes of division (G)(1) of section 121.22 of 2749
the Revised Code, the meeting between the governor and the board 2750
to review the administrator's performance as required under 2751
division (E)(15) of this section shall be considered a meeting 2752
regarding the employment of the administrator. 2753

       Sec. 4121.121. (A) There is hereby created the bureau of 2754
workers' compensation, which shall be administered by the 2755
administrator of workers' compensation. A person appointed to the 2756
position of administrator shall possess significant management 2757
experience in effectively managing an organization or 2758
organizations of substantial size and complexity. The governor 2759
shall appoint the administrator as provided in section 121.03 of 2760
the Revised Code, and the administrator shall serve at the 2761
pleasure of the governor. The governor shall fix the 2762
administrator's salary on the basis of the administrator's 2763
experience and the administrator's responsibilities and duties 2764
under this chapter and Chapters 4123., 4125., 4127., 4131., and 2765
4167. of the Revised Code. The governor shall not appoint to the 2766
position of administrator any person who has, or whose spouse has, 2767
given a contribution to the campaign committee of the governor in 2768
an amount greater than one thousand dollars during the two-year 2769
period immediately preceding the date of the appointment of the 2770
administrator. 2771

       The administrator shall hold no other public office and shall 2772
devote full time to the duties of administrator. Before entering 2773
upon the duties of the office, the administrator shall take an 2774
oath of office as required by sections 3.22 and 3.23 of the 2775
Revised Code, and shall file in the office of the secretary of 2776
state, a bond signed by the administrator and by surety approved 2777
by the governor, for the sum of fifty thousand dollars payable to 2778
the state, conditioned upon the faithful performance of the 2779
administrator's duties. 2780

       (B) The administrator is responsible for the management of 2781
the bureau ~~of workers' compensation~~ and for the discharge of all 2782
administrative duties imposed upon the administrator in this 2783
chapter and Chapters 4123., 4125., 4127., 4131., and 4167. of the 2784
Revised Code, and in the discharge thereof shall do all of the 2785
following: 2786

       (1) ~~Establish the overall administrative policy of the bureau~~ 2787
~~for the purposes of this chapter and Chapters 4123., 4127., 4131.,~~ 2788
~~and 4167. of the Revised Code, and perform~~Perform all acts and 2789
exercise all authorities and powers, discretionary and otherwise 2790
that are required of or vested in the bureau or any of its 2791
employees in this chapter and Chapters 4123., 4125., 4127., 4131., 2792
and 4167. of the Revised Code, except the acts and the exercise of 2793
authority and power that is required of and vested in the 2794
~~oversight commission~~bureau of workers' compensation board of 2795
directors or the industrial commission pursuant to those chapters. 2796
The treasurer of state shall honor all warrants signed by the 2797
administrator, or by one or more of the administrator's employees, 2798
authorized by the administrator in writing, or bearing the 2799
facsimile signature of the administrator or such employee under 2800
sections 4123.42 and 4123.44 of the Revised Code. 2801

       (2) Employ, direct, and supervise all employees required in 2802
connection with the performance of the duties assigned to the 2803
bureau by this chapter and Chapters 4123., 4125., 4127., 4131., 2804
and 4167. of the Revised Code, and may establish job 2805
classification plans and compensation for all employees of the 2806
bureau provided that this grant of authority shall not be 2807
construed as affecting any employee for whom the state employment 2808
relations board has established an appropriate bargaining unit 2809
under section 4117.06 of the Revised Code. All positions of 2810
employment in the bureau are in the classified civil service 2811
except those employees the administrator may appoint to serve at 2812
the administrator's pleasure in the unclassified civil service 2813
pursuant to section 124.11 of the Revised Code. The administrator 2814
shall fix the salaries of employees the administrator appoints to 2815
serve at the administrator's pleasure, including the chief 2816
operating officer, staff physicians, and other senior management 2817
personnel of the bureau and shall establish the compensation of 2818
staff attorneys of the bureau's legal section and their immediate 2819
supervisors, and take whatever steps are necessary to provide 2820
adequate compensation for other staff attorneys. 2821

       The administrator may appoint a person who holds a certified 2822
position in the classified service within the bureau to a position 2823
in the unclassified service within the bureau. A person appointed 2824
pursuant to this division to a position in the unclassified 2825
service shall retain the right to resume the position and status 2826
held by the person in the classified service immediately prior to 2827
the person's appointment in the unclassified service, regardless 2828
of the number of positions the person held in the unclassified 2829
service. An employee's right to resume a position in the 2830
classified service may only be exercised when the administrator 2831
demotes the employee to a pay range lower than the employee's 2832
current pay range or revokes the employee's appointment to the 2833
unclassified service. An employee forfeits the right to resume a 2834
position in the classified service when the employee is removed 2835
from the position in the unclassified service due to incompetence, 2836
inefficiency, dishonesty, drunkenness, immoral conduct, 2837
insubordination, discourteous treatment of the public, neglect of 2838
duty, violation of this chapter or Chapter 124., 4123., 4125., 2839
4127., 4131., or 4167. of the Revised Code, violation of the rules 2840
of the director of administrative services or the administrator of 2841
~~workers' compensation~~, any other failure of good behavior, any 2842
other acts of misfeasance, malfeasance, or nonfeasance in office, 2843
or conviction of a felony. An employee also forfeits the right to 2844
resume a position in the classified service upon transfer to a 2845
different agency. 2846

       Reinstatement to a position in the classified service shall 2847
be to a position substantially equal to that position in the 2848
classified service held previously, as certified by the department 2849
of administrative services. If the position the person previously 2850
held in the classified service has been placed in the unclassified 2851
service or is otherwise unavailable, the person shall be appointed 2852
to a position in the classified service within the bureau that the 2853
director of administrative services certifies is comparable in 2854
compensation to the position the person previously held in the 2855
classified service. Service in the position in the unclassified 2856
service shall be counted as service in the position in the 2857
classified service held by the person immediately prior to the 2858
person's appointment in the unclassified service. When a person is 2859
reinstated to a position in the classified service as provided in 2860
this division, the person is entitled to all rights, status, and 2861
benefits accruing to the position during the person's time of 2862
service in the position in the unclassified service. 2863

       (3) Reorganize the work of the bureau, its sections, 2864
departments, and offices to the extent necessary to achieve the 2865
most efficient performance of its functions and to that end may 2866
establish, change, or abolish positions and assign and reassign 2867
duties and responsibilities of every employee of the bureau. All 2868
persons employed by the commission in positions that, after 2869
November 3, 1989, are supervised and directed by the administrator 2870
under this section are transferred to the bureau in their 2871
respective classifications but subject to reassignment and 2872
reclassification of position and compensation as the administrator 2873
determines to be in the interest of efficient administration. The 2874
civil service status of any person employed by the commission is 2875
not affected by this section. Personnel employed by the bureau or 2876
the commission who are subject to Chapter 4117. of the Revised 2877
Code shall retain all of their rights and benefits conferred 2878
pursuant to that chapter as it presently exists or is hereafter 2879
amended and nothing in this chapter or Chapter 4123. of the 2880
Revised Code shall be construed as eliminating or interfering with 2881
Chapter 4117. of the Revised Code or the rights and benefits 2882
conferred under that chapter to public employees or to any 2883
bargaining unit. 2884

       (4) Provide offices, equipment, supplies, and other 2885
facilities for the bureau. 2886

       (5) Prepare and submit to the ~~oversight commission~~board 2887
information the administrator considers pertinent or the ~~oversight~~ 2888
~~commission~~board requires, together with the administrator's 2889
recommendations, in the form of administrative rules, for the 2890
advice and consent of the ~~oversight commission~~board, for 2891
classifications of occupations or industries, for premium rates 2892
and contributions, for the amount to be credited to the surplus 2893
fund, for rules and systems of rating, rate revisions, and merit 2894
rating. The administrator shall obtain, prepare, and submit any 2895
other information the ~~oversight commission~~board requires for the 2896
prompt and efficient discharge of its duties. 2897

       (6) Keep the accounts required by division (A) of section 2898
4123.34 of the Revised Code and all other accounts and records 2899
necessary to the collection, administration, and distribution of 2900
the workers' compensation funds and shall obtain the statistical 2901
and other information required by section 4123.19 of the Revised 2902
Code. 2903

       (7) Exercise the investment powers vested in the 2904
administrator by section 4123.44 of the Revised Code in accordance 2905
with the investment ~~objectives, policies, and criteria established~~ 2906
policy approved by the ~~oversight commission~~board pursuant to 2907
section 4121.12 of the Revised Code and in consultation with the 2908
chief investment officer of the bureau of workers' compensation. 2909
The administrator shall not engage in any prohibited investment 2910
activity specified by the ~~oversight commission~~board pursuant to 2911
division ~~(G)(6)~~(E)(9) of section 4121.12 of the Revised Code and 2912
shall not invest in any type of investment specified in divisions 2913
~~(G)(6)(a)~~(B)(1) to ~~(j)~~(10) of ~~that~~ section 4123.442 of the Revised 2914
Code. All business shall be transacted, all funds invested, all 2915
warrants for money drawn and payments made, and all cash and 2916
securities and other property held, in the name of the bureau, or 2917
in the name of its nominee, provided that nominees are authorized 2918
by the administrator solely for the purpose of facilitating the 2919
transfer of securities, and restricted to the administrator and 2920
designated employees. 2921

       (8) Make contracts for and supervise the construction of any 2922
project or improvement or the construction or repair of buildings 2923
under the control of the bureau. 2924

       (9) Purchase supplies, materials, equipment, and services; 2925
make contracts for, operate, and superintend the telephone, other 2926
telecommunication, and computer services for the use of the 2927
bureau; and make contracts in connection with office reproduction, 2928
forms management, printing, and other services. Notwithstanding 2929
sections 125.12 to 125.14 of the Revised Code, the administrator 2930
may transfer surplus computers and computer equipment directly to 2931
an accredited public school within the state. The computers and 2932
computer equipment may be repaired or refurbished prior to the 2933
transfer. 2934

       (10) ~~Separately~~Prepare and submit to the board an annual 2935
budget for internal operating purposes for the board's approval. 2936
The administrator also shall, separately from the budget the 2937
industrial commission submits, prepare and submit to the director 2938
of budget and management a budget for each biennium. The ~~budget~~ 2939
budgets submitted to the board and the director shall include 2940
estimates of the costs and necessary expenditures of the bureau in 2941
the discharge of any duty imposed by law. 2942

       (11) As promptly as possible in the course of efficient 2943
administration, decentralize and relocate such of the personnel 2944
and activities of the bureau as is appropriate to the end that the 2945
receipt, investigation, determination, and payment of claims may 2946
be undertaken at or near the place of injury or the residence of 2947
the claimant and for that purpose establish regional offices, in 2948
such places as the administrator considers proper, capable of 2949
discharging as many of the functions of the bureau as is 2950
practicable so as to promote prompt and efficient administration 2951
in the processing of claims. All active and inactive lost-time 2952
claims files shall be held at the service office responsible for 2953
the claim. A claimant, at the claimant's request, shall be 2954
provided with information by telephone as to the location of the 2955
file pertaining to the claimant's claim. The administrator shall 2956
ensure that all service office employees report directly to the 2957
director for their service office. 2958

       (12) Provide a written binder on new coverage where the 2959
administrator considers it to be in the best interest of the risk. 2960
The administrator, or any other person authorized by the 2961
administrator, shall grant the binder upon submission of a request 2962
for coverage by the employer. A binder is effective for a period 2963
of thirty days from date of issuance and is nonrenewable. Payroll 2964
reports and premium charges shall coincide with the effective date 2965
of the binder. 2966

       (13) Set standards for the reasonable and maximum handling 2967
time of claims payment functions, ensure, by rules, the impartial 2968
and prompt treatment of all claims and employer risk accounts, and 2969
establish a secure, accurate method of time stamping all incoming 2970
mail and documents hand delivered to bureau employees. 2971

       (14) Ensure that all employees of the bureau follow the 2972
orders and rules of the commission as such orders and rules relate 2973
to the commission's overall adjudicatory policy-making and 2974
management duties under this chapter and Chapters 4123., 4127., 2975
and 4131. of the Revised Code. 2976

       (15) Manage and operate a data processing system with a 2977
common data base for the use of both the bureau and the commission 2978
and, in consultation with the commission, using electronic data 2979
processing equipment, shall develop a claims tracking system that 2980
is sufficient to monitor the status of a claim at any time and 2981
that lists appeals that have been filed and orders or 2982
determinations that have been issued pursuant to section 4123.511 2983
or 4123.512 of the Revised Code, including the dates of such 2984
filings and issuances. 2985

       (16) Establish and maintain a medical section within the 2986
bureau. The medical section shall do all of the following: 2987

       (a) Assist the administrator in establishing standard medical 2988
fees, approving medical procedures, and determining eligibility 2989
and reasonableness of the compensation payments for medical, 2990
hospital, and nursing services, and in establishing guidelines for 2991
payment policies which recognize usual, customary, and reasonable 2992
methods of payment for covered services; 2993

       (b) Provide a resource to respond to questions from claims 2994
examiners for employees of the bureau; 2995

       (c) Audit fee bill payments; 2996

       (d) Implement a program to utilize, to the maximum extent 2997
possible, electronic data processing equipment for storage of 2998
information to facilitate authorizations of compensation payments 2999
for medical, hospital, drug, and nursing services; 3000

       (e) Perform other duties assigned to it by the administrator. 3001

       (17) Appoint, as the administrator determines necessary, 3002
panels to review and advise the administrator on disputes arising 3003
over a determination that a health care service or supply provided 3004
to a claimant is not covered under this chapter or Chapter 4123., 3005
4127., or 4131. of the Revised Code or is medically unnecessary. 3006
If an individual health care provider is involved in the dispute, 3007
the panel shall consist of individuals licensed pursuant to the 3008
same section of the Revised Code as such health care provider. 3009

       (18) Pursuant to section 4123.65 of the Revised Code, approve 3010
applications for the final settlement of claims for compensation 3011
or benefits under this chapter and Chapters 4123., 4127., and 3012
4131. of the Revised Code as the administrator determines 3013
appropriate, except in regard to the applications of self-insuring 3014
employers and their employees. 3015

       (19) Comply with section 3517.13 of the Revised Code, and 3016
except in regard to contracts entered into pursuant to the 3017
authority contained in section 4121.44 of the Revised Code, comply 3018
with the competitive bidding procedures set forth in the Revised 3019
Code for all contracts into which the administrator enters 3020
provided that those contracts fall within the type of contracts 3021
and dollar amounts specified in the Revised Code for competitive 3022
bidding and further provided that those contracts are not 3023
otherwise specifically exempt from the competitive bidding 3024
procedures contained in the Revised Code. 3025

       (20) Adopt, with the advice and consent of the ~~oversight~~ 3026
~~commission~~board, rules for the operation of the bureau. 3027

       (21) Prepare and submit to the ~~oversight commission~~board 3028
information the administrator considers pertinent or the ~~oversight~~ 3029
~~commission~~board requires, together with the administrator's 3030
recommendations, in the form of administrative rules, for the 3031
advice and consent of the ~~oversight commission~~board, for the 3032
health partnership program and the qualified health plan system, 3033
as provided in sections 4121.44, 4121.441, and 4121.442 of the 3034
Revised Code. 3035

       (22) Adopt all rules, except those rules concerning 3036
adjudicatory matters classifications of occupations or industries, 3037
the overall premium and contribution rates and the revision of 3038
those rates as required under sections 4123.29, 4123.34, and 3039
4123.39 of the Revised Code, and the overall assessment rates 3040
required under this chapter and Chapter 4123. of the Revised Code, 3041
that the administrator is required to adopt under this chapter and 3042
Chapters 4123., 4125., 4127., and 4131. of the Revised Code in 3043
accordance with Chapter 119. of the Revised Code and, at the time 3044
the administrator submits any proposed rules to the joint 3045
committee on agency rule review, submit a copy of those proposed 3046
rules to the workers' compensation council for its review of the 3047
rules under section 4121.79 of the Revised Code. 3048

       (C) The administrator, with the advice and consent of the 3049
senate, shall appoint a chief operating officer who has 3050
significant experience in the field of workers' compensation 3051
insurance or other similar insurance industry experience if the 3052
administrator does not possess such experience. The chief 3053
operating officer shall not commence the chief operating officer's 3054
duties until after the senate consents to the chief operating 3055
officer's appointment. The chief operating officer shall serve in 3056
the unclassified civil service of the state. 3057

       Sec. 4121.122. (A) The administrator of workers' 3058
compensation, for employees of the bureau of workers' 3059
compensation, and the industrial commission, for employees of the 3060
commission may discipline, suspend, demote or discharge any 3061
employee for misfeasance, malfeasance, or nonfeasance. In the case 3062
of any deputy administrator, or of any employee assigned to the 3063
investigation or determination of claims, and finding of the 3064
administrator or the commission that such person is not efficient, 3065
impartial, or judicious, if supported by any evidence and not 3066
promoted by personal, political, racial, or religious 3067
discrimination shall be accepted as a fact justifying the action 3068
taken by the administrator or commission. 3069

       (B) The administrator and the commission shall jointly adopt, 3070
in the form of a rule, a code of ethics for all employees of the 3071
bureau and the commission and post copies of the rule in a 3072
conspicuous place in every bureau and commission office. 3073

       (C) The administrator and the commission shall jointly adopt 3074
rules setting forth procedures designed to eliminate outside 3075
influence on bureau and commission employees, produce an impartial 3076
workers' compensation claims handling process, and avoid 3077
favoritism in the claims handling process. Failure to adopt and 3078
enforce these rules constitutes grounds for removal of the 3079
administrator and the members of the commission. 3080

       ~~(D) The commission and the administrator shall appoint a~~ 3081
~~six-member internal security committee composed of three bureau~~ 3082
~~employees appointed by the administrator and three commission~~ 3083
~~employees appointed by the commission. The administrator shall~~ 3084
~~supply to the committee the services of trained investigative~~ 3085
~~personnel and clerical assistance necessary to the committee's~~ 3086
~~duties. The committee shall investigate all claims or cases of~~ 3087
~~criminal violations, abuse of office, or misconduct on the part of~~ 3088
~~bureau or commission employees and shall conduct a program of~~ 3089
~~random review of the processing of workers' compensation claims.~~ 3090

       ~~The committee shall deliver to the administrator, the~~ 3091
~~commission, or the governor any case for which remedial action is~~ 3092
~~necessary. The committee shall maintain a public record of its~~ 3093
~~activities, ensuring that the rights of innocent parties are~~ 3094
~~protected, and, once every six months, shall report to the~~ 3095
~~governor, the general assembly, the administrator, and commission,~~ 3096
~~the committee's findings and the corrective actions subsequently~~ 3097
~~taken in cases considered by the committee.~~ 3098

       Sec. 4121.123. (A) There is hereby created the workers' 3099
compensation audit committee consisting of at least three members. 3100
One member shall be the member of the bureau of workers' 3101
compensation board of directors who is a certified public 3102
accountant. The board, by majority vote, shall appoint two 3103
additional members of the board to serve on the audit committee 3104
and may appoint additional members who are not board members, as 3105
the board determines necessary. Members of the audit committee 3106
serve at the pleasure of the board, and the board, by majority 3107
vote, may remove any member except the member of the committee who 3108
is the certified public accountant member of the board. The board, 3109
by majority vote, shall determine how often the audit committee 3110
shall meet and report to the board. If the audit committee meets 3111
on the same day as the board holds a meeting, no member shall be 3112
compensated for more than one meeting held on that day. The audit 3113
committee shall do all of the following: 3114

       (1) Recommend to the board an accounting firm to perform the 3115
annual audits required under section 4123.47 of the Revised Code; 3116

       (2) Recommend an auditing firm for the board to use when 3117
conducting audits under section 4121.125 of the Revised Code; 3118

       (3) Review the results of each annual audit and management 3119
review and, if any problems exist, assess the appropriate course 3120
of action to correct those problems and develop an action plan to 3121
correct those problems; 3122

       (4) Monitor the implementation of any action plans created 3123
pursuant to division (A)(3) of this section; 3124

       (5) Review all internal audit reports on a regular basis. 3125

       (B) There is hereby created the workers' compensation 3126
actuarial committee consisting of at least three members. One 3127
member shall be the member of the board who is an actuary. The 3128
board, by majority vote, shall appoint two additional members of 3129
the board to serve on the actuarial committee and may appoint 3130
additional members who are not board members, as the board 3131
determines necessary. Members of the actuarial committee serve at 3132
the pleasure of the board and the board, by majority vote, may 3133
remove any member except the member of the committee who is the 3134
actuary member of the board. The board, by majority vote, shall 3135
determine how often the actuarial committee shall meet and report 3136
to the board. If the actuarial committee meets on the same day as 3137
the board holds a meeting, no member shall be compensated for more 3138
than one meeting held on that day. The actuarial committee shall 3139
do both of the following: 3140

       (1) Recommend actuarial consultants for the board to use for 3141
the funds specified in this chapter and Chapters 4123., 4127., and 3142
4131. of the Revised Code; 3143

       (2) Review calculations on rate schedules and performance 3144
prepared by the actuarial consultants with whom the board enters 3145
into a contract. 3146

       (C)(1) There is hereby created the workers' compensation 3147
investment committee consisting of at least four members. Two of 3148
the members shall be the members of the board who serve as the 3149
investment and securities experts on the board. The board, by 3150
majority vote, shall appoint two additional members of the board 3151
to serve on the investment committee and may appoint additional 3152
members who are not board members. Each additional member the 3153
board appoints shall have at least one of the following 3154
qualifications: 3155

       (a) Experience managing another state's pension funds or 3156
workers' compensation funds; 3157

       (b) Represents an employee organization; 3158

       (c) Special expertise that the board determines is needed to 3159
make investment decisions. 3160

        Members of the investment committee serve at the pleasure of 3161
the board and the board, by majority vote, may remove any member 3162
except the members of the committee who are the investment and 3163
securities expert members of the board. The board, by majority 3164
vote, shall determine how often the investment committee shall 3165
meet and report to the board. If the investment committee meets on 3166
the same day as the board holds a meeting, no member shall be 3167
compensated for more than one meeting held on that day. 3168

       (2) The investment committee shall do all of the following: 3169

       (a) Develop the investment policy for the administration of 3170
the investment program for the funds specified in this chapter and 3171
Chapters 4123., 4127., and 4131. of the Revised Code in accordance 3172
with the requirements specified in section 4123.442 of the Revised 3173
Code; 3174

       (b) Submit the investment policy developed pursuant to 3175
division (C)(2)(a) of this section to the board for approval; 3176

       (c) Monitor implementation by the administrator of workers' 3177
compensation and the bureau of workers' compensation chief 3178
investment officer of the investment policy approved by the board; 3179

       (d) Recommend outside investment counsel with whom the board 3180
may contract to assist the investment committee in fulfilling its 3181
duties; 3182

       (e) Review the performance of the bureau of workers' 3183
compensation chief investment officer and any investment 3184
consultants retained by the administrator to assure that the 3185
investments of the assets of the funds specified in this chapter 3186
and Chapters 4123., 4127., and 4131. of the Revised Code are made 3187
in accordance with the investment policy approved by the board and 3188
that the best possible return on investment is achieved. 3189

       Sec. 4121.125. (A) The bureau of workers' compensation 3190
~~oversight commission~~board of directors, based upon 3191
recommendations of the workers' compensation actuarial committee, 3192
may contract with one or more outside actuarial firms and other 3193
professional persons, as the ~~oversight commission~~board determines 3194
necessary, to assist the ~~oversight commission~~board in measuring 3195
the performance of Ohio's workers' compensation system and in 3196
comparing Ohio's workers' compensation system to other state and 3197
private workers' compensation systems. The ~~oversight commission~~ 3198
board, actuarial firm or firms, and professional persons shall 3199
make such measurements and comparisons using accepted insurance 3200
industry standards, including, but not limited to, standards 3201
promulgated by the National Council on Compensation Insurance. 3202

       (B) The ~~oversight commission~~board may contract with one or 3203
more outside firms to conduct management and financial audits of 3204
the workers' compensation system, including audits of the reserve 3205
fund belonging to the state insurance fund, and to establish 3206
objective quality management principles and methods by which to 3207
review the performance of the workers' compensation system. 3208

       (C) The board shall do all of the following: 3209

       (1) Contract to have prepared annually by or under the 3210
supervision of an actuary a report that meets the requirements 3211
specified under division (E) of this section and that consists of 3212
an actuarial valuation of the assets, liabilities, and funding 3213
requirements of the state insurance fund and all other funds 3214
specified in this chapter and Chapters 4123., 4127., and 4131. of 3215
the Revised Code; 3216

       (2) Require that the actuary or person supervised by an 3217
actuary referred to in division (C)(1) of this section complete 3218
the valuation in accordance with the actuarial standards of 3219
practice promulgated by the actuarial standards board of the 3220
American academy of actuaries; 3221

       (3) Submit the report referred to in division (C)(1) of this 3222
section to the workers' compensation council and the standing 3223
committees of the house of representatives and the senate with 3224
primary responsibility for workers' compensation legislation not 3225
later than the first day of September following the year for which 3226
the valuation was made; 3227

       (4) Have an actuary or a person who provides actuarial 3228
services under the supervision of an actuary, at such time as the 3229
board determines, and at least once during the five-year period 3230
that commences on the effective date of this amendment and once 3231
within each five-year period thereafter, conduct an actuarial 3232
investigation of the experience of employers, the mortality, 3233
service, and injury rate of employees, and the payment of 3234
temporary total disability, permanent partial disability, and 3235
permanent total disability under sections 4123.56 to 4123.58 of 3236
the Revised Code to update the actuarial assumptions used in the 3237
report required by division (C)(1) of this section; 3238

       (5) Submit the report required under division (F) of this 3239
section to the council and the standing committees of the house of 3240
representatives and the senate with primary responsibility for 3241
workers' compensation legislation not later than the first day of 3242
November following the fifth year of the period that the report 3243
covers; 3244

       (6) Have prepared by or under the supervision of an actuary 3245
an actuarial analysis of any introduced legislation expected to 3246
have a measurable financial impact on the workers' compensation 3247
system; 3248

       (7) Submit the report required under division (G) of this 3249
section to the legislative service commission, the standing 3250
committees of the house of representatives and the senate with 3251
primary responsibility for workers' compensation legislation, and 3252
the council not later than sixty days after the date of 3253
introduction of the legislation. 3254

       (D) The administrator of workers' compensation and the 3255
industrial commission shall compile information and provide access 3256
to records of the bureau and the industrial commission to the 3257
~~oversight commission~~board to the extent necessary for fulfillment 3258
of both of the following requirements: 3259

       (1) Conduct of the measurements and comparisons described in 3260
division (A) of this section; 3261

       (2) Conduct of the management and financial audits and 3262
establishment of the principles and methods described in division 3263
(B) of this section. 3264

       ~~(D)~~(E) The firm or person with whom the board contracts 3265
pursuant to division (C)(1) of this section shall prepare a report 3266
of the valuation and submit the report to the board. The firm or 3267
person shall include all of the following information in the 3268
report that is required under division (C)(1) of this section: 3269

       (1) A summary of the compensation and benefit provisions 3270
evaluated; 3271

       (2) A summary of the census data and financial information 3272
used in the valuation; 3273

       (3) A description of the actuarial assumptions, actuarial 3274
cost method, and asset valuation method used in the valuation; 3275

       (4) A summary of findings that includes a statement of the 3276
actuarial accrued compensation and benefit liabilities and 3277
unfunded actuarial accrued compensation and benefit liabilities; 3278

       (5) A schedule showing the effect of any changes in the 3279
compensation and benefit provisions, actuarial assumptions, or 3280
cost methods since the previous annual actuarial valuation report 3281
was submitted to the board. 3282

       (F) The actuary or person whom the board designates to 3283
conduct an actuarial investigation under division (C)(4) of this 3284
section shall prepare a report of the actuarial investigation and 3285
shall submit the report to the board. The actuary or person shall 3286
prepare the report and make any recommended changes in actuarial 3287
assumptions in accordance with the actuarial standards of practice 3288
promulgated by the actuarial standards board of the American 3289
academy of actuaries. The actuary or person shall include all of 3290
the following information in the report: 3291

       (1) A summary of relevant decrement and economic assumption 3292
experience; 3293

       (2) Recommended changes in actuarial assumptions to be used 3294
in subsequent actuarial valuations required by division (C)(1) of 3295
this section; 3296

       (3) A measurement of the financial effect of the recommended 3297
changes in actuarial assumptions. 3298

       (G) The actuary or person whom the board designates to 3299
conduct the actuarial analysis under division (C)(6) of this 3300
section shall prepare a report of the actuarial analysis and shall 3301
submit that report to the board. The actuary or person shall 3302
complete the analysis in accordance with the actuarial standards 3303
of practice promulgated by the actuarial standards board of the 3304
American academy of actuaries. The actuary or person shall include 3305
all of the following information in the report: 3306

       (1) A summary of the statutory changes being evaluated; 3307

       (2) A description of or reference to the actuarial 3308
assumptions and actuarial cost method used in the report; 3309

       (3) A description of the participant group or groups included 3310
in the report; 3311

       (4) A statement of the financial impact of the legislation, 3312
including the resulting increase, if any, in employer premiums, in 3313
actuarial accrued liabilities, and, if an increase in actuarial 3314
accrued liabilities is predicted, the per cent of premium increase 3315
that would be required to amortize the increase in those 3316
liabilities as a level per cent of employer premiums over a period 3317
not to exceed thirty years. 3318

       (5) A statement of whether the employer premiums paid to the 3319
bureau of workers' compensation after the proposed change is 3320
enacted are expected to be sufficient to satisfy the funding 3321
objectives established by the board. 3322

       (H) The board may, at any time, request an actuary to make 3323
any studies or actuarial valuations to determine the adequacy of 3324
the premium rates established by the administrator in accordance 3325
with sections 4123.29 and 4123.34 of the Revised Code, and may 3326
adjust those rates as recommended by the actuary. 3327

       (I) The ~~oversight commission~~board shall have an independent 3328
auditor, at least once every ten years, conduct a fiduciary 3329
performance audit of the investment program of the bureau of 3330
workers' compensation. That audit shall include an audit of the 3331
investment policies ofapproved by the ~~oversight commission~~board 3332
and investment procedures of the bureau. The ~~oversight commission~~ 3333
board shall submit a copy of that audit to the auditor of state. 3334

       ~~(E)~~(J) The ~~bureau of workers' compensation~~administrator, 3335
with the advice and consent of the ~~oversight commission~~board, 3336
shall employ an internal auditor who shall report directly to the 3337
~~oversight commission~~board on investment matters. The ~~oversight~~ 3338
~~commission~~board and the workers' compensation audit committee may 3339
request and review internal audits conducted by the internal 3340
auditor. 3341

       ~~(F)~~(K) The administrator shall pay the expenses incurred by 3342
the ~~oversight commission~~board to effectively fulfill its duties 3343
and exercise its powers under this section as the administrator 3344
pays other operating expenses of the bureau. 3345

       Sec. 4121.126. Except as provided in this chapter, no member 3346
of the bureau of workers' compensation ~~oversight commission~~board 3347
of directors or employee of the bureau of workers' compensation 3348
shall have any direct or indirect interest in the gains or profits 3349
of any investment made by the administrator of workers' 3350
compensation or shall receive directly or indirectly any pay or 3351
emolument for the member's or employee's services. No member or 3352
person connected with the bureau directly or indirectly, for self 3353
or as an agent or partner of others, shall borrow any of its funds 3354
or deposits or in any manner use the funds or deposits except to 3355
make current and necessary payments that are authorized by the 3356
administrator. No member of the ~~oversight commission~~board or 3357
employee of the bureau shall become an indorser or surety or 3358
become in any manner an obligor for moneys loaned by or borrowed 3359
from the bureau. 3360

       The administrator shall make no investments through or 3361
purchases from, or otherwise do any business with, any individual 3362
who is, or any partnership, association, or corporation that is 3363
owned or controlled by, a person who within the preceding three 3364
years was employed by the bureau, a board member of, or an officer 3365
of the ~~oversight commission~~board, or a person who within the 3366
preceding three years was employed by or was an officer holding a 3367
fiduciary, administrative, supervisory, or trust position, or any 3368
other position in which such person would be involved, on behalf 3369
of the person's employer, in decisions or recommendations 3370
affecting the investment policy of the bureau, and in which such 3371
person would benefit by any monetary gain. 3372

       Sec. 4121.128. The attorney general shall be the legal 3373
adviser of the bureau of workers' compensation ~~oversight~~ 3374
~~commission~~board of directors and the workers' compensation 3375
council. 3376

       Sec. 4121.13. The administrator of workers' compensation 3377
shall: 3378

       (A) Investigate, ascertain, and declare and prescribe what 3379
hours of labor, safety devices, safeguards, or other means or 3380
methods of protection are best adapted to render the employees of 3381
every employment and place of employment and frequenters of every 3382
place of employment safe, and to protect their welfare as required 3383
by law or lawful orders, and establish and maintain museums of 3384
safety and hygiene in which shall be exhibited safety devices, 3385
safeguards, and other means and methods for the protection of 3386
life, health, safety, and welfare of employees; 3387

       (B) Ascertain and fix reasonable standards and prescribe, 3388
modify, and enforce reasonable orders for the adoption of safety 3389
devices, safeguards, and other means or methods of protection to 3390
be as nearly uniform as possible as may be necessary to carry out 3391
all laws and lawful orders relative to the protection of the life, 3392
health, safety, and welfare of employees in employments and places 3393
of employment or frequenters of places of employment; 3394

       (C) Ascertain, fix, and order reasonable standards for the 3395
construction, repair, and maintenance of places of employment as 3396
shall render them safe; 3397

       (D) Investigate, ascertain, and determine reasonable 3398
classifications of persons, employments, and places of employment 3399
as are necessary to carry out the applicable sections of sections 3400
4101.01 to 4101.16 and 4121.01 to 4121.29 of the Revised Code; 3401

       (E) Adopt reasonable and proper rules relative to the 3402
exercise of ~~his~~the administrator's powers and authorities, and 3403
proper rules to govern ~~his~~the administrator's proceedings and to 3404
regulate the mode and manner of all investigations and hearings, 3405
which rules shall not be effective until ten days after their 3406
publication; a copy of the rules shall be delivered at cost to 3407
every citizen making application therefor; 3408

       (F) Investigate all cases of ~~fraud or other~~ illegalities, 3409
other than fraud, pertaining to the operation of the workers' 3410
compensation system and its several insurance funds and for that 3411
purpose, the administrator has every power of an inquisitorial 3412
nature granted to the industrial commission in this chapter and 3413
Chapter 4123. of the Revised Code; 3414

       (G) Do all things convenient and necessary to accomplish the 3415
purposes directed in sections 4101.01 to 4101.16 and 4121.01 to 3416
4121.28 of the Revised Code; 3417

       (H) Nothing in this section shall be construed to supersede 3418
section 4105.011 of the Revised Code in particular, or Chapter 3419
4105. of the Revised Code in general. 3420

       Sec. 4121.32. (A) The rules covering operating procedure and 3421
criteria for decision-making that the administrator of workers' 3422
compensation and the industrial commission are required to adopt 3423
pursuant to section 4121.31 of the Revised Code shall be 3424
supplemented with operating manuals setting forth the procedural 3425
steps in detail for performing each of the assigned tasks of each 3426
section of the bureau of workers' compensation and commission. The 3427
administrator and commission jointly shall adopt such manuals. No 3428
employee may deviate from manual procedures without authorization 3429
of the section chief. 3430

       (B) Manuals shall set forth the procedure for the assignment 3431
and transfer of claims within sections and be designed to provide 3432
performance objectives and may require employees to record 3433
sufficient data to reasonably measure the efficiency of functions 3434
in all sections. The bureau's division of research and statistics 3435
shall perform periodic cost-effectiveness analyses which shall be 3436
made available to the general assembly, the governor, and to the 3437
public during normal working hours. 3438

       (C) The bureau and commission jointly shall develop, adopt, 3439
and use a policy manual setting forth the guidelines and bases for 3440
decision-making for any decision which is the responsibility of 3441
the bureau, district hearing officers, staff hearing officers, or 3442
the commission. Guidelines shall be set forth in the policy manual 3443
by the bureau and commission to the extent of their respective 3444
jurisdictions for deciding at least the following specific 3445
matters: 3446

       (1) Reasonable ambulance services; 3447

       (2) Relationship of drugs to injury; 3448

       (3) Awarding lump-sum advances for creditors; 3449

       (4) Awarding lump-sum advances for attorney's fees; 3450

       (5) Placing a claimant into rehabilitation; 3451

       (6) Transferring costs of a claim from employer costs to the 3452
statutory surplus fund pursuant to section 4123.343 of the Revised 3453
Code; 3454

       (7) Utilization of physician specialist reports; 3455

       (8) Determining the percentage of permanent partial 3456
disability, temporary partial disability, temporary total 3457
disability, violations of specific safety requirements, an award 3458
under division (B) of section 4123.57 of the Revised Code, and 3459
permanent total disability. 3460

       (D) The bureau shall establish, adopt, and implement policy 3461
guidelines and bases for decisions involving reimbursement issues 3462
including, but not limited to, the adjustment of invoices, the 3463
reduction of payments for future services when an internal audit 3464
concludes that a health care provider was overpaid or improperly 3465
paid for past services, reimbursement fees, or other adjustments 3466
to payments. These policy guidelines and bases for decisions, and 3467
any changes to the guidelines and bases, shall be set forth in a 3468
reimbursement manual and provider bulletins. 3469

       ~~Neither the policy guidelines nor the bases set forth in the~~ 3470
~~reimbursement manual or provider bulletins referred to in this~~ 3471
~~division is a rule as defined in section 119.01 of the Revised~~ 3472
~~Code.~~ 3473

       (E) With respect to any determination of disability under 3474
Chapter 4123. of the Revised Code, when the physician makes a 3475
determination based upon statements or information furnished by 3476
the claimant or upon subjective evidence, hethe physician shall 3477
clearly indicate this fact in ~~his~~the physician's report. 3478

       (F) The administrator shall publish the manuals and make 3479
copies of all manuals available to interested parties at cost. 3480

       Sec. 4121.37. The administrator of workers' compensation 3481
having, by virtue of Section 35 of Article II, Ohio Constitution, 3482
the expenditure of the fund therein created for the investigation 3483
and prevention of industrial accidents and diseases, shall, with 3484
the advice and consent of the bureau of workers' compensation 3485
~~oversight commission~~board of directors, in the exercise of the 3486
administrator's authority and in the performance of the 3487
administrator's duty, employ a superintendent and the necessary 3488
experts, engineers, investigators, clerks, and stenographers for 3489
the efficient operation of a division of safety and hygiene of the 3490
bureau of workers' compensation, which is hereby created. 3491

       The administrator ~~of workers' compensation~~, with the advice 3492
and consent of the ~~oversight commission~~board, shall pay into the 3493
safety and hygiene fund, which is hereby created in the state 3494
treasury, the portion of the contributions paid by employers, 3495
calculated as though all employers paid premiums based upon 3496
payroll, not to exceed one per cent thereof in any year, as is 3497
necessary for the payment of the salary of the superintendent of 3498
the division of safety and hygiene and the compensation of the 3499
other employees of the division of safety and hygiene, the 3500
expenses of investigations and researches for the prevention of 3501
industrial accidents and diseases, and for operating the long-term 3502
care loan fund program established under section 4121.48 of the 3503
Revised Code. All investment earnings of the fund shall be 3504
credited to the fund. The administrator has the same powers to 3505
invest any of the funds belonging to the fund as are delegated to 3506
the administrator under section 4123.44 of the Revised Code with 3507
respect to the state insurance fund. The superintendent, under the 3508
direction of the administrator, with the advice and consent of the 3509
~~oversight commission~~board, shall conduct investigations and 3510
researches for the prevention of industrial accidents and 3511
diseases, conduct loss prevention programs and courses for 3512
employers, establish and administrate cooperative programs with 3513
employers for the purchase of individual safety equipment for 3514
employees, and print and distribute information as may be of 3515
benefit to employers and employees. The administrator shall pay 3516
from the safety and hygiene fund the salary of the superintendent 3517
of the division of safety and hygiene, the compensation of the 3518
other employees of the division of safety and hygiene, the 3519
expenses necessary or incidental to investigations and researches 3520
for the prevention of industrial accidents and diseases, and the 3521
cost of printing and distributing such information. 3522

       The superintendent, under the direction of the administrator, 3523
shall prepare an annual report, addressed to the governor, on the 3524
amount of the expenditures and the purposes for which they have 3525
been made, and the results of the investigations and researches. 3526
The administrator shall include the administrative costs, 3527
salaries, and other expenses of the division of safety and hygiene 3528
as a part of the budget of the bureau of workers' compensation 3529
that is submitted to the director of budget and management and 3530
shall identify those expenditures separately from other bureau 3531
expenditures. 3532

       The superintendent shall be a competent person with at least 3533
five years' experience in industrial accident or disease 3534
prevention work. The superintendent and up to six positions in the 3535
division of safety and hygiene as the administrator, with the 3536
advice and consent of the ~~oversight commission~~board, designates 3537
are in the unclassified civil service of the state as long as the 3538
administrator, with the advice and consent of the ~~oversight~~ 3539
~~commission~~board, determines the positions subordinate to the 3540
superintendent are primarily and distinctively administrative, 3541
managerial, or professional in character. All other full-time 3542
employees of the division of safety and hygiene are in the 3543
classified civil service of the state. 3544

       Sec. 4121.40. (A) The administrator of workers' compensation 3545
shall appoint a service director for each service office who shall 3546
have all of the following duties: 3547

       (1) Provide each claimant and employer fair, impartial, and 3548
equal treatment; 3549

       (2) Recommend any needed improvements for changes in staff 3550
size and accessibility to service offices; 3551

       (3) ~~Recommend to the administrator appropriate action~~ 3552
~~concerning any allegations of misconduct, abuse of authority, or~~ 3553
~~fraud committed in his service office;~~ 3554

       ~~(4)~~ Ensure that all current bureau rules and operating 3555
procedures are carried out by all employees under ~~his~~the service 3556
director's direction; 3557

       ~~(5)~~(4) Assist claimants and employers who contact the service 3558
office for information or assistance with respect to claims 3559
processing and coverage. 3560

       (B) The administrator shall assign to each service office an 3561
adequate number of investigators and field auditors. 3562

       Service directors shall make investigators available to 3563
district hearing officers as needed. 3564

       In addition to other duties the administrator may assign to 3565
investigators, they shall, at the service directors' direction, 3566
investigate alleged instances of persons receiving compensation 3567
pursuant to section 4123.58 of the Revised Code and engaging in 3568
remunerative employment that is incompatible with the terms of 3569
that section. 3570

       Sec. 4121.441. (A) The administrator of workers' 3571
compensation, with the advice and consent of the bureau of 3572
workers' compensation ~~oversight commission~~board of directors, 3573
shall adopt rules under Chapter 119. of the Revised Code for the 3574
health care partnership program administered by the bureau of 3575
workers' compensation to provide medical, surgical, nursing, drug, 3576
hospital, and rehabilitation services and supplies to an employee 3577
for an injury or occupational disease that is compensable under 3578
this chapter or Chapter 4123., 4127., or 4131. of the Revised 3579
Code. 3580

       The rules shall include, but are not limited to, the 3581
following: 3582

       (1) Procedures for the resolution of medical disputes between 3583
an employer and an employee, an employee and a provider, or an 3584
employer and a provider, prior to an appeal under section 4123.511 3585
of the Revised Code. Rules the administrator adopts pursuant to 3586
division (A)(1) of this section may specify that the resolution 3587
procedures shall not be used to resolve disputes concerning 3588
medical services rendered that have been approved through standard 3589
treatment guidelines, pathways, or presumptive authorization 3590
guidelines. 3591

       (2) Prohibitions against discrimination against any category 3592
of health care providers; 3593

       (3) Procedures for reporting injuries to employers and the 3594
bureau by providers; 3595

       (4) Appropriate financial incentives to reduce service cost 3596
and insure proper system utilization without sacrificing the 3597
quality of service; 3598

       (5) Adequate methods of peer review, utilization review, 3599
quality assurance, and dispute resolution to prevent, and provide 3600
sanctions for, inappropriate, excessive or not medically necessary 3601
treatment; 3602

       (6) A timely and accurate method of collection of necessary 3603
information regarding medical and health care service and supply 3604
costs, quality, and utilization to enable the administrator to 3605
determine the effectiveness of the program; 3606

       (7) Provisions for necessary emergency medical treatment for 3607
an injury or occupational disease provided by a health care 3608
provider who is not part of the program; 3609

       (8) Discounted pricing for all in-patient and out-patient 3610
medical services, all professional services, and all 3611
pharmaceutical services; 3612

       (9) Provisions for provider referrals, pre-admission and 3613
post-admission approvals, second surgical opinions, and other cost 3614
management techniques; 3615

       (10) Antifraud mechanisms; 3616

       (11) Standards and criteria for the bureau to utilize in 3617
certifying or recertifying a health care provider or a vendor for 3618
participation in the health partnership program; 3619

       (12) Standards and criteria for the bureau to utilize in 3620
penalizing or decertifying a health care provider or a vendor from 3621
participation in the health partnership program. 3622

       (B) The administrator shall implement the health partnership 3623
program according to the rules the administrator adopts under this 3624
section for the provision and payment of medical, surgical, 3625
nursing, drug, hospital, and rehabilitation services and supplies 3626
to an employee for an injury or occupational disease that is 3627
compensable under this chapter or Chapter 4123., 4127., or 4131. 3628
of the Revised Code. 3629

       Sec. 4121.48. (A) The bureau of workers' compensation shall 3630
operate a long-term care loan fund program. The administrator of 3631
workers' compensation may adopt rules, employ personnel, and do 3632
all things necessary for that purpose. 3633

       (B) The administrator shall use the long-term care loan fund 3634
program to make loans without interest to employers that are 3635
nursing homes for the purpose of allowing those employers to 3636
purchase, improve, install, or erect sit-to-stand floor lifts, 3637
ceiling lifts, other lifts, and fast electric beds, and to pay for 3638
the education and training of personnel, in order to implement a 3639
facility policy of no manual lifting of residents by employees. 3640

       The administrator, with the advice and consent of the bureau 3641
of workers' compensation ~~oversight commission~~board of directors, 3642
may adopt rules establishing criteria for loan eligibility, 3643
maximum loan amounts, loan periods, default penalties, and any 3644
other terms the administrator considers necessary for a loan. 3645

       (C) There is hereby created in the state treasury the 3646
long-term care loan fund. The fund shall consist of money the 3647
administrator, with the advice and consent of the ~~oversight~~ 3648
~~commission~~board, requests the director of budget and management 3649
to transfer from the safety and hygiene fund created in section 3650
4121.37 of the Revised Code. The fund shall be used solely for 3651
purposes identified in this section. All investment earnings of 3652
the fund shall be credited to the fund. All money the 3653
administrator receives for payment of a default penalty assessed 3654
or for repayment of any loan made pursuant to this section shall 3655
be credited to the safety and hygiene fund created under section 3656
4121.37 of the Revised Code. 3657

       (D) As used in this section~~, "nursing~~: 3658

       (1) "Hospital" has the same meaning as in section 3701.01 of 3659
the Revised Code; 3660

        (2) "Nursing home" has the same meaning as in section 3721.01 3661
of the Revised Code. 3662

       Sec. 4121.61. The administrator of workers' compensation, 3663
with the advice and consent of the bureau of workers' compensation 3664
~~oversight commission~~board of directors, shall adopt rules, take 3665
measures, and make expenditures as it deems necessary to aid 3666
claimants who have sustained compensable injuries or incurred 3667
compensable occupational diseases pursuant to Chapter 4123., 3668
4127., or 4131. of the Revised Code to return to work or to assist 3669
in lessening or removing any resulting handicap. 3670

       Sec. 4121.67. The administrator of workers' compensation, 3671
with the advice and consent of the bureau of workers' compensation 3672
~~oversight commission~~board of directors, shall adopt rules: 3673

       (A) For the encouragement of reemployment of claimants who 3674
have successfully completed prescribed rehabilitation programs by 3675
payment from the surplus fund established by section 4123.34 of 3676
the Revised Code to employers who employ or re-employ the 3677
claimants. The period or periods of payments shall not exceed six 3678
months in the aggregate, unless the administrator or ~~his~~the 3679
administrator's designee determines that the claimant will be 3680
benefited by an extension of payments. 3681

       (B) Requiring payment, in the same manner as living 3682
maintenance payments are made pursuant to section 4121.63 of the 3683
Revised Code, to the claimant who completes a rehabilitation 3684
training program and returns to employment, but who suffers a wage 3685
loss compared to the wage the claimant was receiving at the time 3686
of injury. Payments per week shall be sixty-six and two-thirds per 3687
cent of the difference, if any, between the claimant's weekly wage 3688
at the time of injury and the weekly wage received while employed, 3689
up to a maximum payment per week equal to the statewide average 3690
weekly wage. The payments may continue for up to a maximum of two 3691
hundred weeks but shall be reduced by the corresponding number of 3692
weeks in which the claimant receives payments pursuant to division 3693
(B) of section 4123.56 of the Revised Code. 3694

       Sec. 4121.70. (A) There is hereby created the 3695
labor-management government advisory council consisting of twelve 3696
members appointed as follows: 3697

       (1) The governor, with the advice and consent of the senate, 3698
shall appoint three members who, by training and vocation, are 3699
representative of labor and three members who, by training and 3700
vocation, are representative of employers. 3701

       (2) Ex officio, the chairpersons of the standing committees 3702
of the house of representatives and the senate to which 3703
legislation concerned with workers' compensation is customarily 3704
referred. A chairperson may designate the vice-chairperson of the 3705
committee to serve instead. 3706

       (3) One person who by training and vocation represents labor 3707
and one person who by training and vocation represents employers 3708
of differing political parties appointed by the speaker of the 3709
house of representatives. 3710

       (4) One person who by training and vocation represents labor 3711
and one person who by training and vocation represents employers 3712
of differing political parties appointed by the president of the 3713
senate. 3714

       (B) Members appointed by the governor shall serve for a term 3715
of six years with each term ending on the same day of the year in 3716
which the member was first appointed, except that each member 3717
shall serve for a period of sixty additional days at the end of 3718
the member's term or until the member's successor is appointed and 3719
qualifies, whichever date occurs first. Of the members first 3720
appointed to the council by the governor, one member each 3721
representing labor and management shall serve an initial term of 3722
two years, one member each representing labor and management shall 3723
serve a term of four years, and the remaining two members shall 3724
serve full six-year terms. The members initially appointed by the 3725
speaker of the house of representatives and the president of the 3726
senate shall serve a term of six years. Thereafter, members shall 3727
be appointed to and serve full six-year terms. Members are 3728
eligible for reappointment to any number of additional terms. 3729

       Legislative members shall serve a term that coincides with 3730
the two-year legislative session in which they are first appointed 3731
with each term ending on the thirty-first day of December of the 3732
even-numbered year. Legislative members are eligible for 3733
reappointment. 3734

       Vacancies on the council shall be filled in the same manner 3735
as the original appointment. All members of the council shall 3736
serve without additional compensation but shall be reimbursed by 3737
the bureau of workers' compensation for actual and necessary 3738
expenses. 3739

       The council shall advise the bureau of workers' compensation 3740
~~oversight commission~~board of directors and the administrator of 3741
workers' compensation on the quality and effectiveness of 3742
rehabilitation services and make recommendations pertaining to the 3743
bureau's rehabilitation program, including the operation of that 3744
program. 3745

       The labor-management government advisory council shall 3746
recommend to the administrator three candidates for the position 3747
of director of rehabilitation. The candidates shall be chosen for 3748
their ability and background in the field of rehabilitation. The 3749
administrator shall select a director from the list of candidates. 3750

       Sec. 4121.75. (A) There is hereby created the workers' 3751
compensation council. Members of the council shall be appointed as 3752
follows: 3753

       (1) Three members of the senate, appointed by the president 3754
of the senate, not more than two of whom may be members of the 3755
same political party; 3756

       (2) Three members of the house of representatives, appointed 3757
by the speaker of the house of representatives, not more than two 3758
of whom may be members of the same political party; 3759

       (3) Three members jointly appointed by the president of the 3760
senate and the speaker of the house of representatives, not more 3761
than two of whom shall be members of the same political party, one 3762
of whom shall represent employers, one of whom shall represent 3763
employees, and one of whom shall be a person who, prior to the 3764
person's appointment, has received compensation or benefits under 3765
this chapter or Chapter 4123., 4127., or 4131. of the Revised 3766
Code. Of these three members, at least one shall be a person with 3767
investment expertise. 3768

       (B) The council also shall consist of the chairperson of the 3769
industrial commission and the administrator of workers' 3770
compensation, who shall be nonvoting ex officio members of the 3771
council. 3772

       (C) The president of the senate and the speaker of the house 3773
of representatives shall make the initial appointments required 3774
under divisions (A)(1) and (2) of this section not later than 3775
thirty days after the effective date of this section. The members 3776
of the council who are appointed from the membership of the senate 3777
and the house of representatives shall serve during their terms as 3778
members of the general assembly. Notwithstanding the adjournment 3779
of the general assembly of which the member is a member or the 3780
expiration of the member's term as a member of such general 3781
assembly, a member shall continue in office subsequent to the 3782
expiration date of the member's term on the council until the 3783
member's successor takes office or until a period of sixty days 3784
has elapsed, whichever occurs first. 3785

       (D) The president of the senate and the speaker of the house 3786
of representatives shall make the initial appointments required 3787
under division (A)(3) of this section not later than ninety days 3788
after the effective date of this section. Of these initial 3789
appointments to the council, one member shall be appointed for a 3790
term ending one year after the effective date of this section, one 3791
member shall be appointed for a term ending two years after the 3792
effective date of this section, and one member shall be appointed 3793
for a term ending three years after the effective date of this 3794
section. Thereafter, terms shall be for three years, with each 3795
term ending on the same day of the same month as did the term that 3796
it succeeds. Each member appointed under division (A)(3) of this 3797
section shall hold office from the date of appointment until the 3798
end of the term for which the appointment was made. Members may be 3799
reappointed. Any member appointed pursuant to division (A)(3) of 3800
this section to fill a vacancy occurring prior to the expiration 3801
of the term for which the member's predecessor was appointed shall 3802
hold office for the remainder of that term. Each member appointed 3803
pursuant to division (A)(3) of this section shall continue in 3804
office subsequent to the expiration date of the member's term 3805
until the member's successor takes office or until a period of 3806
sixty days has elapsed, whichever occurs first. 3807

       (E) Vacancies shall be filled in the manner prescribed for 3808
original appointments. 3809

       Sec. 4121.76. Meetings of the workers' compensation council 3810
shall be called in the manner and at the times prescribed by rules 3811
adopted by the council. A majority of the voting members of the 3812
council constitutes a quorum and no action shall be taken by the 3813
council unless approved by at least five voting members. The 3814
council shall organize by selecting a chairperson, 3815
vice-chairperson, and any other officers as it determines are 3816
necessary. The council shall select the chairperson and 3817
vice-chairperson from the members of the council who also are 3818
members of the general assembly, and each of those members shall 3819
serve as chairperson or vice-chairperson during their terms as 3820
members of the general assembly. The council shall rotate the 3821
selection of the chairperson and vice-chairperson between the two 3822
houses. The council shall adopt rules for the conduct of its 3823
business and the election of its officers, and shall establish an 3824
office in Columbus separate from the offices of the bureau of 3825
workers' compensation and the industrial commission. Each member 3826
of the council, before entering upon the member's official duties 3827
shall take and subscribe to an oath of office, to uphold the 3828
Constitution and laws of the United States and this state and to 3829
perform the duties of the office honestly, faithfully, and 3830
impartially. Members of the council appointed pursuant to division 3831
(A)(3) of section 4121.75 of the Revised Code shall serve without 3832
compensation but shall be reimbursed for their actual and 3833
necessary expenses incurred in the performance of their official 3834
duties. Legislative members shall not receive compensation or 3835
expenses. 3836

       Sec. 4121.77. The workers' compensation council may do any 3837
of the following: 3838

       (A) Appoint a director to manage and direct the duties of the 3839
staff of the council. The director shall be a person who has had 3840
training and experience in areas related to the duties of the 3841
council. 3842

       (B) Appoint professional, technical, and clerical employees 3843
as necessary, and employ or hire on a consulting basis persons to 3844
provide actuarial, legal, investment, or other technical services 3845
required for the performance of the council's duties. For purposes 3846
of section 4117.01 of the Revised Code, employees of the council 3847
shall be considered employees of the general assembly. 3848

       (C) Fix the compensation of the director and all other 3849
employees of the council; 3850

       (D) Require the members of the industrial commission, bureau 3851
of workers' compensation board of directors, workers' compensation 3852
audit committee, workers' compensation actuarial committee, and 3853
workers' compensation investment committee, the administrator of 3854
workers' compensation, and employees of the commission and the 3855
bureau of workers' compensation, and any agency or official of 3856
this state or its political subdivisions to provide the council 3857
with any information necessary to carry out its duties; 3858

       (E) Administer oaths and hold public hearings at times and 3859
places within the state as necessary to accomplish the purposes of 3860
sections 4121.75 to 4121.79 of the Revised Code; 3861

       (F) Establish regular reporting requirements for any report 3862
that the chairperson of the commission, chairperson of the board, 3863
members of the committees specified in division (D) of this 3864
section, and the administrator are required to submit to the 3865
council; 3866

       (G) Request that the auditor of state perform or contract for 3867
the performance of a financial or special audit of the bureau; 3868

       (H) Request that the auditor of state perform or contract for 3869
the performance of a special or fiduciary audit of the workers' 3870
compensation system. 3871

       Sec. 4121.78. The workers' compensation council shall do all 3872
of the following: 3873

       (A) Make an impartial review from time to time of all laws 3874
governing the administration and financing of the workers' 3875
compensation system under this chapter and Chapters 4123., 4125., 3876
4127., and 4131. of the Revised Code and recommend to the general 3877
assembly any changes it may find desirable with respect to 3878
compensation and benefits, sound financing of the cost of paying 3879
compensation and benefits, the prudent investment of funds, and 3880
the improvement of the language, structure, and organization of 3881
the relevant laws governing the workers' compensation system; 3882

       (B) Make an annual report to the governor and general 3883
assembly describing its evaluation and recommendations with 3884
respect to the operations of the industrial commission and the 3885
bureau of workers' compensation and the funds specified in this 3886
chapter and Chapters 4123., 4127., and 4131. of the Revised Code; 3887

       (C) Study all changes to this chapter and Chapters 4123., 3888
4125., 4127., and 4131. of the Revised Code proposed to the 3889
general assembly and report to the general assembly on their 3890
probable costs, actuarial implications, and desirability as a 3891
matter of public policy; 3892

       (D) Review semiannually the investment policy approved by the 3893
bureau of workers' compensation board of directors pursuant to 3894
section 4121.12 of the Revised Code for the operation of the 3895
investment program of the workers' compensation system, including 3896
a review of asset allocation targets and ranges, risk factors, 3897
asset class benchmarks, time horizons, total return objectives, 3898
relative volatility, and performance evaluation guidelines. 3899

       (E) Create a report that summarizes the council's findings in 3900
the review conducted pursuant to division (D) of this section and 3901
submit that report to the governor and general assembly not later 3902
than thirty days after completing the review. 3903

       (F) Review, as the council determines necessary, all 3904
financial, actuarial, and fiduciary audits performed on the funds 3905
specified in this chapter and Chapters 4123., 4127., and 4131. of 3906
the Revised Code and the actuarial policies of the bureau of 3907
workers' compensation; 3908

       (G) Have prepared by an independent actuary, at least once 3909
every ten years, an actuarial review of the annual actuarial 3910
valuations and quinquennial actuarial investigations prepared by 3911
the bureau of workers' compensation board of directors pursuant to 3912
section 4121.125 of the Revised Code, including a review of the 3913
actuarial assumptions and methods, the data underlying the 3914
valuations and investigations, and the adequacy of employer 3915
premium rates to amortize its unfunded actuarial liability, if 3916
any, and to support the payment of compensation and benefits 3917
pursuant to this chapter and Chapters 4123., 4127., and 4131. of 3918
the Revised Code; 3919

       (H) Submit to the governor and the general assembly a report 3920
summarizing the review required under division (G) of this 3921
section; 3922

       (I) Have conducted by an independent auditor at least once 3923
every ten years a fiduciary performance audit of the workers' 3924
compensation system, and require the administrator of workers' 3925
compensation to pay the costs associated with that audit; 3926

       (J) Review all proposed rules submitted to the council 3927
pursuant to sections 4121.03, 4121.12, and 4121.121 of the Revised 3928
Code, provide each member of the council a copy of those rules, 3929
and submit any recommendations concerning whether those rules 3930
should be approved to the joint committee on agency rule review. 3931

       Sec. 4121.79. The compensation of all employees of the 3932
workers' compensation council and other expenses of the council 3933
shall be paid upon vouchers approved by the director and the 3934
chairperson of the council. 3935

       The administrator of workers' compensation shall pay the 3936
annual expenses of the council. The council shall prepare and 3937
submit to the administrator on or before the thirtieth day of June 3938
of each year an itemized estimate of the amounts necessary to pay 3939
the expenses of the council during the following year. 3940

       The council shall establish policies and procedures for 3941
purchasing goods and services on a competitive basis and 3942
maintaining tangible personal property. The policies and 3943
procedures shall be designed to safeguard the use of funds 3944
received by the council. An audit performed under Chapter 117. of 3945
the Revised Code shall include a determination of the council's 3946
compliance with those policies and procedures. 3947

       The council is not subject to Chapter 123., 124., 125., 126., 3948
or 127. of the Revised Code. 3949

       Sec. 4123.25. (A) No employer shall knowingly misrepresent 3950
to the bureau of workers' compensation the amount or 3951
classification of payroll upon which the premium under this 3952
chapter is based. Whoever violates this division shall be liable 3953
to the state in an amount determined by the administrator of 3954
workers' compensation for not more than ten times the amount of 3955
the difference between the premium paid and the amount the 3956
employer should have paid. The liability to the state under this 3957
division may be enforced in a civil action in the name of the 3958
state, and all sums collected under this division shall be paid 3959
into the state insurance fund. 3960

       (B) No self-insuring employer shall knowingly misrepresent 3961
the amount of paid compensation paid by such employer for purposes 3962
of the assessments provided under this chapter and Chapter 4121. 3963
of the Revised Code as required by section 4123.35 of the Revised 3964
Code. Whoever violates this division is liable to the state in an 3965
amount determined by the self-insuring employers evaluation board 3966
pursuant to division (C) of section 4123.352 of the Revised Code 3967
or for an amount the board determines that is not more than ten 3968
times the amount of the difference between the assessment paid and 3969
the amount of the assessment that should have been paid. The 3970
liability to the state under this division may be enforced in a 3971
civil action in the name of the state and all sums collected under 3972
this division shall be paid into the self-insurance assessment 3973
fund created pursuant to division (K) of section 4123.35 of the 3974
Revised Code. 3975

       (C) The administrator of workers' compensation, with the 3976
advice and consent of the bureau of workers' compensation 3977
~~oversight commission~~board of directors, shall adopt rules 3978
establishing criteria for determining both of the following: 3979

       (1) The amount of the penalty assessed against an employer 3980
for a violation of division (A) of this section; 3981

       (2) Acts or omissions that do not constitute a violation of 3982
division (A) or (B) of this section. 3983

       Sec. 4123.29. (A) The administrator of workers' 3984
compensation, subject to the approval of the bureau of workers' 3985
compensation ~~oversight commission~~board of directors, shall do all 3986
of the following: 3987

       (1) Classify occupations or industries with respect to their 3988
degree of hazard and determine the risks of the different classes 3989
according to the categories the national council on compensation 3990
insurance establishes that are applicable to employers in this 3991
state; 3992

       (2) Fix the rates of premium of the risks of the classes 3993
based upon the total payroll in each of the classes of occupation 3994
or industry sufficiently large to provide a fund for the 3995
compensation provided for in this chapter and to maintain a state 3996
insurance fund from year to year. The administrator shall set the 3997
rates at a level that assures the solvency of the fund. Where the 3998
payroll cannot be obtained or, in the opinion of the 3999
administrator, is not an adequate measure for determining the 4000
premium to be paid for the degree of hazard, the administrator 4001
may determine the rates of premium upon such other basis, 4002
consistent with insurance principles, as is equitable in view of 4003
the degree of hazard, and whenever in this chapter reference is 4004
made to payroll or expenditure of wages with reference to fixing 4005
premiums, the reference shall be construed to have been made also 4006
to such other basis for fixing the rates of premium as the 4007
administrator may determine under this section. 4008

       The administrator in setting or revising rates shall furnish 4009
to employers an adequate explanation of the basis for the rates 4010
set. 4011

       (3) Develop and make available to employers who are paying 4012
premiums to the state insurance fund alternative premium plans. 4013
Alternative premium plans shall include retrospective rating 4014
plans. The administrator may make available plans under which an 4015
advanced deposit may be applied against a specified deductible 4016
amount per claim. 4017

       (4)(a) Offer to insure the obligations of employers under 4018
this chapter under a plan that groups, for rating purposes, 4019
employers, and pools the risk of the employers within the group 4020
provided that the employers meet all of the following conditions: 4021

       ~~(a)~~(i) All of the employers within the group are members of 4022
an organization that has been in existence for at least two years 4023
prior to the date of application for group coverage; 4024

       ~~(b)~~(ii) The organization was formed for purposes other than 4025
that of obtaining group workers' compensation under this division; 4026

       ~~(c)~~(iii) The employers' business in the organization is 4027
substantially similar such that the risks which are grouped are 4028
substantially homogeneous; 4029

       ~~(d)~~(iv) The group of employers consists of at least one 4030
hundred members or the aggregate workers' compensation premiums of 4031
the members, as determined by the administrator, are expected to 4032
exceed one hundred fifty thousand dollars during the coverage 4033
period; 4034

       ~~(e)~~(v) The formation and operation of the group program in 4035
the organization will substantially improve accident prevention 4036
and claims handling for the employers in the group; 4037

       ~~(f)~~(vi) Each employer seeking to enroll in a group for 4038
workers' compensation coverage has an industrial insurance account 4039
in good standing with the bureau of workers' compensation such 4040
that at the time the agreement is processed no outstanding 4041
premiums, penalties, or assessments are due from any of the 4042
employers. 4043

       (b) If an organization sponsors more than one employer group 4044
to participate in group plans established under this section, that 4045
organization may submit a single application that supplies all of 4046
the information necessary for each group of employers that the 4047
organization wishes to sponsor. 4048

       (c) In providing employer group plans under division (A)(4) 4049
of this section, the administrator shall consider an employer 4050
group as a single employing entity for purposes of retrospective 4051
rating. No employer may be a member of more than one group for the 4052
purpose of obtaining workers' compensation coverage under this 4053
division. 4054

       (d) At the time the administrator revises premium rates 4055
pursuant to this section and section 4123.34 of the Revised Code, 4056
if the premium rate of an employer who participates in a group 4057
plan established under this section changes from the rate 4058
established for the previous year, the administrator, in addition 4059
to sending the invoice with the rate revision to that employer, 4060
shall send a copy of that invoice to the third-party administrator 4061
that administers the group plan for that employer's group. 4062

       (e) In providing employer group plans under division (A)(4) 4063
of this section, the administrator shall establish a program 4064
designed to mitigate the impact of a significant claim that would 4065
come into the experience of a private, state fund group-rated 4066
employer for the first time and be a contributing factor in that 4067
employer being excluded from a group-rated plan. The administrator 4068
shall establish eligibility criteria and requirements that such 4069
employers must satisfy in order to participate in this program. 4070
For purposes of this program, the administrator shall establish a 4071
discount on premium rates applicable to employers who qualify for 4072
the program. 4073

       (f) In no event shall division (A)(4) of this section be 4074
construed as granting to an employer status as a self-insuring 4075
employer. 4076

       (g) The administrator shall develop classifications of 4077
occupations or industries that are sufficiently distinct so as not 4078
to group employers in classifications that unfairly represent the 4079
risks of employment with the employer. 4080

       (5) Generally promote employer participation in the state 4081
insurance fund through the regular dissemination of information to 4082
all classes of employers describing the advantages and benefits of 4083
opting to make premium payments to the fund. To that end, the 4084
administrator shall regularly make employers aware of the various 4085
workers' compensation premium packages developed and offered 4086
pursuant to this section. 4087

       (6) Make available to every employer who is paying premiums 4088
to the state insurance fund a program whereby the employer or the 4089
employer's agent pays to the claimant or on behalf of the claimant 4090
the first five thousand dollars of a compensable workers' 4091
compensation medical-only claim filed by that claimant that is 4092
related to the same injury or occupational disease. If an employer 4093
elects to enter the program, the administrator shall not reimburse 4094
the employer for such amounts paid and shall not charge the first 4095
five thousand dollars of any medical-only claim paid by an 4096
employer to the employer's experience or otherwise use it in merit 4097
rating or determining the risks of any employer for the purpose of 4098
payment of premiums under this chapter. A certified health care 4099
provider shall extend to an employer who participates in this 4100
program the same rates for services rendered to an employee of 4101
that employer as the provider bills the administrator for the same 4102
type of medical claim processed by the bureau. If an employer 4103
elects to enter the program and the employer fails to pay a bill 4104
for a medical-only claim included in the program, the employer 4105
shall be liable for that bill and the employee for whom the 4106
employer failed to pay the bill shall not be liable for that bill. 4107
The administrator shall adopt rules to implement and administer 4108
division (A)(6) of this section. 4109

       (B) The administrator, with the advice and consent of the 4110
~~oversight commission~~board, by rule, may do both of the following: 4111

       (1) Grant an employer who makes the employer's semiannual 4112
premium payment at least one month prior to the last day on which 4113
the payment may be made without penalty, a discount as the 4114
administrator fixes from time to time; 4115

       (2) Levy a minimum annual administrative charge upon risks 4116
where semiannual premium reports develop a charge less than the 4117
administrator considers adequate to offset administrative costs of 4118
processing. 4119

       Sec. 4123.291. (A) An adjudicating committee appointed by 4120
the administrator of workers' compensation to hear any matter 4121
specified in divisions (B)(1) to (7) of this section and shall 4122
hear the matter within sixty days of the date on which an employer 4123
files the request, protest, or petition. An employer desiring to 4124
file a request, protest, or petition regarding any matter 4125
specified in divisions (B)(1) to (7) of this section shall file 4126
the request, protest, or petition to the adjudicating committee on 4127
or before twenty-four months after the administrator sends notice 4128
of the determination about which the employer is filing the 4129
request, protest, or petition. 4130

       (B) An employer who is adversely affected by a decision of an 4131
adjudicating committee appointed by the administrator may appeal 4132
the decision of the committee to the administrator or the 4133
administrator's designee. The employer shall file the appeal in 4134
writing within thirty days after the employer receives the 4135
decision of the adjudicating committee. The administrator or the 4136
designee shall hear the appeal and hold a hearing, provided that 4137
the decision of the adjudicating committee relates to one of the 4138
following: 4139

       (1) An employer request for a waiver of a default in the 4140
payment of premiums pursuant to section 4123.37 of the Revised 4141
Code; 4142

       (2) An employer request for the settlement of liability as a 4143
noncomplying employer under section 4123.75 of the Revised Code; 4144

       (3) An employer petition objecting to the assessment of a 4145
premium pursuant to section 4123.37 of the Revised Code and the 4146
rules adopted pursuant to that section; 4147

       (4) An employer request for the abatement of penalties 4148
assessed pursuant to section 4123.32 of the Revised Code and the 4149
rules adopted pursuant to that section; 4150

       (5) An employer protest relating to an audit finding or a 4151
determination of a manual classification, experience rating, or 4152
transfer or combination of risk experience; 4153

       (6) Any decision relating to any other risk premium matter 4154
under Chapters 4121., 4123., and 4131. of the Revised Code; 4155

       (7) An employer petition objecting to the amount of security 4156
required under division (C) of section 4125.05 of the Revised Code 4157
and the rules adopted pursuant to that section. 4158

       (C) The bureau of workers' compensation board of directors, 4159
based upon recommendations of the workers' compensation actuarial 4160
committee, shall establish the policy for all adjudicating 4161
committee procedures, including, but not limited to, specific 4162
criteria for manual premium rate adjustment. 4163

       Sec. 4123.311. (A) The administrator of workers' 4164
compensation may do all of the following: 4165

       (1) Utilize direct deposit of funds by electronic transfer 4166
for all disbursements the administrator is authorized to pay under 4167
this chapter and Chapters 4121., 4127., and 4131. of the Revised 4168
Code; 4169

       (2) Require any payee to provide a written authorization 4170
designating a financial institution and an account number to which 4171
a payment made according to division (A)(1) of this section is to 4172
be credited, notwithstanding division (B) of section 9.37 of the 4173
Revised Code; 4174

       (3) Contract with an agent to do both of the following: 4175

       (a) Supply debit cards for claimants to access payments made 4176
to them pursuant to this chapter and Chapters 4121., 4127., and 4177
4131. of the Revised Code; 4178

       (b) Credit the debit cards described in division (A)(3)(a) of 4179
this section with the amounts specified by the administrator 4180
pursuant to this chapter and Chapters 4121., 4127., and 4131. of 4181
the Revised Code by utilizing direct deposit of funds by 4182
electronic transfer. 4183

       (4) Enter into agreements with financial institutions to 4184
credit the debit cards described in division (A)(3)(a) of this 4185
section with the amounts specified by the administrator pursuant 4186
to this chapter and Chapters 4121., 4127., and 4131. of the 4187
Revised Code by utilizing direct deposit of funds by electronic 4188
transfer. 4189

       (B) The administrator shall inform claimants about the 4190
administrator's utilization of direct deposit of funds by 4191
electronic transfer under this section and section 9.37 of the 4192
Revised Code, furnish debit cards to claimants as appropriate, and 4193
provide claimants with instructions regarding use of those debit 4194
cards. 4195

       (C) The administrator, with the advice and consent of the 4196
bureau of workers' compensation ~~oversight commission~~board of 4197
directors, shall adopt rules in accordance with Chapter 119. of 4198
the Revised Code regarding utilization of the direct deposit of 4199
funds by electronic transfer under this section and section 9.37 4200
of the Revised Code. 4201

       Sec. 4123.32. The administrator of workers' compensation, 4202
with the advice and consent of the bureau of workers' compensation 4203
~~oversight commission~~board of directors, shall adopt rules with 4204
respect to the collection, maintenance, and disbursements of the 4205
state insurance fund including all of the following: 4206

       (A) ~~A rule providing that in the event there is developed as~~ 4207
~~of any given rate revision date a surplus of earned premium over~~ 4208
~~all losses which, in the judgment of the administrator, is larger~~ 4209
~~than is necessary adequately to safeguard the solvency of the~~ 4210
~~fund, the administrator may return such excess surplus to the~~ 4211
~~subscriber to the fund in either the form of cash refunds or a~~ 4212
~~reduction of premiums, regardless of when the premium obligations~~ 4213
~~have accrued;~~ 4214

       ~~(B)~~ A rule providing that the premium security deposit 4215
collected from any employer entitles the employer to the benefits 4216
of this chapter for the remainder of the six months and also for 4217
an additional adjustment period of two months, and, thereafter, if 4218
the employer pays the premium due at the close of any six-month 4219
period, coverage shall be extended for an additional eight-month 4220
period beginning from the end of the six-month period for which 4221
the employer pays the premium due; 4222

       ~~(C)~~(B) A rule providing for ascertaining the correctness of 4223
any employer's report of estimated or actual expenditure of wages 4224
and the determination and adjustment of proper premiums and the 4225
payment of those premiums by the employer for or during any period 4226
less than eight months and notwithstanding any payment or 4227
determination of premium made when exceptional conditions or 4228
circumstances in the judgment of the administrator justify the 4229
action; 4230

       ~~(D)~~(C) Such special rules as the administrator considers 4231
necessary to safeguard the fund and that are just in the 4232
circumstances, covering the rates to be applied where one employer 4233
takes over the occupation or industry of another or where an 4234
employer first makes application for state insurance, and the 4235
administrator may require that if any employer transfers a 4236
business in whole or in part or otherwise reorganizes the 4237
business, the successor in interest shall assume, in proportion to 4238
the extent of the transfer, as determined by the administrator, 4239
the employer's account and shall continue the payment of all 4240
contributions due under this chapter; 4241

       ~~(E)~~(D) A rule providing for all of the following: 4242

       (1) If, within two months immediately after the expiration of 4243
the six-month period, an employer fails to file a report of the 4244
employer's actual payroll expenditures for the period, the premium 4245
found to be due from the employer for the period shall be 4246
increased in an amount equal to one per cent of the premium, but 4247
the increase shall not be less than three nor more than fifteen 4248
dollars; 4249

       (2) The premium determined by the administrator to be due 4250
from an employer shall be payable on or before the end of the 4251
coverage period established by the premium security deposit, or 4252
within the time specified by the administrator if the period for 4253
which the advance premium has been paid is less than eight months. 4254
If an employer fails to pay the premium when due, the 4255
administrator may add a late fee penalty of not more than thirty 4256
dollars to the premium plus an additional penalty amount as 4257
follows: 4258

       (a) For a premium from sixty-one to ninety days past due, the 4259
prime interest rate, multiplied by the premium due; 4260

       (b) For a premium from ninety-one to one hundred twenty days 4261
past due, the prime interest rate plus two per cent, multiplied by 4262
the premium due; 4263

       (c) For a premium from one hundred twenty-one to one hundred 4264
fifty days past due, the prime interest rate plus four per cent, 4265
multiplied by the premium due; 4266

       (d) For a premium from one hundred fifty-one to one hundred 4267
eighty days past due, the prime interest rate plus six per cent, 4268
multiplied by the premium due; 4269

       (e) For a premium from one hundred eighty-one to two hundred 4270
ten days past due, the prime interest rate plus eight per cent, 4271
multiplied by the premium due; 4272

       (f) For each additional thirty-day period or portion thereof 4273
that a premium remains past due after it has remained past due for 4274
more than two hundred ten days, the prime interest rate plus eight 4275
per cent, multiplied by the premium due. 4276

       (3) Notwithstanding the interest rates specified in division 4277
~~(E)~~(D)(2) of this section, at no time shall the additional penalty 4278
amount assessed under division ~~(E)~~(D)(2) of this section exceed 4279
fifteen per cent of the premium due. 4280

        (4) An employer may appeal a late fee penalty or additional 4281
penalty to an adjudicating committee pursuant to section 4123.291 4282
of the Revised Code. 4283

       For purposes of division ~~(E)~~(D) of this section, "prime 4284
interest rate" means the average bank prime rate, and the 4285
administrator shall determine the prime interest rate in the same 4286
manner as a county auditor determines the average bank prime rate 4287
under section 929.02 of the Revised Code. 4288

       (5) If the employer files an appropriate payroll report, 4289
within the time provided by law or within the time specified by 4290
the administrator if the period for which the employer paid an 4291
estimated premium is less than eight months, the employer shall 4292
not be in default and division ~~(E)~~(D)(2) of this section shall not 4293
apply if the employer pays the premiums within fifteen days after 4294
being first notified by the administrator of the amount due. 4295

       (6) Any deficiencies in the amounts of the premium security 4296
deposit paid by an employer for any period shall be subject to an 4297
interest charge of six per cent per annum from the date the 4298
premium obligation is incurred. In determining the interest due on 4299
deficiencies in premium security deposit payments, a charge in 4300
each case shall be made against the employer in an amount equal to 4301
interest at the rate of six per cent per annum on the premium 4302
security deposit due but remaining unpaid sixty days after notice 4303
by the administrator. 4304

       (7) Any interest charges or penalties provided for in 4305
divisions ~~(E)~~(D)(2) and (6) of this section shall be credited to 4306
the employer's account for rating purposes in the same manner as 4307
premiums. 4308

       ~~(F)~~(E) A rule providing that each employer, on the occasion 4309
of instituting coverage under this chapter, shall submit a premium 4310
security deposit. The deposit shall be calculated equivalent to 4311
thirty per cent of the semiannual premium obligation of the 4312
employer based upon the employer's estimated expenditure for wages 4313
for the ensuing six-month period plus thirty per cent of an 4314
additional adjustment period of two months but only up to a 4315
maximum of one thousand dollars and not less than ten dollars. The 4316
administrator shall review the security deposit of every employer 4317
who has submitted a deposit which is less than the 4318
one-thousand-dollar maximum. The administrator may require any 4319
such employer to submit additional money up to the maximum of one 4320
thousand dollars that, in the administrator's opinion, reflects 4321
the employer's current payroll expenditure for an eight-month 4322
period. 4323

       (F) A rule providing that each employer, on the occasion of 4324
instituting coverage under this chapter, shall submit an 4325
application for coverage that completely provides all of the 4326
information required for the administrator to establish coverage 4327
for that employer, and that the employer's failure to provide all 4328
of the information completely may be grounds for the administrator 4329
to deny coverage for that employer. 4330

       (G) A rule providing that, in addition to any other remedies 4331
permitted in this chapter, the administrator may discontinue an 4332
employer's coverage if the employer fails to pay the premium due 4333
on or before the premium's due date. 4334

       (H) A rule providing that if after a final adjudication it is 4335
determined that an employer has failed to pay an obligation, 4336
billing, account, or assessment that is greater than one thousand 4337
dollars on or before its due date, the administrator may 4338
discontinue the employer's coverage in addition to any other 4339
remedies permitted in this chapter, and that the administrator 4340
shall not discontinue an employer's coverage pursuant to division 4341
(N) of this section prior to a final adjudication regarding the 4342
employer's failure to pay such obligation, billing, account, or 4343
assessment on or before its due date. 4344

       (I) As used in divisions (G) and (H) of this section: 4345

        (1) "Employer" has the same meaning as in division (B) of 4346
section 4123.01 of the Revised Code except that "employer" does 4347
not include the state, a state hospital, or a state university or 4348
college. 4349

        (2) "State university or college" has the same meaning as in 4350
section 3345.12 of the Revised Code and also includes the Ohio 4351
agricultural research and development center and the Ohio state 4352
university cooperative extension service. 4353

        (3) "State hospital" means the Ohio state university hospital 4354
and its ancillary facilities and the medical university of Ohio at 4355
Toledo hospital. 4356

       Sec. 4123.321. The bureau of workers' compensation board of 4357
directors, based upon recommendations of the workers' compensation 4358
actuarial committee, shall adopt a rule with respect to the 4359
collection, maintenance, and disbursements of the state insurance 4360
fund providing that in the event there is developed as of any 4361
given rate revision date a surplus of earned premium over all 4362
losses that, in the judgment of the board, is larger than is 4363
necessary adequately to safeguard the solvency of the fund, the 4364
board may return such excess surplus to the subscribers to the 4365
fund in either the form of cash refunds or a reduction of 4366
premiums, regardless of when the premium obligations have accrued. 4367

       Sec. 4123.34. It shall be the duty of the bureau of workers' 4368
compensation board of directors and the administrator of workers' 4369
compensation to safeguard and maintain the solvency of the state 4370
insurance fund and all other funds specified in this chapter and 4371
Chapters 4121., 4127., and 4131. of the Revised Code. The 4372
administrator ~~of workers' compensation~~, in the exercise of the 4373
powers and discretion conferred upon the administrator in section 4374
4123.29 of the Revised Code, shall fix and maintain, with the 4375
advice and consent of the ~~workers' compensation oversight~~ 4376
~~commission~~board, for each class of occupation or industry, the 4377
lowest possible rates of premium consistent with the maintenance 4378
of a solvent state insurance fund and the creation and maintenance 4379
of a reasonable surplus, after the payment of legitimate claims 4380
for injury, occupational disease, and death that the administrator 4381
authorizes to be paid from the state insurance fund for the 4382
benefit of injured, diseased, and the dependents of killed 4383
employees. In establishing rates, the administrator shall take 4384
into account the necessity of ensuring sufficient money is set 4385
aside in the premium payment security fund to cover any defaults 4386
in premium obligations. The administrator shall observe all of the 4387
following requirements in fixing the rates of premium for the 4388
risks of occupations or industries: 4389

       (A) The administrator shall keep an accurate account of the 4390
money paid in premiums by each of the several classes of 4391
occupations or industries, and the losses on account of injuries, 4392
occupational disease, and death of employees thereof, and also 4393
keep an account of the money received from each individual 4394
employer and the amount of losses incurred against the state 4395
insurance fund on account of injuries, occupational disease, and 4396
death of the employees of the employer. 4397

       (B) Ten per cent of the money paid into the state insurance 4398
fund shall be set aside for the creation of a surplus until the 4399
surplus amounts to the sum of one hundred thousand dollars, after 4400
which time, whenever necessary in the judgment of the 4401
administrator to guarantee a solvent state insurance fund, a sum 4402
not exceeding five per cent of all the money paid into the state 4403
insurance fund shall be credited to the surplus fund. A revision 4404
of basic rates shall be made annually on the first day of July. 4405

        Notwithstanding any provision of the law to the contrary, one 4406
hundred eighty days after the effective date on which 4407
self-insuring employers first may elect under division (D) of 4408
section 4121.66 of the Revised Code to directly pay for 4409
rehabilitation expenses, the administrator shall calculate the 4410
deficit, if any, in the portion of surplus fund that is used for 4411
reimbursement to self-insuring employers for all expenses other 4412
than handicapped reimbursement under section 4123.343 of the 4413
Revised Code. ~~Without regard to whether a self-insuring employer~~ 4414
~~makes the election under division (D) of section 4121.66 of the~~ 4415
~~Revised Code, the administrator shall assess all self-insuring~~ 4416
~~employers the amount the administrator determines necessary to~~ 4417
~~reduce the deficit over a period not to exceed five years from~~ 4418
~~October 20, 1993. After the initial assessment, the administrator~~ 4419
The administrator, from time to time, may determine whether the 4420
surplus fund has such a deficit and may assess all self-insuring 4421
employers who participated in the portion of the surplus fund 4422
during the accrual of the deficit and who during that time period 4423
have not made the election under division (D) of section 4121.66 4424
of the Revised Code the amount the administrator determines 4425
necessary to reduce the deficit. 4426

       Revisions of basic rates shall be in accordance with the 4427
oldest four of the last five calendar years of the combined 4428
accident and occupational disease experience of the administrator 4429
in the administration of this chapter, as shown by the accounts 4430
kept as provided in this section, excluding the experience of 4431
employers that are no longer active if the administrator 4432
determines that the inclusion of those employers would have a 4433
significant negative impact on the remainder of the employers in a 4434
particular manual classification; and the administrator shall 4435
adopt rules, with the advice and consent of the ~~oversight~~ 4436
~~commission~~board, governing rate revisions, the object of which 4437
shall be to make an equitable distribution of losses among the 4438
several classes of occupation or industry, which rules shall be 4439
general in their application. 4440

       (C) The administrator may apply that form of rating system 4441
~~which~~that the administrator finds is best calculated to merit 4442
rate or individually rate the risk more equitably, predicated upon 4443
the basis of its individual industrial accident and occupational 4444
disease experience, and may encourage and stimulate accident 4445
prevention. The administrator shall develop fixed and equitable 4446
rules controlling the rating system, which rules shall conserve to 4447
each risk the basic principles of workers' compensation insurance. 4448

       (D) The administrator, from the money paid into the state 4449
insurance fund, shall set aside into an account of the state 4450
insurance fund titled a premium payment security fund sufficient 4451
money to pay for any premiums due from an employer and uncollected 4452
that are in excess of the employer's premium security deposit. 4453

       The fund shall be in the custody of the treasurer of state. 4454
All investment earnings of the fund shall be deposited in the 4455
fund. Disbursements from the fund shall be made by the bureau of 4456
workers' compensation upon order of the administrator to the state 4457
insurance fund. The use of the moneys held by the premium payment 4458
security fund is restricted to reimbursement to the state 4459
insurance fund of premiums due and uncollected in excess of an 4460
employer's premium security deposit. The moneys constituting the 4461
premium payment security fund shall be maintained without regard 4462
to or reliance upon any other fund. This section does not prevent 4463
the deposit or investment of the premium payment security fund 4464
with any other fund created by this chapter, but the premium 4465
payment security fund is separate and distinct for every other 4466
purpose and a strict accounting thereof shall be maintained. 4467

       (E) The administrator may grant discounts on premium rates 4468
for employers who meet either of the following requirements: 4469

       (1) Have not incurred a compensable injury for one year or 4470
more and who maintain an employee safety committee or similar 4471
organization or make periodic safety inspections of the workplace. 4472

       (2) Successfully complete a loss prevention program 4473
prescribed by the superintendent of the division of safety and 4474
hygiene and conducted by the division or by any other person 4475
approved by the superintendent. 4476

       (F)(1) In determining the premium rates for the construction 4477
industry the administrator shall calculate the employers' premiums 4478
based upon the actual remuneration construction industry employees 4479
receive from construction industry employers, provided that the 4480
amount of remuneration the administrator uses in calculating the 4481
premiums shall not exceed an average weekly wage equal to one 4482
hundred fifty per cent of the statewide average weekly wage as 4483
defined in division (C) of section 4123.62 of the Revised Code. 4484

       (2) Division (F)(1) of this section shall not be construed as 4485
affecting the manner in which benefits to a claimant are awarded 4486
under this chapter. 4487

       (3) As used in division (F) of this section, "construction 4488
industry" includes any activity performed in connection with the 4489
erection, alteration, repair, replacement, renovation, 4490
installation, or demolition of any building, structure, highway, 4491
or bridge. 4492

       Sec. 4123.341. The administrative costs of the industrial 4493
commission, the bureau of workers' compensation ~~oversight~~ 4494
~~commission~~board of directors, and the bureau of workers' 4495
compensation shall be those costs and expenses that are incident 4496
to the discharge of the duties and performance of the activities 4497
of the industrial commission, the ~~oversight commission~~board, and 4498
the bureau under this chapter and Chapters 4121. ~~and 4123.~~, 4125., 4499
4127., 4131., and 4167. of the Revised Code, and all such costs 4500
shall be borne by the state and by other employers amenable to 4501
this chapter as follows: 4502

       (A) In addition to the contribution required of the state 4503
under sections 4123.39 and 4123.40 of the Revised Code, the state 4504
shall contribute the sum determined to be necessary under section 4505
4123.342 of the Revised Code. 4506

       (B) The director of budget and management may allocate the 4507
state's share of contributions in the manner hethe director finds 4508
most equitably apportions the costs. 4509

       (C) The counties and taxing districts therein shall 4510
contribute such sum as may be required under section 4123.342 of 4511
the Revised Code. 4512

       (D) The private employers shall contribute the sum required 4513
under section 4123.342 of the Revised Code. 4514

       Sec. 4123.342. (A) The administrator of workers' 4515
compensation shall allocate among counties and taxing districts 4516
therein as a class, the state and its instrumentalities as a 4517
class, private employers who are insured under the private fund as 4518
a class, and self-insuring employers as a class their fair shares 4519
of the administrative costs which are to be borne by such 4520
employers under division (D) of section 4123.341 of the Revised 4521
Code, separately allocating to each class those costs solely 4522
attributable to the activities of the industrial commission, and 4523
those costs solely attributable to the activities of the bureau of 4524
workers' compensation ~~oversight commission~~board of directors, and 4525
the bureau of workers' compensation in respect of the class, 4526
allocating to any combination of classes those costs attributable 4527
to the activities of the industrial commission, ~~oversight~~ 4528
~~commission~~board, or bureau in respect of the classes, and 4529
allocating to all four classes those costs attributable to the 4530
activities of the industrial commission, ~~oversight commission~~ 4531
board, and bureau in respect of all classes. The administrator 4532
shall separately calculate each employer's assessment in the 4533
class, except self-insuring employers, on the basis of the 4534
following three factors: payroll, paid compensation, and paid 4535
medical costs of the employer for those costs solely attributable 4536
to the activities of the ~~oversight commission~~board and the 4537
bureau. The administrator shall separately calculate each 4538
employer's assessment in the class, except self-insuring 4539
employers, on the basis of the following three factors: payroll, 4540
paid compensation, and paid medical costs of the employer for 4541
those costs solely attributable to the activities of the 4542
industrial commission. The administrator shall separately 4543
calculate each self-insuring employer's assessment in accordance 4544
with section 4123.35 of the Revised Code for those costs solely 4545
attributable to the activities of the ~~oversight commission~~board 4546
and the bureau. The administrator shall separately calculate each 4547
self-insuring employer's assessment in accordance with section 4548
4123.35 of the Revised Code for those costs solely attributable to 4549
the activities of the industrial commission. In a timely manner, 4550
the industrial commission shall provide to the administrator, the 4551
information necessary for the administrator to allocate and 4552
calculate, with the approval of the chairperson of the industrial 4553
commission, for each class of employer as described in this 4554
division, the costs solely attributable to the activities of the 4555
industrial commission. 4556

       (B) The administrator shall divide the administrative cost 4557
assessments collected by the administrator into two administrative 4558
assessment accounts within the state insurance fund. One of the 4559
administrative assessment accounts shall consist of the 4560
administrative cost assessment collected by the administrator for 4561
the industrial commission. The other administrative assessment 4562
account shall consist of the administrative cost assessments 4563
collected by the administrator for the bureau and the ~~workers'~~ 4564
~~compensation oversight commission~~board. The administrator may 4565
invest the administrative cost assessments in these accounts on 4566
behalf of the bureau and the industrial commission as authorized 4567
in section 4123.44 of the Revised Code. In a timely manner, the 4568
administrator shall provide to the industrial commission the 4569
information and reports the commission deems necessary for the 4570
commission to monitor the receipts and the disbursements from the 4571
administrative assessment account for the industrial commission. 4572

       (C) The administrator or the administrator's designee shall 4573
transfer moneys as necessary from the administrative assessment 4574
account identified for the bureau and the ~~workers' compensation~~ 4575
~~oversight commission~~board to the workers' compensation fund for 4576
the use of the bureau and the ~~oversight commission~~board. As 4577
necessary and upon the authorization of the industrial commission, 4578
the administrator or the administrator's designee shall transfer 4579
moneys from the administrative assessment account identified for 4580
the industrial commission to the industrial commission operating 4581
fund created under section 4121.021 of the Revised Code. To the 4582
extent that the moneys collected by the administrator in any 4583
fiscal biennium of the state equal the sum appropriated by the 4584
general assembly for administrative costs of the industrial 4585
commission, ~~oversight commission~~board, and bureau for the 4586
biennium, the moneys shall be paid into the workers' compensation 4587
fund and the industrial commission operating fund of the state and 4588
any remainder shall be retained in the state insurance fund and 4589
applied to reduce the amount collected during the next biennium. 4590
Sections 4123.41, 4123.35, and 4123.37 of the Revised Code apply 4591
to the collection of assessments from public and private employers 4592
respectively, except that for boards of county hospital trustees 4593
that are self-insuring employers, only those provisions applicable 4594
to the collection of assessments for private employers apply. 4595

       Sec. 4123.35. (A) Except as provided in this section, every 4596
employer mentioned in division (B)(2) of section 4123.01 of the 4597
Revised Code, and every publicly owned utility shall pay 4598
semiannually in the months of January and July into the state 4599
insurance fund the amount of annual premium the administrator of 4600
workers' compensation fixes for the employment or occupation of 4601
the employer, the amount of which premium to be paid by each 4602
employer to be determined by the classifications, rules, and rates 4603
made and published by the administrator. The employer shall pay 4604
semiannually a further sum of money into the state insurance fund 4605
as may be ascertained to be due from the employer by applying the 4606
rules of the administrator, and a receipt or certificate 4607
certifying that payment has been made, along with a written notice 4608
as is required in section 4123.54 of the Revised Code, shall be 4609
mailed immediately to the employer by the bureau of workers' 4610
compensation. The receipt or certificate is prima-facie evidence 4611
of the payment of the premium, and the proper posting of the 4612
notice constitutes the employer's compliance with the notice 4613
requirement mandated in section 4123.54 of the Revised Code. 4614

       The bureau of workers' compensation shall verify with the 4615
secretary of state the existence of all corporations and 4616
organizations making application for workers' compensation 4617
coverage and shall require every such application to include the 4618
employer's federal identification number. 4619

       An employer as defined in division (B)(2) of section 4123.01 4620
of the Revised Code who has contracted with a subcontractor is 4621
liable for the unpaid premium due from any subcontractor with 4622
respect to that part of the payroll of the subcontractor that is 4623
for work performed pursuant to the contract with the employer. 4624

       Division (A) of this section providing for the payment of 4625
premiums semiannually does not apply to any employer who was a 4626
subscriber to the state insurance fund prior to January 1, 1914, 4627
or who may first become a subscriber to the fund in any month 4628
other than January or July. Instead, the semiannual premiums shall 4629
be paid by those employers from time to time upon the expiration 4630
of the respective periods for which payments into the fund have 4631
been made by them. 4632

       The administrator shall adopt rules to permit employers to 4633
make periodic payments of the semiannual premium due under this 4634
division. The rules shall include provisions for the assessment of 4635
interest charges, where appropriate, and for the assessment of 4636
penalties when an employer fails to make timely premium payments. 4637
An employer who timely pays the amounts due under this division is 4638
entitled to all of the benefits and protections of this chapter. 4639
Upon receipt of payment, the bureau immediately shall mail a 4640
receipt or certificate to the employer certifying that payment has 4641
been made, which receipt is prima-facie evidence of payment. 4642
Workers' compensation coverage under this chapter continues 4643
uninterrupted upon timely receipt of payment under this division. 4644

       Every public employer, except public employers that are 4645
self-insuring employers under this section, shall comply with 4646
sections 4123.38 to 4123.41, and 4123.48 of the Revised Code in 4647
regard to the contribution of moneys to the public insurance fund. 4648

       (B) Employers who will abide by the rules of the 4649
administrator and who may be of sufficient financial ability to 4650
render certain the payment of compensation to injured employees or 4651
the dependents of killed employees, and the furnishing of medical, 4652
surgical, nursing, and hospital attention and services and 4653
medicines, and funeral expenses, equal to or greater than is 4654
provided for in sections 4123.52, 4123.55 to 4123.62, and 4123.64 4655
to 4123.67 of the Revised Code, and who do not desire to insure 4656
the payment thereof or indemnify themselves against loss sustained 4657
by the direct payment thereof, upon a finding of such facts by the 4658
administrator, may be granted the privilege to pay individually 4659
compensation, and furnish medical, surgical, nursing, and hospital 4660
services and attention and funeral expenses directly to injured 4661
employees or the dependents of killed employees, thereby being 4662
granted status as a self-insuring employer. The administrator may 4663
charge employers who apply for the status as a self-insuring 4664
employer a reasonable application fee to cover the bureau's costs 4665
in connection with processing and making a determination with 4666
respect to an application. 4667

       All employers granted status as self-insuring employers shall 4668
demonstrate sufficient financial and administrative ability to 4669
assure that all obligations under this section are promptly met. 4670
The administrator shall deny the privilege where the employer is 4671
unable to demonstrate the employer's ability to promptly meet all 4672
the obligations imposed on the employer by this section. 4673

       (1) The administrator shall consider, but is not limited to, 4674
the following factors, where applicable, in determining the 4675
employer's ability to meet all of the obligations imposed on the 4676
employer by this section: 4677

       (a) The employer employs a minimum of five hundred employees 4678
in this state; 4679

       (b) The employer has operated in this state for a minimum of 4680
two years, provided that an employer who has purchased, acquired, 4681
or otherwise succeeded to the operation of a business, or any part 4682
thereof, situated in this state that has operated for at least two 4683
years in this state, also shall qualify; 4684

       (c) Where the employer previously contributed to the state 4685
insurance fund or is a successor employer as defined by bureau 4686
rules, the amount of the buyout, as defined by bureau rules; 4687

       (d) The sufficiency of the employer's assets located in this 4688
state to insure the employer's solvency in paying compensation 4689
directly; 4690

       (e) The financial records, documents, and data, certified by 4691
a certified public accountant, necessary to provide the employer's 4692
full financial disclosure. The records, documents, and data 4693
include, but are not limited to, balance sheets and profit and 4694
loss history for the current year and previous four years. 4695

       (f) The employer's organizational plan for the administration 4696
of the workers' compensation law; 4697

       (g) The employer's proposed plan to inform employees of the 4698
change from a state fund insurer to a self-insuring employer, the 4699
procedures the employer will follow as a self-insuring employer, 4700
and the employees' rights to compensation and benefits; and 4701

       (h) The employer has either an account in a financial 4702
institution in this state, or if the employer maintains an account 4703
with a financial institution outside this state, ensures that 4704
workers' compensation checks are drawn from the same account as 4705
payroll checks or the employer clearly indicates that payment will 4706
be honored by a financial institution in this state. 4707

       The administrator may waive the requirements of divisions 4708
(B)(1)(a) and (b) of this section and the requirement of division 4709
(B)(1)(e) of this section that the financial records, documents, 4710
and data be certified by a certified public accountant. The 4711
administrator shall adopt rules establishing the criteria that an 4712
employer shall meet in order for the administrator to waive the 4713
requirement of division (B)(1)(e) of this section. Such rules may 4714
require additional security of that employer pursuant to division 4715
(E) of section 4123.351 of the Revised Code. 4716

       The administrator shall not grant the status of self-insuring 4717
employer to the state, except that the administrator may grant the 4718
status of self-insuring employer to a state institution of higher 4719
education, excluding its hospitals, that meets the requirements of 4720
division (B)(2) of this section. 4721

       (2) When considering the application of a public employer, 4722
except for a board of county commissioners described in division 4723
(G) of section 4123.01 of the Revised Code, a board of a county 4724
hospital, or a publicly owned utility, the administrator shall 4725
verify that the public employer satisfies all of the following 4726
requirements as the requirements apply to that public employer: 4727

       (a) For the two-year period preceding application under this 4728
section, the public employer has maintained an unvoted debt 4729
capacity equal to at least two times the amount of the current 4730
annual premium established by the administrator under this chapter 4731
for that public employer for the year immediately preceding the 4732
year in which the public employer makes application under this 4733
section. 4734

       (b) For each of the two fiscal years preceding application 4735
under this section, the unreserved and undesignated year-end fund 4736
balance in the public employer's general fund is equal to at least 4737
five per cent of the public employer's general fund revenues for 4738
the fiscal year computed in accordance with generally accepted 4739
accounting principles. 4740

       (c) For the five-year period preceding application under this 4741
section, the public employer, to the extent applicable, has 4742
complied fully with the continuing disclosure requirements 4743
established in rules adopted by the United States securities and 4744
exchange commission under 17 C.F.R. 240.15c 2-12. 4745

       (d) For the five-year period preceding application under this 4746
section, the public employer has not had its local government fund 4747
distribution withheld on account of the public employer being 4748
indebted or otherwise obligated to the state. 4749

       (e) For the five-year period preceding application under this 4750
section, the public employer has not been under a fiscal watch or 4751
fiscal emergency pursuant to section 118.023, 118.04, or 3316.03 4752
of the Revised Code. 4753

       (f) For the public employer's fiscal year preceding 4754
application under this section, the public employer has obtained 4755
an annual financial audit as required under section 117.10 of the 4756
Revised Code, which has been released by the auditor of state 4757
within seven months after the end of the public employer's fiscal 4758
year. 4759

       (g) On the date of application, the public employer holds a 4760
debt rating of Aa3 or higher according to Moody's investors 4761
service, inc., or a comparable rating by an independent rating 4762
agency similar to Moody's investors service, inc. 4763

       (h) The public employer agrees to generate an annual 4764
accumulating book reserve in its financial statements reflecting 4765
an actuarially generated reserve adequate to pay projected claims 4766
under this chapter for the applicable period of time, as 4767
determined by the administrator. 4768

       (i) For a public employer that is a hospital, the public 4769
employer shall submit audited financial statements showing the 4770
hospital's overall liquidity characteristics, and the 4771
administrator shall determine, on an individual basis, whether the 4772
public employer satisfies liquidity standards equivalent to the 4773
liquidity standards of other public employers. 4774

       (j) Any additional criteria that the administrator adopts by 4775
rule pursuant to division (E) of this section. 4776

       The administrator shall not approve the application of a 4777
public employer, except for a board of county commissioners 4778
described in division (G) of section 4123.01 of the Revised Code, 4779
a board of a county hospital, or publicly owned utility, who does 4780
not satisfy all of the requirements listed in division (B)(2) of 4781
this section. 4782

       (C) A board of county commissioners described in division (G) 4783
of section 4123.01 of the Revised Code, as an employer, that will 4784
abide by the rules of the administrator and that may be of 4785
sufficient financial ability to render certain the payment of 4786
compensation to injured employees or the dependents of killed 4787
employees, and the furnishing of medical, surgical, nursing, and 4788
hospital attention and services and medicines, and funeral 4789
expenses, equal to or greater than is provided for in sections 4790
4123.52, 4123.55 to 4123.62, and 4123.64 to 4123.67 of the Revised 4791
Code, and that does not desire to insure the payment thereof or 4792
indemnify itself against loss sustained by the direct payment 4793
thereof, upon a finding of such facts by the administrator, may be 4794
granted the privilege to pay individually compensation, and 4795
furnish medical, surgical, nursing, and hospital services and 4796
attention and funeral expenses directly to injured employees or 4797
the dependents of killed employees, thereby being granted status 4798
as a self-insuring employer. The administrator may charge a board 4799
of county commissioners described in division (G) of section 4800
4123.01 of the Revised Code that applies for the status as a 4801
self-insuring employer a reasonable application fee to cover the 4802
bureau's costs in connection with processing and making a 4803
determination with respect to an application. All employers 4804
granted such status shall demonstrate sufficient financial and 4805
administrative ability to assure that all obligations under this 4806
section are promptly met. The administrator shall deny the 4807
privilege where the employer is unable to demonstrate the 4808
employer's ability to promptly meet all the obligations imposed on 4809
the employer by this section. The administrator shall consider, 4810
but is not limited to, the following factors, where applicable, in 4811
determining the employer's ability to meet all of the obligations 4812
imposed on the board as an employer by this section: 4813

       (1) The board as an employer employs a minimum of five 4814
hundred employees in this state; 4815

       (2) The board has operated in this state for a minimum of two 4816
years; 4817

       (3) Where the board previously contributed to the state 4818
insurance fund or is a successor employer as defined by bureau 4819
rules, the amount of the buyout, as defined by bureau rules; 4820

       (4) The sufficiency of the board's assets located in this 4821
state to insure the board's solvency in paying compensation 4822
directly; 4823

       (5) The financial records, documents, and data, certified by 4824
a certified public accountant, necessary to provide the board's 4825
full financial disclosure. The records, documents, and data 4826
include, but are not limited to, balance sheets and profit and 4827
loss history for the current year and previous four years. 4828

       (6) The board's organizational plan for the administration of 4829
the workers' compensation law; 4830

       (7) The board's proposed plan to inform employees of the 4831
proposed self-insurance, the procedures the board will follow as a 4832
self-insuring employer, and the employees' rights to compensation 4833
and benefits; 4834

       (8) The board has either an account in a financial 4835
institution in this state, or if the board maintains an account 4836
with a financial institution outside this state, ensures that 4837
workers' compensation checks are drawn from the same account as 4838
payroll checks or the board clearly indicates that payment will be 4839
honored by a financial institution in this state; 4840

       (9) The board shall provide the administrator a surety bond 4841
in an amount equal to one hundred twenty-five per cent of the 4842
projected losses as determined by the administrator. 4843

       (D) The administrator shall require a surety bond from all 4844
self-insuring employers, issued pursuant to section 4123.351 of 4845
the Revised Code, that is sufficient to compel, or secure to 4846
injured employees, or to the dependents of employees killed, the 4847
payment of compensation and expenses, which shall in no event be 4848
less than that paid or furnished out of the state insurance fund 4849
in similar cases to injured employees or to dependents of killed 4850
employees whose employers contribute to the fund, except when an 4851
employee of the employer, who has suffered the loss of a hand, 4852
arm, foot, leg, or eye prior to the injury for which compensation 4853
is to be paid, and thereafter suffers the loss of any other of the 4854
members as the result of any injury sustained in the course of and 4855
arising out of the employee's employment, the compensation to be 4856
paid by the self-insuring employer is limited to the disability 4857
suffered in the subsequent injury, additional compensation, if 4858
any, to be paid by the bureau out of the surplus created by 4859
section 4123.34 of the Revised Code. 4860

       (E) In addition to the requirements of this section, the 4861
administrator shall make and publish rules governing the manner of 4862
making application and the nature and extent of the proof required 4863
to justify a finding of fact by the administrator as to granting 4864
the status of a self-insuring employer, which rules shall be 4865
general in their application, one of which rules shall provide 4866
that all self-insuring employers shall pay into the state 4867
insurance fund such amounts as are required to be credited to the 4868
surplus fund in division (B) of section 4123.34 of the Revised 4869
Code. The administrator may adopt rules establishing requirements 4870
in addition to the requirements described in division (B)(2) of 4871
this section that a public employer shall meet in order to qualify 4872
for self-insuring status. 4873

       Employers shall secure directly from the bureau central 4874
offices application forms upon which the bureau shall stamp a 4875
designating number. Prior to submission of an application, an 4876
employer shall make available to the bureau, and the bureau shall 4877
review, the information described in division (B)(1) of this 4878
section, and public employers shall make available, and the bureau 4879
shall review, the information necessary to verify whether the 4880
public employer meets the requirements listed in division (B)(2) 4881
of this section. An employer shall file the completed application 4882
forms with an application fee, which shall cover the costs of 4883
processing the application, as established by the administrator, 4884
by rule, with the bureau at least ninety days prior to the 4885
effective date of the employer's new status as a self-insuring 4886
employer. The application form is not deemed complete until all 4887
the required information is attached thereto. The bureau shall 4888
only accept applications that contain the required information. 4889

       (F) The bureau shall review completed applications within a 4890
reasonable time. If the bureau determines to grant an employer the 4891
status as a self-insuring employer, the bureau shall issue a 4892
statement, containing its findings of fact, that is prepared by 4893
the bureau and signed by the administrator. If the bureau 4894
determines not to grant the status as a self-insuring employer, 4895
the bureau shall notify the employer of the determination and 4896
require the employer to continue to pay its full premium into the 4897
state insurance fund. The administrator also shall adopt rules 4898
establishing a minimum level of performance as a criterion for 4899
granting and maintaining the status as a self-insuring employer 4900
and fixing time limits beyond which failure of the self-insuring 4901
employer to provide for the necessary medical examinations and 4902
evaluations may not delay a decision on a claim. 4903

       (G) The administrator shall adopt rules setting forth 4904
procedures for auditing the program of self-insuring employers. 4905
The bureau shall conduct the audit upon a random basis or whenever 4906
the bureau has grounds for believing that a self-insuring employer 4907
is not in full compliance with bureau rules or this chapter. 4908

       The administrator shall monitor the programs conducted by 4909
self-insuring employers, to ensure compliance with bureau 4910
requirements and for that purpose, shall develop and issue to 4911
self-insuring employers standardized forms for use by the 4912
self-insuring employer in all aspects of the self-insuring 4913
employers' direct compensation program and for reporting of 4914
information to the bureau. 4915

       The bureau shall receive and transmit to the self-insuring 4916
employer all complaints concerning any self-insuring employer. In 4917
the case of a complaint against a self-insuring employer, the 4918
administrator shall handle the complaint through the 4919
self-insurance division of the bureau. The bureau shall maintain a 4920
file by employer of all complaints received that relate to the 4921
employer. The bureau shall evaluate each complaint and take 4922
appropriate action. 4923

       The administrator shall adopt as a rule a prohibition against 4924
any self-insuring employer from harassing, dismissing, or 4925
otherwise disciplining any employee making a complaint, which rule 4926
shall provide for a financial penalty to be levied by the 4927
administrator payable by the offending self-insuring employer. 4928

       (H) For the purpose of making determinations as to whether to 4929
grant status as a self-insuring employer, the administrator may 4930
subscribe to and pay for a credit reporting service that offers 4931
financial and other business information about individual 4932
employers. The costs in connection with the bureau's subscription 4933
or individual reports from the service about an applicant may be 4934
included in the application fee charged employers under this 4935
section. 4936

       (I) The administrator, notwithstanding other provisions of 4937
this chapter, may permit a self-insuring employer to resume 4938
payment of premiums to the state insurance fund with appropriate 4939
credit modifications to the employer's basic premium rate as such 4940
rate is determined pursuant to section 4123.29 of the Revised 4941
Code. 4942

       (J) On the first day of July of each year, the administrator 4943
shall calculate separately each self-insuring employer's 4944
assessments for the safety and hygiene fund, administrative costs 4945
pursuant to section 4123.342 of the Revised Code, and for the 4946
portion of the surplus fund under division (B) of section 4123.34 4947
of the Revised Code that is not used for handicapped 4948
reimbursement, on the basis of the paid compensation attributable 4949
to the individual self-insuring employer according to the 4950
following calculation: 4951

       (1) The total assessment against all self-insuring employers 4952
as a class for each fund and for the administrative costs for the 4953
year that the assessment is being made, as determined by the 4954
administrator, divided by the total amount of paid compensation 4955
for the previous calendar year attributable to all amenable 4956
self-insuring employers; 4957

       (2) Multiply the quotient in division (J)(1) of this section 4958
by the total amount of paid compensation for the previous calendar 4959
year that is attributable to the individual self-insuring employer 4960
for whom the assessment is being determined. Each self-insuring 4961
employer shall pay the assessment that results from this 4962
calculation, unless the assessment resulting from this calculation 4963
falls below a minimum assessment, which minimum assessment the 4964
administrator shall determine on the first day of July of each 4965
year with the advice and consent of the bureau of workers' 4966
compensation ~~oversight commission~~board of directors, in which 4967
event, the self-insuring employer shall pay the minimum 4968
assessment. 4969

       In determining the total amount due for the total assessment 4970
against all self-insuring employers as a class for each fund and 4971
the administrative assessment, the administrator shall reduce 4972
proportionately the total for each fund and assessment by the 4973
amount of money in the self-insurance assessment fund as of the 4974
date of the computation of the assessment. 4975

       The administrator shall calculate the assessment for the 4976
portion of the surplus fund under division (B) of section 4123.34 4977
of the Revised Code that is used for handicapped reimbursement in 4978
the same manner as set forth in divisions (J)(1) and (2) of this 4979
section except that the administrator shall calculate the total 4980
assessment for this portion of the surplus fund only on the basis 4981
of those self-insuring employers that retain participation in the 4982
handicapped reimbursement program and the individual self-insuring 4983
employer's proportion of paid compensation shall be calculated 4984
only for those self-insuring employers who retain participation in 4985
the handicapped reimbursement program. The administrator, as the 4986
administrator determines appropriate, may determine the total 4987
assessment for the handicapped portion of the surplus fund in 4988
accordance with sound actuarial principles. 4989

       The administrator shall calculate the assessment for the 4990
portion of the surplus fund under division (B) of section 4123.34 4991
of the Revised Code that under division (D) of section 4121.66 of 4992
the Revised Code is used for rehabilitation costs in the same 4993
manner as set forth in divisions (J)(1) and (2) of this section, 4994
except that the administrator shall calculate the total assessment 4995
for this portion of the surplus fund only on the basis of those 4996
self-insuring employers who have not made the election to make 4997
payments directly under division (D) of section 4121.66 of the 4998
Revised Code and an individual self-insuring employer's proportion 4999
of paid compensation only for those self-insuring employers who 5000
have not made that election. 5001

       The administrator shall calculate the assessment for the 5002
portion of the surplus fund under division (B) of section 4123.34 5003
of the Revised Code that is used for reimbursement to a 5004
self-insuring employer under division (H) of section 4123.512 of 5005
the Revised Code in the same manner as set forth in divisions 5006
(J)(1) and (2) of this section except that the administrator shall 5007
calculate the total assessment for this portion of the surplus 5008
fund only on the basis of those self-insuring employers that 5009
retain participation in reimbursement to the self-insuring 5010
employer under division (H) of section 4123.512 of the Revised 5011
Code and the individual self-insuring employer's proportion of 5012
paid compensation shall be calculated only for those self-insuring 5013
employers who retain participation in reimbursement to the 5014
self-insuring employer under division (H) of section 4123.512 of 5015
the Revised Code. 5016

       An employer who no longer is a self-insuring employer in this 5017
state or who no longer is operating in this state, shall continue 5018
to pay assessments for administrative costs and for the portion of 5019
the surplus fund under division (B) of section 4123.34 of the 5020
Revised Code that is not used for handicapped reimbursement, based 5021
upon paid compensation attributable to claims that occurred while 5022
the employer was a self-insuring employer within this state. 5023

       (K) There is hereby created in the state treasury the 5024
self-insurance assessment fund. All investment earnings of the 5025
fund shall be deposited in the fund. The administrator shall use 5026
the money in the self-insurance assessment fund only for 5027
administrative costs as specified in section 4123.341 of the 5028
Revised Code. 5029

       (L) Every self-insuring employer shall certify, in affidavit 5030
form subject to the penalty for perjury, to the bureau the amount 5031
of the self-insuring employer's paid compensation for the previous 5032
calendar year. In reporting paid compensation paid for the 5033
previous year, a self-insuring employer shall exclude from the 5034
total amount of paid compensation any reimbursement the 5035
self-insuring employer receives in the previous calendar year from 5036
the surplus fund pursuant to section 4123.512 of the Revised Code 5037
for any paid compensation. The self-insuring employer also shall 5038
exclude from the paid compensation reported any amount recovered 5039
under section 4123.931 of the Revised Code and any amount that is 5040
determined not to have been payable to or on behalf of a claimant 5041
in any final administrative or judicial proceeding. The 5042
self-insuring employer shall exclude such amounts from the paid 5043
compensation reported in the reporting period subsequent to the 5044
date the determination is made. The administrator shall adopt 5045
rules, in accordance with Chapter 119. of the Revised Code, that 5046
provide for all of the following: 5047

       (1) Establishing the date by which self-insuring employers 5048
must submit such information and the amount of the assessments 5049
provided for in division (J) of this section for employers who 5050
have been granted self-insuring status within the last calendar 5051
year; 5052

       (2) If an employer fails to pay the assessment when due, the 5053
administrator may add a late fee penalty of not more than five 5054
hundred dollars to the assessment plus an additional penalty 5055
amount as follows: 5056

       (a) For an assessment from sixty-one to ninety days past due, 5057
the prime interest rate, multiplied by the assessment due; 5058

       (b) For an assessment from ninety-one to one hundred twenty 5059
days past due, the prime interest rate plus two per cent, 5060
multiplied by the assessment due; 5061

       (c) For an assessment from one hundred twenty-one to one 5062
hundred fifty days past due, the prime interest rate plus four per 5063
cent, multiplied by the assessment due; 5064

       (d) For an assessment from one hundred fifty-one to one 5065
hundred eighty days past due, the prime interest rate plus six per 5066
cent, multiplied by the assessment due; 5067

       (e) For an assessment from one hundred eighty-one to two 5068
hundred ten days past due, the prime interest rate plus eight per 5069
cent, multiplied by the assessment due; 5070

       (f) For each additional thirty-day period or portion thereof 5071
that an assessment remains past due after it has remained past due 5072
for more than two hundred ten days, the prime interest rate plus 5073
eight per cent, multiplied by the assessment due. 5074

        (3) An employer may appeal a late fee penalty and penalty 5075
assessment to the administrator. 5076

        For purposes of ~~this~~ division (L)(2) of this section, "prime 5077
interest rate" means the average bank prime rate, and the 5078
administrator shall determine the prime interest rate in the same 5079
manner as a county auditor determines the average bank prime rate 5080
under section 929.02 of the Revised Code. 5081

       The administrator shall include any assessment and penalties 5082
that remain unpaid for previous assessment periods in the 5083
calculation and collection of any assessments due under this 5084
division or division (J) of this section. 5085

       (M) As used in this section, "paid compensation" means all 5086
amounts paid by a self-insuring employer for living maintenance 5087
benefits, all amounts for compensation paid pursuant to sections 5088
4121.63, 4121.67, 4123.56, 4123.57, 4123.58, 4123.59, 4123.60, and 5089
4123.64 of the Revised Code, all amounts paid as wages in lieu of 5090
such compensation, all amounts paid in lieu of such compensation 5091
under a nonoccupational accident and sickness program fully funded 5092
by the self-insuring employer, and all amounts paid by a 5093
self-insuring employer for a violation of a specific safety 5094
standard pursuant to Section 35 of Article II, Ohio Constitution 5095
and section 4121.47 of the Revised Code. 5096

       (N) Should any section of this chapter or Chapter 4121. of 5097
the Revised Code providing for self-insuring employers' 5098
assessments based upon compensation paid be declared 5099
unconstitutional by a final decision of any court, then that 5100
section of the Revised Code declared unconstitutional shall revert 5101
back to the section in existence prior to November 3, 1989, 5102
providing for assessments based upon payroll. 5103

       (O) The administrator may grant a self-insuring employer the 5104
privilege to self-insure a construction project entered into by 5105
the self-insuring employer that is scheduled for completion within 5106
six years after the date the project begins, and the total cost of 5107
which is estimated to exceed one hundred million dollars or, for 5108
employers described in division (R) of this section, if the 5109
construction project is estimated to exceed twenty-five million 5110
dollars. The administrator may waive such cost and time criteria 5111
and grant a self-insuring employer the privilege to self-insure a 5112
construction project regardless of the time needed to complete the 5113
construction project and provided that the cost of the 5114
construction project is estimated to exceed fifty million dollars. 5115
A self-insuring employer who desires to self-insure a construction 5116
project shall submit to the administrator an application listing 5117
the dates the construction project is scheduled to begin and end, 5118
the estimated cost of the construction project, the contractors 5119
and subcontractors whose employees are to be self-insured by the 5120
self-insuring employer, the provisions of a safety program that is 5121
specifically designed for the construction project, and a 5122
statement as to whether a collective bargaining agreement 5123
governing the rights, duties, and obligations of each of the 5124
parties to the agreement with respect to the construction project 5125
exists between the self-insuring employer and a labor 5126
organization. 5127

       A self-insuring employer may apply to self-insure the 5128
employees of either of the following: 5129

       (1) All contractors and subcontractors who perform labor or 5130
work or provide materials for the construction project; 5131

       (2) All contractors and, at the administrator's discretion, a 5132
substantial number of all the subcontractors who perform labor or 5133
work or provide materials for the construction project. 5134

       Upon approval of the application, the administrator shall 5135
mail a certificate granting the privilege to self-insure the 5136
construction project to the self-insuring employer. The 5137
certificate shall contain the name of the self-insuring employer 5138
and the name, address, and telephone number of the self-insuring 5139
employer's representatives who are responsible for administering 5140
workers' compensation claims for the construction project. The 5141
self-insuring employer shall post the certificate in a conspicuous 5142
place at the site of the construction project. 5143

       The administrator shall maintain a record of the contractors 5144
and subcontractors whose employees are covered under the 5145
certificate issued to the self-insured employer. A self-insuring 5146
employer immediately shall notify the administrator when any 5147
contractor or subcontractor is added or eliminated from inclusion 5148
under the certificate. 5149

       Upon approval of the application, the self-insuring employer 5150
is responsible for the administration and payment of all claims 5151
under this chapter and Chapter 4121. of the Revised Code for the 5152
employees of the contractor and subcontractors covered under the 5153
certificate who receive injuries or are killed in the course of 5154
and arising out of employment on the construction project, or who 5155
contract an occupational disease in the course of employment on 5156
the construction project. For purposes of this chapter and Chapter 5157
4121. of the Revised Code, a claim that is administered and paid 5158
in accordance with this division is considered a claim against the 5159
self-insuring employer listed in the certificate. A contractor or 5160
subcontractor included under the certificate shall report to the 5161
self-insuring employer listed in the certificate, all claims that 5162
arise under this chapter and Chapter 4121. of the Revised Code in 5163
connection with the construction project for which the certificate 5164
is issued. 5165

       A self-insuring employer who complies with this division is 5166
entitled to the protections provided under this chapter and 5167
Chapter 4121. of the Revised Code with respect to the employees of 5168
the contractors and subcontractors covered under a certificate 5169
issued under this division for death or injuries that arise out 5170
of, or death, injuries, or occupational diseases that arise in the 5171
course of, those employees' employment on that construction 5172
project, as if the employees were employees of the self-insuring 5173
employer, provided that the self-insuring employer also complies 5174
with this section. No employee of the contractors and 5175
subcontractors covered under a certificate issued under this 5176
division shall be considered the employee of the self-insuring 5177
employer listed in that certificate for any purposes other than 5178
this chapter and Chapter 4121. of the Revised Code. Nothing in 5179
this division gives a self-insuring employer authority to control 5180
the means, manner, or method of employment of the employees of the 5181
contractors and subcontractors covered under a certificate issued 5182
under this division. 5183

       The contractors and subcontractors included under a 5184
certificate issued under this division are entitled to the 5185
protections provided under this chapter and Chapter 4121. of the 5186
Revised Code with respect to the contractor's or subcontractor's 5187
employees who are employed on the construction project which is 5188
the subject of the certificate, for death or injuries that arise 5189
out of, or death, injuries, or occupational diseases that arise in 5190
the course of, those employees' employment on that construction 5191
project. 5192

       The contractors and subcontractors included under a 5193
certificate issued under this division shall identify in their 5194
payroll records the employees who are considered the employees of 5195
the self-insuring employer listed in that certificate for purposes 5196
of this chapter and Chapter 4121. of the Revised Code, and the 5197
amount that those employees earned for employment on the 5198
construction project that is the subject of that certificate. 5199
Notwithstanding any provision to the contrary under this chapter 5200
and Chapter 4121. of the Revised Code, the administrator shall 5201
exclude the payroll that is reported for employees who are 5202
considered the employees of the self-insuring employer listed in 5203
that certificate, and that the employees earned for employment on 5204
the construction project that is the subject of that certificate, 5205
when determining those contractors' or subcontractors' premiums or 5206
assessments required under this chapter and Chapter 4121. of the 5207
Revised Code. A self-insuring employer issued a certificate under 5208
this division shall include in the amount of paid compensation it 5209
reports pursuant to division (L) of this section, the amount of 5210
paid compensation the self-insuring employer paid pursuant to this 5211
division for the previous calendar year. 5212

       Nothing in this division shall be construed as altering the 5213
rights of employees under this chapter and Chapter 4121. of the 5214
Revised Code as those rights existed prior to September 17, 1996. 5215
Nothing in this division shall be construed as altering the rights 5216
devolved under sections 2305.31 and 4123.82 of the Revised Code as 5217
those rights existed prior to September 17, 1996. 5218

       As used in this division, "privilege to self-insure a 5219
construction project" means privilege to pay individually 5220
compensation, and to furnish medical, surgical, nursing, and 5221
hospital services and attention and funeral expenses directly to 5222
injured employees or the dependents of killed employees. 5223

       (P) A self-insuring employer whose application is granted 5224
under division (O) of this section shall designate a safety 5225
professional to be responsible for the administration and 5226
enforcement of the safety program that is specifically designed 5227
for the construction project that is the subject of the 5228
application. 5229

       A self-insuring employer whose application is granted under 5230
division (O) of this section shall employ an ombudsperson for the 5231
construction project that is the subject of the application. The 5232
ombudsperson shall have experience in workers' compensation or the 5233
construction industry, or both. The ombudsperson shall perform all 5234
of the following duties: 5235

       (1) Communicate with and provide information to employees who 5236
are injured in the course of, or whose injury arises out of 5237
employment on the construction project, or who contract an 5238
occupational disease in the course of employment on the 5239
construction project; 5240

       (2) Investigate the status of a claim upon the request of an 5241
employee to do so; 5242

       (3) Provide information to claimants, third party 5243
administrators, employers, and other persons to assist those 5244
persons in protecting their rights under this chapter and Chapter 5245
4121. of the Revised Code. 5246

       A self-insuring employer whose application is granted under 5247
division (O) of this section shall post the name of the safety 5248
professional and the ombudsperson and instructions for contacting 5249
the safety professional and the ombudsperson in a conspicuous 5250
place at the site of the construction project. 5251

       (Q) The administrator may consider all of the following when 5252
deciding whether to grant a self-insuring employer the privilege 5253
to self-insure a construction project as provided under division 5254
(O) of this section: 5255

       (1) Whether the self-insuring employer has an organizational 5256
plan for the administration of the workers' compensation law; 5257

       (2) Whether the safety program that is specifically designed 5258
for the construction project provides for the safety of employees 5259
employed on the construction project, is applicable to all 5260
contractors and subcontractors who perform labor or work or 5261
provide materials for the construction project, and has as a 5262
component, a safety training program that complies with standards 5263
adopted pursuant to the "Occupational Safety and Health Act of 5264
1970," 84 Stat. 1590, 29 U.S.C.A. 651, and provides for continuing 5265
management and employee involvement; 5266

       (3) Whether granting the privilege to self-insure the 5267
construction project will reduce the costs of the construction 5268
project; 5269

       (4) Whether the self-insuring employer has employed an 5270
ombudsperson as required under division (P) of this section; 5271

       (5) Whether the self-insuring employer has sufficient surety 5272
to secure the payment of claims for which the self-insuring 5273
employer would be responsible pursuant to the granting of the 5274
privilege to self-insure a construction project under division (O) 5275
of this section. 5276

       (R) As used in divisions (O), (P), and (Q), "self-insuring 5277
employer" includes the following employers, whether or not they 5278
have been granted the status of being a self-insuring employer 5279
under division (B) of this section: 5280

        (1) A state institution of higher education; 5281

        (2) A school district; 5282

        (3) A county school financing district; 5283

        (4) An educational service center; 5284

        (5) A community school established under Chapter 3314. of the 5285
Revised Code. 5286

        (S) As used in this section: 5287

       (1) "Unvoted debt capacity" means the amount of money that a 5288
public employer may borrow without voter approval of a tax levy; 5289

       (2) "State institution of higher education" means the state 5290
universities listed in section 3345.011 of the Revised Code, 5291
community colleges created pursuant to Chapter 3354. of the 5292
Revised Code, university branches created pursuant to Chapter 5293
3355. of the Revised Code, technical colleges created pursuant to 5294
Chapter 3357. of the Revised Code, and state community colleges 5295
created pursuant to Chapter 3358. of the Revised Code. 5296

       Sec. 4123.351. (A) The administrator of workers' 5297
compensation shall require every self-insuring employer to pay a 5298
contribution, calculated under this section, to the self-insuring 5299
employers' guaranty fund established pursuant to this section. The 5300
fund shall provide for payment of compensation and benefits to 5301
employees of the self-insuring employer in order to cover any 5302
default in payment by that employer. 5303

       (B) The bureau of workers' compensation shall operate the 5304
self-insuring employers' guaranty fund for self-insuring 5305
employers. The administrator annually shall establish the 5306
contributions due from self-insuring employers for the fund at 5307
rates as low as possible but such as will assure sufficient moneys 5308
to guarantee the payment of any claims against the fund. The 5309
bureau's operation of the fund is not subject to sections 3929.10 5310
to 3929.18 of the Revised Code or to regulation by the 5311
superintendent of insurance. 5312

       (C) If a self-insuring employer defaults, the bureau shall 5313
recover the amounts paid as a result of the default from the 5314
self-insuring employers' guaranty fund. If a self-insuring 5315
employer defaults and is in compliance with this section for the 5316
payment of contributions to the fund, such self-insuring employer 5317
is entitled to the immunity conferred by section 4123.74 of the 5318
Revised Code for any claim arising during any period the employer 5319
is in compliance with this section. 5320

       (D)(1) There is hereby established a self-insuring employers' 5321
guaranty fund, which shall be in the custody of the treasurer of 5322
state and which shall be separate from the other funds established 5323
and administered pursuant to this chapter. The fund shall consist 5324
of contributions and other payments made by self-insuring 5325
employers under this section. All investment earnings of the fund 5326
shall be credited to the fund. The bureau shall make disbursements 5327
from the fund pursuant to this section. 5328

       (2) The administrator ~~of workers' compensation~~ has the same 5329
powers to invest any of the surplus or reserve belonging to the 5330
fund as are delegated to ~~him~~the administrator under section 5331
4123.44 of the Revised Code with respect to the state insurance 5332
fund. The administrator shall apply interest earned solely to the 5333
reduction of assessments for contributions from self-insuring 5334
employers and to the payments required due to defaults. 5335

       (3) If the ~~administrator~~bureau of workers' compensation 5336
board of directors determines that reinsurance of the risks of the 5337
fund is necessary to assure solvency of the fund, hethe board 5338
may: 5339

       (a) Enter into contracts for the purchase of reinsurance 5340
coverage of the risks of the fund with any company or agency 5341
authorized by law to issue contracts of reinsurance; 5342

       (b) ~~Pay~~Require the administrator to pay the cost of 5343
reinsurance from the fund; 5344

       (c) Include the costs of reinsurance as a liability and 5345
estimated liability of the fund. 5346

       (E) The administrator, with the advice and consent of the 5347
~~workers' compensation oversight commission~~board, may adopt rules 5348
pursuant to Chapter 119. of the Revised Code for the 5349
implementation of this section, including a rule, notwithstanding 5350
division (C) of this section, requiring self-insuring employers to 5351
provide security in addition to the contribution to the 5352
self-insuring employers' guaranty fund required by this section. 5353
The additional security required by the rule, as the administrator 5354
determines appropriate, shall be sufficient and adequate to 5355
provide for financial assurance to meet the obligations of 5356
self-insuring employers under this chapter and Chapter 4121. of 5357
the Revised Code. 5358

       (F) The purchase of coverage under this section by 5359
self-insuring employers is valid notwithstanding the prohibitions 5360
contained in division (A) of section 4123.82 of the Revised Code 5361
and is in addition to the indemnity contracts that self-insuring 5362
employers may purchase pursuant to division (B) of section 4123.82 5363
of the Revised Code. 5364

       (G) The administrator, on behalf of the self-insuring 5365
employers' guaranty fund, has the rights of reimbursement and 5366
subrogation and shall collect from a defaulting self-insuring 5367
employer or other liable person all amounts hethe administrator 5368
has paid or reasonably expects to pay from the fund on account of 5369
the defaulting self-insuring employer. 5370

       (H) The assessments for contributions, the administration of 5371
the self-insuring employers' guaranty fund, the investment of the 5372
money in the fund, and the payment of liabilities incurred by the 5373
fund do not create any liability upon the state. 5374

       Except for a gross abuse of discretion, neither the ~~oversight~~ 5375
~~commission~~board, nor the individual members thereof, nor the 5376
administrator shall incur any obligation or liability respecting 5377
the assessments for contributions, the administration of the 5378
self-insuring employers' guaranty fund, the investment of the 5379
fund, or the payment of liabilities therefrom. 5380

       Sec. 4123.37. In this section "amenable employer" ~~means an~~ 5381
~~employer subject to~~has the same meaning as "employer" as defined 5382
in division ~~(B)(2)~~(O) of section ~~4123.01~~4123.32 of the Revised 5383
Code. 5384

       If the administrator of workers' compensation finds that any 5385
person, firm, or private corporation, including any public service 5386
corporation, is, or has been at any time after January 1, 1923, an 5387
amenable employer and has not complied with section 4123.35 of the 5388
Revised Code the administrator shall determine the period during 5389
which the person, firm, or corporation was an amenable employer 5390
and shall forthwith give notice of the determination to the 5391
employer. Within twenty days thereafter the employer shall furnish 5392
the bureau with the payroll covering the period included in the 5393
determination and, if the employer is an amenable employer at the 5394
time of the determination, shall pay a premium security deposit 5395
for the eight months next succeeding the date of the determination 5396
and shall pay into the state insurance fund the amount of premium 5397
applicable to such payroll. 5398

       If the employer does not furnish the payroll and pay the 5399
applicable premium and premium security deposit within the twenty 5400
days, the administrator shall forthwith make an assessment of the 5401
premium due from the employer for the period the administrator 5402
determined the employer to be an amenable employer including the 5403
premium security deposit according to section 4123.32 of the 5404
Revised Code if the employer is an amenable employer at the time 5405
of the determination, basing the assessment upon the information 5406
in the possession of the administrator. 5407

       The administrator shall give to the employer assessed written 5408
notice of the assessment. The notice shall be mailed to the 5409
employer at ~~his~~the employer's residence or usual place of 5410
business by certified mail. Unless the employer to whom the notice 5411
of assessment is directed files with the bureau within twenty days 5412
after receipt thereof, a petition in writing, verified under oath 5413
by the employer, or ~~his~~the employer's authorized agent having 5414
knowledge of the facts, setting forth with particularity the items 5415
of the assessment objected to, together with the reason for the 5416
objections, the assessment shall become conclusive and the amount 5417
thereof shall be due and payable from the employer so assessed to 5418
the state insurance fund. When a petition objecting to an 5419
assessment is filed the bureau shall assign a time and place for 5420
the hearing of the same and shall notify the petitioner thereof by 5421
certified mail. When an employer files a petition the assessment 5422
made by the administrator shall become due and payable ten days 5423
after notice of the finding made at the hearing has been sent by 5424
certified mail to the party assessed. An appeal may be taken from 5425
any finding to the court of common pleas of Franklin county upon 5426
the execution by the party assessed of a bond to the state in 5427
double the amount found due and ordered paid by the bureau 5428
conditioned that the party will pay any judgment and costs 5429
rendered against it for the premium. 5430

       When no petition objecting to an assessment is filed or when 5431
a finding is made affirming or modifying an assessment after 5432
hearing, a certified copy of the assessment as affirmed or 5433
modified may be filed by the administrator in the office of the 5434
clerk of the court of common pleas in any county in which the 5435
employer has property or in which the employer has a place of 5436
business. The clerk, immediately upon the filing of the 5437
assessment, shall enter a judgment for the state against the 5438
employer in the amount shown on the assessment. The judgment may 5439
be filed by the clerk in a loose leaf book entitled "special 5440
judgments for state insurance fund." The judgment shall bear the 5441
same rate of interest, have the same effect as other judgments, 5442
and be given the same preference allowed by law on other judgments 5443
rendered for claims for taxes. An assessment or judgment under 5444
this section shall not be a bar to the adjustment of the 5445
employer's account upon the employer furnishing ~~his~~the employer's 5446
payroll records to the bureau. 5447

       The administrator, for good cause shown, may waive a default 5448
in the payment of premium where the default is of less than sixty 5449
days' duration, and upon payment by the employer of the premium 5450
for the period, hethe employer and ~~his~~the employer's employees 5451
are entitled to all of the benefits and immunities provided by 5452
this chapter. 5453

       Sec. 4123.411. (A) For the purpose of carrying out sections 5454
4123.412 to 4123.418 of the Revised Code, the administrator of 5455
workers' compensation, with the advice and consent of the bureau 5456
of workers' compensation ~~oversight commission~~board of directors, 5457
shall levy an assessment against all employers at a rate, of at 5458
least five but not to exceed ten cents per one hundred dollars of 5459
payroll, such rate to be determined annually for each employer 5460
group listed in divisions (A)(1) to (3) of this section, which 5461
will produce an amount no greater than the amount the 5462
administrator estimates to be necessary to carry out such sections 5463
for the period for which the assessment is levied. In the event 5464
the amount produced by the assessment is not sufficient to carry 5465
out such sections the additional amount necessary shall be 5466
provided from the income produced as a result of investments made 5467
pursuant to section 4123.44 of the Revised Code. 5468

       Assessments shall be levied according to the following 5469
schedule: 5470

       (1) Private fund employers, except self-insuring 5471
employers--in January and July of each year upon gross payrolls of 5472
the preceding six months; 5473

       (2) Counties and taxing district employers therein, except 5474
county hospitals that are self-insuring employers--in January of 5475
each year upon gross payrolls of the preceding twelve months; 5476

       (3) The state as an employer--in January, April, July, and 5477
October of each year upon gross payrolls of the preceding three 5478
months. 5479

       Amounts assessed in accordance with this section shall be 5480
collected from each employer as prescribed in rules the 5481
administrator adopts. 5482

       The moneys derived from the assessment provided for in this 5483
section shall be credited to the disabled workers' relief fund 5484
created by section 4123.412 of the Revised Code. The administrator 5485
shall establish by rule classifications of employers within 5486
divisions (A)(1) to (3) of this section and shall determine rates 5487
for each class so as to fairly apportion the costs of carrying out 5488
sections 4123.412 to 4123.418 of the Revised Code. 5489

       (B) For all injuries and disabilities occurring on or after 5490
January 1, 1987, the administrator, for the purposes of carrying 5491
out sections 4123.412 to 4123.418 of the Revised Code, shall levy 5492
an assessment against all employers at a rate per one hundred 5493
dollars of payroll, such rate to be determined annually for each 5494
classification of employer in each employer group listed in 5495
divisions (A)(1) to (3) of this section, which will produce an 5496
amount no greater than the amount the administrator estimates to 5497
be necessary to carry out such sections for the period for which 5498
the assessment is levied. The administrator annually shall 5499
establish the contributions due from employers for the disabled 5500
workers' relief fund at rates as low as possible but that will 5501
assure sufficient moneys to guarantee the payment of any claims 5502
against that fund. 5503

       Amounts assessed in accordance with this division shall be 5504
billed at the same time premiums are billed and credited to the 5505
disabled workers' relief fund created by section 4123.412 of the 5506
Revised Code. The administrator shall determine the rates for each 5507
class in the same manner as hethe administrator fixes the rates 5508
for premiums pursuant to section 4123.29 of the Revised Code. 5509

       (C) For a self-insuring employer, the bureau of workers' 5510
compensation shall pay to employees who are participants 5511
regardless of the date of injury, any amounts due to the 5512
participants under section 4123.414 of the Revised Code and shall 5513
bill the self-insuring employer, semiannually, for all amounts 5514
paid to a participant. 5515

       Sec. 4123.44. The ~~voting~~ members of the bureau of workers' 5516
compensation ~~oversight commission~~board of directors, the 5517
administrator of workers' compensation, and the bureau of workers' 5518
compensation chief investment officer are the trustees of the 5519
state insurance fund. The administrator ~~of workers' compensation~~, 5520
in accordance with sections 4121.126 and 4121.127 of the Revised 5521
Code and the investment ~~objectives, policies, and criteria~~ 5522
~~established~~policy approved by the ~~workers' compensation oversight~~ 5523
~~commission~~board pursuant to section 4121.12 of the Revised Code, 5524
and in consultation with the bureau of workers' compensation chief 5525
investment officer, may invest any of the surplus or reserve 5526
belonging to the state insurance fund. The administrator and the 5527
bureau of workers' compensation chief investment officer shall not 5528
deviate from the investment policy approved by the board without 5529
the approval of the workers' compensation investment committee and 5530
the board. 5531

       The administrator shall not invest in any type of investment 5532
specified in divisions ~~(G)(6)(a)~~(B)(1) to ~~(j)~~(10) of section 5533
~~4121.12~~4123.442 of the Revised Code. 5534

       The administrator and other fiduciaries shall discharge their 5535
duties with respect to the funds with the care, skill, prudence, 5536
and diligence under the circumstances then prevailing that a 5537
prudent person acting in a like capacity and familiar with such 5538
matters would use in the conduct of an enterprise of a like 5539
character and with like aims, and by diversifying the investments 5540
of the assets of the funds so as to minimize the risk of large 5541
losses, unless under the circumstances it is clearly prudent not 5542
to do so. 5543

       To facilitate investment of the funds, the administrator may 5544
establish a partnership, trust, limited liability company, 5545
corporation, including a corporation exempt from taxation under 5546
the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1, as 5547
amended, or any other legal entity authorized to transact business 5548
in this state. 5549

       When reporting on the performance of investments, the 5550
administrator shall comply with the performance presentation 5551
standards established by the association for investment management 5552
and research. 5553

       All investments shall be purchased at current market prices 5554
and the evidences of title to the investments shall be placed in 5555
the custody of the treasurer of state, who is hereby designated as 5556
custodian, or in the custody of the treasurer of state's 5557
authorized agent. Evidences of title of the investments so 5558
purchased may be deposited by the treasurer of state for 5559
safekeeping with an authorized agent selected by the treasurer of 5560
state who is a qualified trustee under section 135.18 of the 5561
Revised Code. The treasurer of state or the agent shall collect 5562
the principal, dividends, distributions, and interest as they 5563
become due and payable and place them when collected into the 5564
state insurance fund. 5565

       The treasurer of state shall pay for investments purchased by 5566
the administrator on receipt of written or electronic instructions 5567
from the administrator or the administrator's designated agent 5568
authorizing the purchase, and pending receipt of the evidence of 5569
title of the investment by the treasurer of state or the treasurer 5570
of state's authorized agent. The administrator may sell 5571
investments held by the administrator, and the treasurer of state 5572
or the treasurer of state's authorized agent shall accept payment 5573
from the purchaser and deliver evidence of title of the investment 5574
to the purchaser, on receipt of written or electronic instructions 5575
from the administrator or the administrator's designated agent 5576
authorizing the sale, and pending receipt of the moneys for the 5577
investments. The amount received shall be placed in the state 5578
insurance fund. The administrator and the treasurer of state may 5579
enter into agreements to establish procedures for the purchase and 5580
sale of investments under this division and the custody of the 5581
investments. 5582

       No purchase or sale of any investment shall be made under 5583
this section, except as authorized by the administrator. 5584

       Any statement of financial position distributed by the 5585
administrator shall include the fair value, as of the statement 5586
date, of all investments held by the administrator under this 5587
section. 5588

       When in the judgment of the administrator it is necessary to 5589
provide available funds for the payment of compensation or 5590
benefits under this chapter, the administrator may borrow money 5591
from any available source and pledge as security a sufficient 5592
amount of bonds or other securities in which the state insurance 5593
fund is invested. The aggregate unpaid amount of loans existing at 5594
any one time for money so borrowed shall not exceed ten million 5595
dollars. The bonds or other securities so pledged as security for 5596
such loans to the administrator shall be the sole security for the 5597
payment of the principal and interest of any such loan. The 5598
administrator shall not be personally liable for the payment of 5599
the principal or the interest of any such loan. No such loan shall 5600
be made for a longer period of time than one year. Such loans may 5601
be renewed but no one renewal shall be for a period in excess of 5602
one year. Such loans shall bear such rate of interest as the 5603
administrator determines and in negotiating the loans, the 5604
administrator shall endeavor to secure as favorable interest rates 5605
and terms as circumstances will permit. 5606

       The treasurer of state may deliver to the person or 5607
governmental agency making such loan, the bonds or other 5608
securities which are to be pledged by the administrator as 5609
security for such loan, upon receipt by the treasurer of state of 5610
an order of the administrator authorizing such loan. Upon payment 5611
of any such loan by the administrator, the bonds or other 5612
securities pledged as security therefor shall be returned to the 5613
treasurer of state as custodian of such bonds. 5614

       The administrator may pledge with the treasurer of state such 5615
amount of bonds or other securities in which the state insurance 5616
fund is invested as is reasonably necessary as security for any 5617
certificates issued, or paid out, by the treasurer of state upon 5618
any warrants drawn by the administrator. 5619

       The administrator may secure investment information services, 5620
consulting services, and other like services to facilitate 5621
investment of the surplus and reserve belonging to the state 5622
insurance fund. The administrator shall pay the expense of 5623
securing such services from the state insurance fund. 5624

       Sec. 4123.441. (A) The ~~bureau~~administrator of workers' 5625
compensation, with the advice and consent of the bureau of 5626
workers' compensation ~~oversight commission~~board of directors 5627
shall employ a person or designate an employee of the bureau of 5628
workers' compensation who is designated as a chartered financial 5629
analyst by the CFA institute and who is licensed by the division 5630
of securities in the department of commerce as a bureau of 5631
workers' compensation chief investment officer to be the chief 5632
investment officer for the bureau of workers' compensation. After 5633
ninety days after ~~the effective date of this section~~September 29, 5634
2005, the bureau of workers' compensation may not employ a bureau 5635
of workers' compensation chief investment officer, as defined in 5636
section 1707.01 of the Revised Code, who does not hold a valid 5637
bureau of workers' compensation chief investment officer license 5638
issued by the division of securities in the department of 5639
commerce. The ~~oversight commission~~board shall notify the division 5640
of securities of the department of commerce in writing of its 5641
designation and of any change in its designation within ten 5642
calendar days after the designation or change. 5643

       (B) The bureau of workers' compensation chief investment 5644
officer shall reasonably supervise employees of the bureau who 5645
handle investment of assets of funds specified in this chapter and 5646
Chapters 4121., 4127., and 4131. of the Revised Code with a view 5647
toward preventing violations of Chapter 1707. of the Revised Code, 5648
the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. 1, the 5649
"Securities Act of 1933," 48 Stat. 74, 15 U.S.C. 77a, the 5650
"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a, 5651
and the rules and regulations adopted under those statutes. This 5652
duty of reasonable supervision shall include the adoption, 5653
implementation, and enforcement of written policies and procedures 5654
reasonably designed to prevent employees of the bureau who handle 5655
investment of assets of the funds specified in this chapter and 5656
Chapters 4121., 4127., and 4131. of the Revised Code, from 5657
misusing material, nonpublic information in violation of those 5658
laws, rules, and regulations. 5659

       For purposes of this division, no bureau of workers' 5660
compensation chief investment officer shall be considered to have 5661
failed to satisfy the officer's duty of reasonable supervision if 5662
the officer has done all of the following: 5663

       (1) Adopted and implemented written procedures, and a system 5664
for applying the procedures, that would reasonably be expected to 5665
prevent and detect, insofar as practicable, any violation by 5666
employees handling investments of assets of the funds specified in 5667
this chapter and Chapters 4121., 4127., and 4131. of the Revised 5668
Code; 5669

       (2) Reasonably discharged the duties and obligations 5670
incumbent on the bureau of workers' compensation chief investment 5671
officer by reason of the established procedures and the system for 5672
applying the procedures when the officer had no reasonable cause 5673
to believe that there was a failure to comply with the procedures 5674
and systems; 5675

       (3) Reviewed, at least annually, the adequacy of the policies 5676
and procedures established pursuant to this section and the 5677
effectiveness of their implementation. 5678

       (C) The bureau of workers' compensation chief investment 5679
officer shall establish and maintain a policy to monitor and 5680
evaluate the effectiveness of securities transactions executed on 5681
behalf of the bureau. 5682

       Sec. 4123.442. When developing the investment policy for the 5683
investment of the assets of the funds specified in this chapter 5684
and Chapters 4121., 4127., and 4131. of the Revised Code, the 5685
workers' compensation investment committee shall do all of the 5686
following: 5687

       (A) Specify the asset allocation targets and ranges, risk 5688
factors, asset class benchmarks, time horizons, total return 5689
objectives, and performance evaluation guidelines; 5690

       (B) Prohibit investing the assets of those funds, directly or 5691
indirectly, in vehicles that target any of the following: 5692

       (1) Coins; 5693

       (2) Artwork; 5694

       (3) Horses; 5695

       (4) Jewelry or gems; 5696

       (5) Stamps; 5697

       (6) Antiques; 5698

       (7) Artifacts; 5699

       (8) Collectibles; 5700

       (9) Memorabilia; 5701

       (10) Similar unregulated investments that are not commonly 5702
part of an institutional portfolio, that lack liquidity, and that 5703
lack readily determinable valuation. 5704

       (C) Specify that the administrator of workers' compensation 5705
may invest in an investment class only if the bureau of workers' 5706
compensation board of directors, by a majority vote, opens that 5707
class; 5708

       (D) Prohibit investing the assets of those funds in any class 5709
of investments the board, by majority vote, closed, or any 5710
specific investment in which the board prohibits the administrator 5711
from investing; 5712

       (E) Not specify in the investment policy that the 5713
administrator or employees of the bureau of workers' compensation 5714
are prohibited from conducting business with an investment 5715
management firm, any investment management professional associated 5716
with that firm, any third party solicitor associated with that 5717
firm, or any political action committee controlled by that firm or 5718
controlled by an investment management professional of that firm 5719
based on criteria that are more restrictive than the restrictions 5720
described in divisions (Y) and (Z) of section 3517.13 of the 5721
Revised Code. 5722

       Sec. 4123.47. (A) The administrator of workers' compensation 5723
shall have actuarial audits of the state insurance fund and all 5724
other funds specified in this chapter and Chapters 4121., 4127., 5725
and 4131. of the Revised Code made at least once each year. The 5726
audits shall be made and certified by recognized insurance 5727
actuaries who shall be selected ~~as the administrator determines~~by 5728
the bureau of workers' compensation board of directors. The audits 5729
shall cover the premium rates, classifications, and all other 5730
matters involving the administration of the state insurance fund 5731
and all other funds specified in this chapter and Chapters 4121., 5732
4127., and 4131. of the Revised Code. The expense of the audits 5733
shall be paid from the state insurance fund. The administrator 5734
shall make copies of the audits available to the workers' 5735
compensation audit committee at no charge and to the public at 5736
cost. 5737

       (B) The auditor of state annually shall conduct an audit of 5738
the administration of this chapter by the industrial commission 5739
and the bureau of workers' compensation and the safety and hygiene 5740
fund. The cost of the audit shall be charged to the administrative 5741
costs of the bureau as defined in section 4123.341 of the Revised 5742
Code. The audit shall include audits of all fiscal activities, 5743
claims processing and handling, and employer premium collections. 5744
The auditor shall prepare a report of the audit together with 5745
recommendations and transmit copies of the report to the 5746
industrial commission, the ~~workers' compensation oversight~~ 5747
~~commission~~board, the administrator, the governor, and to the 5748
general assembly. The auditor shall make copies of the report 5749
available to the public at cost. 5750

       (C) The administrator may retain the services of a recognized 5751
actuary on a consulting basis for the purpose of evaluating the 5752
actuarial soundness of premium rates and classifications and all 5753
other matters involving the administration of the state insurance 5754
fund. The expense of services provided by the actuary shall be 5755
paid from the state insurance fund. 5756

       Sec. 4123.50. (A) Each member of a firm, and the president, 5757
secretary, general manager, or managing agent of each private 5758
corporation, including any public service corporation mentioned in 5759
section 4123.01 of the Revised Code or publicly owned utility, 5760
shall cause the firm or corporation to comply with section 4123.35 5761
of the Revised Code and, for self-insuring employers, to comply 5762
with the assessment based upon paid compensation provisions of 5763
this chapter and Chapter 4121. of the Revised Code. No person 5764
mentioned in section 4123.01 of the Revised Code and no member of 5765
the firms and no officer of the corporations or publicly owned 5766
utilities referred to in this section shall fail to comply with 5767
section 4123.35 of the Revised Code and, for self-insuring 5768
employers, to comply with the assessment based upon paid 5769
compensation provisions of this chapter and Chapter 4121. of the 5770
Revised Code. All fines collected for a violation of this section 5771
shall be paid to the general fund of the political subdivision 5772
where the case is prosecuted. 5773

       (B) The administrator of workers' compensation, with the 5774
advice and consent of the bureau of workers' compensation 5775
~~oversight commission~~board of directors, shall adopt rules 5776
governing treatment of employers found in violation of division 5777
(A) of this section. The rules shall cover enforcement and 5778
prosecution procedures and methods and grounds for settlement of 5779
liability of a noncomplying employer. 5780

       Sec. 4123.511. (A) Within seven days after receipt of any 5781
claim under this chapter, the bureau of workers' compensation 5782
shall notify the claimant and the employer of the claimant of the 5783
receipt of the claim and of the facts alleged therein. If the 5784
bureau receives from a person other than the claimant written or 5785
facsimile information or information communicated verbally over 5786
the telephone indicating that an injury or occupational disease 5787
has occurred or been contracted which may be compensable under 5788
this chapter, the bureau shall notify the employee and the 5789
employer of the information. If the information is provided 5790
verbally over the telephone, the person providing the information 5791
shall provide written verification of the information to the 5792
bureau according to division (E) of section 4123.84 of the Revised 5793
Code. The receipt of the information in writing or facsimile, or 5794
if initially by telephone, the subsequent written verification, 5795
and the notice by the bureau shall be considered an application 5796
for compensation under section 4123.84 or 4123.85 of the Revised 5797
Code, provided that the conditions of division (E) of section 5798
4123.84 of the Revised Code apply to information provided verbally 5799
over the telephone. Upon receipt of a claim, the bureau shall 5800
advise the claimant of the claim number assigned and the 5801
claimant's right to representation in the processing of a claim or 5802
to elect no representation. If the bureau determines that a claim 5803
is determined to be a compensable lost-time claim, the bureau 5804
shall notify the claimant and the employer of the availability of 5805
rehabilitation services. No bureau or industrial commission 5806
employee shall directly or indirectly convey any information in 5807
derogation of this right. This section shall in no way abrogate 5808
the bureau's responsibility to aid and assist a claimant in the 5809
filing of a claim and to advise the claimant of the claimant's 5810
rights under the law. 5811

       The administrator of workers' compensation shall assign all 5812
claims and investigations to the bureau service office from which 5813
investigation and determination may be made most expeditiously. 5814

       The bureau shall investigate the facts concerning an injury 5815
or occupational disease and ascertain such facts in whatever 5816
manner is most appropriate and may obtain statements of the 5817
employee, employer, attending physician, and witnesses in whatever 5818
manner is most appropriate. 5819

       The administrator ~~of workers' compensation~~, with the advice 5820
and consent of the bureau of workers' compensation ~~oversight~~ 5821
~~commission~~board of directors, may adopt rules that identify 5822
specified medical conditions that have a historical record of 5823
being allowed whenever included in a claim. The administrator may 5824
grant immediate allowance of any medical condition identified in 5825
those rules upon the filing of a claim involving that medical 5826
condition and may make immediate payment of medical bills for any 5827
medical condition identified in those rules that is included in a 5828
claim. If an employer contests the allowance of a claim involving 5829
any medical condition identified in those rules, and the claim is 5830
disallowed, payment for the medical condition included in that 5831
claim shall be charged to and paid from the surplus fund created 5832
under section 4123.34 of the Revised Code. 5833

       (B)(1) Except as provided in division (B)(2) of this section, 5834
in claims other than those in which the employer is a 5835
self-insuring employer, if the administrator determines under 5836
division (A) of this section that a claimant is or is not entitled 5837
to an award of compensation or benefits, the administrator shall 5838
issue an order no later than twenty-eight days after the sending 5839
of the notice under division (A) of this section, granting or 5840
denying the payment of the compensation or benefits, or both as is 5841
appropriate to the claimant. Notwithstanding the time limitation 5842
specified in this division for the issuance of an order, if a 5843
medical examination of the claimant is required by statute, the 5844
administrator promptly shall schedule the claimant for that 5845
examination and shall issue an order no later than twenty-eight 5846
days after receipt of the report of the examination. The 5847
administrator shall notify the claimant and the employer of the 5848
claimant and their respective representatives in writing of the 5849
nature of the order and the amounts of compensation and benefit 5850
payments involved. The employer or claimant may appeal the order 5851
pursuant to division (C) of this section within fourteen days 5852
after the date of the receipt of the order. The employer and 5853
claimant may waive, in writing, their rights to an appeal under 5854
this division. 5855

       (2) Notwithstanding the time limitation specified in division 5856
(B)(1) of this section for the issuance of an order, if the 5857
employer certifies a claim for payment of compensation or 5858
benefits, or both, to a claimant, and the administrator has 5859
completed the investigation of the claim, the payment of benefits 5860
or compensation, or both, as is appropriate, shall commence upon 5861
the later of the date of the certification or completion of the 5862
investigation and issuance of the order by the administrator, 5863
provided that the administrator shall issue the order no later 5864
than the time limitation specified in division (B)(1) of this 5865
section. 5866

       (3) If an appeal is made under division (B)(1) or (2) of this 5867
section, the administrator shall forward the claim file to the 5868
appropriate district hearing officer within seven days of the 5869
appeal. In contested claims other than state fund claims, the 5870
administrator shall forward the claim within seven days of the 5871
administrator's receipt of the claim to the industrial commission, 5872
which shall refer the claim to an appropriate district hearing 5873
officer for a hearing in accordance with division (C) of this 5874
section. 5875

       (C) If an employer or claimant timely appeals the order of 5876
the administrator issued under division (B) of this section or in 5877
the case of other contested claims other than state fund claims, 5878
the commission shall refer the claim to an appropriate district 5879
hearing officer according to rules the commission adopts under 5880
section 4121.36 of the Revised Code. The district hearing officer 5881
shall notify the parties and their respective representatives of 5882
the time and place of the hearing. 5883

       The district hearing officer shall hold a hearing on a 5884
disputed issue or claim within forty-five days after the filing of 5885
the appeal under this division and issue a decision within seven 5886
days after holding the hearing. The district hearing officer shall 5887
notify the parties and their respective representatives in writing 5888
of the order. Any party may appeal an order issued under this 5889
division pursuant to division (D) of this section within fourteen 5890
days after receipt of the order under this division. 5891

       (D) Upon the timely filing of an appeal of the order of the 5892
district hearing officer issued under division (C) of this 5893
section, the commission shall refer the claim file to an 5894
appropriate staff hearing officer according to its rules adopted 5895
under section 4121.36 of the Revised Code. The staff hearing 5896
officer shall hold a hearing within forty-five days after the 5897
filing of an appeal under this division and issue a decision 5898
within seven days after holding the hearing under this division. 5899
The staff hearing officer shall notify the parties and their 5900
respective representatives in writing of the staff hearing 5901
officer's order. Any party may appeal an order issued under this 5902
division pursuant to division (E) of this section within fourteen 5903
days after receipt of the order under this division. 5904

       (E) Upon the filing of a timely appeal of the order of the 5905
staff hearing officer issued under division (D) of this section, 5906
the commission or a designated staff hearing officer, on behalf of 5907
the commission, shall determine whether the commission will hear 5908
the appeal. If the commission or the designated staff hearing 5909
officer decides to hear the appeal, the commission or the 5910
designated staff hearing officer shall notify the parties and 5911
their respective representatives in writing of the time and place 5912
of the hearing. The commission shall hold the hearing within 5913
forty-five days after the filing of the notice of appeal and, 5914
within seven days after the conclusion of the hearing, the 5915
commission shall issue its order affirming, modifying, or 5916
reversing the order issued under division (D) of this section. The 5917
commission shall notify the parties and their respective 5918
representatives in writing of the order. If the commission or the 5919
designated staff hearing officer determines not to hear the 5920
appeal, within fourteen days after the filing of the notice of 5921
appeal, the commission or the designated staff hearing officer 5922
shall issue an order to that effect and notify the parties and 5923
their respective representatives in writing of that order. 5924

       Except as otherwise provided in this chapter and Chapters 5925
4121., 4127., and 4131. of the Revised Code, any party may appeal 5926
an order issued under this division to the court pursuant to 5927
section 4123.512 of the Revised Code within sixty days after 5928
receipt of the order, subject to the limitations contained in that 5929
section. 5930

       (F) Every notice of an appeal from an order issued under 5931
divisions (B), (C), (D), and (E) of this section shall state the 5932
names of the claimant and employer, the number of the claim, the 5933
date of the decision appealed from, and the fact that the 5934
appellant appeals therefrom. 5935

       (G) All of the following apply to the proceedings under 5936
divisions (C), (D), and (E) of this section: 5937

       (1) The parties shall proceed promptly and without 5938
continuances except for good cause; 5939

       (2) The parties, in good faith, shall engage in the free 5940
exchange of information relevant to the claim prior to the conduct 5941
of a hearing according to the rules the commission adopts under 5942
section 4121.36 of the Revised Code; 5943

       (3) The administrator is a party and may appear and 5944
participate at all administrative proceedings on behalf of the 5945
state insurance fund. However, in cases in which the employer is 5946
represented, the administrator shall neither present arguments nor 5947
introduce testimony that is cumulative to that presented or 5948
introduced by the employer or the employer's representative. The 5949
administrator may file an appeal under this section on behalf of 5950
the state insurance fund; however, except in cases arising under 5951
section 4123.343 of the Revised Code, the administrator only may 5952
appeal questions of law or issues of fraud when the employer 5953
appears in person or by representative. 5954

       (H) Except as provided in section 4121.63 of the Revised Code 5955
and division ~~(J)~~(K) of this section, payments of compensation to a 5956
claimant or on behalf of a claimant as a result of any order 5957
issued under this chapter shall commence upon the earlier of the 5958
following: 5959

       (1) Fourteen days after the date the administrator issues an 5960
order under division (B) of this section, unless that order is 5961
appealed; 5962

       (2) The date when the employer has waived the right to appeal 5963
a decision issued under division (B) of this section; 5964

       (3) If no appeal of an order has been filed under this 5965
section or to a court under section 4123.512 of the Revised Code, 5966
the expiration of the time limitations for the filing of an appeal 5967
of an order; 5968

       (4) The date of receipt by the employer of an order of a 5969
district hearing officer, a staff hearing officer, or the 5970
industrial commission issued under division (C), (D), or (E) of 5971
this section. 5972

       (I) NoPayments of medical benefits payable under this 5973
chapter or Chapter 4121., 4127., or 4131. of the Revised Code ~~are~~ 5974
~~payable until~~shall commence upon the earlier of the following: 5975

       (1) The date of the issuance of the staff hearing officer's 5976
order under division (D) of this section; 5977

       (2) The date of the final administrative or judicial 5978
determination. 5979

       (J) The administrator shall charge the compensation payments 5980
made in accordance with division (H) of this section or medical 5981
benefits payments made in accordance with division (I) of this 5982
section to an employer's experience immediately after the employer 5983
has exhausted the employer's administrative appeals as provided in 5984
this section or has waived the employer's right to an 5985
administrative appeal under division (B) of this section, subject 5986
to the adjustment specified in division (H) of section 4123.512 of 5987
the Revised Code. 5988

       (K) Upon the final administrative or judicial determination 5989
under this section or section 4123.512 of the Revised Code of an 5990
appeal of an order to pay compensation, if a claimant is found to 5991
have received compensation pursuant to a prior order which is 5992
reversed upon subsequent appeal, the claimant's employer, if a 5993
self-insuring employer, or the bureau, shall withhold from any 5994
amount to which the claimant becomes entitled pursuant to any 5995
claim, past, present, or future, under Chapter 4121., 4123., 5996
4127., or 4131. of the Revised Code, the amount of previously paid 5997
compensation to the claimant which, due to reversal upon appeal, 5998
the claimant is not entitled, pursuant to the following criteria: 5999

       (1) No withholding for the first twelve weeks of temporary 6000
total disability compensation pursuant to section 4123.56 of the 6001
Revised Code shall be made; 6002

       (2) Forty per cent of all awards of compensation paid 6003
pursuant to sections 4123.56 and 4123.57 of the Revised Code, 6004
until the amount overpaid is refunded; 6005

       (3) Twenty-five per cent of any compensation paid pursuant to 6006
section 4123.58 of the Revised Code until the amount overpaid is 6007
refunded; 6008

       (4) If, pursuant to an appeal under section 4123.512 of the 6009
Revised Code, the court of appeals or the supreme court reverses 6010
the allowance of the claim, then no amount of any compensation 6011
will be withheld. 6012

       The administrator and self-insuring employers, as 6013
appropriate, are subject to the repayment schedule of this 6014
division only with respect to an order to pay compensation that 6015
was properly paid under a previous order, but which is 6016
subsequently reversed upon an administrative or judicial appeal. 6017
The administrator and self-insuring employers are not subject to, 6018
but may utilize, the repayment schedule of this division, or any 6019
other lawful means, to collect payment of compensation made to a 6020
person who was not entitled to the compensation due to fraud as 6021
determined by the administrator or the industrial commission. 6022

       ~~(K)~~(L) If a staff hearing officer or the commission fails to 6023
issue a decision or the commission fails to refuse to hear an 6024
appeal within the time periods required by this section, payments 6025
to a claimant shall cease until the staff hearing officer or 6026
commission issues a decision or hears the appeal, unless the 6027
failure was due to the fault or neglect of the employer or the 6028
employer agrees that the payments should continue for a longer 6029
period of time. 6030

       ~~(L)~~(M) Except as otherwise provided in this section or 6031
section 4123.522 of the Revised Code, no appeal is timely filed 6032
under this section unless the appeal is filed with the time limits 6033
set forth in this section. 6034

       ~~(M)~~(N) No person who is not an employee of the bureau or 6035
commission or who is not by law given access to the contents of a 6036
claims file shall have a file in the person's possession. 6037

       ~~(N)~~(O) Upon application of a party who resides in an area in 6038
which an emergency or disaster is declared, the industrial 6039
commission and hearing officers of the commission may waive the 6040
time frame within which claims and appeals of claims set forth in 6041
this section must be filed upon a finding that the applicant was 6042
unable to comply with a filing deadline due to an emergency or a 6043
disaster. 6044

       As used in this division: 6045

       (1) "Emergency" means any occasion or instance for which the 6046
governor of Ohio or the president of the United States publicly 6047
declares an emergency and orders state or federal assistance to 6048
save lives and protect property, the public health and safety, or 6049
to lessen or avert the threat of a catastrophe. 6050

       (2) "Disaster" means any natural catastrophe or fire, flood, 6051
or explosion, regardless of the cause, that causes damage of 6052
sufficient magnitude that the governor of Ohio or the president of 6053
the United States, through a public declaration, orders state or 6054
federal assistance to alleviate damage, loss, hardship, or 6055
suffering that results from the occurrence. 6056

       Sec. 4123.512. (A) The claimant or the employer may appeal 6057
an order of the industrial commission made under division (E) of 6058
section 4123.511 of the Revised Code in any injury or occupational 6059
disease case, other than a decision as to the extent of disability 6060
to the court of common pleas of the county in which the injury was 6061
inflicted or in which the contract of employment was made if the 6062
injury occurred outside the state, or in which the contract of 6063
employment was made if the exposure occurred outside the state. If 6064
no common pleas court has jurisdiction for the purposes of an 6065
appeal by the use of the jurisdictional requirements described in 6066
this division, the appellant may use the venue provisions in the 6067
Rules of Civil Procedure to vest jurisdiction in a court. If the 6068
claim is for an occupational disease, the appeal shall be to the 6069
court of common pleas of the county in which the exposure which 6070
caused the disease occurred. Like appeal may be taken from an 6071
order of a staff hearing officer made under division (D) of 6072
section 4123.511 of the Revised Code from which the commission has 6073
refused to hear an appeal. The appellant shall file the notice of 6074
appeal with a court of common pleas within sixty days after the 6075
date of the receipt of the order appealed from or the date of 6076
receipt of the order of the commission refusing to hear an appeal 6077
of a staff hearing officer's decision under division (D) of 6078
section 4123.511 of the Revised Code. The filing of the notice of 6079
the appeal with the court is the only act required to perfect the 6080
appeal. 6081

       If an action has been commenced in a court of a county other 6082
than a court of a county having jurisdiction over the action, the 6083
court, upon notice by any party or upon its own motion, shall 6084
transfer the action to a court of a county having jurisdiction. 6085

       Notwithstanding anything to the contrary in this section, if 6086
the commission determines under section 4123.522 of the Revised 6087
Code that an employee, employer, or their respective 6088
representatives have not received written notice of an order or 6089
decision which is appealable to a court under this section and 6090
which grants relief pursuant to section 4123.522 of the Revised 6091
Code, the party granted the relief has sixty days from receipt of 6092
the order under section 4123.522 of the Revised Code to file a 6093
notice of appeal under this section. 6094

       (B) The notice of appeal shall state the names of the 6095
claimant and the employer, the number of the claim, the date of 6096
the order appealed from, and the fact that the appellant appeals 6097
therefrom. 6098

       The administrator of workers' compensation, the claimant, and 6099
the employer shall be parties to the appeal and the court, upon 6100
the application of the commission, shall make the commission a 6101
party. The party filing the appeal shall serve a copy of the 6102
notice of appeal on the administrator at the central office of the 6103
bureau of workers' compensation in Columbus. The administrator 6104
shall notify the employer that if the employer fails to become an 6105
active party to the appeal, then the administrator may act on 6106
behalf of the employer and the results of the appeal could have an 6107
adverse effect upon the employer's premium rates. 6108

       (C) The attorney general or one or more of the attorney 6109
general's assistants or special counsel designated by the attorney 6110
general shall represent the administrator and the commission. In 6111
the event the attorney general or the attorney general's 6112
designated assistants or special counsel are absent, the 6113
administrator or the commission shall select one or more of the 6114
attorneys in the employ of the administrator or the commission as 6115
the administrator's attorney or the commission's attorney in the 6116
appeal. Any attorney so employed shall continue the representation 6117
during the entire period of the appeal and in all hearings thereof 6118
except where the continued representation becomes impractical. 6119

       (D) Upon receipt of notice of appeal, the clerk of courts 6120
shall provide notice to all parties who are appellees and to the 6121
commission. 6122

       The claimant shall, within thirty days after the filing of 6123
the notice of appeal, file a petition containing a statement of 6124
facts in ordinary and concise language showing a cause of action 6125
to participate or to continue to participate in the fund and 6126
setting forth the basis for the jurisdiction of the court over the 6127
action. Further pleadings shall be had in accordance with the 6128
Rules of Civil Procedure, provided that service of summons on such 6129
petition shall not be required and provided that the claimant may 6130
not dismiss the complaint without the employer's consent if the 6131
employer is the party that filed the notice of appeal to court 6132
pursuant to this section. The clerk of the court shall, upon 6133
receipt thereof, transmit by certified mail a copy thereof to each 6134
party named in the notice of appeal other than the claimant. Any 6135
party may file with the clerk prior to the trial of the action a 6136
deposition of any physician taken in accordance with the 6137
provisions of the Revised Code, which deposition may be read in 6138
the trial of the action even though the physician is a resident of 6139
or subject to service in the county in which the trial is had. The 6140
bureau of workers' compensation shall pay the cost of the 6141
stenographic deposition filed in court and of copies of the 6142
stenographic deposition for each party from the surplus fund and 6143
charge the costs thereof against the unsuccessful party if the 6144
claimant's right to participate or continue to participate is 6145
finally sustained or established in the appeal. In the event the 6146
deposition is taken and filed, the physician whose deposition is 6147
taken is not required to respond to any subpoena issued in the 6148
trial of the action. The court, or the jury under the instructions 6149
of the court, if a jury is demanded, shall determine the right of 6150
the claimant to participate or to continue to participate in the 6151
fund upon the evidence adduced at the hearing of the action. 6152

       (E) The court shall certify its decision to the commission 6153
and the certificate shall be entered in the records of the court. 6154
Appeals from the judgment are governed by the law applicable to 6155
the appeal of civil actions. 6156

       (F) The cost of any legal proceedings authorized by this 6157
section, including an attorney's fee to the claimant's attorney to 6158
be fixed by the trial judge, based upon the effort expended, in 6159
the event the claimant's right to participate or to continue to 6160
participate in the fund is established upon the final 6161
determination of an appeal, shall be taxed against the employer or 6162
the commission if the commission or the administrator rather than 6163
the employer contested the right of the claimant to participate in 6164
the fund. The attorney's fee shall not exceed forty-two hundred 6165
dollars. 6166

       (G) If the finding of the court or the verdict of the jury is 6167
in favor of the claimant's right to participate in the fund, the 6168
commission and the administrator shall thereafter proceed in the 6169
matter of the claim as if the judgment were the decision of the 6170
commission, subject to the power of modification provided by 6171
section 4123.52 of the Revised Code. 6172

       (H) An appeal from an order issued under division (E) of 6173
section 4123.511 of the Revised Code or any action filed in court 6174
in a case in which an award of compensation or benefits has been 6175
made shall not stay the payment of compensation or benefits under 6176
the award or payment of compensation or benefits for subsequent 6177
periods of total disability during the pendency of the appeal. If, 6178
in a final administrative or judicial action, it is determined 6179
that payments of compensation or benefits, or both, made to or on 6180
behalf of a claimant should not have been made, the amount thereof 6181
shall be charged to the surplus fund under division ~~(B)~~(A) of 6182
section 4123.34 of the Revised Code. In the event the employer is 6183
a state risk, the amount shall not be charged to the employer's 6184
experience, and the administrator shall adjust the employer's 6185
account accordingly. In the event the employer is a self-insuring 6186
employer, the self-insuring employer shall deduct the amount from 6187
the paid compensation the self-insuring employer reports to the 6188
administrator under division (L) of section 4123.35 of the Revised 6189
Code. 6190

       A self-insuring employer may elect to pay compensation and 6191
benefits under this section directly to an employee or an 6192
employee's dependents by filing an application with the bureau of 6193
workers' compensation not more than one hundred eighty days and 6194
not less than ninety days before the first day of the employer's 6195
next six-month coverage period. If the self-insuring employer 6196
timely files the application, the application is effective on the 6197
first day of the employer's next six-month coverage period, 6198
provided that the administrator shall compute the employer's 6199
assessment for the surplus fund due with respect to the period 6200
during which that application was filed without regard to the 6201
filing of the application. On and after the effective date of the 6202
employer's election, the self-insuring employer shall pay directly 6203
to an employee or to an employee's dependents compensation and 6204
benefits under this section regardless of the date of the injury 6205
or occupational disease, and the employer shall receive no money 6206
or credits from the surplus fund on account of those payments and 6207
shall not be required to pay any amounts into the surplus fund on 6208
account of this section. The election made under this division is 6209
irrevocable. 6210

       All actions and proceedings under this section which are the 6211
subject of an appeal to the court of common pleas or the court of 6212
appeals shall be preferred over all other civil actions except 6213
election causes, irrespective of position on the calendar. 6214

       This section applies to all decisions of the commission or 6215
the administrator on November 2, 1959, and all claims filed 6216
thereafter are governed by sections 4123.511 and 4123.512 of the 6217
Revised Code. 6218

       Any action pending in common pleas court or any other court 6219
on January 1, 1986, under this section is governed by former 6220
sections 4123.514, 4123.515, 4123.516, and 4123.519 and section 6221
4123.522 of the Revised Code. 6222

       Sec. 4123.592. If an injury to an employee causes the 6223
employee's death, and the incident that resulted in the employee's 6224
injury occurred through no fault of the employee, the employee's 6225
employer, or another employee of the employee's employer, death 6226
benefits shall be paid from the surplus fund created under section 6227
4123.34 of the Revised Code in accordance with sections 4123.59, 6228
4123.60, and 4123.61 of the Revised Code. The administrator of 6229
workers' compensation shall not charge the payment of those 6230
benefits to the experience of the employee's employer. 6231

       The administrator annually shall submit to the general 6232
assembly a report evaluating the actuarial impact of the payment 6233
of benefits made pursuant to this section. 6234

       Sec. 4123.66. (A) In addition to the compensation provided 6235
for in this chapter, the administrator of workers' compensation 6236
shall disburse and pay from the state insurance fund the amounts 6237
for medical, nurse, and hospital services and medicine as the 6238
administrator deems proper and, in case death ensues from the 6239
injury or occupational disease, the administrator shall disburse 6240
and pay from the fund reasonable funeral expenses in an amount not 6241
to exceed fifty-five hundred dollars. The bureau of workers' 6242
compensation shall reimburse anyone, whether dependent, volunteer, 6243
or otherwise, who pays the funeral expenses of any employee whose 6244
death ensues from any injury or occupational disease as provided 6245
in this section. The administrator may adopt rules, with the 6246
advice and consent of the bureau of workers' compensation 6247
~~oversight commission~~board of directors, with respect to 6248
furnishing medical, nurse, and hospital service and medicine to 6249
injured or disabled employees entitled thereto, and for the 6250
payment therefor. In case an injury or industrial accident that 6251
injures an employee also causes damage to the employee's 6252
eyeglasses, artificial teeth or other denture, or hearing aid, or 6253
in the event an injury or occupational disease makes it necessary 6254
or advisable to replace, repair, or adjust the same, the bureau 6255
shall disburse and pay a reasonable amount to repair or replace 6256
the same. 6257

       (B)(1) If an employer or a welfare plan has provided to or on 6258
behalf of an employee any benefits or compensation for an injury 6259
or occupational disease and that injury or occupational disease is 6260
determined compensable under this chapter, the employer or a 6261
welfare plan may request that the administrator reimburse the 6262
employer or welfare plan for the amount the employer or welfare 6263
plan paid to or on behalf of the employee in compensation or 6264
benefits. The administrator shall reimburse the employer or 6265
welfare plan for the compensation and benefits paid if, at the 6266
time the employer or welfare plan provides the benefits or 6267
compensation to or on behalf of employee, the injury or 6268
occupational disease had not been determined to be compensable 6269
under this chapter and if the employee was not receiving 6270
compensation or benefits under this chapter for that injury or 6271
occupational disease. The administrator shall reimburse the 6272
employer or welfare plan in the amount that the administrator 6273
would have paid to or on behalf of the employee under this chapter 6274
if the injury or occupational disease originally would have been 6275
determined compensable under this chapter. If the employer is a 6276
merit-rated employer, the administrator shall adjust the amount of 6277
premium next due from the employer according to the amount the 6278
administrator pays the employer. The administrator shall adopt 6279
rules, in accordance with Chapter 119. of the Revised Code, to 6280
implement this division. 6281

       (2) As used in this division, "welfare plan" has the same 6282
meaning as in division (1) of 29 U.S.C.A. 1002. 6283

       Sec. 4123.80. No agreement by an employee to waive an 6284
employee's rights to compensation under this chapter is valid, 6285
except that: 6286

       (A) An employee who is blind may waive the compensation that 6287
may become due to the employee for injury or disability in cases 6288
where the injury or disability may be directly caused by or due to 6289
the employee's blindness. The administrator of workers' 6290
compensation, with the advice and consent of the bureau of 6291
workers' compensation ~~oversight commission~~board of directors, may 6292
adopt and enforce rules governing the employment of such persons 6293
and the inspection of their places of employment. 6294

       (B) An employee may waive the employee's rights to 6295
compensation or benefits as authorized pursuant to division (C)(3) 6296
of section 4123.01 or section 4123.15 of the Revised Code. 6297

       No agreement by an employee to pay any portion of the premium 6298
paid by the employee's employer into the state insurance fund is 6299
valid. 6300

       Sec. 4123.82. (A) All contracts and agreements are void 6301
which undertake to indemnify or insure an employer against loss or 6302
liability for the payment of compensation to workers or their 6303
dependents for death, injury, or occupational disease occasioned 6304
in the course of the workers' employment, or which provide that 6305
the insurer shall pay the compensation, or which indemnify the 6306
employer against damages when the injury, disease, or death arises 6307
from the failure to comply with any lawful requirement for the 6308
protection of the lives, health, and safety of employees, or when 6309
the same is occasioned by the willful act of the employer or any 6310
of ~~his~~the employer's officers or agents, or by which it is agreed 6311
that the insurer shall pay any such damages. No license or 6312
authority to enter into any such agreements or issue any such 6313
policies of insurance shall be granted or issued by any public 6314
authority in this state. Any corporation organized or admitted 6315
under the laws of this state to transact liability insurance as 6316
defined in section 3929.01 of the Revised Code may by amendment of 6317
its articles of incorporation or by original articles of 6318
incorporation, provide therein for the authority and purpose to 6319
make insurance in states, territories, districts, and counties, 6320
other than the state of Ohio, and in the state of Ohio in respect 6321
of contracts permitted by division (B) of this section, 6322
indemnifying employers against loss or liability for payment of 6323
compensation to workers and employees and their dependents for 6324
death, injury, or occupational disease occasioned in the course of 6325
the employment and to insure and indemnify employers against loss, 6326
expense, and liability by risk of bodily injury or death by 6327
accident, disability, sickness, or disease suffered by workers and 6328
employees for which the employer may be liable or has assumed 6329
liability. 6330

       (B) Notwithstanding division (A) of this section: 6331

       (1) No contract because of that division is void which 6332
undertakes to indemnify a self-insuring employer against all or 6333
part of such employer's loss in excess of at least fifty thousand 6334
dollars from any one disaster or event arising out of the 6335
employer's liability under this chapter, but no insurance 6336
corporation shall, directly or indirectly, represent an employer 6337
in the settlement, adjudication, determination, allowance, or 6338
payment of claims. The superintendent of insurance shall enforce 6339
this prohibition by such disciplinary orders directed against the 6340
offending insurance corporation as the superintendent of insurance 6341
deems appropriate in the circumstances and the administrator of 6342
workers' compensation shall enforce this prohibition by such 6343
disciplinary orders directed against the offending employer as the 6344
administrator deems appropriate in the circumstances, which orders 6345
may include revocation of the insurance corporation's right to 6346
enter into indemnity contracts and revocation of the employer's 6347
status as a self-insuring employer. 6348

       (2) The administrator may enter into a contract of indemnity 6349
with any such employer upon such terms, payment of such premium, 6350
and for such amount and form of indemnity as the administrator 6351
determines and the ~~administrator~~bureau of workers' compensation 6352
board of directors may procure reinsurance of the liability of the 6353
public and private funds under this chapter, or any part of the 6354
liability in respect of either or both of the funds, upon such 6355
terms and premiums or other payments from the fund or funds as the 6356
administrator deems prudent in the maintenance of a solvent fund 6357
or funds from year to year. When making the finding of fact which 6358
the administrator is required by section 4123.35 of the Revised 6359
Code to make with respect to the financial ability of an employer, 6360
no contract of indemnity, or the ability of the employer to 6361
procure such a contract, shall be considered as increasing the 6362
financial ability of the employer. 6363

       Sec. 4123.92. Upon the request of the industrial commission 6364
or the administrator of workers' compensation, the attorney 6365
general, or under ~~his~~the attorney general's direction the 6366
prosecuting attorney of any county in cases arising within the 6367
county, shall institute and prosecute the necessary actions or 6368
proceedings for the enforcement of this chapter, or for the 6369
recovery of any money due the state insurance fund, or any 6370
penalty, and shall defend in like manner all suits, actions, or 6371
proceedings brought against the administrator, the bureau of 6372
workers' compensation ~~oversight commission~~board of directors, 6373
industrial commission, or the members of the ~~oversight commission~~ 6374
board, or industrial commission in their official capacity. 6375

       Sec. 4125.05. (A) Not later than thirty days after ~~the~~ 6376
~~effective date of this section~~November 5, 2004, or not later than 6377
thirty days after the formation of a professional employer 6378
organization, whichever date occurs later, a professional employer 6379
organization operating in this state shall register with the 6380
administrator of the bureau of workers' compensation on forms 6381
provided by the administrator. Following initial registration, 6382
each professional employer organization shall register with the 6383
administrator annually on or before the thirty-first day of 6384
December. 6385

        (B) Initial registration and each annual registration renewal 6386
shall include all of the following: 6387

        (1) A list of each of the professional employer 6388
organization's client employers current as of the date of 6389
registration for purposes of initial registration or current as of 6390
the date of annual registration renewal, or within fourteen days 6391
of adding or releasing a client, that includes the client 6392
employer's name, address, federal tax identification number, and 6393
bureau of workers' compensation risk number; 6394

        (2) A fee as determined by the administrator; 6395

        (3) The name or names under which the professional employer 6396
organization conducts business; 6397

        (4) The address of the professional employer organization's 6398
principal place of business and the address of each office it 6399
maintains in this state; 6400

        (5) The professional employer organization's taxpayer or 6401
employer identification number; 6402

        (6) A list of each state in which the professional employer 6403
organization has operated in the preceding five years, and the 6404
name, corresponding with each state, under which the professional 6405
employer organization operated in each state, including any 6406
alternative names, names of predecessors, and if known, successor 6407
business entities. 6408

        (C)(1) The administrator, with the advice and consent of the 6409
bureau of workers' compensation ~~oversight commission~~board of 6410
directors, shall adopt rules in accordance with Chapter 119. of 6411
the Revised Code to require, except as otherwise specified in 6412
division (C)(2) of this section, a professional employer 6413
organization to provide security in the form of a bond or letter 6414
of credit assignable to the Ohio bureau of workers' compensation 6415
not to exceed an amount equal to the premiums and assessments 6416
incurred for the two most recent payroll periods, prior to any 6417
discounts or dividends, to meet the financial obligations of the 6418
professional employer organization pursuant to this chapter and 6419
Chapters 4121. and 4123. of the Revised Code. 6420

       (2) As an alternative to providing security in the form of a 6421
bond or letter of credit, the administrator shall permit a 6422
professional employer organization to make periodic payments of 6423
prospective premiums and assessments to the bureau or to submit 6424
proof of being certified by either a nationally recognized 6425
organization that certifies professional employer organizations or 6426
by a government entity approved by the administrator. 6427

       (3) A professional employer organization may appeal the 6428
amount of the security required pursuant to rules adopted under 6429
division (C)(1) of this section in accordance with section 6430
4123.291 of the Revised Code. 6431

       (D) Notwithstanding division (C) of this section, a 6432
professional employer organization that qualifies for 6433
self-insurance or retrospective rating under section 4123.29 or 6434
4123.35 of the Revised Code shall abide by the financial 6435
disclosure and security requirements pursuant to those sections 6436
and the rules adopted under those sections in place of the 6437
requirements specified in division (C) of this section or 6438
specified in rules adopted pursuant to that division. 6439

       (E) Except to the extent necessary for the administrator to 6440
administer the statutory duties of the administrator and for 6441
employees of the state to perform their official duties, all 6442
records, reports, client lists, and other information obtained 6443
from a professional employer organization under divisions (A) and 6444
(B) of this section are confidential and shall be considered trade 6445
secrets and shall not be published or open to public inspection. 6446

       (F) The list described in division (B)(1) of this section 6447
shall be considered a trade secret. 6448

        (G) The administrator shall establish the fee described in 6449
division (B)(2) of this section in an amount that does not exceed 6450
the cost of the administration of the initial and renewal 6451
registration process. 6452

       Sec. 4127.07. Every employer shall contribute to the public 6453
work-relief employees' compensation fund the amount of money 6454
determined by the administrator of workers' compensation, with the 6455
advice and consent of the bureau of workers' compensation 6456
~~oversight commission~~board of directors. The contributions may be 6457
made in whole or in part out of any relief funds or any other 6458
available public funds, regardless of the manner in which the 6459
funds were raised. The officer of any employer having charge of 6460
the expenditures of funds for relief purposes, shall set aside and 6461
maintain as a special fund out of which contributions to the 6462
work-relief employees' compensation fund may be made, an amount 6463
equal to the percentage of the work-relief funds as the 6464
administrator determines on an actuarial basis as is reasonably 6465
necessary to cover the premium obligations of the employer. The 6466
manner of determining the contributions and classifications of 6467
employers, shall be the same as is provided in sections 4123.39 to 6468
4123.41 and 4123.48 of the Revised Code, and such sections shall 6469
apply in so far as they are applicable to the employers, but rates 6470
of premium shall be applied to insure solvency of the public 6471
work-relief employees' compensation fund at all times. 6472

       The state relief commission or any other state agency having 6473
supervision or control of work-relief employees, either directly 6474
or through agencies, shall file reports and make payments of 6475
premiums out of any fund under its control or supervision, in the 6476
amount and manner, and at the time, as is determined by the 6477
administrator; and the furnishing of the reports and the payment 6478
of the premiums by the state agency, for work-relief employees, 6479
shall relieve the state of the obligations set forth in sections 6480
4123.40, 4123.41, and 4123.48 of the Revised Code, with respect to 6481
contributing to the public work-relief employees' compensation 6482
fund for work-relief employees. 6483

       Sec. 4127.08. The administrator of workers' compensation, 6484
under special circumstances and with the advice and consent of the 6485
bureau of workers' compensation ~~oversight commission~~board of 6486
directors, may adjust the rate of disbursements of compensation of 6487
benefits, which shall not in any instance exceed the maximum 6488
reimbursable relief award established by the state which the 6489
claimant would have been entitled to had hethe claimant not been 6490
injured. 6491

       Sec. 4131.04. (A) For the purpose of sections 4131.01 to 6492
4131.06 of the Revised Code, each subscriber shall pay premiums 6493
upon the basis and at the intervals determined by the 6494
administrator of workers' compensation, with the advice and 6495
consent of the bureau of workers' compensation ~~oversight~~ 6496
~~commission~~board of directors. 6497

       (B) The administrator shall fix and maintain for each class 6498
of occupation and type of mining the lowest possible rates of 6499
premiums consistent with the maintenance of a solvent fund and the 6500
creation and maintenance of a reasonable surplus after providing 6501
for payment to maturity of all liabilities insured pursuant to the 6502
federal act. 6503

       (C) The administrator may adjust the rates of premium at any 6504
time. Each adjustment order shall become effective on the date 6505
prescribed by ~~him~~the administrator. 6506

       (D) The administrator, by rule, may prescribe procedures for 6507
subscription, payroll reporting, premium payment, termination of 6508
subscription, reinstatement, and all other matters pertinent to 6509
subscriber participation in the coal-workers pneumoconiosis fund. 6510

       (E) In addition to premiums required to be paid into the 6511
fund, the administrator, with the advice and consent of the 6512
~~oversight commission~~board, shall fix and may adjust at any time 6513
an additional premium for the cost of administering the fund. The 6514
additional premium shall be paid by each subscriber as a part of 6515
the subscriber's total premium payment. 6516

       Sec. 4131.06. (A) The collection of premiums, the 6517
administration and investment of the coal-workers pneumoconiosis 6518
fund, and the payment of benefits therefrom shall not create any 6519
liability upon the state. 6520

       (B) Except for a gross abuse of discretion, the industrial 6521
commission and the individual members thereof, the bureau of 6522
workers' compensation ~~oversight commission~~board of directors and 6523
the individual members thereof, and the administrator of workers' 6524
compensation shall not incur any obligation or liability 6525
respecting the collection of premiums, the administration or 6526
investment of the fund, or the payment of benefits therefrom. 6527

       Sec. 4131.13. (A) For the relief of persons who are entitled 6528
to receive benefits by virtue of the federal act, there is hereby 6529
established a marine industry fund, which shall be separate from 6530
the funds established and administered pursuant to Chapter 4123. 6531
of the Revised Code. The marine industry fund shall consist of 6532
premiums and other payments thereto by marine industry employers 6533
who apply to the bureau of workers' compensation for permission to 6534
subscribe to the fund to insure the payment of benefits required 6535
by the federal act. 6536

       By rule, the administrator of workers' compensation shall 6537
establish criteria for the acceptance or rejection of applications 6538
by marine industry employers who apply to subscribe to the fund. 6539

       (B) The marine industry fund shall be in the custody of the 6540
treasurer of state. The bureau shall make disbursements from the 6541
fund to those persons entitled to payment therefrom and in the 6542
amounts required pursuant to the federal act. The auditor of state 6543
annually shall complete a fiscal audit of the fund. All investment 6544
earnings of the fund shall be credited to the fund. 6545

       (C) The administrator shall have the same powers to invest 6546
any of the surplus or reserve belonging to the marine industry 6547
fund as are delegated to him under section 4123.44 of the Revised 6548
Code with respect to the state insurance fund. 6549

       (D) If the ~~administrator~~bureau of workers' compensation 6550
board of directors determines that reinsurance of the risks of the 6551
marine industry fund is necessary to assure solvency of the fund, 6552
hethe board may: 6553

       (1) Enter into contracts for the purchase of reinsurance 6554
coverage of the risks of the fund with any company or agency 6555
authorized by law to issue contracts of reinsurance; 6556

       (2) ~~Pay~~Require the administrator to pay the cost of 6557
reinsurance from the fund; 6558

       (3) Include the costs of reinsurance as a liability and 6559
estimated liability of the fund. 6560

       (E) For the purpose of maintaining the solvency of the marine 6561
industry fund, the administrator may borrow money from the state 6562
insurance fund as is necessary. Money borrowed from the state 6563
insurance fund shall be repaid from the marine industry fund 6564
together with an appropriate interest rate not to exceed the 6565
average yield of fixed income investments of the state insurance 6566
fund for the six-month period ended on the last day of the month 6567
preceding the month in which the money is borrowed. Loans made 6568
pursuant to this division are a proper investment of the surplus 6569
or reserve of the state insurance fund. 6570

       (F) In no event shall any of the assets of any of the funds 6571
created and administered pursuant to Chapter 4123. of the Revised 6572
Code be disbursed in payment of any cost or obligation of or 6573
insured by the marine industry fund. This division shall not be 6574
construed to prohibit as a proper investment loans made from the 6575
state insurance fund to the marine industry fund pursuant to 6576
division (E) of this section. 6577

       Sec. 4131.14. (A) For the purpose of sections 4131.11 to 6578
4131.16 of the Revised Code, each subscriber shall pay premiums 6579
upon the basis and at the intervals determined by the 6580
administrator of workers' compensation, with the advice and 6581
consent of the bureau of workers' compensation ~~oversight~~ 6582
~~commission~~board of directors. 6583

       (B) The administrator shall fix and maintain for each class 6584
of occupation and type of business the lowest possible rates of 6585
premiums consistent with the maintenance of a solvent fund and the 6586
creation and maintenance of a reasonable surplus after providing 6587
for payment to maturity of all liabilities insured pursuant to the 6588
federal act. The administrator, by rule, may provide for merit 6589
rating of subscribers. 6590

       (C) The administrator, with the advice and consent of the 6591
~~oversight commission~~board, may adjust the rates of premium at any 6592
time. Each adjustment order is effective on the date prescribed by 6593
the administrator. 6594

       (D) The administrator, by rule adopted pursuant to Chapter 6595
119. of the Revised Code, may prescribe procedures for 6596
subscription, payroll reporting, premium payment, payment of an 6597
advance security deposit by subscribers to secure payments of 6598
premiums when due, termination of subscription, reinstatement, and 6599
all other matters pertinent to subscriber participation in the 6600
marine industry fund. 6601

       (E) In addition to premiums required to be paid into the 6602
fund, the administrator, with the advice and consent of the 6603
~~oversight commission~~board, shall fix and may adjust at any time 6604
an additional premium for the cost of administering the fund. The 6605
additional premium shall be paid by each subscriber as a part of 6606
the subscriber's total premium payment. 6607

       Sec. 4131.16. (A) The collection of premiums, the 6608
administration and investment of the marine industry fund, and the 6609
payment of benefits therefrom shall not create any liability upon 6610
the state. 6611

       (B) Except for a gross abuse of discretion, the industrial 6612
commission and the individual members thereof, the bureau of 6613
workers' compensation ~~oversight commission~~board of directors and 6614
the individual members thereof, and the administrator of workers' 6615
compensation shall not incur any obligation or liability 6616
respecting the collection of premiums, the administration or 6617
investment of the fund, or the payment of benefits therefrom. 6618

       Sec. 4167.02. (A) The administrator of worker's compensation 6619
shall operate and enforce the public employment risk reduction 6620
program created by this chapter. 6621

       (B) The administrator shall do all of the following: 6622

       (1) Adopt rules, with the advice and consent of the bureau of 6623
workers' compensation ~~oversight commission~~board of directors and 6624
in accordance with Chapter 119. of the Revised Code, for the 6625
administration and enforcement of this chapter, including rules 6626
covering standards the administrator shall follow in issuing an 6627
emergency temporary Ohio employment risk reduction standard under 6628
section 4167.08 of the Revised Code and a temporary variance and a 6629
variance from an Ohio employment risk reduction standard or part 6630
thereof under section 4167.09 of the Revised Code; 6631

       (2) Do all things necessary and appropriate for the 6632
administration and enforcement of this chapter. 6633

       (C) In carrying out the responsibilities of this chapter, the 6634
administrator may use, with the consent of any federal, state, or 6635
local agency, the services, facilities, and personnel of such 6636
agency, with or without reimbursement, and may retain or contract 6637
with experts, consultants, and organizations for services or 6638
personnel on such terms as the administrator determines 6639
appropriate. 6640

       Sec. 4167.07. (A) The administrator of workers' 6641
compensation, with the advice and consent of the bureau of 6642
workers' compensation ~~oversight commission~~board of directors, 6643
shall adopt rules that establish employment risk reduction 6644
standards. Except as provided in division (B) of this section, in 6645
adopting these rules, the administrator shall do both of the 6646
following: 6647

       (1) By no later than July 1, 1994, adopt as a rule and an 6648
Ohio employment risk reduction standard every federal occupational 6649
safety and health standard then adopted by the United States 6650
secretary of labor pursuant to the "Occupational Safety and Health 6651
Act of 1970," 84 Stat. 1590, 29 U.S.C.A. 651, as amended; 6652

       (2) By no later than one hundred twenty days after the United 6653
States secretary of labor adopts, modifies, or revokes any federal 6654
occupational safety and health standard, by rule do one of the 6655
following: 6656

       (a) Adopt the federal occupational safety and health standard 6657
as a rule and an Ohio employment risk reduction standard; 6658

       (b) Amend the existing rule and Ohio employment risk 6659
reduction standard to conform to the modification of the federal 6660
occupational safety and health standard; 6661

       (c) Rescind the existing rule and Ohio employment risk 6662
reduction standard that corresponds to the federal occupational 6663
safety and health standard the United States secretary of labor 6664
revoked. 6665

       (B) The administrator, with the advice and consent of the 6666
bureau of workers' compensation ~~oversight commission~~board of 6667
directors, may decline to adopt any federal occupational safety 6668
and health standard as a rule and an Ohio employment risk 6669
reduction standard or to modify or rescind any existing rule and 6670
Ohio employment risk reduction standard to conform to any federal 6671
occupational safety and health standard modified or revoked by the 6672
United States secretary of labor or may adopt as a rule and an 6673
Ohio employment risk reduction standard any occupational safety 6674
and health standard that is not covered under the federal law or 6675
that differs from one adopted or modified by the United States 6676
secretary of labor, if the administrator determines that existing 6677
rules and Ohio employment risk reduction standards provide 6678
protection at least as effective as that which would be provided 6679
by the existing, new, or modified federal occupational safety and 6680
health standard or if the administrator determines that local 6681
conditions warrant a different standard from that of the existing 6682
federal occupational safety and health standard or from standards 6683
the United States secretary of labor adopts, modifies, or revokes. 6684

       (C) In adopting, modifying, or rescinding any rule or Ohio 6685
employment risk reduction standard dealing with toxic materials or 6686
harmful physical agents, the administrator, with the advice and 6687
consent of the bureau of workers' compensation ~~oversight~~ 6688
~~commission~~board of directors, shall do all of the following: 6689

       (1) Set the employment risk reduction standard to most 6690
adequately assure, to the extent technologically feasible and on 6691
the basis of the best available evidence, that no public employee 6692
will suffer material impairment of health or functional capacity 6693
as a result of the hazards dealt with by the rule or Ohio 6694
employment risk reduction standard for the period of the public 6695
employee's working life; 6696

       (2) Base the development of these rules and Ohio employment 6697
risk reduction standards on research, demonstrations, experiments, 6698
and other information as is appropriate and upon the technological 6699
feasibility of the rule and standard, using the latest available 6700
scientific data in the field and the experience gained in the 6701
workplace under this chapter and other health and safety laws, to 6702
establish the highest degree of safety and health for the public 6703
employee; 6704

       (3) Whenever practicable, express the rule and Ohio 6705
employment risk reduction standard in terms of objective criteria 6706
and of the performance desired; 6707

       (4) Prescribe the use of labels or other appropriate forms of 6708
warning as are necessary to ensure that public employees are 6709
apprised of all hazards to which they are exposed, relevant 6710
symptoms and appropriate emergency treatment, and proper 6711
conditions and precautions of safe use or exposure where 6712
appropriate; 6713

       (5) Prescribe suitable protective equipment and control 6714
procedures to be used in connection with the hazards; 6715

       (6) Provide for measuring or monitoring public employee 6716
exposure in a manner necessary for the protection of the public 6717
employees; 6718

       (7) Where appropriate, prescribe the type and frequency of 6719
medical examinations or other tests the public employer shall make 6720
available, at the cost of the public employer, to the public 6721
employees exposed to the hazards in order to determine any adverse 6722
effect from the exposure. 6723

       (D) In determining the priority for adopting rules and Ohio 6724
employment risk reduction standards under this section, the 6725
administrator shall give due regard to the urgency of need and 6726
recommendations of the department of health regarding that need 6727
for mandatory employment risk reduction standards for particular 6728
trades, crafts, occupations, services, and workplaces. 6729

       (E)(1) Except for rules adopted under division (A) of this 6730
section, the administrator, with the advice and consent of the 6731
bureau of workers' compensation ~~oversight commission~~board of 6732
directors, shall adopt all rules under this section in accordance 6733
with Chapter 119. of the Revised Code, provided that 6734
notwithstanding that chapter, the administrator may delay the 6735
effective date of any rule or Ohio employment risk reduction 6736
standard for the period the administrator determines necessary to 6737
ensure that affected public employers and public employees will be 6738
informed of the adoption, modification, or rescission of the rule 6739
and Ohio employment risk reduction standard and have the 6740
opportunity to familiarize themselves with the specific 6741
requirements of the rule and standard. In no case, however, shall 6742
the administrator delay the effective date of a rule adopted 6743
pursuant to Chapter 119. of the Revised Code in excess of ninety 6744
days beyond the otherwise required effective date. 6745

       (2) In regard to the rules for which the administrator does 6746
not have to comply with Chapter 119. of the Revised Code, the 6747
administrator shall file two certified copies of the rules and 6748
Ohio employment risk reduction standards adopted with the 6749
secretary of state and the director of the legislative service 6750
commission. 6751

       Sec. 4167.08. (A) In the event of an emergency or unusual 6752
situation, the administrator of workers' compensation shall issue 6753
an emergency temporary Ohio employment risk reduction standard to 6754
take immediate effect upon publication in newspapers of general 6755
circulation in Cleveland, Columbus, Cincinnati, and Toledo if the 6756
administrator finds both of the following: 6757

       (1) Public employees are exposed to grave danger from 6758
exposure to substances or agents determined to be toxic or 6759
physically harmful or from new hazards; 6760

       (2) The emergency temporary Ohio employment risk reduction 6761
standard is necessary to protect employees from the danger. 6762

       (B)(1) Except as provided in division (B)(2) of this section 6763
an emergency temporary Ohio employment risk reduction standard 6764
issued by the administrator under division (A) of this section 6765
shall be in effect no longer than fifteen days, unless the 6766
~~commission~~bureau of workers' compensation board of directors 6767
approves the emergency temporary Ohio employment risk reduction 6768
standard as issued by the administrator, in which case, the 6769
emergency temporary Ohio employment risk reduction standard shall 6770
be in effect no longer than one hundred twenty days after the date 6771
the administrator issues it. 6772

       (2) The administrator may renew an emergency temporary Ohio 6773
employment risk reduction standard that has been approved by the 6774
~~workers' compensation oversight commission~~board for an additional 6775
time period not to exceed one hundred days if the administrator 6776
finds that the conditions identified in divisions (A)(1) and (2) 6777
of this section continue to exist. 6778

       On or before the expiration date of the emergency temporary 6779
Ohio employment risk reduction standard or renewal thereof, if the 6780
conditions identified in divisions (A)(1) and (2) of this section 6781
continue to exist, the administrator, with the advice and consent 6782
of the ~~oversight commission~~board, shall adopt a permanent Ohio 6783
employment risk reduction standard pursuant to section 4167.07 of 6784
the Revised Code as a rule to replace the emergency temporary Ohio 6785
employment risk reduction standard. 6786

       Sec. 4167.09. (A) Any public employer affected by a proposed 6787
rule or Ohio employment risk reduction standard or any provision 6788
of a standard proposed under section 4167.07 or 4167.08 of the 6789
Revised Code may apply to the administrator of workers' 6790
compensation for an order granting a temporary variance from the 6791
standard or provision. The application for the order and any 6792
extension of the order shall contain a reasonable application fee, 6793
as determined by the bureau of workers' compensation ~~oversight~~ 6794
~~commission~~board of directors, and all of the following 6795
information: 6796

       (1) A specification of the Ohio public employment risk 6797
reduction standard or provision of it from which the public 6798
employer seeks the temporary variance; 6799

       (2) A representation by the public employer, supported by 6800
representations from qualified persons having firsthand knowledge 6801
of the facts represented, that the public employer is unable to 6802
comply with the Ohio employment risk reduction standard or 6803
provision of it and a detailed statement of the reasons for the 6804
inability to comply; 6805

       (3) A statement of the steps that the public employer has 6806
taken and will take, with dates specified, to protect employees 6807
against the hazard covered by the standard; 6808

       (4) A statement of when the public employer expects to be 6809
able to comply fully with the Ohio employment risk reduction 6810
standard and what steps the public employer has taken and will 6811
take, with dates specified, to come into full compliance with the 6812
standard; 6813

       (5) A certification that the public employer has informed the 6814
public employer's public employees of the application by giving a 6815
copy of the application to the public employee representative, if 6816
any, and by posting a statement giving a summary of the 6817
application and specifying where a copy of the application may be 6818
examined at the place or places where notices to public employees 6819
are normally posted, and by any other appropriate means of public 6820
employee notification. The public employer also shall inform the 6821
public employer's public employees of their rights to a hearing 6822
under section 4167.15 of the Revised Code. The certification also 6823
shall contain a description of how public employees have been 6824
informed of the application and of their rights to a hearing. 6825

       (B) The administrator shall issue an order providing for a 6826
temporary variance if the public employer files an application 6827
that meets the requirements of division (A) of this section and 6828
establishes that all of the following pertaining to the public 6829
employer are true: 6830

       (1) The public employer is unable to comply with the Ohio 6831
employment risk reduction standard or a provision of it by its 6832
effective date because of the unavailability of professional or 6833
technical personnel or of materials and equipment needed to come 6834
into compliance with the Ohio employment risk reduction standard 6835
or provision of it or because necessary construction or alteration 6836
of facilities cannot be completed by the effective date of the 6837
standard. 6838

       (2) The public employer is taking all available steps to 6839
safeguard the public employer's public employees against the 6840
hazards covered by the Ohio employment risk reduction standard. 6841

       (3) The public employer has an effective program for coming 6842
into compliance with the Ohio employment risk reduction standard 6843
as quickly as practicable. 6844

       (4) The granting of the variance will not create an imminent 6845
danger of death or serious physical harm to public employees. 6846

       (C)(1) If the administrator issues an order providing for a 6847
temporary variance under division (B) of this section, the 6848
administrator shall prescribe the practices, means, methods, 6849
operations, and processes that the public employer must adopt and 6850
use while the order is in effect and state in detail the public 6851
employer's program for coming into compliance with the Ohio 6852
employment risk reduction standard. The administrator may issue 6853
the order only after providing notice to affected public employees 6854
and their public employee representative, if any, and an 6855
opportunity for a hearing pursuant to section 4167.15 of the 6856
Revised Code, provided that the administrator may issue one 6857
interim order granting a temporary order to be effective until a 6858
decision on a hearing is made. Except as provided in division 6859
(C)(2) of this section, no temporary variance may be in effect for 6860
longer than the period needed by the public employer to achieve 6861
compliance with the Ohio employment risk reduction standard or one 6862
year, whichever is shorter. 6863

       (2) The administrator may renew an order issued under 6864
division (C) of this section up to two times provided that the 6865
requirements of divisions (A), (B), and (C)(1) of this section and 6866
section 4167.15 of the Revised Code are met and the public 6867
employer files an application for renewal with the administrator 6868
at least ninety days prior to the expiration date of the order. 6869

       (D) Any public employer affected by an Ohio employment risk 6870
reduction standard or any provision of it proposed, adopted, or 6871
otherwise issued under section 4167.07 or 4167.08 of the Revised 6872
Code may apply to the administrator for an order granting a 6873
variance from the standard or provision. The administrator shall 6874
provide affected public employees and their public employee 6875
representative, if any, notice of the application and shall 6876
provide an opportunity for a hearing pursuant to section 4167.15 6877
of the Revised Code. The administrator shall issue the order 6878
granting the variance if the public employer files an application 6879
that meets the requirements of division (B) of this section, and 6880
after an opportunity for a hearing pursuant to section 4167.15 of 6881
the Revised Code, and if the public employer establishes to the 6882
satisfaction of the administrator that the conditions, practices, 6883
means, methods, operations, or processes used or proposed to be 6884
used by the public employer will provide employment and places of 6885
employment to the public employer's public employees that are as 6886
safe and healthful as those that would prevail if the public 6887
employer complied with the Ohio employment risk reduction 6888
standard. The administrator shall prescribe in the order granting 6889
the variance the conditions the public employer must maintain, and 6890
the practices, means, methods, operations, and processes the 6891
public employer must adopt and utilize in lieu of the Ohio 6892
employment risk reduction standard that would otherwise apply. The 6893
administrator may modify or revoke the order upon application of 6894
the public employer, public employee, or public employee 6895
representative, or upon the administrator's own motion in the 6896
manner prescribed for the issuance of an order under this division 6897
at any time during six months after the date of issuance of the 6898
order. 6899

       Sec. 4167.11. (A) In order to further the purposes of this 6900
chapter, the administrator of workers' compensation shall develop 6901
and maintain, for public employers and public employees, an 6902
effective program of collection, compilation, and analysis of 6903
employment risk reduction statistics. 6904

       (B) To implement and maintain division (A) of this section, 6905
the administrator, with the advice and consent of the bureau of 6906
workers' compensation ~~oversight commission~~board of directors, 6907
shall adopt rules in accordance with Chapter 119. of the Revised 6908
Code that extend to all of the following: 6909

       (1) Requiring each public employer to make, keep, and 6910
preserve, and make available to the administrator, reports and 6911
records regarding the public employer's activities, as determined 6912
by the rule that are necessary or appropriate for the enforcement 6913
of this chapter or for developing information regarding the causes 6914
and prevention of occupational accidents and illnesses. The rule 6915
shall prescribe which of these reports and records shall or may be 6916
furnished to public employees and public employee representatives. 6917

       (2) Requiring every public employer, through posting of 6918
notices or other appropriate means, to keep their public employees 6919
informed of public employees' rights and obligations under this 6920
chapter, including the provisions of applicable Ohio employment 6921
risk reduction standards; 6922

       (3) Requiring public employers to maintain accurate records 6923
of public employee exposure to potentially toxic materials, 6924
carcinogenic materials, and harmful physical agents that are 6925
required to be monitored or measured under rules adopted under the 6926
guidelines of division (C) of section 4167.07 of the Revised Code. 6927
The rule shall provide public employees or public employee 6928
representatives an opportunity to observe the monitoring or 6929
measuring, and to have access on request to the records thereof, 6930
and may provide public employees or public employee 6931
representatives an opportunity to participate in and to undertake 6932
their own monitoring or measuring. The rules also shall permit 6933
each current or former public employee to have access to the 6934
records that indicate their own exposure to toxic materials, 6935
carcinogenic materials, or harmful agents. 6936

       (C) The administrator shall obtain any information under 6937
division (B) of this section with a minimum burden upon the public 6938
employer and shall, to the maximum extent feasible, reduce 6939
unnecessary duplication of efforts in obtaining the information. 6940

       Sec. 4167.14. (A) Any court of common pleas has 6941
jurisdiction, upon petition of the administrator of workers' 6942
compensation, to restrain any conditions or practices in any 6943
places of employment that present a danger that could reasonably 6944
be expected to cause death or serious harm or contribute 6945
significantly to occupationally related illness immediately or 6946
before the imminence of the danger can be eliminated through the 6947
enforcement procedures provided in this chapter. Any order issued 6948
under this section may require that steps be taken as necessary to 6949
avoid, correct, or remove the imminent danger and prohibit the 6950
employment or presence of any individual in locations or under 6951
conditions where the imminent danger exists, except individuals 6952
whose presence is necessary to avoid, correct, or remove the 6953
imminent danger. 6954

       (B) Upon the filing of a petition under division (A) of this 6955
section, the court of common pleas may grant injunctive relief or 6956
a temporary restraining order pending the outcome of an 6957
enforcement proceeding pursuant to this chapter, except that no 6958
temporary restraining order issued without notice is effective for 6959
a period longer than five calendar days. 6960

       (C) If the administrator or the administrator's designee 6961
responsible for inspections determines that the imminent danger as 6962
described in division (A) of this section is such that immediate 6963
action is necessary, and further determines that there is not 6964
sufficient time in light of the nature, severity, and imminence of 6965
the danger to seek and obtain a temporary restraining order or 6966
injunction, the administrator or the administrator's designee 6967
immediately shall file a petition with the court under division 6968
(A) of this section and issue an order requiring action to be 6969
taken as is necessary to avoid, correct, or remove the imminent 6970
danger. 6971

       The administrator, with the advice and consent of the bureau 6972
of workers' compensation ~~oversight commission~~board of directors, 6973
shall adopt rules, in accordance with Chapter 119. of the Revised 6974
Code, to permit a public employer expeditious informal 6975
reconsideration of any order issued by the administrator under 6976
this division. Unless the administrator reverses an order pursuant 6977
to the informal reconsideration, the order remains in effect 6978
pending the court's determination under this section. If the 6979
administrator modifies an order pursuant to the informal 6980
reconsideration, the administrator shall provide the court with 6981
whom the administrator filed the petition under this section with 6982
a copy of the modified order. The modified order remains in effect 6983
pending the court's determination under this section. 6984

       Section 101.02. That existing sections 102.02, 102.06, 6985
109.981, 111.15, 119.01, 131.02, 1707.01, 3345.12, 4121.01, 6986
4121.03, 4121.12, 4121.121, 4121.122, 4121.125, 4121.126, 6987
4121.128, 4121.13, 4121.32, 4121.37, 4121.40, 4121.441, 4121.48, 6988
4121.61, 4121.67, 4121.70, 4123.25, 4123.29, 4123.291, 4123.311, 6989
4123.32, 4123.34, 4123.341, 4123.342, 4123.35, 4123.351, 4123.37, 6990
4123.411, 4123.44, 4123.441, 4123.47, 4123.50, 4123.511, 4123.512, 6991
4123.66, 4123.80, 4123.82, 4123.92, 4125.05, 4127.07, 4127.08, 6992
4131.04, 4131.06, 4131.13, 4131.14, 4131.16, 4167.02, 4167.07, 6993
4167.08, 4167.09, 4167.11, and 4167.14 of the Revised Care are 6994
hereby repealed. 6995

       Section 105.01. That sections 4121.06, 4121.123, and 4121.131 6996
of the Revised Code are hereby repealed. 6997

       Section 201.10. All items in this section are hereby 6998
appropriated out of any moneys in the state treasury to the credit 6999
of the designated fund. For all appropriations made in this act, 7000
those in the first column are for fiscal year 2008, and those in 7001
the second column are for fiscal year 2009. 7002

FND AI AI TITLE Appropriations 7003

BWC BUREAU OF WORKERS' COMPENSATION 7004

Workers' Compensation Fund Group 7005

023 855-401 William Green Lease Payments to OBA $ 20,436,600 $ 20,686,500 7006

023 855-407 Claims, Risk & Medical Management $ 140,367,719 $ 140,367,719 7007

023 855-408 Fraud Prevention $ 11,772,551 $ 11,772,551 7008

023 855-409 Administrative Services $ 122,962,388 $ 122,962,388 7009

023 855-410 Attorney General Payments $ 4,444,085 $ 4,444,085 7010

822 855-606 Coal Workers' Fund $ 91,894 $ 91,894 7011

823 855-608 Marine Industry $ 53,952 $ 53,952 7012

825 855-605 Disabled Workers Relief Fund $ 488,282 $ 492,500 7013
826 855-609 Safety & Hygiene Operating $ 20,734,750 $ 20,734,750 7014
826 855-610 Safety Grants Program $ 4,000,000 $ 4,000,000 7015
829 855-604 Long Term Care Loan Program $ 2,000,000 $ 2,000,000 7016

TOTAL WCF Workers' Compensation 7017

Fund Group $ 327,352,221 $ 327,606,339 7018

Federal Special Revenue Fund Group 7019

349 855-601 OSHA Enforcement $ 1,604,140 $ 1,604,140 7020

TOTAL FED Federal Special Revenue Fund Group $ 1,604,140 $ 1,604,140 7021

TOTAL ALL BUDGET FUND GROUPS $ 328,956,361 $ 329,210,479 7022

       WILLIAM GREEN LEASE PAYMENTS 7023

       The foregoing appropriation item 855-401, William Green Lease 7024
Payments to OBA, shall be used for lease payments to the Ohio 7025
Building Authority, and these appropriations shall be used to meet 7026
all payments at the times they are required to be made during the 7027
period from July 1, 2007, to June 30, 2009, by the Bureau of 7028
Workers' Compensation to the Ohio Building Authority pursuant to 7029
leases and agreements made under Chapter 152. of the Revised Code 7030
and Section 6 of Am. Sub. H.B. 743 of the 118th General Assembly. 7031
Of the amounts received in Fund 023, appropriation item 855-401, 7032
William Green Lease Payments to OBA, up to $41,123,100 shall be 7033
restricted for lease rental payments to the Ohio Building 7034
Authority. If it is determined that additional appropriations are 7035
necessary for such purpose, such amounts are hereby appropriated. 7036

       Notwithstanding any other provision of law to the contrary, 7037
all tenants of the William Green Building not funded by the 7038
Workers' Compensation Fund (Fund 023) shall pay their fair share 7039
of the costs of lease payments to the Workers' Compensation Fund 7040
(Fund 023) by intrastate transfer voucher. 7041

       WORKERS' COMPENSATION FRAUD UNIT 7042

       The Workers' Compensation Section Fund (Fund 195) shall 7043
receive payments from the Bureau of Workers' Compensation at the 7044
beginning of each quarter of each fiscal year to fund expenses of 7045
the Workers' Compensation Fraud Unit of the Attorney General's 7046
Office. Of the foregoing appropriation item 855-410, Attorney 7047
General Payments, $796,346 in fiscal year 2008 and $796,346 in 7048
fiscal year 2009 shall be used to provide these payments. 7049

       SAFETY AND HYGIENE 7050

       Notwithstanding section 4121.37 of the Revised Code, the 7051
Administrator of Workers' Compensation shall transfer moneys from 7052
the State Insurance Fund so that appropriation item 855-609, 7053
Safety and Hygiene Operating, is provided $20,734,750 in fiscal 7054
year 2008 and $20,734,750 in fiscal year 2009. 7055

       OSHA ON-SITE CONSULTATION PROGRAM 7056

        The Bureau of Workers' Compensation may designate a portion 7057
of appropriation item 855-609, Safety and Hygiene Operating, to be 7058
used to match federal funding for the federal Occupational Safety 7059
and Health Administration's (OSHA) on-site consultation program. 7060

       VOCATIONAL REHABILITATION 7061

       The Bureau of Workers' Compensation and the Rehabilitation 7062
Services Commission shall enter into an interagency agreement for 7063
the provision of vocational rehabilitation services and staff to 7064
mutually eligible clients. The bureau shall provide $605,407 in 7065
fiscal year 2008 and $605,407 in fiscal year 2009 from the State 7066
Insurance Fund to fund vocational rehabilitation services and 7067
staff in accordance with the interagency agreement. 7068

       FUND BALANCE 7069

       Any unencumbered cash balance in excess of $45,000,000 in the 7070
Workers' Compensation Fund (Fund 023) on the thirtieth day of June 7071
of each fiscal year shall be used to reduce the administrative 7072
cost rate charged to employers to cover appropriations for Bureau 7073
of Workers' Compensation operations. 7074

       HOLDING ACCOUNT 7075

       On July 1, 2007, or as soon as possible thereafter, the 7076
Director of Budget and Management shall transfer the remaining 7077
cash balance in the Camera Center Fund (Fund R46) to the 7078
Administrative Fund (Fund 023). After the transfer, the Camera 7079
Center Fund is abolished. 7080

       Section ___. Notwithstanding division (D) of section 4121.03, 7081
division (B)(10) of section 4121.121, and section 101.532 of the 7082
Revised Code regarding the requirement that the budget for the 7083
bureau of workers' compensation and the budget for the industrial 7084
commission be enacted in separate bills, all items in this section 7085
are hereby appropriated out of any moneys in the state treasury to 7086
the credit of the designated fund. For all appropriations made in 7087
this section, those in the first column are for fiscal year 2008, 7088
and those in the second column are for fiscal year 2009. 7089

Appropriations 7090

FND AI AI TITLE FY 2008 FY 2009 7091

OIC INDUSTRIAL COMMISSION 7092

Workers' Compensation Fund Group 7093

5W3 845-321 Operating Expenses $ 51,778,924 $ 51,778,924 7094

5W3 845-402 Rent - William Green Building $ 6,299,960 $ 6,299,960 7095

5W3 845-410 Attorney General Payments $ 3,558,634 $ 3,558,634 7096
821 845-605 Program Support $ 161,847 $ 161,847 7097

TOTAL WCF Workers' Compensation 7098

Fund Group $ 61,799,365 $ 61,799,365 7099

TOTAL ALL BUDGET FUND GROUPS $ 61,799,365 $ 61,799,365 7100

       RENT - WILLIAM GREEN BUILDING 7101

       The foregoing appropriation item 845-402, Rent - William 7102
Green Building, shall be used for rent and operating expenses for 7103
the space occupied by the Industrial Commission in the William 7104
Green Building. 7105

       PROGRAM SUPPORT 7106

       The foregoing appropriation item 845-605, Program Support, 7107
shall be used for any expense related to revenues collected and 7108
deposited in Fund 821, such as the purchase of copiers, copier 7109
maintenance and related supplies, coin copier expense, coin 7110
changer purchases, expenses related to conferences that produce 7111
revenue, publications that produce revenue, and replacement of 7112
furniture and equipment. 7113

       Section 303.10. Law contained in the main operating 7114
appropriations act of the 127th General Assembly that applies 7115
generally to the appropriations made in that act also applies 7116
generally to the appropriations made in this act. 7117

       Section 403.03. That Section 4 of Am. Sub. H.B. 516 of the 7118
125th General Assembly, as amended by Am. Sub. H.B. 66 and Sub. 7119
S.B. 124 of the 126th General Assembly, be amended to read as 7120
follows: 7121

       Sec. 4. The following agencies shall be retained pursuant to 7122
division (D) of section 101.83 of the Revised Code and shall 7123
expire on December 31, 2010: 7124

REVISED CODE OR 7125
UNCODIFIED 7126
AGENCY NAME SECTION 7127

Administrator, Interstate Compact on Mental Health 5119.50 7128
Administrator, Interstate Compact on 5103.20 7129
Placement of Children 7130
Advisory Board of Governor's Office of Faith-Based and Community Initiatives 107.12 7131
Advisory Boards to the EPA for Air Pollution 121.13 7132
Advisory Boards to the EPA for Water Pollution 121.13 7133
Advisory Committee of the State Veterinary Medical Licensing Board 4741.03(D)(3) 7134
Advisory Committee on Livestock Exhibitions 901.71 7135
Advisory Council on Amusement Ride Safety 1711.51 7136

Advisory Board of Directors for Prison Labor 5145.162 7137

Advisory Council for Each Wild, Scenic, or Recreational River Area 1517.18 7138
Advisory Councils or Boards for State Departments 107.18 or 121.13 7139
Advisory Group to the Ohio Water Resources Council 1521.19(C) 7140
Alzheimer's Disease Task Force 173.04(F) 7141
AMBER Alert Advisory Committee 5502.521 7142
Apprenticeship Council 4139.02 7143

Armory Board of Control 5911.09 7144

Automated Title Processing Board 4505.09(C)(1) 7145
Banking Commission 1123.01 7146
Board of Directors of the Ohio Health Reinsurance Program 3924.08 7147

Board of Voting Machine Examiners 3506.05(B) 7148

Brain Injury Advisory Committee 3304.231 7149

Capitol Square Review and Advisory Board 105.41 7150

Child Support Guideline Advisory Council 3119.024 7151

Children's Trust Fund Board 3109.15 7152
Citizens Advisory Committee (BMV) 4501.025 7153

Citizen's Advisory Councils (Dept. of Mental Retardation and Developmental Disabilities) 5123.092 7154

Clean Ohio Trail Advisory Board 1519.06 7155

Coastal Resources Advisory Council 1506.12 7156

Commission on African-American Males 4112.12 7157

Commission on Hispanic-Latino Affairs 121.31 7158
Commission on Minority Health 3701.78 7159
Committee on Prescriptive Governance 4723.49 7160

Commodity Advisory Commission 926.32 7161

Community Mental Retardation and Developmental Disabilities Trust Fund Advisory Council 5123.353 7162
Community Oversight Council 3311.77 7163
Compassionate Care Task Force Section 3, H.B. 474, 124th GA 7164

Continuing Education Committee (for Sheriffs) 109.80 7165

Coordinating Committee, Agricultural Commodity Marketing Programs 924.14 7166

Council on Alcohol and Drug Addiction Services 3793.09 7167

Council on Unreclaimed Strip Mined Lands 1513.29 7168
Council to Advise on the Establishment and Implementation of the Birth Defects Information System 3705.34 7169

County Sheriffs' Standard Car-Marking and Uniform Commission 311.25 7170
Credit Union Council 1733.329 7171

Criminal Sentencing Advisory Committee 181.22 7172

Day-Care Advisory Council 5104.08 7173
Dentist Loan Repayment Advisory Board 3702.92 7174

Development Financing Advisory Council 122.40 7175
Education Commission of the States (Interstate Compact for Education) 3301.48 7176

Electrical Safety Inspector Advisory Committee 3783.08 7177
Emergency Response Commission 3750.02 7178

Engineering Experiment Station Advisory Committee 3335.27 7179
Environmental Education Council 3745.21 7180

EPA Advisory Boards or Councils 121.13 7181
Farmland Preservation Advisory Board 901.23 7182
Financial Planning & Supervision Commission for Municipal Corporation, County, or Township 118.05 7183
Financial Planning & Supervision Commission for School District 3316.05 7184

Forestry Advisory Council 1503.40 7185
Governance Authority for a State University or College 3345.75 7186
Governor's Advisory Council on Physical Fitness, Wellness, & Sports 3701.77 7187

Governor's Council on People with Disabilities 3303.41 7188
Governor's Residence Advisory Commission 107.40 7189
Great Lakes Commission (Great Lakes Basin Compact) 6161.01 7190
Gubernatorial Transition Committee 107.29 7191
Head Start Partnership Study Council Section 41.35, H.B. 95, 125th GA 7192

Hemophilia Advisory Subcommittee 3701.0210 7193
Housing Trust Fund Advisory Committee 175.25 7194

Industrial Commission Nominating Council 4121.04 7195

Industrial Technology and Enterprise Advisory Council 122.29 7196
Infant Hearing Screening Subcommittee 3701.507 7197

Insurance Agent Education Advisory Council 3905.483 7198
Interagency Council on Hispanic/Latino Affairs 121.32(J) 7199
Interstate Mining Commission (Interstate Mining Compact) 1514.30 7200
Interstate Rail Passenger Advisory Council (Interstate High Speed Intercity Rail Passenger Network Compact) 4981.35 7201
Joint Council on MR/DD 101.37 7202

Joint Select Committee on Volume Cap 133.021 7203

Labor-Management Government Advisory Council 4121.70 7204

Legal Rights Service Commission 5123.60 7205
Legislative Task Force on Redistricting, Reapportionment, and Demographic Research 103.51 7206

Maternal and Child Health Council 3701.025 7207

Medically Handicapped Children's Medical Advisory Council 3701.025 7208
Midwest Interstate Passenger Rail Compact Commission (Ohio members) 4981.361 7209
Military Activation Task Force 5902.15 7210

Milk Sanitation Board 917.03 7211

Mine Subsidence Insurance Governing Board 3929.51 7212
Minority Development Financing Board 122.72 7213

Multi-Agency Radio Communications Systems Steering Committee Sec. 21, H.B. 790, 120th GA 7214

Multidisciplinary Council 3746.03 7215
Muskingum River Advisory Council 1501.25 7216

National Museum of Afro-American History and Culture Planning Committee 149.303 7217

Ohio Advisory Council for the Aging 173.03 7218
Ohio Aerospace & Defense Advisory Council 122.98 7219

Ohio Arts Council 3379.02 7220

Ohio Business Gateway Steering Committee 5703.57 7221

Ohio Cemetery Dispute Resolution Commission 4767.05 7222
Ohio Civil Rights Commission Advisory Agencies and Conciliation Councils 4112.04(B) 7223
Ohio Commercial Insurance Joint Underwriting Association Board Of Governors 3930.03 7224
Ohio Commercial Market Assistance Plan Executive Committee 3930.02 7225

Ohio Commission on Dispute Resolution and Conflict Management 179.02 7226
Ohio Commission to Reform Medicaid Section 59.29, H.B. 95, 125th GA 7227
Ohio Community Service Council 121.40 7228
Ohio Council for Interstate Adult Offender Supervision 5149.22 7229
Ohio Cultural Facilities Commission 3383.02 7230
Ohio Developmental Disabilities Council 5123.35 7231

Ohio Expositions Commission 991.02 7232

Ohio Family and Children First Cabinet Council 121.37 7233

Ohio Geology Advisory Council 1505.11 7234

Ohio Grape Industries Committee 924.51 7235
Ohio Hepatitis C Advisory Commission 3701.92 7236
Ohio Historic Site Preservation Advisory Board 149.301 7237

Ohio Historical Society Board of Trustees 149.30 7238
Ohio Judicial Conference 105.91 7239

Ohio Lake Erie Commission 1506.21 7240
Ohio Medical Malpractice Commission Section 4, S.B. 281, 124th GA and Section 3, S.B. 86, 125th GA 7241

Ohio Medical Quality Foundation 3701.89 7242

Ohio Parks and Recreation Council 1541.40 7243

Ohio Peace Officer Training Commission 109.71 7244

Ohio Public Defender Commission 120.01 7245
Ohio Public Library Information Network Board Sec. 69, H.B. 117, 121st GA, as amended by H.B. 284, 121st GA 7246

Ohio Quarter Horse Development Commission 3769.086 7247

Ohio Small Government Capital Improvements Commission 164.02 7248

Ohio Soil and Water Conservation Commission 1515.02 7249

Ohio Standardbred Development Commission 3769.085 7250

Ohio Steel Industry Advisory Council 122.97 7251

Ohio Teacher Education and Licensure Advisory Council 3319.28(D) 7252

Ohio Thoroughbred Racing Advisory Committee 3769.084 7253

Ohio Tuition Trust Authority 3334.03 7254

Ohio University College of Osteopathic Medicine Advisory Committee 3337.10 7255

Ohio Vendors Representative Committee 3304.34 7256

Ohio War Orphans Scholarship Board 5910.02 7257

Ohio Water Advisory Council 1521.031 7258
Ohio Water Resources Council 1521.19 7259
Ohioana Library Association, Martha Kinney Cooper Memorial 3375.62 7260

Oil and Gas Commission 1509.35 7261
Operating Committee, Agricultural Commodity Marketing Programs 924.07 7262

Organized Crime Investigations Commission 177.01 7263

Pharmacy and Therapeutics Committee of the Dept. of Job and Family Services 5111.81 7264

Physician Loan Repayment Advisory Board 3702.81 7265
Power Siting Board 4906.02 7266
Prequalification Review Board 5525.07 7267

Private Water Systems Advisory Council 3701.346 7268

Public Employment Risk Reduction Advisory Commission 4167.02 7269
Public Health Council 3701.33 7270

Public Utilities Commission Nominating Council 4901.021 7271
Public Utility Property Tax Study Committee 5727.85 7272
Radiation Advisory Council 3748.20 7273

Reclamation Commission 1513.05 7274

Recreation and Resources Commission 1501.04 7275

Recycling and Litter Prevention Advisory Council 1502.04 7276

Rehabilitation Services Commission Consumer Advisory Committee 3304.24 7277

Savings & Loans Associations & Savings Banks Board 1181.16 7278
Schools and Ministerial Lands Divestiture Committee 501.041 7279
Second Chance Trust Fund Advisory Committee 2108.17 7280

~~Services Committee of the Workers' Compensation System~~ ~~4121.06~~ 7281

Small Business Stationary Source Technical and Environmental Compliance Assistance Council 3704.19 7282

Solid Waste Management Advisory Council 3734.51 7283
State Agency Coordinating Group 1521.19 7284

State Board of Emergency Medical Services Subcommittees 4765.04 7285

State Council of Uniform State Laws 105.21 7286

State Committee for the Purchase of Products and Services Provided by Persons with Severe Disabilities 4115.32 7287

State Criminal Sentencing Commission 181.21 7288

State Fire Commission 3737.81 7289

State Racing Commission 3769.02 7290
State Victims Assistance Advisory Committee 109.91 7291

Student Tuition Recovery Authority 3332.081 7292

Tax Credit Authority 122.17 7293

Technical Advisory Committee to Assist the Director of the Ohio Coal Development Office 1551.35 7294

Technical Advisory Council on Oil and Gas 1509.38 7295

Transportation Review Advisory Council 5512.07 7296
Unemployment Compensation Review Commission 4141.06 7297

Unemployment Compensation Advisory Council 4141.08 7298

Utility Radiological Safety Board 4937.02 7299
Vehicle Management Commission 125.833 7300

Veterans Advisory Committee 5902.02(K) 7301
Volunteer Fire Fighters' Dependents Fund Boards (Private and Public) 146.02 7302

Water and Sewer Commission 1525.11(C) 7303

Waterways Safety Council 1547.73 7304

Wildlife Council 1531.03 7305

~~Workers' Compensation System Oversight Commission~~ ~~4121.12~~ 7306

~~Workers' Compensation Oversight Commission Nominating Committee~~ ~~4121.123~~ 7307

       Section 403.04. That existing Section 4 of Am. Sub. H.B. 516 7308
of the 125th General Assembly, as amended by Am. Sub. H.B. 66 and 7309
Sub. S.B. 124 of the 126th General Assembly, is hereby repealed. 7310

       Section 403.10. That Section 3 of Am. H.B. 67 of the 126th 7311
General Assembly, as amended by Am. Sub. H.B. 66 of the 126th 7312
General Assembly, be amended to read as follows: 7313

       Sec. 3. All items in this section are hereby appropriated 7314
out of any moneys in the state treasury to the credit of the 7315
designated fund. For all appropriations made in this act, those in 7316
the first column are for fiscal year 2006, and those in the second 7317
column are for fiscal year 2007. 7318

FND AI AI TITLE Appropriations 7319

BWC BUREAU OF WORKERS' COMPENSATION 7320

Workers' Compensation Fund Group 7321

023 855-401 William Green Lease Payments to OBA $ 19,736,600 $ 20,125,900 7322

023 855-407 Claims, Risk & Medical Management $ 140,052,037 $ 140,052,037 7323

023 855-408 Fraud Prevention $ 11,713,797 $ 11,713,797 7324

023 855-409 Administrative Services $ 119,246,553 $ 119,246,553 7325

023 855-410 Attorney General Payments $ 4,314,644 $ 4,314,644 7326

822 855-606 Coal Workers' Fund $ 91,894 $ 91,894 7327

823 855-608 Marine Industry $ 53,952 $ 53,952 7328

825 855-605 Disabled Workers Relief Fund $ 693,764 $ 693,764 7329
826 855-609 Safety & Hygiene Operating $ 20,130,820 $ 20,130,820 7330
826 855-610 Safety Grants Program $ 4,000,000 $ 4,000,000 7331

TOTAL WCF Workers' Compensation 7332

Fund Group $ 320,034,061 $ 320,423,361 7333

Federal Special Revenue Fund Group 7334

349 855-601 OSHA Enforcement $ 1,527,750 $ 1,604,140 7335

TOTAL FED Federal Special Revenue Fund Group $ 1,527,750 $ 1,604,140 7336

TOTAL ALL BUDGET FUND GROUPS $ 321,561,811 $ 322,027,501 7337

       WILLIAM GREEN LEASE PAYMENTS 7338

       The foregoing appropriation item 855-401, William Green Lease 7339
Payments to OBA, shall be used for lease payments to the Ohio 7340
Building Authority, and these appropriations shall be used to meet 7341
all payments at the times they are required to be made during the 7342
period from July 1, 2005, to June 30, 2007, by the Bureau of 7343
Workers' Compensation to the Ohio Building Authority pursuant to 7344
leases and agreements made under Chapter 152. of the Revised Code 7345
and Section 6 of Am. Sub. H.B. 743 of the 118th General Assembly. 7346
Of the amounts received in Fund 023, appropriation item 855-401, 7347
William Green Lease Payments to OBA, up to $39,862,500 shall be 7348
restricted for lease rental payments to the Ohio Building 7349
Authority. If it is determined that additional appropriations are 7350
necessary for such purpose, such amounts are hereby appropriated. 7351

       Notwithstanding any other provision of law to the contrary, 7352
all tenants of the William Green Building not funded by the 7353
Workers' Compensation Fund (Fund 023) shall pay their fair share 7354
of the costs of lease payments to the Workers' Compensation Fund 7355
(Fund 023) by intrastate transfer voucher. 7356

       ~~WORKERS' COMPENSATION OVERSIGHT COMMISSION~~ 7357

       ~~Of the foregoing appropriation item 855-409, Administrative~~ 7358
~~Services, up to $18,000 per calendar year shall be used to pay the~~ 7359
~~annual compensation of each investment expert member of the~~ 7360
~~Workers' Compensation Oversight Commission, as provided in~~ 7361
~~divisions (D) and (F) of section 4121.12 of the Revised Code. Each~~ 7362
~~investment expert member shall also receive reasonable and~~ 7363
~~necessary expenses while engaged in the performance of his or her~~ 7364
~~duties, as provided in division (F) of section 4121.12 of the~~ 7365
~~Revised Code.~~ 7366

       WORKERS' COMPENSATION FRAUD UNIT 7367

       The Workers' Compensation Section Fund (Fund 195) shall 7368
receive payments from the Bureau of Workers' Compensation at the 7369
beginning of each quarter of each fiscal year to fund expenses of 7370
the Workers' Compensation Fraud Unit of the Attorney General's 7371
Office. Of the foregoing appropriation item 855-410, Attorney 7372
General Payments, $773,151 in fiscal year 2006 and $773,151 in 7373
fiscal year 2007 shall be used to provide these payments. 7374

       SAFETY AND HYGIENE 7375

       Notwithstanding section 4121.37 of the Revised Code, the 7376
Administrator of Workers' Compensation shall transfer moneys from 7377
the State Insurance Fund so that appropriation item 855-609, 7378
Safety and Hygiene Operating, is provided $20,130,820 in fiscal 7379
year 2006 and $20,130,820 in fiscal year 2007. 7380

       LONG-TERM CARE LOAN FUND 7381

        Upon the request of the Administrator of the Bureau of 7382
Workers' Compensation and with the advice and consent of the 7383
Bureau of Workers' Compensation Oversight Commission, the Director 7384
of Budget and Management shall transfer cash in the amounts 7385
requested from the Safety and Hygiene Operating Fund (Fund 826) to 7386
the Long-Term Care Loan Fund (Fund 829) created in section 4121.48 7387
of the Revised Code. The amounts transferred are hereby 7388
appropriated. 7389

       OSHA ON-SITE CONSULTATION PROGRAM 7390

        The Bureau of Workers' Compensation may designate a portion 7391
of appropriation item 855-609, Safety and Hygiene Operating, to be 7392
used to match federal funding for the federal Occupational Safety 7393
and Health Administration's (OSHA) on-site consultation program. 7394

       VOCATIONAL REHABILITATION 7395

       The Bureau of Workers' Compensation and the Rehabilitation 7396
Services Commission shall enter into an interagency agreement for 7397
the provision of vocational rehabilitation services and staff to 7398
mutually eligible clients. The bureau shall provide $587,774 in 7399
fiscal year 2006 and $605,407 in fiscal year 2007 from the State 7400
Insurance Fund to fund vocational rehabilitation services and 7401
staff in accordance with the interagency agreement. 7402

       FUND BALANCE 7403

       Any unencumbered cash balance in excess of $45,000,000 in the 7404
Workers' Compensation Fund (Fund 023) on the thirtieth day of June 7405
of each fiscal year shall be used to reduce the administrative 7406
cost rate charged to employers to cover appropriations for Bureau 7407
of Workers' Compensation operations. 7408

       OSHA ENFORCEMENT FUND TRANSFER 7409

        On July 1, 2005, or as soon thereafter as possible, the 7410
Director of Budget and Management shall transfer the OSHA 7411
Enforcement Fund (Fund 349) from the Department of Commerce to the 7412
Bureau of Workers' Compensation. At the request of the Director of 7413
the Department of Commerce, the Director of Budget and Management 7414
may cancel encumbrances in this fund from appropriation item 7415
800-626, OSHA Enforcement, within the budget of the Department of 7416
Commerce, and reestablish those encumbrances or parts of those 7417
encumbrances in fiscal year 2006 for the same purpose and to the 7418
same vendor to appropriation item 855-601, OSHA Enforcement, 7419
within the budget of the Bureau of Workers' Compensation. As 7420
determined by the Director of Budget and Management, the 7421
appropriation authority necessary to reestablish encumbrances or 7422
parts of encumbrances in fiscal year 2006 for the Bureau of 7423
Workers' Compensation is hereby granted. 7424

       Section 403.11. That existing Section 3 of Am. H.B. 67 of the 7425
126th General Assembly, as amended by Am. Sub. H.B. 66 of the 7426
126th General Assembly, is hereby repealed. 7427

       Section 512.10. The governor shall not appoint any individual 7428
who is a member of the Workers' Compensation Oversight Commission 7429
on the effective date of this section to serve as a member of the 7430
Bureau of Workers' Compensation Board of Directors. The Oversight 7431
Commission is hereby abolished on the date the Governor appoints 7432
the last member to the Board in accordance with this section. The 7433
Board shall supersede the Oversight Commission and its members and 7434
succeed to and have and perform all the duties, powers, and 7435
obligations pertaining to the duties, powers, and obligations of 7436
the Oversight Commission and its members. For the purpose of the 7437
institution, conduct, and completion of matters relating to its 7438
succession, the Board is deemed to be the continuation of and 7439
successor under law to the Oversight Commission and its members. 7440
All rules, actions, determinations, commitments, resolutions, 7441
decisions, and agreements pertaining to those duties, powers, 7442
obligations, functions, and rights in force or in effect on the 7443
effective date of this section shall continue in force and effect 7444
subject to any further lawful action thereon by the Board. 7445
Wherever the Oversight Commission or its members are referred to 7446
in any provision of law, or in any agreement or document that 7447
pertains to those duties, powers, obligations, functions, and 7448
rights, the reference is to the Board. 7449

       All authorized obligations and supplements thereto of the 7450
Oversight Commission and its members pertaining to the duties, 7451
powers, and obligations transferred are binding on the Board, and 7452
nothing in this act impairs the obligations or rights thereunder 7453
or under any contract. The abolition of the Oversight Commission 7454
and the transfer of the Oversight Commission's duties, powers, and 7455
obligations do not affect the validity of agreements or 7456
obligations made by the Oversight Commission or its members 7457
pursuant to Chapters 4121., 4123., 4125., 4127., 4131., and 4167. 7458
of the Revised Code or any other provisions of law. 7459

       In connection with the transfer of duties, powers, 7460
obligations, functions, and rights and abolition of the Oversight 7461
Commission, all real property and interest therein, documents, 7462
books, money, papers, records, machinery, furnishings, office 7463
equipment, furniture, and all other property over which the 7464
Oversight Commission has control pertaining to the duties, powers, 7465
and obligations transferred and the rights of the Oversight 7466
Commission to enforce or receive any of the aforesaid is 7467
automatically transferred to the Board without necessity for 7468
further action on the part of the Board. Additionally, all 7469
appropriations or reappropriations made to the Oversight 7470
Commission for the purposes of the performance of its duties, 7471
powers, and obligations, are transferred to the Board to the 7472
extent of the remaining unexpended or unencumbered balance 7473
thereof, whether allocated or unallocated, and whether obligated 7474
or unobligated. 7475

       Section 512.20. The Bureau of Workers' Compensation Board of 7476
Directors shall appoint the members of the Workers' Compensation 7477
Audit Committee, Workers' Compensation Actuarial Committee, and 7478
the Workers' Compensation Investment Committee in accordance with 7479
section 4121.123 of the Revised Code, as enacted by this act, not 7480
later than ninety days after the effective date of this section. 7481

       Section 512.30. On the effective date of this section, the 7482
Workers' Compensation Oversight Commission Nominating Committee 7483
and the Services Committee of the Workers' Compensation System are 7484
hereby abolished. 7485

       Section 512.40. On the effective date of section 4121.122 of 7486
the Revised Code, as amended by this act, the Internal Security 7487
Committee is hereby abolished. 7488

       Section 512.45. The Workers' Compensation Council shall 7489
contract with an independent actuary to have that actuary perform 7490
an actuarial valuation of the assets, liabilities, and funding 7491
requirements of the funds specified in Chapters 4121., 4123., 7492
4127., and 4131. of the Revised Code. The actuary with whom the 7493
Council contracts under this section shall prepare a report of the 7494
valuation in accordance with the standards of practice promulgated 7495
by the Actuarial Standards Board of the American Academy of 7496
Actuaries and shall submit that report to the Council. The actuary 7497
shall include all of the following information in the report: 7498

       (A) A summary of the compensation and benefit provisions 7499
evaluated; 7500

       (B) A summary of the census data and financial information 7501
used in the valuation; 7502

       (C) A description of the actuarial assumptions, actuarial 7503
cost method, and asset valuation method used in the valuation; 7504

       (D) A summary of the findings that includes a statement of 7505
the actuarial accrued compensation and benefit liabilities and 7506
unfounded actuarial accrued compensation and benefit liabilities. 7507

       The Council shall submit to the governor and the general 7508
assembly a report summarizing the valuation required under this 7509
section not later than two years after the effective date of 7510
section 4121.75 of the Revised Code, as enacted by this act. 7511

       Section 512.50. (A) The Administrator of Workers' 7512
Compensation shall commission a reputable outside consulting firm 7513
that the Bureau of Workers' Compensation has not retained to 7514
conduct similar reports over the five years prior to the effective 7515
date of this section to perform a comprehensive review of the base 7516
rate of premiums paid by employers and of all of the rating 7517
programs used by the Administrator to determine an employer's 7518
premium rate under Chapters 4121., 4123., 4127., and 4131. of the 7519
Revised Code. In conducting the review required under this 7520
section, the Administrator shall do all of the following: 7521

       (1) Compare the rates and programs used in this state to the 7522
rates and programs used in other states; 7523

       (2) Study the effect of the rates in reducing the number and 7524
severity of workers' compensation claims in this state; 7525

       (3) Study the effect that saving money has had on safety in 7526
workplaces in this state; 7527

       (4) Identify methods of rate setting and reserving that the 7528
Administrator could use to make the rate setting and reserving 7529
process more transparent for employers and employees. 7530

       (B) The Administrator shall commission a reputable outside 7531
consulting firm that the Bureau has not retained to conduct 7532
similar reports over the five years prior to the effective date of 7533
this section to perform a comprehensive review of the adequacy of 7534
the Surplus Fund created under section 4123.34 of the Revised Code 7535
and the general reserving methods used for the State Insurance 7536
Fund and all other funds specified in Chapters 4121., 4123., 7537
4127., and 4131. of the Revised Code. 7538

       (C) The Administrator shall provide a summary of the reviews 7539
required under this section and shall present recommendations 7540
based on the review to the General Assembly and the Bureau of 7541
Workers' Compensation Board of Directors not later than two years 7542
after the effective date of this section. 7543

       (D) This section of law, as enacted by this act, is subject 7544
to the referendum. Therefore, under Ohio Constitution, Article II, 7545
Section 1c and section 1.471 of the Revised Code, this section 7546
takes effect on the ninety-first day after this act is filed with 7547
the Secretary of State. If, however, a referendum petition is 7548
filed against this section of law as enacted by this act, this 7549
section of law as enacted, unless rejected at the referendum, 7550
takes effect at the earliest time permitted by law. 7551

       Section 512.60. The Administrator of Workers' Compensation 7552
shall not place a limit on the length of time that an employer may 7553
participate in the Bureau of Workers' Compensation Drug Free 7554
Workplace Program until the Administrator adopts rules in 7555
accordance with Chapter 119. of the Revised Code for the purpose 7556
of establishing the length of time that an employer may 7557
participate in that program. 7558

       Section 512.70. The Administrator of Workers' Compensation 7559
shall not use the Micro Insurance Reserve Analysis System to 7560
determine the reserves for use in establishing premium rates 7561
assessed for the purposes of Chapter 4121., 4123., 4127., or 4131. 7562
of the Revised Code after June 30, 2007. A contract between the 7563
Administrator and a vendor for the System in existence on the 7564
effective date of this section shall expire in accordance with the 7565
terms of the contract, and the Administrator shall not renew or 7566
extend that contract. 7567

       Section 603.10. The items of law contained in this act, and 7568
their applications, are severable. If any item of law contained in 7569
this act, or if any application of any item of law contained in 7570
this act, is held invalid, the invalidity does not affect other 7571
items of law contained in this act and their applications that can 7572
be given effect without the invalid item of law or application. 7573

       Section 606.10. An item that composes the whole or part of an 7574
uncodified section contained in this act has no effect after June 7575
30, 2009, unless the context clearly indicates otherwise. 7576

       Section 609.03. Except as otherwise specifically provided in 7577
this act, the codified sections of law amended or enacted in this 7578
act, and the items of law of which the codified sections of law 7579
amended or enacted in this act are composed, are subject to the 7580
referendum. Therefore, under Ohio Constitution, Article II, 7581
Section 1c and section 1.471 of the Revised Code, the codified 7582
sections of law amended or enacted by this act, and the items of 7583
law of which the codified sections of law as amended or enacted by 7584
this act are composed, take effect on the ninety-first day after 7585
this act is filed with the Secretary of State. If, however, a 7586
referendum petition is filed against any such codified section of 7587
law as amended or enacted by this act, or against any item of law 7588
of which any such codified section of law as amended or enacted by 7589
this act is composed, the codified section of law as amended or 7590
enacted, or item of law, unless rejected at the referendum, takes 7591
effect at the earliest time permitted by law. 7592

       Section 609.05. Except as otherwise specifically provided in 7593
this act, the repeal by this act of a codified section of law is 7594
subject to the referendum. Therefore, under Ohio Constitution, 7595
Article II, Section 1c and section 1.471 of the Revised Code, the 7596
repeal by this act of a codified section of law takes effect on 7597
the ninety-first day after this act is filed with the Secretary of 7598
State. If, however, a referendum petition is filed against any 7599
such repeal, the repeal, unless rejected at the referendum, takes 7600
effect at the earliest time permitted by law. 7601

       Section 612.03. The codified section of law amended or 7602
enacted by this act that is listed in this section, and the items 7603
of law of which such section as amended or enacted by this act are 7604
composed, are not subject to the referendum. Therefore, under Ohio 7605
Constitution, Article II, Section 1d and section 1.471 of the 7606
Revised Code, such section as amended or enacted by this act, and 7607
the items of law of which such section as amended or enacted by 7608
this act are composed, go into immediate effect when this act 7609
becomes law. 7610

       Section 4121.12 of the Revised Code. 7611

       Section 612.09. The repeal and reenactment of section 7612
4121.123 of the Revised Code is not subject to the referendum. 7613
Therefore, under Ohio Constitution, Article II, Section 1d and 7614
section 1.471 of the Revised Code, section 4121.123 of the Revised 7615
Code takes effect sixty days after the effective date of this 7616
section. 7617

       Section 615.03. Except as otherwise provided in Section 7618
512.50 of this act, the uncodified sections of law contained in 7619
this act, and the items of law of which the uncodified sections of 7620
law contained in this act are composed, are not subject to the 7621
referendum. Therefore, under Ohio Constitution, Article II, 7622
Section 1d and section 1.471 of the Revised Code, the uncodified 7623
sections of law contained in this act, and the items of law of 7624
which the uncodified sections of law contained in this act are 7625
composed, go into immediate effect when this act becomes law. 7626

       Section 618.03. Section 4 of Am. Sub. H.B. 516 of the 125th 7627
General Assembly is presented in this act as a composite of the 7628
section as amended by both Am. Sub. H.B. 66 and Sub. S.B. 124 of 7629
the 126th General Assembly. The General Assembly, applying the 7630
principle stated in division (B) of section 1.52 of the Revised 7631
Code that amendments are to be harmonized if reasonably capable of 7632
simultaneous operation, finds that the composite is the resulting 7633
version of the section in effect prior to the effective date of 7634
the section as presented in this act. 7635

Section 101.01. That sections 102.02, 102.06, 109.981,	38
111.15, 119.01, 131.02, 1707.01, 3345.12, 4121.01, 4121.03,	39
4121.12, 4121.121, 4121.122, 4121.125, 4121.126, 4121.128,	40
4121.13, 4121.32, 4121.37, 4121.40, 4121.441, 4121.48, 4121.61,	41
4121.67, 4121.70, 4123.25, 4123.29, 4123.291, 4123.311, 4123.32,	42
4123.34, 4123.341, 4123.342, 4123.35, 4123.351, 4123.37, 4123.411,	43
4123.44, 4123.441, 4123.47, 4123.50, 4123.511, 4123.512, 4123.66,	44
4123.80, 4123.82, 4123.92, 4125.05, 4127.07, 4127.08, 4131.04,	45
4131.06, 4131.13, 4131.14, 4131.16, 4167.02, 4167.07, 4167.08,	46
4167.09, 4167.11, and 4167.14 be amended; and new section 4121.123	47
and sections 121.52, 121.53, 121.54, 121.55, 121.56, 4121.75,	48
4121.76, 4121.77, 4121.78, 4121.79, 4123.321, 4123.442, and	49
4123.592 of the Revised Code be enacted to read as follows:	50

Sec. 102.02. (A) Except as otherwise provided in division	51
(H) of this section, all of the following shall file with the	52
appropriate ethics commission the disclosure statement described	53
in this division on a form prescribed by the appropriate	54
commission: every person who is elected to or is a candidate for a	55
state, county, or city office and every person who is appointed to	56
fill a vacancy for an unexpired term in such an elective office;	57
all members of the state board of education; the director,	58
assistant directors, deputy directors, division chiefs, or persons	59
of equivalent rank of any administrative department of the state;	60
the president or other chief administrative officer of every state	61
institution of higher education as defined in section 3345.011 of	62
the Revised Code; the executive director and the members of the	63
capitol square review and advisory board appointed or employed	64
pursuant to section 105.41 of the Revised Code; the chief	65
executive officer and the members of the board of each state	66
retirement system; each employee of a state retirement board who	67
is a state retirement system investment officer licensed pursuant	68
to section 1707.163 of the Revised Code; the members of the Ohio	69
retirement study council appointed pursuant to division (C) of	70
section 171.01 of the Revised Code; employees of the Ohio	71
retirement study council, other than employees who perform purely	72
administrative or clerical functions; the administrator of	73
workers' compensation and each ~~voting~~ member of the bureau of	74
workers' compensation ~~oversight commission~~board of directors; the	75
bureau of workers' compensation director of investments; the chief	76
investment officer of the bureau of workers' compensation; all	77
members of the board of commissioners on grievances and discipline	78
of the supreme court and the ethics commission created under	79
section 102.05 of the Revised Code; every business manager,	80
treasurer, or superintendent of a city, local, exempted village,	81
joint vocational, or cooperative education school district or an	82
educational service center; every person who is elected to or is a	83
candidate for the office of member of a board of education of a	84
city, local, exempted village, joint vocational, or cooperative	85
education school district or of a governing board of an	86
educational service center that has a total student count of	87
twelve thousand or more as most recently determined by the	88
department of education pursuant to section 3317.03 of the Revised	89
Code; every person who is appointed to the board of education of a	90
municipal school district pursuant to division (B) or (F) of	91
section 3311.71 of the Revised Code; all members of the board of	92
directors of a sanitary district that is established under Chapter	93
6115. of the Revised Code and organized wholly for the purpose of	94
providing a water supply for domestic, municipal, and public use,	95
and that includes two municipal corporations in two counties;	96
every public official or employee who is paid a salary or wage in	97
accordance with schedule C of section 124.15 or schedule E-2 of	98
section 124.152 of the Revised Code; members of the board of	99
trustees and the executive director of the tobacco use prevention	100
and control foundation; members of the board of trustees and the	101
executive director of the southern Ohio agricultural and community	102
development foundation; and every other public official or	103
employee who is designated by the appropriate ethics commission	104
pursuant to division (B) of this section.	105

(1) The name of the person filing the statement and each	107
member of the person's immediate family and all names under which	108
the person or members of the person's immediate family do	109
business;	110

(2)(a) Subject to divisions (A)(2)(b) and (c) of this section	111
and except as otherwise provided in section 102.022 of the Revised	112
Code, identification of every source of income, other than income	113
from a legislative agent identified in division (A)(2)(b) of this	114
section, received during the preceding calendar year, in the	115
person's own name or by any other person for the person's use or	116
benefit, by the person filing the statement, and a brief	117
description of the nature of the services for which the income was	118
received. If the person filing the statement is a member of the	119
general assembly, the statement shall identify the amount of every	120
source of income received in accordance with the following ranges	121
of amounts: zero or more, but less than one thousand dollars; one	122
thousand dollars or more, but less than ten thousand dollars; ten	123
thousand dollars or more, but less than twenty-five thousand	124
dollars; twenty-five thousand dollars or more, but less than fifty	125
thousand dollars; fifty thousand dollars or more, but less than	126
one hundred thousand dollars; and one hundred thousand dollars or	127
more. Division (A)(2)(a) of this section shall not be construed to	128
require a person filing the statement who derives income from a	129
business or profession to disclose the individual items of income	130
that constitute the gross income of that business or profession,	131
except for those individual items of income that are attributable	132
to the person's or, if the income is shared with the person, the	133
partner's, solicitation of services or goods or performance,	134
arrangement, or facilitation of services or provision of goods on	135
behalf of the business or profession of clients, including	136
corporate clients, who are legislative agents. A person who files	137
the statement under this section shall disclose the identity of	138
and the amount of income received from a person who the public	139
official or employee knows or has reason to know is doing or	140
seeking to do business of any kind with the public official's or	141
employee's agency.	142

(b) If the person filing the statement is a member of the	143
general assembly, the statement shall identify every source of	144
income and the amount of that income that was received from a	145
legislative agent during the preceding calendar year, in the	146
person's own name or by any other person for the person's use or	147
benefit, by the person filing the statement, and a brief	148
description of the nature of the services for which the income was	149
received. Division (A)(2)(b) of this section requires the	150
disclosure of clients of attorneys or persons licensed under	151
section 4732.12 of the Revised Code, or patients of persons	152
certified under section 4731.14 of the Revised Code, if those	153
clients or patients are legislative agents. Division (A)(2)(b) of	154
this section requires a person filing the statement who derives	155
income from a business or profession to disclose those individual	156
items of income that constitute the gross income of that business	157
or profession that are received from legislative agents.	158

(c) Except as otherwise provided in division (A)(2)(c) of	159
this section, division (A)(2)(a) of this section applies to	160
attorneys, physicians, and other persons who engage in the	161
practice of a profession and who, pursuant to a section of the	162
Revised Code, the common law of this state, a code of ethics	163
applicable to the profession, or otherwise, generally are required	164
not to reveal, disclose, or use confidences of clients, patients,	165
or other recipients of professional services except under	166
specified circumstances or generally are required to maintain	167
those types of confidences as privileged communications except	168
under specified circumstances. Division (A)(2)(a) of this section	169
does not require an attorney, physician, or other professional	170
subject to a confidentiality requirement as described in division	171
(A)(2)(c) of this section to disclose the name, other identity, or	172
address of a client, patient, or other recipient of professional	173
services if the disclosure would threaten the client, patient, or	174
other recipient of professional services, would reveal details of	175
the subject matter for which legal, medical, or professional	176
advice or other services were sought, or would reveal an otherwise	177
privileged communication involving the client, patient, or other	178
recipient of professional services. Division (A)(2)(a) of this	179
section does not require an attorney, physician, or other	180
professional subject to a confidentiality requirement as described	181
in division (A)(2)(c) of this section to disclose in the brief	182
description of the nature of services required by division	183
(A)(2)(a) of this section any information pertaining to specific	184
professional services rendered for a client, patient, or other	185
recipient of professional services that would reveal details of	186
the subject matter for which legal, medical, or professional	187
advice was sought or would reveal an otherwise privileged	188
communication involving the client, patient, or other recipient of	189
professional services.	190

(3) The name of every corporation on file with the secretary	191
of state that is incorporated in this state or holds a certificate	192
of compliance authorizing it to do business in this state, trust,	193
business trust, partnership, or association that transacts	194
business in this state in which the person filing the statement or	195
any other person for the person's use and benefit had during the	196
preceding calendar year an investment of over one thousand dollars	197
at fair market value as of the thirty-first day of December of the	198
preceding calendar year, or the date of disposition, whichever is	199
earlier, or in which the person holds any office or has a	200
fiduciary relationship, and a description of the nature of the	201
investment, office, or relationship. Division (A)(3) of this	202
section does not require disclosure of the name of any bank,	203
savings and loan association, credit union, or building and loan	204
association with which the person filing the statement has a	205
deposit or a withdrawable share account.	206

(4) All fee simple and leasehold interests to which the	207
person filing the statement holds legal title to or a beneficial	208
interest in real property located within the state, excluding the	209
person's residence and property used primarily for personal	210
recreation;	211

(5) The names of all persons residing or transacting business	212
in the state to whom the person filing the statement owes, in the	213
person's own name or in the name of any other person, more than	214
one thousand dollars. Division (A)(5) of this section shall not be	215
construed to require the disclosure of debts owed by the person	216
resulting from the ordinary conduct of a business or profession or	217
debts on the person's residence or real property used primarily	218
for personal recreation, except that the superintendent of	219
financial institutions shall disclose the names of all	220
state-chartered savings and loan associations and of all service	221
corporations subject to regulation under division (E)(2) of	222
section 1151.34 of the Revised Code to whom the superintendent in	223
the superintendent's own name or in the name of any other person	224
owes any money, and that the superintendent and any deputy	225
superintendent of banks shall disclose the names of all	226
state-chartered banks and all bank subsidiary corporations subject	227
to regulation under section 1109.44 of the Revised Code to whom	228
the superintendent or deputy superintendent owes any money.	229

(6) The names of all persons residing or transacting business	230
in the state, other than a depository excluded under division	231
(A)(3) of this section, who owe more than one thousand dollars to	232
the person filing the statement, either in the person's own name	233
or to any person for the person's use or benefit. Division (A)(6)	234
of this section shall not be construed to require the disclosure	235
of clients of attorneys or persons licensed under section 4732.12	236
or 4732.15 of the Revised Code, or patients of persons certified	237
under section 4731.14 of the Revised Code, nor the disclosure of	238
debts owed to the person resulting from the ordinary conduct of a	239
business or profession.	240

(7) Except as otherwise provided in section 102.022 of the	241
Revised Code, the source of each gift of over seventy-five	242
dollars, or of each gift of over twenty-five dollars received by a	243
member of the general assembly from a legislative agent, received	244
by the person in the person's own name or by any other person for	245
the person's use or benefit during the preceding calendar year,	246
except gifts received by will or by virtue of section 2105.06 of	247
the Revised Code, or received from spouses, parents, grandparents,	248
children, grandchildren, siblings, nephews, nieces, uncles, aunts,	249
brothers-in-law, sisters-in-law, sons-in-law, daughters-in-law,	250
fathers-in-law, mothers-in-law, or any person to whom the person	251
filing the statement stands in loco parentis, or received by way	252
of distribution from any inter vivos or testamentary trust	253
established by a spouse or by an ancestor;	254

(8) Except as otherwise provided in section 102.022 of the	255
Revised Code, identification of the source and amount of every	256
payment of expenses incurred for travel to destinations inside or	257
outside this state that is received by the person in the person's	258
own name or by any other person for the person's use or benefit	259
and that is incurred in connection with the person's official	260
duties, except for expenses for travel to meetings or conventions	261
of a national or state organization to which any state agency,	262
including, but not limited to, any legislative agency or state	263
institution of higher education as defined in section 3345.011 of	264
the Revised Code, pays membership dues, or any political	265
subdivision or any office or agency of a political subdivision	266
pays membership dues;	267

(9) Except as otherwise provided in section 102.022 of the	268
Revised Code, identification of the source of payment of expenses	269
for meals and other food and beverages, other than for meals and	270
other food and beverages provided at a meeting at which the person	271
participated in a panel, seminar, or speaking engagement or at a	272
meeting or convention of a national or state organization to which	273
any state agency, including, but not limited to, any legislative	274
agency or state institution of higher education as defined in	275
section 3345.011 of the Revised Code, pays membership dues, or any	276
political subdivision or any office or agency of a political	277
subdivision pays membership dues, that are incurred in connection	278
with the person's official duties and that exceed one hundred	279
dollars aggregated per calendar year;	280

(10) If the disclosure statement is filed by a public	281
official or employee described in division (B)(2) of section	282
101.73 of the Revised Code or division (B)(2) of section 121.63 of	283
the Revised Code who receives a statement from a legislative	284
agent, executive agency lobbyist, or employer that contains the	285
information described in division (F)(2) of section 101.73 of the	286
Revised Code or division (G)(2) of section 121.63 of the Revised	287
Code, all of the nondisputed information contained in the	288
statement delivered to that public official or employee by the	289
legislative agent, executive agency lobbyist, or employer under	290
division (F)(2) of section 101.73 or (G)(2) of section 121.63 of	291
the Revised Code.	292

A person may file a statement required by this section in	293
person or by mail. A person who is a candidate for elective office	294
shall file the statement no later than the thirtieth day before	295
the primary, special, or general election at which the candidacy	296
is to be voted on, whichever election occurs soonest, except that	297
a person who is a write-in candidate shall file the statement no	298
later than the twentieth day before the earliest election at which	299
the person's candidacy is to be voted on. A person who holds	300
elective office shall file the statement on or before the	301
fifteenth day of April of each year unless the person is a	302
candidate for office. A person who is appointed to fill a vacancy	303
for an unexpired term in an elective office shall file the	304
statement within fifteen days after the person qualifies for	305
office. Other persons shall file an annual statement on or before	306
the fifteenth day of April or, if appointed or employed after that	307
date, within ninety days after appointment or employment. No	308
person shall be required to file with the appropriate ethics	309
commission more than one statement or pay more than one filing fee	310
for any one calendar year.	311

The appropriate ethics commission, for good cause, may extend	312
for a reasonable time the deadline for filing a statement under	313
this section.	314

A statement filed under this section is subject to public	315
inspection at locations designated by the appropriate ethics	316
commission except as otherwise provided in this section.	317

(B) The Ohio ethics commission, the joint legislative ethics	318
committee, and the board of commissioners on grievances and	319
discipline of the supreme court, using the rule-making procedures	320
of Chapter 119. of the Revised Code, may require any class of	321
public officials or employees under its jurisdiction and not	322
specifically excluded by this section whose positions involve a	323
substantial and material exercise of administrative discretion in	324
the formulation of public policy, expenditure of public funds,	325
enforcement of laws and rules of the state or a county or city, or	326
the execution of other public trusts, to file an annual statement	327
on or before the fifteenth day of April under division (A) of this	328
section. The appropriate ethics commission shall send the public	329
officials or employees written notice of the requirement by the	330
fifteenth day of February of each year the filing is required	331
unless the public official or employee is appointed after that	332
date, in which case the notice shall be sent within thirty days	333
after appointment, and the filing shall be made not later than	334
ninety days after appointment.	335

Except for disclosure statements filed by members of the	336
board of trustees and the executive director of the tobacco use	337
prevention and control foundation and members of the board of	338
trustees and the executive director of the southern Ohio	339
agricultural and community development foundation, disclosure	340
statements filed under this division with the Ohio ethics	341
commission by members of boards, commissions, or bureaus of the	342
state for which no compensation is received other than reasonable	343
and necessary expenses shall be kept confidential. Disclosure	344
statements filed with the Ohio ethics commission under division	345
(A) of this section by business managers, treasurers, and	346
superintendents of city, local, exempted village, joint	347
vocational, or cooperative education school districts or	348
educational service centers shall be kept confidential, except	349
that any person conducting an audit of any such school district or	350
educational service center pursuant to section 115.56 or Chapter	351
117. of the Revised Code may examine the disclosure statement of	352
any business manager, treasurer, or superintendent of that school	353
district or educational service center. The Ohio ethics commission	354
shall examine each disclosure statement required to be kept	355
confidential to determine whether a potential conflict of interest	356
exists for the person who filed the disclosure statement. A	357
potential conflict of interest exists if the private interests of	358
the person, as indicated by the person's disclosure statement,	359
might interfere with the public interests the person is required	360
to serve in the exercise of the person's authority and duties in	361
the person's office or position of employment. If the commission	362
determines that a potential conflict of interest exists, it shall	363
notify the person who filed the disclosure statement and shall	364
make the portions of the disclosure statement that indicate a	365
potential conflict of interest subject to public inspection in the	366
same manner as is provided for other disclosure statements. Any	367
portion of the disclosure statement that the commission determines	368
does not indicate a potential conflict of interest shall be kept	369
confidential by the commission and shall not be made subject to	370
public inspection, except as is necessary for the enforcement of	371
Chapters 102. and 2921. of the Revised Code and except as	372
otherwise provided in this division.	373

(C) No person shall knowingly fail to file, on or before the	374
applicable filing deadline established under this section, a	375
statement that is required by this section.	376

(D) No person shall knowingly file a false statement that is	377
required to be filed under this section.	378

(E)(1) Except as provided in divisions (E)(2) and (3) of this	379
section, the statement required by division (A) or (B) of this	380
section shall be accompanied by a filing fee of forty dollars.	381

(2) The statement required by division (A) of this section	382
shall be accompanied by the following filing fee to be paid by the	383
person who is elected or appointed to, or is a candidate for, any	384
of the following offices:	385

For state office, except member of the		386
state board of education	$65	387
For office of member of general assembly	$40	388
For county office	$40	389
For city office	$25	390
For office of member of the state board		391
of education	$25	392
For office of member of a city, local,		393
exempted village, or cooperative		394
education board of		395
education or educational service		396
center governing board	$20	397
For position of business manager,		398
treasurer, or superintendent of a		399
city, local, exempted village, joint		400
vocational, or cooperative education		401
school district or		402
educational service center	$20	403

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

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

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

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

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

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