As Reported by the Senate Ways and Means and Economic Development Committee

127th General Assembly
Regular Session
2007-2008
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 Spada, Amstutz 

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, and 14
to declare an emergency.15


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 16
Revised Code be amended to read as follows:17

       Sec. 718.01.  (A) As used in this chapter:18

       (1) "Adjusted federal taxable income" means a C corporation's 19
federal taxable income before net operating losses and special 20
deductions as determined under the Internal Revenue Code, adjusted 21
as follows:22

       (a) Deduct intangible income to the extent included in 23
federal taxable income. The deduction shall be allowed regardless 24
of whether the intangible income relates to assets used in a trade 25
or business or assets held for the production of income.26

       (b) Add an amount equal to five per cent of intangible income 27
deducted under division (A)(1)(a) of this section, but excluding 28
that portion of intangible income directly related to the sale, 29
exchange, or other disposition of property described in section 30
1221 of the Internal Revenue Code;31

       (c) Add any losses allowed as a deduction in the computation 32
of federal taxable income if the losses directly relate to the 33
sale, exchange, or other disposition of an asset described in 34
section 1221 or 1231 of the Internal Revenue Code;35

       (d)(i) Except as provided in division (A)(1)(d)(ii) of this 36
section, deduct income and gain included in federal taxable income 37
to the extent the income and gain directly relate to the sale, 38
exchange, or other disposition of an asset described in section 39
1221 or 1231 of the Internal Revenue Code;40

        (ii) Division (A)(1)(d)(i) of this section does not apply to 41
the extent the income or gain is income or gain described in 42
section 1245 or 1250 of the Internal Revenue Code.43

        (e) Add taxes on or measured by net income allowed as a 44
deduction in the computation of federal taxable income;45

        (f) In the case of a real estate investment trust and 46
regulated investment company, add all amounts with respect to 47
dividends to, distributions to, or amounts set aside for or 48
credited to the benefit of investors and allowed as a deduction in 49
the computation of federal taxable income;50

        (g) If the taxpayer is not a C corporation and is not an 51
individual, the taxpayer shall compute adjusted federal taxable 52
income as if the taxpayer were a C corporation, except:53

        (i) Guaranteed payments and other similar amounts paid or 54
accrued to a partner, former partner, member, or former member 55
shall not be allowed as a deductible expense; and56

        (ii) Amounts paid or accrued to a qualified self-employed 57
retirement plan with respect to an owner or owner-employee of the 58
taxpayer, amounts paid or accrued to or for health insurance for 59
an owner or owner-employee, and amounts paid or accrued to or for 60
life insurance for an owner or owner-employee shall not be allowed 61
as a deduction.62

        Nothing in division (A)(1) of this section shall be construed 63
as allowing the taxpayer to add or deduct any amount more than 64
once or shall be construed as allowing any taxpayer to deduct any 65
amount paid to or accrued for purposes of federal self-employment 66
tax.67

        Nothing in this chapter shall be construed as limiting or 68
removing the ability of any municipal corporation to administer, 69
audit, and enforce the provisions of its municipal income tax.70

       (2) "Internal Revenue Code" means the Internal Revenue Code71
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.72

       (3) "Schedule C" means internal revenue service schedule C73
filed by a taxpayer pursuant to the Internal Revenue Code.74

       (4) "Form 2106" means internal revenue service form 210675
filed by a taxpayer pursuant to the Internal Revenue Code.76

       (5) "Intangible income" means income of any of the following77
types: income yield, interest, capital gains, dividends, or other 78
income arising from the ownership, sale, exchange, or other 79
disposition of intangible property including, but not limited to, 80
investments, deposits, money, or credits as those terms are81
defined in Chapter 5701. of the Revised Code, and patents, 82
copyrights, trademarks, tradenames, investments in real estate 83
investment trusts, investments in regulated investment companies, 84
and appreciation on deferred compensation. "Intangible income" 85
does not include prizes, awards, or other income associated with 86
any lottery winnings or other similar games of chance.87

       (6) "S corporation" means a corporation that has made an88
election under subchapter S of Chapter 1 of Subtitle A of the89
Internal Revenue Code for its taxable year.90

       (7) For taxable years beginning on or after January 1, 2004, 91
"net profit" for a taxpayer other than an individual means 92
adjusted federal taxable income and "net profit" for a taxpayer 93
who is an individual means the individual's profit, other than 94
amounts described in division (F) of this section, required to be 95
reported on schedule C, schedule E, or schedule F, other than any 96
amount allowed as a deduction under division (E)(2) or (3) of this 97
section or amounts described in division (H) of this section.98

       (8) "Taxpayer" means a person subject to a tax on income 99
levied by a municipal corporation. Except as provided in division 100
(J)(L) of this section, "taxpayer" does not include any person 101
that is a disregarded entity or a qualifying subchapter S 102
subsidiary for federal income tax purposes, but "taxpayer" 103
includes any other person who owns the disregarded entity or 104
qualifying subchapter S subsidiary.105

       (9) "Taxable year" means the corresponding tax reporting 106
period as prescribed for the taxpayer under the Internal Revenue 107
Code.108

       (10) "Tax administrator" means the individual charged with 109
direct responsibility for administration of a tax on income levied 110
by a municipal corporation and includes:111

        (a) The central collection agency and the regional income tax 112
agency and their successors in interest, and other entities 113
organized to perform functions similar to those performed by the 114
central collection agency and the regional income tax agency;115

        (b) A municipal corporation acting as the agent of another 116
municipal corporation; and117

        (c) Persons retained by a municipal corporation to administer 118
a tax levied by the municipal corporation, but only if the 119
municipal corporation does not compensate the person in whole or 120
in part on a contingency basis.121

        (11) "Person" includes individuals, firms, companies, 122
business trusts, estates, trusts, partnerships, limited liability 123
companies, associations, corporations, governmental entities, and 124
any other entity.125

        (12) "Schedule E" means internal revenue service schedule E 126
filed by a taxpayer pursuant to the Internal Revenue Code.127

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

       (B) No municipal corporation shall tax income at other than 130
a uniform rate.131

       (C) No municipal corporation shall levy a tax on income at a132
rate in excess of one per cent without having obtained the133
approval of the excess by a majority of the electors of the134
municipality voting on the question at a general, primary, or135
special election. The legislative authority of the municipal136
corporation shall file with the board of elections at least137
seventy-five days before the day of the election a copy of the138
ordinance together with a resolution specifying the date the139
election is to be held and directing the board of elections to140
conduct the election. The ballot shall be in the following form:141
"Shall the Ordinance providing for a ... per cent levy on income142
for (Brief description of the purpose of the proposed levy) be143
passed?144

        145

 FOR THE INCOME TAX 146
 AGAINST THE INCOME TAX  " 147

        148

       In the event of an affirmative vote, the proceeds of the levy149
may be used only for the specified purpose.150

       (D)(1) Except as otherwise provided in division (E) or (F) of151
this section, no municipal corporation shall exempt from a tax on152
income compensation for personal services of individuals over153
eighteen years of age or the net profit from a business or154
profession.155

       (2)(a) For taxable years beginning on or after January 1, 156
2004, no municipal corporation shall tax the net profit from a 157
business or profession using any base other than the taxpayer's 158
adjusted federal taxable income.159

       (b) Division (D)(2)(a) of this section does not apply to any 160
taxpayer required to file a return under section 5745.03 of the 161
Revised Code or to the net profit from a sole proprietorship.162

       (E)(1) The legislative authority of a municipal corporation 163
may, by ordinance or resolution, exempt from withholding and from 164
a tax on income the following:165

       (1)(a) Compensation arising from the sale, exchange, or other 166
disposition of a stock option, the exercise of a stock option, or 167
the sale, exchange, or other disposition of stock purchased under 168
a stock option; or169

       (2)(b) Compensation attributable to a nonqualified deferred 170
compensation plan or program described in section 3121(v)(2)(C) of 171
the Internal Revenue Code.172

       (2) The legislative authority of a municipal corporation may 173
adopt an ordinance or resolution that allows a taxpayer who is an 174
individual to deduct, in computing the taxpayer's municipal income 175
tax liability, an amount equal to the aggregate amount the 176
taxpayer paid in cash during the taxable year to a health savings 177
account of the taxpayer, to the extent the taxpayer is entitled to 178
deduct that amount on internal revenue service form 1040.179

       (3) The legislative authority of a municipal corporation may 180
adopt an ordinance or resolution that allows a taxpayer who has a 181
net profit from a business or profession that is operated as a 182
sole proprietorship to deduct from that net profit the amount that 183
the taxpayer paid during the taxable year for medical care 184
insurance premiums for the taxpayer, the taxpayer's spouse, and 185
dependents as defined in section 5747.01 of the Revised Code. The 186
deduction shall be allowed to the same extent the taxpayer is 187
entitled to deduct the premiums on internal revenue service form 188
1040. The deduction allowed under this division shall be net of 189
any related premium refunds, related premium reimbursements, or 190
related insurance premium dividends received by the taxpayer 191
during the taxable year.192

       (F) If an individual's taxable income includes income against193
which the taxpayer has taken a deduction for federal income tax194
purposes as reportable on the taxpayer's form 2106, and against195
which a like deduction has not been allowed by the municipal196
corporation, the municipal corporation shall deduct from the197
taxpayer's taxable income an amount equal to the deduction shown198
on such form allowable against such income, to the extent not199
otherwise so allowed as a deduction by the municipal corporation.200

       (G)(1) In the case of a taxpayer who has a net profit from a 201
business or profession that is operated as a sole proprietorship, 202
no municipal corporation may tax or use as the base for 203
determining the amount of the net profit that shall be considered 204
as having a taxable situs in the municipal corporation, an amount 205
other than the net profit required to be reported by the taxpayer 206
on schedule C or F from such sole proprietorship for the taxable 207
year.208

       (2) In the case of a taxpayer who has a net profit from 209
rental activity required to be reported on schedule E, no 210
municipal corporation may tax or use as the base for determining 211
the amount of the net profit that shall be considered as having a 212
taxable situs in the municipal corporation, an amount other than 213
the net profit from rental activities required to be reported by 214
the taxpayer on schedule E for the taxable year.215

       (F)(H) A municipal corporation shall not tax any of the216
following:217

       (1) The military pay or allowances of members of the armed218
forces of the United States and of members of their reserve219
components, including the Ohio national guard;220

       (2) The income of religious, fraternal, charitable,221
scientific, literary, or educational institutions to the extent222
that such income is derived from tax-exempt real estate,223
tax-exempt tangible or intangible property, or tax-exempt224
activities;225

       (3) Except as otherwise provided in division (G)(I) of this226
section, intangible income;227

       (4) Compensation paid under section 3501.28 or 3501.36 of the 228
Revised Code to a person serving as a precinct election official, 229
to the extent that such compensation does not exceed one thousand 230
dollars annually. Such compensation in excess of one thousand 231
dollars may be subjected to taxation by a municipal corporation. A 232
municipal corporation shall not require the payer of such233
compensation to withhold any tax from that compensation.234

       (5) Compensation paid to an employee of a transit authority,235
regional transit authority, or regional transit commission created236
under Chapter 306. of the Revised Code for operating a transit bus237
or other motor vehicle for the authority or commission in or238
through the municipal corporation, unless the bus or vehicle is239
operated on a regularly scheduled route, the operator is subject240
to such a tax by reason of residence or domicile in the municipal241
corporation, or the headquarters of the authority or commission is242
located within the municipal corporation;243

       (6) The income of a public utility, when that public utility244
is subject to the tax levied under section 5727.24 or 5727.30 of245
the Revised Code, except a municipal corporation may tax the 246
following, subject to Chapter 5745. of the Revised Code:247

       (a) Beginning January 1, 2002, the income of an electric248
company or combined company;249

        (b) Beginning January 1, 2004, the income of a telephone250
company.251

       As used in division (F)(H)(6) of this section, "combined 252
company," "electric company," and "telephone company" have the 253
same meanings as in section 5727.01 of the Revised Code.254

       (7) On and after January 1, 2003, items excluded from federal 255
gross income pursuant to section 107 of the Internal Revenue Code;256

       (8) On and after January 1, 2001, compensation paid to a257
nonresident individual to the extent prohibited under section258
718.011 of the Revised Code;259

       (9)(a) Except as provided in division (F)(H)(9)(b) and (c) of 260
this section, an S corporation shareholder's distributive share of 261
net profits of the S corporation, other than any part of the262
distributive share of net profits that represents wages as defined 263
in section 3121(a) of the Internal Revenue Code or net earnings 264
from self-employment as defined in section 1402(a) of the Internal 265
Revenue Code.266

       (b) If, pursuant to division (H) of former section 718.01 of 267
the Revised Code as it existed before March 11,2004 11, 2004, a 268
majority of the electors of a municipal corporation voted in 269
favor of the question at an election held on November 4, 2003, 270
the municipal corporation may continue after 2002 to tax an S 271
corporation shareholder's distributive share of net profits of an 272
S corporation.273

        (c) If, on December 6, 2002, a municipal corporation was 274
imposing, assessing, and collecting a tax on an S corporation 275
shareholder's distributive share of net profits of the S 276
corporation to the extent the distributive share would be 277
allocated or apportioned to this state under divisions (B)(1) and 278
(2) of section 5733.05 of the Revised Code if the S corporation 279
were a corporation subject to taxes imposed under Chapter 5733. of 280
the Revised Code, the municipal corporation may continue to impose 281
the tax on such distributive shares to the extent such shares 282
would be so allocated or apportioned to this state only until 283
December 31, 2004, unless a majority of the electors of the 284
municipal corporation voting on the question of continuing to tax 285
such shares after that date vote in favor of that question at an 286
election held November 2, 2004. If a majority of those electors 287
vote in favor of the question, the municipal corporation may 288
continue after December 31, 2004, to impose the tax on such 289
distributive shares only to the extent such shares would be so 290
allocated or apportioned to this state.291

       (d) For the purposes of division (D) of section 718.14 of the 292
Revised Code, a municipal corporation shall be deemed to have 293
elected to tax S corporation shareholders' distributive shares of 294
net profits of the S corporation in the hands of the shareholders 295
if a majority of the electors of a municipal corporation vote in 296
favor of a question at an election held under division 297
(F)(H)(9)(b) or (c) of this section. The municipal corporation 298
shall specify by ordinance or rule that the tax applies to the 299
distributive share of a shareholder of an S corporation in the 300
hands of the shareholder of the S corporation.301

       (10) Employee compensation that is not "qualifying wages" as 302
defined in section 718.03 of the Revised Code;303

        (11) Beginning August 1, 2007, compensation paid to a person 304
employed within the boundaries of a United States air force base 305
under the jurisdiction of the United States air force that is 306
used for the housing of members of the United States air force and 307
is a center for air force operations, unless the person is 308
subject to taxation because of residence or domicile. If the 309
compensation is subject to taxation because of residence or 310
domicile, municipal income tax shall be payable only to the 311
municipal corporation of residence or domicile.312

       (G)(I) Any municipal corporation that taxes any type of313
intangible income on March 29, 1988, pursuant to Section 3 of314
Amended Substitute Senate Bill No. 238 of the 116th general315
assembly, may continue to tax that type of income after 1988 if a316
majority of the electors of the municipal corporation voting on317
the question of whether to permit the taxation of that type of318
intangible income after 1988 vote in favor thereof at an election319
held on November 8, 1988.320

       (H)(J) Nothing in this section or section 718.02 of the 321
Revised Code shall authorize the levy of any tax on income that a322
municipal corporation is not authorized to levy under existing323
laws or shall require a municipal corporation to allow a deduction324
from taxable income for losses incurred from a sole proprietorship325
or partnership.326

       (I)(K)(1) Nothing in this chapter prohibits a municipal 327
corporation from allowing, by resolution or ordinance, a net 328
operating loss carryforward.329

        (2) Nothing in this chapter requires a municipal corporation 330
to allow a net operating loss carryforward.331

       (J)(L)(1) A single member limited liability company that is a 332
disregarded entity for federal tax purposes may elect to be a 333
separate taxpayer from its single member in all Ohio municipal 334
corporations in which it either filed as a separate taxpayer or 335
did not file for its taxable year ending in 2003, if all of the 336
following conditions are met:337

       (a) The limited liability company's single member is also a 338
limited liability company;339

       (b) The limited liability company and its single member were 340
formed and doing business in one or more Ohio municipal 341
corporations for at least five years before January 1, 2004;342

       (c) Not later than December 31, 2004, the limited liability 343
company and its single member each make an election to be treated 344
as a separate taxpayer under division (J)(L) of this section;345

       (d) The limited liability company was not formed for the 346
purpose of evading or reducing Ohio municipal corporation income 347
tax liability of the limited liability company or its single 348
member;349

       (e) The Ohio municipal corporation that is the primary place 350
of business of the sole member of the limited liability company 351
consents to the election.352

       (2) For purposes of division (J)(L)(1)(e) of this section, a 353
municipal corporation is the primary place of business of a 354
limited liability company if, for the limited liability company's 355
taxable year ending in 2003, its income tax liability is greater 356
in that municipal corporation than in any other municipal 357
corporation in Ohio, and that tax liability to that municipal 358
corporation for its taxable year ending in 2003 is at least four 359
hundred thousand dollars.360

       Sec. 718.02.  This section does not apply to taxpayers that 361
are subject to and required to file reports under Chapter 5745. of 362
the Revised Code.363

       (A) Except as otherwise provided in division (D) of this 364
section, net profit from a business or profession conducted both365
within and without the boundaries of a municipal corporation shall366
be considered as having a taxable situs in such municipal367
corporation for purposes of municipal income taxation in the same368
proportion as the average ratio of the following:369

       (1) The average original cost of the real and tangible370
personal property owned or used by the taxpayer in the business or371
profession in such municipal corporation during the taxable period372
to the average original cost of all of the real and tangible373
personal property owned or used by the taxpayer in the business or374
profession during the same period, wherever situated.375

       As used in the preceding paragraph, real property shall376
include property rented or leased by the taxpayer and the value of377
such property shall be determined by multiplying the annual rental378
thereon by eight;379

       (2) Wages, salaries, and other compensation paid during the380
taxable period to persons employed in the business or profession381
for services performed in such municipal corporation to wages,382
salaries, and other compensation paid during the same period to383
persons employed in the business or profession, wherever their384
services are performed, excluding compensation that is not taxable385
by the municipal corporation under section 718.011 of the Revised386
Code;387

       (3) Gross receipts of the business or profession from sales388
made and services performed during the taxable period in such389
municipal corporation to gross receipts of the business or390
profession during the same period from sales and services,391
wherever made or performed.392

       If the foregoing apportionment formula does not produce an393
equitable result, another basis may be substituted, under uniform394
regulations, so as to produce an equitable result.395

       (B) As used in division (A) of this section, "sales made in a 396
municipal corporation" mean:397

       (1) All sales of tangible personal property delivered within398
such municipal corporation regardless of where title passes if399
shipped or delivered from a stock of goods within such municipal400
corporation;401

       (2) All sales of tangible personal property delivered within402
such municipal corporation regardless of where title passes even403
though transported from a point outside such municipal corporation404
if the taxpayer is regularly engaged through its own employees in405
the solicitation or promotion of sales within such municipal406
corporation and the sales result from such solicitation or407
promotion;408

       (3) All sales of tangible personal property shipped from a409
place within such municipal corporation to purchasers outside such410
municipal corporation regardless of where title passes if the411
taxpayer is not, through its own employees, regularly engaged in412
the solicitation or promotion of sales at the place where delivery413
is made.414

       (C) Except as otherwise provided in division (D) of this 415
section, net profit from rental activity not constituting a 416
business or profession shall be subject to tax only by the 417
municipal corporation in which the property generating the net 418
profit is located.419

        (D) This section does not apply to individuals who are 420
residents of the municipal corporation and, except as otherwise 421
provided in section 718.01 of the Revised Code, a municipal 422
corporation may impose a tax on all income earned by residents of 423
the municipal corporation to the extent allowed by the United 424
States Constitution.425

       (E) If, in computing the taxpayer's adjusted federal taxable 426
income, the taxpayer deducted any amount with respect to a stock 427
option granted to an employee, and if the employee is not required 428
to include in income any amount or any portion thereof because it 429
is exempted from taxation under division (F)(H)(10) of section 430
718.01 of the Revised Code and division (A)(2)(d) of section 431
718.03 of the Revised Code by a municipal corporation to which the 432
taxpayer has apportioned a portion of its net profit, the taxpayer 433
shall add the amount that is exempt from taxation to the 434
taxpayer's net profit that was apportioned to that municipal 435
corporation. In no case shall a taxpayer be required to add to its 436
net profit that was apportioned to that municipal corporation any 437
amount other than the amount upon which the employee would be 438
required to pay tax were the amount related to the stock option 439
not exempted from taxation.440

       This division applies solely for the purpose of making an 441
adjustment to the amount of a taxpayer's net profit that was 442
apportioned to a municipal corporation under divisions (A) and (B) 443
of this section.444

       Sec. 4763.16.  (A) The real estate appraiser recovery fund is 445
hereby created in the state treasury, to be administered by the 446
superintendent of real estate. The treasurer of state shall credit 447
to the fund amounts collected by the superintendent as prescribed 448
in this section and interest earned on the assets of the fund. The 449
superintendent shall ascertain the balance of the fund as of the 450
first day of October of each year. If that balance is less than 451
five hundred thousand dollars, the director of budget and 452
management, upon the request of the superintendent, may transfer 453
from the real estate appraiser operating fund to the real estate 454
appraiser recovery fund a sum as will bring the real estate 455
appraiser recovery fund to that amount.456

       (B) When any person, except a bonding or insurance company or 457
any partnership, corporation, or association employing a person 458
licensed, registered, or certified under this chapter as part of 459
its usual or occasional operations, obtains a final judgment in 460
any court of competent jurisdiction against a certificate holder,461
registrant, or licensee, based upon conduct that is in violation 462
of this chapter or the rules adopted under it, which conduct 463
occurred on or after the date of their certification, 464
registration, or licensure, and that is associated with an act or 465
transaction of a certificate holder, registrant, or licensee 466
specified or comprehended in this chapter, that person may file a 467
verified complaint, as described in this division, in anythe 468
Franklin county court of common pleas for an order directing 469
payment out of the real estate appraiser recovery fund of the 470
portion of the judgment that remains unpaid and that represents 471
the actual and direct loss of the person for the act or 472
transaction upon which the underlying judgment was based, and 473
court costs, if awarded in the underlying judgment, provided that 474
no person shall receive more than ten thousand dollars from the 475
fund for any one judgment. A bonding or insurance company or any 476
partnership, corporation, or association that uses any tool to 477
develop a valuation of real property for purposes of a loan or 478
that employs, retains, or engages as an independent contractor a 479
person licensed, registered, or certified as a real estate 480
appraiser in its usual or occasional operations may not seek an 481
order directing, and is not eligible for, payment out of the fund.482
Punitive or exemplary damages are not recoverable from the fund.483

       The complaint shall specify the nature of the act or484
transaction upon which the underlying judgment was based, the485
activities of the applicant in pursuit of remedies available under 486
law for the collection of judgments, and the amount of the fee 487
paid by the applicant to the certificate holder, registrant, or 488
licensee. The applicant shall attach to the complaint a copy of 489
each pleading and order in the underlying court action.490

       The Franklin county court of common pleas shall order the 491
superintendent to make payments out of the fund when the person 492
seeking the order has shown all of the following:493

       (1) The person has obtained a judgment, as provided in this494
division;495

       (2) All appeals from the judgment have been exhausted and the 496
person has given notice to the superintendent, as required by497
division (C) of this section;498

       (3) The person is not a spouse of the certificate holder,499
registrant, or licensee, or the personal representative of the 500
spouse;501

       (4) The person has diligently pursued the person's remedies 502
against all the certificate holders, registrants, licensees, and 503
all other persons liable to the person in the transaction for 504
which the person seeks recovery from the fund;505

       (5) The person is making a complaint not more than one year506
after termination of all proceedings, including appeals, in507
connection with the judgment.508

       (C) A person who applies to athe Franklin county court of 509
common pleas for an order directing payment out of the fund shall 510
file notice of the complaint with the superintendent. The 511
superintendent shall send notice to the affected certificate 512
holder, registrant, or licensee, where possible. The 513
superintendent may defend the action on behalf of the fund and 514
shall have recourse to all appropriate means of defense and 515
review, including examination of witnesses. The superintendent may 516
move the court at any time to dismiss the complaint when it 517
appears there are no triable issues and the complaint is without 518
merit. The motion may be supported by affidavit of any person 519
having knowledge of the facts and may be made on the basis that 520
the complaint, including the judgment referred to in the 521
complaint, does not form the basis for a meritorious recovery 522
claim, provided that the superintendent shall give written notice 523
to the applicant at least ten days before such motion. The 524
superintendent may, subject to court approval, compromise a claim 525
based upon the complaint of an aggrieved party. The superintendent 526
is not bound by any prior compromise or stipulation of the 527
certificate holder, registrant, or licensee. Upon petition of the 528
superintendent, the court may require all claimants and 529
prospective claimants against one certificate holder, registrant, 530
or licensee to be joined in one action, to the end that the 531
respective rights of all such claimants to the fund may be532
equitably adjudicated and settled.533

       (D) If the superintendent pays from the fund any amount in534
settlement of a claim or toward satisfaction of a judgment against 535
a certificate holder, registrant, or licensee, the certificate, 536
registration, or license of the certificate holder, registrant, or 537
licensee automatically is suspended upon the date of payment from 538
the fund. No certificate, registration, or license that has been 539
suspended pursuant to this division shall be reinstated until the 540
certificate holder, registrant, or licensee has repaid in full, 541
plus interest per annum at the rate specified in division (A) of 542
section 1343.03 of the Revised Code, the amount paid from the fund 543
on the certificate holder's, registrant's, or licensee's account. 544
A discharge in bankruptcy does not relieve a person from the 545
suspension and requirements for reinstatement provided in this 546
section.547

       (E) If, at any time, the money deposited in the fund is548
insufficient to satisfy any duly authorized claim or portion of a549
claim, the superintendent shall, when sufficient money has been550
deposited in the fund, satisfy the unpaid claims or portions, in551
the order that the claims or portions were originally filed, plus552
accumulated interest per annum at the rate specified in division553
(A) of section 1343.03 of the Revised Code.554

       (F) When, upon the order of the court, the superintendent has 555
paid from the fund any sum to the judgment creditor, the556
superintendent is subrogated to all of the rights of the judgment557
creditor to the extent of the amount so paid, and the judgment558
creditor shall assign all of the judgment creditor's right, title,559
and interest in the judgment to the superintendent to the extent 560
of the amount so paid. The superintendent shall deposit in the 561
fund any amount and interest so recovered by the superintendent on 562
the judgment.563

       (G) Nothing contained in this section shall limit the564
authority of the real estate appraiser board to take disciplinary565
action against a certificate holder, registrant, or licensee under 566
other provisions of this chapter. The repayment in full of all567
obligations to the fund by a certificate holder, registrant, or568
licensee does not nullify or modify the effect of any other 569
disciplinary proceeding brought pursuant to this chapter, unless 570
repayment is imposed as a condition in that proceeding.571

       (H) The superintendent shall collect from the fund a service 572
fee in an amount equivalent to the interest rate specified in 573
division (A) of section 1343.03 of the Revised Code multiplied by 574
the annual interest earned on the assets of the fund, to defray 575
the expenses incurred in the administration of the fund.576

       Section 2.  That existing sections 718.01, 718.02, and 577
4763.16 of the Revised Code are hereby repealed.578

       Section 3. The amendment by this act of sections 718.01 and 579
718.02 of the Revised Code applies to taxable years beginning on 580
or after January 1, 2008.581

       Section 4. Notwithstanding section 6101.34 of the Revised 582
Code, the owner of a parcel of land that is located in a 583
conservancy district that includes all or parts of more than 584
sixteen counties, on which parcel an assessment was levied under 585
section 6101.48 or 6101.53 of the Revised Code after January 1, 586
2007, who filed an exception to the assessment, which exception 587
was denied, may have the denial reviewed in the Supreme Court so 588
long as a notice of appeal is filed in the Supreme Court not later 589
than thirty days after the effective date of this section.590

       Section 5. Notwithstanding Chapter 6101. of the Revised Code, 591
beginning on the effective date of this section and until January 592
1, 2009, the board of directors of a conservancy district 593
established under Chapter 6101. of the Revised Code that includes 594
all or parts of more than sixteen counties shall not levy or 595
collect an assessment under section 6101.48 or 6101.53 of the 596
Revised Code.597

       Notwithstanding Chapter 6101. of the Revised Code, beginning 598
on the effective date of this section and until January 1, 2009, a 599
county treasurer shall not collect an assessment levied under 600
section 6101.48 or 6101.53 of the Revised Code by a conservancy 601
district that includes all or parts of more than sixteen counties. 602
If necessary, a county treasurer shall revise applicable tax 603
bills. A parcel of land on which such an assessment is levied is 604
not liable for such an assessment.605

       Section 6. Sections 5, 6, and 7 of this act imply the intent 606
that the General Assembly will evaluate, with respect to a 607
conservancy district established under Chapter 6101. of the 608
Revised Code that includes all or parts of more than sixteen 609
counties, the composition of the board of directors, the duties of 610
the board of directors, the levying and collection of an 611
assessment in the district, and the economic burden on the 612
citizens in the district in order to determine whether the General 613
Assembly should enact legislation by June 30, 2008, to revise the 614
statutes governing such directors, such directors' duties, and the 615
levying and collection of an assessment in such a district.616

       Section 7. This act is hereby declared to be an emergency 617
measure necessary for the immediate preservation of the public 618
peace, health, and safety. The reason for such necessity is that 619
immediate action is needed to clarify the entities that may file 620
complaints for payments out of the Real Estate Appraiser Recovery 621
Fund; and the delay in the levying or collection of an assessment 622
by the board of directors of a conservancy district that includes 623
all or parts of more than sixteen counties is necessary to provide 624
additional time for the General Assembly to evaluate the levying 625
and collection of an assessment by such a district in order to 626
prevent the citizens of this state who reside in such a district 627
from being subject to an undue economic burden. Therefore, this 628
act shall go into immediate effect.629