As Introduced

127th General Assembly
Regular Session
2007-2008
H. B. No. 397


Representatives Szollosi, Wagoner 

Cosponsors: Representatives Dyer, Barrett, Okey, McGregor, J., Evans, Yuko, Harwood, Mallory, Brown, Williams, S., Patton, Stebelton 



A BILL
To amend section 4123.01 of the Revised Code to 1
exempt individuals covered under the federal 2
Longshore and Harbor Workers' Compensation Act 3
from coverage under Ohio's Workers' Compensation 4
Law unless an employer elects to provide such 5
coverage.6


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

       Section 1. That section 4123.01 of the Revised Code be 7
amended to read as follows:8

       Sec. 4123.01.  As used in this chapter:9

       (A)(1) "Employee" means:10

       (a) Every person in the service of the state, or of any11
county, municipal corporation, township, or school district12
therein, including regular members of lawfully constituted police13
and fire departments of municipal corporations and townships,14
whether paid or volunteer, and wherever serving within the state15
or on temporary assignment outside thereof, and executive officers16
of boards of education, under any appointment or contract of hire,17
express or implied, oral or written, including any elected18
official of the state, or of any county, municipal corporation, or19
township, or members of boards of education.20

       As used in division (A)(1)(a) of this section, the term 21
"employee" includes the following persons when responding to an 22
inherently dangerous situation that calls for an immediate 23
response on the part of the person, regardless of whether the 24
person is within the limits of the jurisdiction of the person's 25
regular employment or voluntary service when responding, on the 26
condition that the person responds to the situation as the person 27
otherwise would if the person were on duty in the person's28
jurisdiction:29

       (i) Off-duty peace officers. As used in division (A)(1)(a)(i) 30
of this section, "peace officer" has the same meaning as in31
section 2935.01 of the Revised Code.32

       (ii) Off-duty firefighters, whether paid or volunteer, of a33
lawfully constituted fire department.34

       (iii) Off-duty first responders, emergency medical35
technicians-basic, emergency medical technicians-intermediate, or36
emergency medical technicians-paramedic, whether paid or37
volunteer, of an ambulance service organization or emergency38
medical service organization pursuant to Chapter 4765. of the39
Revised Code.40

       (b) Every person in the service of any person, firm, or41
private corporation, including any public service corporation,42
that (i) employs one or more persons regularly in the same43
business or in or about the same establishment under any contract44
of hire, express or implied, oral or written, including aliens and45
minors, household workers who earn one hundred sixty dollars or46
more in cash in any calendar quarter from a single household and47
casual workers who earn one hundred sixty dollars or more in cash48
in any calendar quarter from a single employer, or (ii) is bound49
by any such contract of hire or by any other written contract, to50
pay into the state insurance fund the premiums provided by this51
chapter.52

       (c) Every person who performs labor or provides services53
pursuant to a construction contract, as defined in section 4123.7954
of the Revised Code, if at least ten of the following criteria55
apply:56

       (i) The person is required to comply with instructions from57
the other contracting party regarding the manner or method of58
performing services;59

       (ii) The person is required by the other contracting party to 60
have particular training;61

       (iii) The person's services are integrated into the regular62
functioning of the other contracting party;63

       (iv) The person is required to perform the work personally;64

       (v) The person is hired, supervised, or paid by the other65
contracting party;66

       (vi) A continuing relationship exists between the person and67
the other contracting party that contemplates continuing or68
recurring work even if the work is not full time;69

       (vii) The person's hours of work are established by the other 70
contracting party;71

       (viii) The person is required to devote full time to the72
business of the other contracting party;73

       (ix) The person is required to perform the work on the74
premises of the other contracting party;75

       (x) The person is required to follow the order of work set by 76
the other contracting party;77

       (xi) The person is required to make oral or written reports78
of progress to the other contracting party;79

       (xii) The person is paid for services on a regular basis such 80
as hourly, weekly, or monthly;81

       (xiii) The person's expenses are paid for by the other82
contracting party;83

       (xiv) The person's tools and materials are furnished by the84
other contracting party;85

       (xv) The person is provided with the facilities used to86
perform services;87

       (xvi) The person does not realize a profit or suffer a loss88
as a result of the services provided;89

       (xvii) The person is not performing services for a number of90
employers at the same time;91

       (xviii) The person does not make the same services available92
to the general public;93

       (xix) The other contracting party has a right to discharge94
the person;95

       (xx) The person has the right to end the relationship with96
the other contracting party without incurring liability pursuant97
to an employment contract or agreement.98

       Every person in the service of any independent contractor or99
subcontractor who has failed to pay into the state insurance fund100
the amount of premium determined and fixed by the administrator of101
workers' compensation for the person's employment or occupation or102
if a self-insuring employer has failed to pay compensation and103
benefits directly to the employer's injured and to the dependents104
of the employer's killed employees as required by section 4123.35105
of the Revised Code, shall be considered as the employee of the106
person who has entered into a contract, whether written or verbal,107
with such independent contractor unless such employees or their108
legal representatives or beneficiaries elect, after injury or109
death, to regard such independent contractor as the employer.110

       (2) "Employee" does not mean:111

       (a) A duly ordained, commissioned, or licensed minister or112
assistant or associate minister of a church in the exercise of113
ministry;114

       (b) Any officer of a family farm corporation;115

       (c) An individual incorporated as a corporation; or116

        (d) An individual who otherwise is an employee of an employer 117
but who signs the waiver and affidavit specified in section 118
4123.15 of the Revised Code on the condition that the 119
administrator has granted a waiver and exception to the 120
individual's employer under section 4123.15 of the Revised Code;121

       (e) An individual who is covered under the federal "Longshore 122
and Harbor Workers' Compensation Act," 98 Stat. 1639, 33 U.S.C. 123
901 et seq.124

       Any employer may elect to include as an "employee" within125
this chapter, any person excluded from the definition of126
"employee" pursuant to division (A)(2) of this section. If an127
employer is a partnership, sole proprietorship, individual 128
incorporated as a corporation, or family farm corporation, such 129
employer may elect to include as an "employee" within this 130
chapter, any member of such partnership, the owner of the sole 131
proprietorship, the individual incorporated as a corporation, or 132
the officers of the family farm corporation. In the event of an 133
election, the employer shall serve upon the bureau of workers' 134
compensation written notice naming the persons to be covered, 135
include such employee's remuneration for premium purposes in all 136
future payroll reports, and no person excluded from the definition 137
of "employee" pursuant to division (A)(2) of this section, 138
proprietor, individual incorporated as a corporation, or partner 139
shall be deemed an employee within this division until the 140
employer has served such notice.141

       For informational purposes only, the bureau shall prescribe142
such language as it considers appropriate, on such of its forms as143
it considers appropriate, to advise employers of their right to144
elect to include as an "employee" within this chapter a sole145
proprietor, any member of a partnership, an individual 146
incorporated as a corporation, the officers of a family farm 147
corporation, or a person excluded from the definition of148
"employee" under division (A)(2) of this section, that they149
should check any health and disability insurance policy, or other150
form of health and disability plan or contract, presently 151
covering them, or the purchase of which they may be considering, 152
to determine whether such policy, plan, or contract excludes 153
benefits for illness or injury that they might have elected to 154
have covered by workers' compensation.155

       (B) "Employer" means:156

       (1) The state, including state hospitals, each county,157
municipal corporation, township, school district, and hospital158
owned by a political subdivision or subdivisions other than the159
state;160

       (2) Every person, firm, professional employer organization as 161
defined in section 4125.01 of the Revised Code, and private 162
corporation, including any public service corporation, that (a) 163
has in service one or more employees or shared employees regularly 164
in the same business or in or about the same establishment under 165
any contract of hire, express or implied, oral or written, or (b) 166
is bound by any such contract of hire or by any other written 167
contract, to pay into the insurance fund the premiums provided by 168
this chapter.169

       All such employers are subject to this chapter. Any member of 170
a firm or association, who regularly performs manual labor in or 171
about a mine, factory, or other establishment, including a172
household establishment, shall be considered an employee in173
determining whether such person, firm, or private corporation, or174
public service corporation, has in its service, one or more175
employees and the employer shall report the income derived from176
such labor to the bureau as part of the payroll of such employer,177
and such member shall thereupon be entitled to all the benefits of178
an employee.179

       (C) "Injury" includes any injury, whether caused by external180
accidental means or accidental in character and result, received181
in the course of, and arising out of, the injured employee's182
employment. "Injury" does not include:183

       (1) Psychiatric conditions except where the claimant's 184
psychiatric conditions have arisen from an injury or occupational 185
disease sustained by that claimant or where the claimant's 186
psychiatric conditions have arisen from sexual conduct in which 187
the claimant was forced by threat of physical harm to engage or 188
participate;189

       (2) Injury or disability caused primarily by the natural190
deterioration of tissue, an organ, or part of the body;191

       (3) Injury or disability incurred in voluntary participation192
in an employer-sponsored recreation or fitness activity if the193
employee signs a waiver of the employee's right to compensation or194
benefits under this chapter prior to engaging in the recreation or195
fitness activity;196

       (4) A condition that pre-existed an injury unless that 197
pre-existing condition is substantially aggravated by the injury. 198
Such a substantial aggravation must be documented by objective 199
diagnostic findings, objective clinical findings, or objective 200
test results. Subjective complaints may be evidence of such a 201
substantial aggravation. However, subjective complaints without 202
objective diagnostic findings, objective clinical findings, or 203
objective test results are insufficient to substantiate a 204
substantial aggravation.205

       (D) "Child" includes a posthumous child and a child legally206
adopted prior to the injury.207

       (E) "Family farm corporation" means a corporation founded for 208
the purpose of farming agricultural land in which the majority of 209
the voting stock is held by and the majority of the stockholders 210
are persons or the spouse of persons related to each other within 211
the fourth degree of kinship, according to the rules of the civil 212
law, and at least one of the related persons is residing on or 213
actively operating the farm, and none of whose stockholders are a 214
corporation. A family farm corporation does not cease to qualify 215
under this division where, by reason of any devise, bequest, or 216
the operation of the laws of descent or distribution, the 217
ownership of shares of voting stock is transferred to another 218
person, as long as that person is within the degree of kinship 219
stipulated in this division.220

       (F) "Occupational disease" means a disease contracted in the221
course of employment, which by its causes and the characteristics222
of its manifestation or the condition of the employment results in223
a hazard which distinguishes the employment in character from224
employment generally, and the employment creates a risk of225
contracting the disease in greater degree and in a different226
manner from the public in general.227

       (G) "Self-insuring employer" means an employer who is granted 228
the privilege of paying compensation and benefits directly under 229
section 4123.35 of the Revised Code, including a board of county 230
commissioners for the sole purpose of constructing a sports231
facility as defined in section 307.696 of the Revised Code,232
provided that the electors of the county in which the sports233
facility is to be built have approved construction of a sports234
facility by ballot election no later than November 6, 1997.235

       (H) "Public employer" means an employer as defined in236
division (B)(1) of this section.237

       (I) "Sexual conduct" means vaginal intercourse between a male 238
and female; anal intercourse, fellatio, and cunnilingus between 239
persons regardless of gender; and, without privilege to do so, the 240
insertion, however slight, of any part of the body or any 241
instrument, apparatus, or other object into the vaginal or anal 242
cavity of another. Penetration, however slight, is sufficient to 243
complete vaginal or anal intercourse.244

       Section 2. That existing section 4123.01 of the Revised Code 245
is hereby repealed.246

       Section 3. This act applies to all claims pursuant to 247
Chapters 4121., 4123., 4127., and 4131. of the Revised Code 248
arising on and after the effective date of this act.249