As Passed by the Senate

127th General Assembly
Regular Session
2007-2008
Am. Sub. H. B. No. 24


Representative Wagner 

Cosponsors: Representatives McGregor, J., Wagoner, Gibbs, Combs, Stebelton, Collier, Huffman, Blessing, Bubp, Latta, Schindel, Hagan, J., Wolpert, Adams, Aslanides, Bacon, Barrett, Batchelder, Boyd, Brown, Budish, Carmichael, Chandler, Coley, Core, Daniels, DeBose, Dolan, Domenick, Dyer, Evans, Fende, Fessler, Flowers, Goodwin, Goyal, Harwood, Healy, Hite, Hottinger, Hughes, Jones, Letson, Luckie, Lundy, Mandel, Miller, Oelslager, Otterman, Patton, Raussen, Reinhard, Sayre, Schneider, Seitz, Setzer, Szollosi, Uecker, Wachtmann, Webster, Williams, S., Yuko, Zehringer 

Senators Amstutz, Harris, Schaffer 

A BILL
To amend sections 718.01, 718.02, and 4763.16 of the 1
Revised Code to authorize municipalities to allow 2
self-employed taxpayers to take a municipal income 3
tax deduction for amounts paid for medical care 4
insurance, to authorize municipalities to allow 5
individuals to deduct amounts paid into health 6
savings accounts, to limit the entities that may 7
apply for Real Estate Appraiser Recovery Fund 8
payments, to allow certain property owners whose 9
property is located in certain conservancy 10
districts to have the Supreme Court review denials 11
of their exceptions to an assessment, to establish 12
a moratorium on the levying and collection of 13
assessments by certain conservancy districts, to 14
provide for the extension of the enhanced motor 15
vehicle inspection and maintenance program, and 16
to declare an emergency.17


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

       Section 1.  That sections 718.01, 718.02, and 4763.16 of the 18
Revised Code be amended to read as follows:19

       Sec. 718.01.  (A) As used in this chapter:20

       (1) "Adjusted federal taxable income" means a C corporation's 21
federal taxable income before net operating losses and special 22
deductions as determined under the Internal Revenue Code, adjusted 23
as follows:24

       (a) Deduct intangible income to the extent included in 25
federal taxable income. The deduction shall be allowed regardless 26
of whether the intangible income relates to assets used in a trade 27
or business or assets held for the production of income.28

       (b) Add an amount equal to five per cent of intangible income 29
deducted under division (A)(1)(a) of this section, but excluding 30
that portion of intangible income directly related to the sale, 31
exchange, or other disposition of property described in section 32
1221 of the Internal Revenue Code;33

       (c) Add any losses allowed as a deduction in the computation 34
of federal taxable income if the losses directly relate to the 35
sale, exchange, or other disposition of an asset described in 36
section 1221 or 1231 of the Internal Revenue Code;37

       (d)(i) Except as provided in division (A)(1)(d)(ii) of this 38
section, deduct income and gain included in federal taxable income 39
to the extent the income and gain directly relate to the sale, 40
exchange, or other disposition of an asset described in section 41
1221 or 1231 of the Internal Revenue Code;42

        (ii) Division (A)(1)(d)(i) of this section does not apply to 43
the extent the income or gain is income or gain described in 44
section 1245 or 1250 of the Internal Revenue Code.45

        (e) Add taxes on or measured by net income allowed as a 46
deduction in the computation of federal taxable income;47

        (f) In the case of a real estate investment trust and 48
regulated investment company, add all amounts with respect to 49
dividends to, distributions to, or amounts set aside for or 50
credited to the benefit of investors and allowed as a deduction in 51
the computation of federal taxable income;52

        (g) If the taxpayer is not a C corporation and is not an 53
individual, the taxpayer shall compute adjusted federal taxable 54
income as if the taxpayer were a C corporation, except:55

        (i) Guaranteed payments and other similar amounts paid or 56
accrued to a partner, former partner, member, or former member 57
shall not be allowed as a deductible expense; and58

        (ii) Amounts paid or accrued to a qualified self-employed 59
retirement plan with respect to an owner or owner-employee of the 60
taxpayer, amounts paid or accrued to or for health insurance for 61
an owner or owner-employee, and amounts paid or accrued to or for 62
life insurance for an owner or owner-employee shall not be allowed 63
as a deduction.64

        Nothing in division (A)(1) of this section shall be construed 65
as allowing the taxpayer to add or deduct any amount more than 66
once or shall be construed as allowing any taxpayer to deduct any 67
amount paid to or accrued for purposes of federal self-employment 68
tax.69

        Nothing in this chapter shall be construed as limiting or 70
removing the ability of any municipal corporation to administer, 71
audit, and enforce the provisions of its municipal income tax.72

       (2) "Internal Revenue Code" means the Internal Revenue Code73
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.74

       (3) "Schedule C" means internal revenue service schedule C75
filed by a taxpayer pursuant to the Internal Revenue Code.76

       (4) "Form 2106" means internal revenue service form 210677
filed by a taxpayer pursuant to the Internal Revenue Code.78

       (5) "Intangible income" means income of any of the following79
types: income yield, interest, capital gains, dividends, or other 80
income arising from the ownership, sale, exchange, or other 81
disposition of intangible property including, but not limited to, 82
investments, deposits, money, or credits as those terms are83
defined in Chapter 5701. of the Revised Code, and patents, 84
copyrights, trademarks, tradenames, investments in real estate 85
investment trusts, investments in regulated investment companies, 86
and appreciation on deferred compensation. "Intangible income" 87
does not include prizes, awards, or other income associated with 88
any lottery winnings or other similar games of chance.89

       (6) "S corporation" means a corporation that has made an90
election under subchapter S of Chapter 1 of Subtitle A of the91
Internal Revenue Code for its taxable year.92

       (7) For taxable years beginning on or after January 1, 2004, 93
"net profit" for a taxpayer other than an individual means 94
adjusted federal taxable income and "net profit" for a taxpayer 95
who is an individual means the individual's profit, other than 96
amounts described in division (F) of this section, required to be 97
reported on schedule C, schedule E, or schedule F, other than any 98
amount allowed as a deduction under division (E)(2) or (3) of this 99
section or amounts described in division (H) of this section.100

       (8) "Taxpayer" means a person subject to a tax on income 101
levied by a municipal corporation. Except as provided in division 102
(J)(L) of this section, "taxpayer" does not include any person 103
that is a disregarded entity or a qualifying subchapter S 104
subsidiary for federal income tax purposes, but "taxpayer" 105
includes any other person who owns the disregarded entity or 106
qualifying subchapter S subsidiary.107

       (9) "Taxable year" means the corresponding tax reporting 108
period as prescribed for the taxpayer under the Internal Revenue 109
Code.110

       (10) "Tax administrator" means the individual charged with 111
direct responsibility for administration of a tax on income levied 112
by a municipal corporation and includes:113

        (a) The central collection agency and the regional income tax 114
agency and their successors in interest, and other entities 115
organized to perform functions similar to those performed by the 116
central collection agency and the regional income tax agency;117

        (b) A municipal corporation acting as the agent of another 118
municipal corporation; and119

        (c) Persons retained by a municipal corporation to administer 120
a tax levied by the municipal corporation, but only if the 121
municipal corporation does not compensate the person in whole or 122
in part on a contingency basis.123

        (11) "Person" includes individuals, firms, companies, 124
business trusts, estates, trusts, partnerships, limited liability 125
companies, associations, corporations, governmental entities, and 126
any other entity.127

        (12) "Schedule E" means internal revenue service schedule E 128
filed by a taxpayer pursuant to the Internal Revenue Code.129

        (13) "Schedule F" means internal revenue service schedule F 130
filed by a taxpayer pursuant to the Internal Revenue Code.131

       (B) No municipal corporation shall tax income at other than 132
a uniform rate.133

       (C) No municipal corporation shall levy a tax on income at a134
rate in excess of one per cent without having obtained the135
approval of the excess by a majority of the electors of the136
municipality voting on the question at a general, primary, or137
special election. The legislative authority of the municipal138
corporation shall file with the board of elections at least139
seventy-five days before the day of the election a copy of the140
ordinance together with a resolution specifying the date the141
election is to be held and directing the board of elections to142
conduct the election. The ballot shall be in the following form:143
"Shall the Ordinance providing for a ... per cent levy on income144
for (Brief description of the purpose of the proposed levy) be145
passed?146

        147

 FOR THE INCOME TAX 148
 AGAINST THE INCOME TAX  " 149

        150

       In the event of an affirmative vote, the proceeds of the levy151
may be used only for the specified purpose.152

       (D)(1) Except as otherwise provided in division (E) or (F) of153
this section, no municipal corporation shall exempt from a tax on154
income compensation for personal services of individuals over155
eighteen years of age or the net profit from a business or156
profession.157

       (2)(a) For taxable years beginning on or after January 1, 158
2004, no municipal corporation shall tax the net profit from a 159
business or profession using any base other than the taxpayer's 160
adjusted federal taxable income.161

       (b) Division (D)(2)(a) of this section does not apply to any 162
taxpayer required to file a return under section 5745.03 of the 163
Revised Code or to the net profit from a sole proprietorship.164

       (E)(1) The legislative authority of a municipal corporation 165
may, by ordinance or resolution, exempt from withholding and from 166
a tax on income the following:167

       (1)(a) Compensation arising from the sale, exchange, or other 168
disposition of a stock option, the exercise of a stock option, or 169
the sale, exchange, or other disposition of stock purchased under 170
a stock option; or171

       (2)(b) Compensation attributable to a nonqualified deferred 172
compensation plan or program described in section 3121(v)(2)(C) of 173
the Internal Revenue Code.174

       (2) The legislative authority of a municipal corporation may 175
adopt an ordinance or resolution that allows a taxpayer who is an 176
individual to deduct, in computing the taxpayer's municipal income 177
tax liability, an amount equal to the aggregate amount the 178
taxpayer paid in cash during the taxable year to a health savings 179
account of the taxpayer, to the extent the taxpayer is entitled to 180
deduct that amount on internal revenue service form 1040.181

       (3) The legislative authority of a municipal corporation may 182
adopt an ordinance or resolution that allows a taxpayer who has a 183
net profit from a business or profession that is operated as a 184
sole proprietorship to deduct from that net profit the amount that 185
the taxpayer paid during the taxable year for medical care 186
insurance premiums for the taxpayer, the taxpayer's spouse, and 187
dependents as defined in section 5747.01 of the Revised Code. The 188
deduction shall be allowed to the same extent the taxpayer is 189
entitled to deduct the premiums on internal revenue service form 190
1040. The deduction allowed under this division shall be net of 191
any related premium refunds, related premium reimbursements, or 192
related insurance premium dividends received by the taxpayer 193
during the taxable year.194

       (F) If an individual's taxable income includes income against195
which the taxpayer has taken a deduction for federal income tax196
purposes as reportable on the taxpayer's form 2106, and against197
which a like deduction has not been allowed by the municipal198
corporation, the municipal corporation shall deduct from the199
taxpayer's taxable income an amount equal to the deduction shown200
on such form allowable against such income, to the extent not201
otherwise so allowed as a deduction by the municipal corporation.202

       (G)(1) In the case of a taxpayer who has a net profit from a 203
business or profession that is operated as a sole proprietorship, 204
no municipal corporation may tax or use as the base for 205
determining the amount of the net profit that shall be considered 206
as having a taxable situs in the municipal corporation, an amount 207
other than the net profit required to be reported by the taxpayer 208
on schedule C or F from such sole proprietorship for the taxable 209
year.210

       (2) In the case of a taxpayer who has a net profit from 211
rental activity required to be reported on schedule E, no 212
municipal corporation may tax or use as the base for determining 213
the amount of the net profit that shall be considered as having a 214
taxable situs in the municipal corporation, an amount other than 215
the net profit from rental activities required to be reported by 216
the taxpayer on schedule E for the taxable year.217

       (F)(H) A municipal corporation shall not tax any of the218
following:219

       (1) The military pay or allowances of members of the armed220
forces of the United States and of members of their reserve221
components, including the Ohio national guard;222

       (2) The income of religious, fraternal, charitable,223
scientific, literary, or educational institutions to the extent224
that such income is derived from tax-exempt real estate,225
tax-exempt tangible or intangible property, or tax-exempt226
activities;227

       (3) Except as otherwise provided in division (G)(I) of this228
section, intangible income;229

       (4) Compensation paid under section 3501.28 or 3501.36 of the 230
Revised Code to a person serving as a precinct election official, 231
to the extent that such compensation does not exceed one thousand 232
dollars annually. Such compensation in excess of one thousand 233
dollars may be subjected to taxation by a municipal corporation. A 234
municipal corporation shall not require the payer of such235
compensation to withhold any tax from that compensation.236

       (5) Compensation paid to an employee of a transit authority,237
regional transit authority, or regional transit commission created238
under Chapter 306. of the Revised Code for operating a transit bus239
or other motor vehicle for the authority or commission in or240
through the municipal corporation, unless the bus or vehicle is241
operated on a regularly scheduled route, the operator is subject242
to such a tax by reason of residence or domicile in the municipal243
corporation, or the headquarters of the authority or commission is244
located within the municipal corporation;245

       (6) The income of a public utility, when that public utility246
is subject to the tax levied under section 5727.24 or 5727.30 of247
the Revised Code, except a municipal corporation may tax the 248
following, subject to Chapter 5745. of the Revised Code:249

       (a) Beginning January 1, 2002, the income of an electric250
company or combined company;251

        (b) Beginning January 1, 2004, the income of a telephone252
company.253

       As used in division (F)(H)(6) of this section, "combined 254
company," "electric company," and "telephone company" have the 255
same meanings as in section 5727.01 of the Revised Code.256

       (7) On and after January 1, 2003, items excluded from federal 257
gross income pursuant to section 107 of the Internal Revenue Code;258

       (8) On and after January 1, 2001, compensation paid to a259
nonresident individual to the extent prohibited under section260
718.011 of the Revised Code;261

       (9)(a) Except as provided in division (F)(H)(9)(b) and (c) of 262
this section, an S corporation shareholder's distributive share of 263
net profits of the S corporation, other than any part of the264
distributive share of net profits that represents wages as defined 265
in section 3121(a) of the Internal Revenue Code or net earnings 266
from self-employment as defined in section 1402(a) of the Internal 267
Revenue Code.268

       (b) If, pursuant to division (H) of former section 718.01 of 269
the Revised Code as it existed before March 11,2004 11, 2004, a 270
majority of the electors of a municipal corporation voted in 271
favor of the question at an election held on November 4, 2003, 272
the municipal corporation may continue after 2002 to tax an S 273
corporation shareholder's distributive share of net profits of an 274
S corporation.275

        (c) If, on December 6, 2002, a municipal corporation was 276
imposing, assessing, and collecting a tax on an S corporation 277
shareholder's distributive share of net profits of the S 278
corporation to the extent the distributive share would be 279
allocated or apportioned to this state under divisions (B)(1) and 280
(2) of section 5733.05 of the Revised Code if the S corporation 281
were a corporation subject to taxes imposed under Chapter 5733. of 282
the Revised Code, the municipal corporation may continue to impose 283
the tax on such distributive shares to the extent such shares 284
would be so allocated or apportioned to this state only until 285
December 31, 2004, unless a majority of the electors of the 286
municipal corporation voting on the question of continuing to tax 287
such shares after that date vote in favor of that question at an 288
election held November 2, 2004. If a majority of those electors 289
vote in favor of the question, the municipal corporation may 290
continue after December 31, 2004, to impose the tax on such 291
distributive shares only to the extent such shares would be so 292
allocated or apportioned to this state.293

       (d) For the purposes of division (D) of section 718.14 of the 294
Revised Code, a municipal corporation shall be deemed to have 295
elected to tax S corporation shareholders' distributive shares of 296
net profits of the S corporation in the hands of the shareholders 297
if a majority of the electors of a municipal corporation vote in 298
favor of a question at an election held under division 299
(F)(H)(9)(b) or (c) of this section. The municipal corporation 300
shall specify by ordinance or rule that the tax applies to the 301
distributive share of a shareholder of an S corporation in the 302
hands of the shareholder of the S corporation.303

       (10) Employee compensation that is not "qualifying wages" as 304
defined in section 718.03 of the Revised Code;305

        (11) Beginning August 1, 2007, compensation paid to a person 306
employed within the boundaries of a United States air force base 307
under the jurisdiction of the United States air force that is 308
used for the housing of members of the United States air force and 309
is a center for air force operations, unless the person is 310
subject to taxation because of residence or domicile. If the 311
compensation is subject to taxation because of residence or 312
domicile, municipal income tax shall be payable only to the 313
municipal corporation of residence or domicile.314

       (G)(I) Any municipal corporation that taxes any type of315
intangible income on March 29, 1988, pursuant to Section 3 of316
Amended Substitute Senate Bill No. 238 of the 116th general317
assembly, may continue to tax that type of income after 1988 if a318
majority of the electors of the municipal corporation voting on319
the question of whether to permit the taxation of that type of320
intangible income after 1988 vote in favor thereof at an election321
held on November 8, 1988.322

       (H)(J) Nothing in this section or section 718.02 of the 323
Revised Code shall authorize the levy of any tax on income that a324
municipal corporation is not authorized to levy under existing325
laws or shall require a municipal corporation to allow a deduction326
from taxable income for losses incurred from a sole proprietorship327
or partnership.328

       (I)(K)(1) Nothing in this chapter prohibits a municipal 329
corporation from allowing, by resolution or ordinance, a net 330
operating loss carryforward.331

        (2) Nothing in this chapter requires a municipal corporation 332
to allow a net operating loss carryforward.333

       (J)(L)(1) A single member limited liability company that is a 334
disregarded entity for federal tax purposes may elect to be a 335
separate taxpayer from its single member in all Ohio municipal 336
corporations in which it either filed as a separate taxpayer or 337
did not file for its taxable year ending in 2003, if all of the 338
following conditions are met:339

       (a) The limited liability company's single member is also a 340
limited liability company;341

       (b) The limited liability company and its single member were 342
formed and doing business in one or more Ohio municipal 343
corporations for at least five years before January 1, 2004;344

       (c) Not later than December 31, 2004, the limited liability 345
company and its single member each make an election to be treated 346
as a separate taxpayer under division (J)(L) of this section;347

       (d) The limited liability company was not formed for the 348
purpose of evading or reducing Ohio municipal corporation income 349
tax liability of the limited liability company or its single 350
member;351

       (e) The Ohio municipal corporation that is the primary place 352
of business of the sole member of the limited liability company 353
consents to the election.354

       (2) For purposes of division (J)(L)(1)(e) of this section, a 355
municipal corporation is the primary place of business of a 356
limited liability company if, for the limited liability company's 357
taxable year ending in 2003, its income tax liability is greater 358
in that municipal corporation than in any other municipal 359
corporation in Ohio, and that tax liability to that municipal 360
corporation for its taxable year ending in 2003 is at least four 361
hundred thousand dollars.362

       Sec. 718.02.  This section does not apply to taxpayers that 363
are subject to and required to file reports under Chapter 5745. of 364
the Revised Code.365

       (A) Except as otherwise provided in division (D) of this 366
section, net profit from a business or profession conducted both367
within and without the boundaries of a municipal corporation shall368
be considered as having a taxable situs in such municipal369
corporation for purposes of municipal income taxation in the same370
proportion as the average ratio of the following:371

       (1) The average original cost of the real and tangible372
personal property owned or used by the taxpayer in the business or373
profession in such municipal corporation during the taxable period374
to the average original cost of all of the real and tangible375
personal property owned or used by the taxpayer in the business or376
profession during the same period, wherever situated.377

       As used in the preceding paragraph, real property shall378
include property rented or leased by the taxpayer and the value of379
such property shall be determined by multiplying the annual rental380
thereon by eight;381

       (2) Wages, salaries, and other compensation paid during the382
taxable period to persons employed in the business or profession383
for services performed in such municipal corporation to wages,384
salaries, and other compensation paid during the same period to385
persons employed in the business or profession, wherever their386
services are performed, excluding compensation that is not taxable387
by the municipal corporation under section 718.011 of the Revised388
Code;389

       (3) Gross receipts of the business or profession from sales390
made and services performed during the taxable period in such391
municipal corporation to gross receipts of the business or392
profession during the same period from sales and services,393
wherever made or performed.394

       If the foregoing apportionment formula does not produce an395
equitable result, another basis may be substituted, under uniform396
regulations, so as to produce an equitable result.397

       (B) As used in division (A) of this section, "sales made in a 398
municipal corporation" mean:399

       (1) All sales of tangible personal property delivered within400
such municipal corporation regardless of where title passes if401
shipped or delivered from a stock of goods within such municipal402
corporation;403

       (2) All sales of tangible personal property delivered within404
such municipal corporation regardless of where title passes even405
though transported from a point outside such municipal corporation406
if the taxpayer is regularly engaged through its own employees in407
the solicitation or promotion of sales within such municipal408
corporation and the sales result from such solicitation or409
promotion;410

       (3) All sales of tangible personal property shipped from a411
place within such municipal corporation to purchasers outside such412
municipal corporation regardless of where title passes if the413
taxpayer is not, through its own employees, regularly engaged in414
the solicitation or promotion of sales at the place where delivery415
is made.416

       (C) Except as otherwise provided in division (D) of this 417
section, net profit from rental activity not constituting a 418
business or profession shall be subject to tax only by the 419
municipal corporation in which the property generating the net 420
profit is located.421

        (D) This section does not apply to individuals who are 422
residents of the municipal corporation and, except as otherwise 423
provided in section 718.01 of the Revised Code, a municipal 424
corporation may impose a tax on all income earned by residents of 425
the municipal corporation to the extent allowed by the United 426
States Constitution.427

       (E) If, in computing the taxpayer's adjusted federal taxable 428
income, the taxpayer deducted any amount with respect to a stock 429
option granted to an employee, and if the employee is not required 430
to include in income any amount or any portion thereof because it 431
is exempted from taxation under division (F)(H)(10) of section 432
718.01 of the Revised Code and division (A)(2)(d) of section 433
718.03 of the Revised Code by a municipal corporation to which the 434
taxpayer has apportioned a portion of its net profit, the taxpayer 435
shall add the amount that is exempt from taxation to the 436
taxpayer's net profit that was apportioned to that municipal 437
corporation. In no case shall a taxpayer be required to add to its 438
net profit that was apportioned to that municipal corporation any 439
amount other than the amount upon which the employee would be 440
required to pay tax were the amount related to the stock option 441
not exempted from taxation.442

       This division applies solely for the purpose of making an 443
adjustment to the amount of a taxpayer's net profit that was 444
apportioned to a municipal corporation under divisions (A) and (B) 445
of this section.446

       Sec. 4763.16.  (A) The real estate appraiser recovery fund is 447
hereby created in the state treasury, to be administered by the 448
superintendent of real estate. The treasurer of state shall credit 449
to the fund amounts collected by the superintendent as prescribed 450
in this section and interest earned on the assets of the fund. The 451
superintendent shall ascertain the balance of the fund as of the 452
first day of October of each year. If that balance is less than 453
five hundred thousand dollars, the director of budget and 454
management, upon the request of the superintendent, may transfer 455
from the real estate appraiser operating fund to the real estate 456
appraiser recovery fund a sum as will bring the real estate 457
appraiser recovery fund to that amount.458

       (B) When any person, except a bonding or insurance company or 459
any partnership, corporation, or association employing a person 460
licensed, registered, or certified under this chapter as part of 461
its usual or occasional operations, obtains a final judgment in 462
any court of competent jurisdiction against a certificate holder,463
registrant, or licensee, based upon conduct that is in violation 464
of this chapter or the rules adopted under it, which conduct 465
occurred on or after the date of their certification, 466
registration, or licensure, and that is associated with an act or 467
transaction of a certificate holder, registrant, or licensee 468
specified or comprehended in this chapter, that person may file a 469
verified complaint, as described in this division, in anythe 470
Franklin county court of common pleas for an order directing 471
payment out of the real estate appraiser recovery fund of the 472
portion of the judgment that remains unpaid and that represents 473
the actual and direct loss of the person for the act or 474
transaction upon which the underlying judgment was based, and 475
court costs, if awarded in the underlying judgment, provided that 476
no person shall receive more than ten thousand dollars from the 477
fund for any one judgment. A bonding or insurance company or any 478
partnership, corporation, or association that uses any tool to 479
develop a valuation of real property for purposes of a loan or 480
that employs, retains, or engages as an independent contractor a 481
person licensed, registered, or certified as a real estate 482
appraiser in its usual or occasional operations may not seek an 483
order directing, and is not eligible for, payment out of the fund.484
Punitive or exemplary damages are not recoverable from the fund.485

       The complaint shall specify the nature of the act or486
transaction upon which the underlying judgment was based, the487
activities of the applicant in pursuit of remedies available under 488
law for the collection of judgments, and the amount of the fee 489
paid by the applicant to the certificate holder, registrant, or 490
licensee. The applicant shall attach to the complaint a copy of 491
each pleading and order in the underlying court action.492

       The Franklin county court of common pleas shall order the 493
superintendent to make payments out of the fund when the person 494
seeking the order has shown all of the following:495

       (1) The person has obtained a judgment, as provided in this496
division;497

       (2) All appeals from the judgment have been exhausted and the 498
person has given notice to the superintendent, as required by499
division (C) of this section;500

       (3) The person is not a spouse of the certificate holder,501
registrant, or licensee, or the personal representative of the 502
spouse;503

       (4) The person has diligently pursued the person's remedies 504
against all the certificate holders, registrants, licensees, and 505
all other persons liable to the person in the transaction for 506
which the person seeks recovery from the fund;507

       (5) The person is making a complaint not more than one year508
after termination of all proceedings, including appeals, in509
connection with the judgment.510

       (C) A person who applies to athe Franklin county court of 511
common pleas for an order directing payment out of the fund shall 512
file notice of the complaint with the superintendent. The 513
superintendent shall send notice to the affected certificate 514
holder, registrant, or licensee, where possible. The 515
superintendent may defend the action on behalf of the fund and 516
shall have recourse to all appropriate means of defense and 517
review, including examination of witnesses. The superintendent may 518
move the court at any time to dismiss the complaint when it 519
appears there are no triable issues and the complaint is without 520
merit. The motion may be supported by affidavit of any person 521
having knowledge of the facts and may be made on the basis that 522
the complaint, including the judgment referred to in the 523
complaint, does not form the basis for a meritorious recovery 524
claim, provided that the superintendent shall give written notice 525
to the applicant at least ten days before such motion. The 526
superintendent may, subject to court approval, compromise a claim 527
based upon the complaint of an aggrieved party. The superintendent 528
is not bound by any prior compromise or stipulation of the 529
certificate holder, registrant, or licensee. Upon petition of the 530
superintendent, the court may require all claimants and 531
prospective claimants against one certificate holder, registrant, 532
or licensee to be joined in one action, to the end that the 533
respective rights of all such claimants to the fund may be534
equitably adjudicated and settled.535

       (D) If the superintendent pays from the fund any amount in536
settlement of a claim or toward satisfaction of a judgment against 537
a certificate holder, registrant, or licensee, the certificate, 538
registration, or license of the certificate holder, registrant, or 539
licensee automatically is suspended upon the date of payment from 540
the fund. No certificate, registration, or license that has been 541
suspended pursuant to this division shall be reinstated until the 542
certificate holder, registrant, or licensee has repaid in full, 543
plus interest per annum at the rate specified in division (A) of 544
section 1343.03 of the Revised Code, the amount paid from the fund 545
on the certificate holder's, registrant's, or licensee's account. 546
A discharge in bankruptcy does not relieve a person from the 547
suspension and requirements for reinstatement provided in this 548
section.549

       (E) If, at any time, the money deposited in the fund is550
insufficient to satisfy any duly authorized claim or portion of a551
claim, the superintendent shall, when sufficient money has been552
deposited in the fund, satisfy the unpaid claims or portions, in553
the order that the claims or portions were originally filed, plus554
accumulated interest per annum at the rate specified in division555
(A) of section 1343.03 of the Revised Code.556

       (F) When, upon the order of the court, the superintendent has 557
paid from the fund any sum to the judgment creditor, the558
superintendent is subrogated to all of the rights of the judgment559
creditor to the extent of the amount so paid, and the judgment560
creditor shall assign all of the judgment creditor's right, title,561
and interest in the judgment to the superintendent to the extent 562
of the amount so paid. The superintendent shall deposit in the 563
fund any amount and interest so recovered by the superintendent on 564
the judgment.565

       (G) Nothing contained in this section shall limit the566
authority of the real estate appraiser board to take disciplinary567
action against a certificate holder, registrant, or licensee under 568
other provisions of this chapter. The repayment in full of all569
obligations to the fund by a certificate holder, registrant, or570
licensee does not nullify or modify the effect of any other 571
disciplinary proceeding brought pursuant to this chapter, unless 572
repayment is imposed as a condition in that proceeding.573

       (H) The superintendent shall collect from the fund a service 574
fee in an amount equivalent to the interest rate specified in 575
division (A) of section 1343.03 of the Revised Code multiplied by 576
the annual interest earned on the assets of the fund, to defray 577
the expenses incurred in the administration of the fund.578

       Section 2.  That existing sections 718.01, 718.02, and 579
4763.16 of the Revised Code are hereby repealed.580

       Section 3. The amendment by this act of sections 718.01 and 581
718.02 of the Revised Code applies to taxable years beginning on 582
or after January 1, 2008.583

       Section 4. Notwithstanding section 6101.34 of the Revised 584
Code, the owner of a parcel of land that is located in a 585
conservancy district that includes all or parts of more than 586
sixteen counties, on which parcel an assessment was levied under 587
section 6101.48 or 6101.53 of the Revised Code after January 1, 588
2007, who filed an exception to the assessment, which exception 589
was denied, may have the denial reviewed in the Supreme Court so 590
long as a notice of appeal is filed in the Supreme Court not later 591
than thirty days after the effective date of this section.592

       Section 5. Notwithstanding Chapter 6101. of the Revised Code, 593
beginning on the effective date of this section and until January 594
1, 2009, the board of directors of a conservancy district 595
established under Chapter 6101. of the Revised Code that includes 596
all or parts of more than sixteen counties shall not levy or 597
collect an assessment under section 6101.48 or 6101.53 of the 598
Revised Code.599

       Notwithstanding Chapter 6101. of the Revised Code, beginning 600
on the effective date of this section and until January 1, 2009, a 601
county treasurer shall not collect an assessment levied under 602
section 6101.48 or 6101.53 of the Revised Code by a conservancy 603
district that includes all or parts of more than sixteen counties. 604
If necessary, a county treasurer shall revise applicable tax 605
bills. A parcel of land on which such an assessment is levied is 606
not liable for such an assessment.607

       Section 6. Sections 5, 6, and 7 of this act imply the intent 608
that the General Assembly will evaluate, with respect to a 609
conservancy district established under Chapter 6101. of the 610
Revised Code that includes all or parts of more than sixteen 611
counties, the composition of the board of directors, the duties of 612
the board of directors, the levying and collection of an 613
assessment in the district, and the economic burden on the 614
citizens in the district in order to determine whether the General 615
Assembly should enact legislation by June 30, 2008, to revise the 616
statutes governing such directors, such directors' duties, and the 617
levying and collection of an assessment in such a district.618

       Section 7.  (A) Notwithstanding division (E) of section 619
3704.14 of the Revised Code, the Governor, by executive order, may 620
extend through June 30, 2008, the enhanced motor vehicle 621
inspection and maintenance program that is operating on the 622
effective date of this section in certain counties in this state. 623
In addition, the Governor, by executive order, may extend the 624
terms of any contract concerning that program in those counties 625
through June 30, 2008.626

       (B) If the Governor, in consultation with the Director of 627
Environmental Protection, determines that the implementation of 628
the enhanced motor vehicle inspection and maintenance program 629
referred to in division (A) of this section is necessary for the 630
state to effectively comply with the requirements of the federal 631
Clean Air Act after June 30, 2008, the Governor, by executive 632
order, may order the program to be implemented from July 1, 2008, 633
through June 30, 2009. The Director of Environmental Protection 634
shall select a vendor to operate the program during that time 635
period via a competitive selection process pursuant to Chapter 636
125. of the Revised Code. Upon the selection of a vendor by the 637
Director, the Governor, by executive order, shall authorize the 638
Director to enter into a contract with that vendor to operate the 639
enhanced program through June 30, 2009.640

       (C) Implementation of this section depends upon a previously 641
made appropriation of money for current expenses of state 642
government. Therefore, under Ohio Constitution, Article II, 643
Section 1d, this section goes into immediate effect.644

       Section 8. This act is hereby declared to be an emergency 645
measure necessary for the immediate preservation of the public 646
peace, health, and safety. The reason for such necessity is that 647
immediate action is needed to clarify the entities that may file 648
complaints for payments out of the Real Estate Appraiser Recovery 649
Fund; and the delay in the levying or collection of an assessment 650
by the board of directors of a conservancy district that includes 651
all or parts of more than sixteen counties is necessary to provide 652
additional time for the General Assembly to evaluate the levying 653
and collection of an assessment by such a district in order to 654
prevent the citizens of this state who reside in such a district 655
from being subject to an undue economic burden. Therefore, this 656
act shall go into immediate effect.657