As Passed by the Senate

128th General Assembly
Regular Session
2009-2010
Am. Sub. H. B. No. 16


Representative Sykes 

Cosponsors: Representatives Dodd, Letson, Dyer, Phillips, Bolon, Brown, Combs, Domenick, Foley, Gerberry, Goyal, Harris, Heard, Koziura, Luckie, Mallory, Moran, Pryor, Slesnick, Stewart, Szollosi, Weddington, Williams, B., Williams, S., Winburn, Yates, Yuko 

Senators Gillmor, Harris 



A BILL
To amend sections 124.15, 124.18, 124.181, 124.34, 1
124.385, 124.392, 126.05, 2305.24, 2305.25, 2
4121.04, and 4123.511 of the Revised Code to make 3
certain reductions in state employee benefits, to 4
make changes to the Industrial Commission Law, to 5
make operating appropriations for the period 6
beginning July 1, 2009, and ending July 7, 2009, 7
to authorize transfers from the Budget 8
Stabilization Fund in fiscal year 2009, to make 9
certain non-General Revenue Fund appropriations 10
for fiscal year 2010, to make debt service 11
appropriations for the FY 2010-FY 2011 biennium, 12
to make appropriations for the Industrial 13
Commission for the biennium beginning July 1, 14
2009, and ending June 30, 2011, and to provide 15
authorization and conditions for the operation 16
of Commission programs. 17


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

       Section 101. That sections 124.15, 124.18, 124.181, 124.34, 18
124.385, 124.392, 126.05, 2305.24, 2305.25, 4121.04, and 19
4123.511 of the Revised Code be amended to read as follows:20

       Sec. 124.15.  (A) Board and commission members appointed 21
prior to July 1, 1991, shall be paid a salary or wage in 22
accordance with the following schedules of rates:23

Schedule B24

Pay Ranges and Step Values
25

Range Step 1 Step 2 Step 3 Step 4 26
23 Hourly 5.72 5.91 6.10 6.31 27
Annually 11897.60 12292.80 12688.00 13124.80 28
Step 5 Step 6 29
Hourly 6.52 6.75 30
Annually 13561.60 14040.00 31
Step 1 Step 2 Step 3 Step 4 32
24 Hourly 6.00 6.20 6.41 6.63 33
Annually 12480.00 12896.00 13332.80 13790.40 34
Step 5 Step 6 35
Hourly 6.87 7.10 36
Annually 14289.60 14768.00 37
Step 1 Step 2 Step 3 Step 4 38
25 Hourly 6.31 6.52 6.75 6.99 39
Annually 13124.80 13561.60 14040.00 14539.20 40
Step 5 Step 6 41
Hourly 7.23 7.41 42
Annually 15038.40 15412.80 43
Step 1 Step 2 Step 3 Step 4 44
26 Hourly 6.63 6.87 7.10 7.32 45
Annually 13790.40 14289.60 14768.00 15225.60 46
Step 5 Step 6 47
Hourly 7.53 7.77 48
Annually 15662.40 16161.60 49
Step 1 Step 2 Step 3 Step 4 50
27 Hourly 6.99 7.23 7.41 7.64 51
Annually 14534.20 15038.40 15412.80 15891.20 52
Step 5 Step 6 Step 7 53
Hourly 7.88 8.15 8.46 54
Annually 16390.40 16952.00 17596.80 55
Step 1 Step 2 Step 3 Step 4 56
28 Hourly 7.41 7.64 7.88 8.15 57
Annually 15412.80 15891.20 16390.40 16952.00 58
Step 5 Step 6 Step 7 59
Hourly 8.46 8.79 9.15 60
Annually 17596.80 18283.20 19032.00 61
Step 1 Step 2 Step 3 Step 4 62
29 Hourly 7.88 8.15 8.46 8.79 63
Annually 16390.40 16952.00 17596.80 18283.20 64
Step 5 Step 6 Step 7 65
Hourly 9.15 9.58 10.01 66
Annually 19032.00 19926.40 20820.80 67
Step 1 Step 2 Step 3 Step 4 68
30 Hourly 8.46 8.79 9.15 9.58 69
Annually 17596.80 18283.20 19032.00 19926.40 70
Step 5 Step 6 Step 7 71
Hourly 10.01 10.46 10.99 72
Annually 20820.80 21756.80 22859.20 73
Step 1 Step 2 Step 3 Step 4 74
31 Hourly 9.15 9.58 10.01 10.46 75
Annually 19032.00 19962.40 20820.80 21756.80 76
Step 5 Step 6 Step 7 77
Hourly 10.99 11.52 12.09 78
Annually 22859.20 23961.60 25147.20 79
Step 1 Step 2 Step 3 Step 4 80
32 Hourly 10.01 10.46 10.99 11.52 81
Annually 20820.80 21756.80 22859.20 23961.60 82
Step 5 Step 6 Step 7 Step 8 83
Hourly 12.09 12.68 13.29 13.94 84
Annually 25147.20 26374.40 27643.20 28995.20 85
Step 1 Step 2 Step 3 Step 4 86
33 Hourly 10.99 11.52 12.09 12.68 87
Annually 22859.20 23961.60 25147.20 26374.40 88
Step 5 Step 6 Step 7 Step 8 89
Hourly 13.29 13.94 14.63 15.35 90
Annually 27643.20 28995.20 30430.40 31928.00 91
Step 1 Step 2 Step 3 Step 4 92
34 Hourly 12.09 12.68 13.29 13.94 93
Annually 25147.20 26374.40 27643.20 28995.20 94
Step 5 Step 6 Step 7 Step 8 95
Hourly 14.63 15.35 16.11 16.91 96
Annually 30430.40 31928.00 33508.80 35172.80 97
Step 1 Step 2 Step 3 Step 4 98
35 Hourly 13.29 13.94 14.63 15.35 99
Annually 27643.20 28995.20 30430.40 31928.00 100
Step 5 Step 6 Step 7 Step 8 101
Hourly 16.11 16.91 17.73 18.62 102
Annually 33508.80 35172.80 36878.40 38729.60 103
Step 1 Step 2 Step 3 Step 4 104
36 Hourly 14.63 15.35 16.11 16.91 105
Annually 30430.40 31928.00 33508.80 35172.80 106
Step 5 Step 6 Step 7 Step 8 107
Hourly 17.73 18.62 19.54 20.51 108
Annually 36878.40 38729.60 40643.20 42660.80 109

Schedule C110

Pay Range and Values
111

Range Minimum Maximum 112
41 Hourly 10.44 15.72 113
Annually 21715.20 32697.60 114
42 Hourly 11.51 17.35 115
Annually 23940.80 36088.00 116
43 Hourly 12.68 19.12 117
Annually 26374.40 39769.60 118
44 Hourly 13.99 20.87 119
Annually 29099.20 43409.60 120
45 Hourly 15.44 22.80 121
Annually 32115.20 47424.00 122
46 Hourly 17.01 24.90 123
Annually 35380.80 51792.00 124
47 Hourly 18.75 27.18 125
Annually 39000.00 56534.40 126
48 Hourly 20.67 29.69 127
Annually 42993.60 61755.20 128
49 Hourly 22.80 32.06 129
Annually 47424.00 66684.80 130

       (B) The pay schedule of all employees shall be on a biweekly 131
basis, with amounts computed on an hourly basis.132

       (C) Part-time employees shall be compensated on an hourly133
basis for time worked, at the rates shown in division (A) of this134
section or in section 124.152 of the Revised Code.135

       (D) The salary and wage rates in division (A) of this section 136
or in section 124.152 of the Revised Code represent base rates of 137
compensation and may be augmented by the provisions of section 138
124.181 of the Revised Code. In those cases where lodging, meals, 139
laundry, or other personal services are furnished an employee in 140
the service of the state, the actual costs or fair market value of 141
the personal services shall be paid by the employee in such 142
amounts and manner as determined by the director of administrative 143
services and approved by the director of budget and management, 144
and those personal services shall not be considered as a part of 145
the employee's compensation. An appointing authority that appoints 146
employees in the service of the state, with the approval of the 147
director of administrative services and the director of budget and148
management, may establish payments to employees for uniforms,149
tools, equipment, and other requirements of the department and150
payments for the maintenance of them.151

       The director of administrative services may review collective 152
bargaining agreements entered into under Chapter 4117. of the 153
Revised Code that cover employees in the service of the state and 154
determine whether certain benefits or payments provided to the 155
employees covered by those agreements should also be provided to 156
employees in the service of the state who are exempt from 157
collective bargaining coverage and are paid in accordance with 158
section 124.152 of the Revised Code or are listed in division 159
(B)(2) or (4) of section 124.14 of the Revised Code. On completing 160
the review, the director of administrative services, with the 161
approval of the director of budget and management, may provide to 162
some or all of these employees any payment or benefit, except for163
salary, contained in such a collective bargaining agreement even 164
if it is similar to a payment or benefit already provided by law 165
to some or all of these employees. Any payment or benefit so 166
provided shall not exceed the highest level for that payment or 167
benefit specified in such a collective bargaining agreement. The 168
director of administrative services shall not provide, and the 169
director of budget and management shall not approve, any payment 170
or benefit to such an employee under this division unless the 171
payment or benefit is provided pursuant to a collective bargaining 172
agreement to a state employee who is in a position with similar 173
duties as, is supervised by, or is employed by the same appointing 174
authority as, the employee to whom the benefit or payment is to be 175
provided.176

       As used in this division, "payment or benefit already177
provided by law" includes, but is not limited to, bereavement,178
personal, vacation, administrative, and sick leave, disability 179
benefits, holiday pay, and pay supplements provided under the 180
Revised Code, but does not include wages or salary.181

       (E) New employees paid in accordance with schedule B of 182
division (A) of this section or schedule E-1 of section 124.152 of183
the Revised Code shall be employed at the minimum rate established 184
for the range unless otherwise provided. Employees with 185
qualifications that are beyond the minimum normally required for 186
the position and that are determined by the director to be187
exceptional may be employed in, or may be transferred or promoted188
to, a position at an advanced step of the range. Further, in time 189
of a serious labor market condition when it is relatively190
impossible to recruit employees at the minimum rate for a191
particular classification, the entrance rate may be set at an192
advanced step in the range by the director of administrative193
services. This rate may be limited to geographical regions of the 194
state. Appointments made to an advanced step under the provision 195
regarding exceptional qualifications shall not affect the step 196
assignment of employees already serving. However, anytime the 197
hiring rate of an entire classification is advanced to a higher 198
step, all incumbents of that classification being paid at a step 199
lower than that being used for hiring, shall be advanced beginning 200
at the start of the first pay period thereafter to the new hiring 201
rate, and any time accrued at the lower step will be used to 202
calculate advancement to a succeeding step. If the hiring rate of 203
a classification is increased for only a geographical region of 204
the state, only incumbents who work in that geographical region 205
shall be advanced to a higher step. When an employee in the 206
unclassified service changes from one state position to another or 207
is appointed to a position in the classified service, or if an 208
employee in the classified service is appointed to a position in 209
the unclassified service, the employee's salary or wage in the new 210
position shall be determined in the same manner as if the employee 211
were an employee in the classified service. When an employee in 212
the unclassified service who is not eligible for step increases is 213
appointed to a classification in the classified service under214
which step increases are provided, future step increases shall be 215
based on the date on which the employee last received a pay 216
increase. If the employee has not received an increase during the 217
previous year, the date of the appointment to the classified 218
service shall be used to determine the employee's annual step219
advancement eligibility date. In reassigning any employee to a220
classification resulting in a pay range increase or to a new pay 221
range as a result of a promotion, an increase pay range222
adjustment, or other classification change resulting in a pay 223
range increase, the director shall assign such employee to the 224
step in the new pay range that will provide an increase of 225
approximately four per cent if the new pay range can accommodate 226
the increase. When an employee is being assigned to a 227
classification or new pay range as the result of a class plan 228
change, if the employee has completed a probationary period, the 229
employee shall be placed in a step no lower than step two of the 230
new pay range. If the employee has not completed a probationary 231
period, the employee may be placed in step one of the new pay 232
range. Such new salary or wage shall become effective on such date 233
as the director determines.234

       (F) If employment conditions and the urgency of the work235
require such action, the director of administrative services may,236
upon the application of a department head, authorize payment at237
any rate established within the range for the class of work, for238
work of a casual or intermittent nature or on a project basis. 239
Payment at such rates shall not be made to the same individual for 240
more than three calendar months in any one calendar year. Any such 241
action shall be subject to the approval of the director of budget 242
and management as to the availability of funds. This section and 243
sections 124.14 and 124.152 of the Revised Code do not repeal any 244
authority of any department or public official to contract with or 245
fix the compensation of professional persons who may be employed 246
temporarily for work of a casual nature or for work on a project 247
basis.248

       (G)(1) Except as provided in divisiondivisions (G)(2) and 249
(3) of this section, each state employee paid in accordance with 250
schedule B of this section or schedule E-1 of section 124.152 of 251
the Revised Code shall be eligible for advancement to succeeding 252
steps in the range for the employee's class or grade according to 253
the schedule established in this division. Beginning on the first 254
day of the pay period within which the employee completes the 255
prescribed probationary period in the employee's classification 256
with the state, each employee shall receive an automatic salary 257
adjustment equivalent to the next higher step within the pay 258
range for the employee's class or grade.259

       EachExcept as provided in divisions (G)(2) and (3) of this 260
section, each employee paid in accordance with schedule E-1 of 261
section 124.152 of the Revised Code shall be eligible to advance 262
to the next higher step until the employee reaches the top step 263
in the range for the employee's class or grade, if the employee 264
has maintained satisfactory performance in accordance with 265
criteria established by the employee's appointing authority. Those 266
step advancements shall not occur more frequently than once in 267
any twelve-month period.268

       When an employee is promoted or reassigned to a higher pay 269
range, the employee's step indicator shall return to "0" or be 270
adjusted to account for a probationary period, as appropriate.271
When an employee is promoted, the step entry date shall be set to 272
account for a probationary period. When an employee is reassigned 273
to a higher pay range, the step entry date shall be set to allow 274
an employee who is not at the highest step of the range to receive 275
a step advancement one year from the reassignment date. Step 276
advancement shall not be affected by demotion. A promoted 277
employee shall advance to the next higher step of the pay range on 278
the first day of the pay period in which the required probationary 279
period is completed. Step advancement shall become effective at 280
the beginning of the pay period within which the employee attains 281
the necessary length of service. Time spent on authorized leave of 282
absence shall be counted for this purpose.283

       If determined to be in the best interest of the state 284
service, the director of administrative services may, either 285
statewide or in selected agencies, adjust the dates on which 286
annual step advancements are received by employees paid in 287
accordance with schedule E-1 of section 124.152 of the Revised 288
Code.289

       (2)(a)(i) Except as provided in division (G)(2)(a)(ii) of 290
this section, thereThere shall be a moratorium on annual step 291
advancements under division (G)(1) of this section from the pay 292
period beginning June 29, 2003June 21, 2009, through the pay 293
period ending June 25, 2005June 20, 2011. Step advancements 294
shall resume with the pay period beginning June 26, 2005June 21, 295
2011. Upon the resumption of step advancements, there shall be no 296
retroactive step advancements for the period the moratorium was 297
in effect. The moratorium shall not affect an employee's 298
performance evaluation schedule.299

       (ii) During the moratorium under division (G)(2)(a)(i) of 300
this section, an employee who is hired or promoted and serves a 301
probationary period in the employee's new position shall advance 302
to the next step in the employee's pay range upon successful 303
completion of the employee's probationary period. Thereafter, the 304
employee is subject to the moratorium.An employee who begins a 305
probationary period before June 21, 2009, shall advance to the 306
next step in the employee's pay range at the end of probation, and 307
then become subject to the moratorium. An employee who is hired, 308
promoted, or reassigned to a higher pay range between June 21, 309
2009, through June 20, 2011, shall not advance to the next step in 310
the employee's pay range until the next anniversary of the 311
employee's date of hire, promotion, or reassignment that occurs on 312
or after June 21, 2011.313

       (b) The moratorium under division (G)(2)(a)(i) of this 314
section shall apply to the employees of the secretary of state, 315
the auditor of state, the treasurer of state, and the attorney 316
general, who are subject to this section unless the secretary of 317
state, the auditor of state, the treasurer of state, or the 318
attorney general decides to exempt the office's employees from the 319
moratorium and so notifies the director of administrative services 320
in writing on or before July 1, 2003July 1, 2009.321

       (3) Employees in intermittent positions shall be employed at 322
the minimum rate established for the pay range for their 323
classification and are not eligible for step advancements.324

       (H) Employees in appointive managerial or professional325
positions paid in accordance with schedule C of this section or 326
schedule E-2 of section 124.152 of the Revised Code may be327
appointed at any rate within the appropriate pay range. This rate 328
of pay may be adjusted higher or lower within the respective pay 329
range at any time the appointing authority so desires as long as 330
the adjustment is based on the employee's ability to successfully 331
administer those duties assigned to the employee. Salary332
adjustments shall not be made more frequently than once in any333
six-month period under this provision to incumbents holding the334
same position and classification.335

       (I) When an employee is assigned to duty outside this state, 336
the employee may be compensated, upon request of the department 337
head and with the approval of the director of administrative 338
services, at a rate not to exceed fifty per cent in excess of the 339
employee's current base rate for the period of time spent on that 340
duty.341

       (J) Unless compensation for members of a board or commission 342
is otherwise specifically provided by law, the director of 343
administrative services shall establish the rate and method of 344
payment for members of boards and commissions pursuant to the pay 345
schedules listed in section 124.152 of the Revised Code.346

       (K) Regular full-time employees in positions assigned to347
classes within the instruction and education administration series 348
under the rules of the director of administrative services, except 349
certificated employees on the instructional staff of the state 350
school for the blind or the state school for the deaf, whose 351
positions are scheduled to work on the basis of an academic year 352
rather than a full calendar year, shall be paid according to the 353
pay range assigned by such rules but only during those pay periods 354
included in the academic year of the school where the employee is 355
located.356

       (1) Part-time or substitute teachers or those whose period of 357
employment is other than the full academic year shall be358
compensated for the actual time worked at the rate established by359
this section.360

       (2) Employees governed by this division are exempt from361
sections 124.13 and 124.19 of the Revised Code.362

       (3) Length of service for the purpose of determining363
eligibility for step advancements as provided by division (G) of364
this section and for the purpose of determining eligibility for365
longevity pay supplements as provided by division (E) of section366
124.181 of the Revised Code shall be computed on the basis of one367
full year of service for the completion of each academic year.368

       (L) The superintendent of the state school for the deaf and 369
the superintendent of the state school for the blind shall,370
subject to the approval of the superintendent of public371
instruction, carry out both of the following:372

       (1) Annually, between the first day of April and the last day 373
of June, establish for the ensuing fiscal year a schedule of374
hourly rates for the compensation of each certificated employee on 375
the instructional staff of that superintendent's respective school376
constructed as follows:377

       (a) Determine for each level of training, experience, and378
other professional qualification for which an hourly rate is set379
forth in the current schedule, the per cent that rate is of the380
rate set forth in such schedule for a teacher with a bachelor's381
degree and no experience. If there is more than one such rate for 382
such a teacher, the lowest rate shall be used to make the383
computation.384

       (b) Determine which six city, local, and exempted village385
school districts with territory in Franklin county have in effect386
on, or have adopted by, the first day of April for the school year 387
that begins on the ensuing first day of July, teacher salary388
schedules with the highest minimum salaries for a teacher with a389
bachelor's degree and no experience;390

       (c) Divide the sum of such six highest minimum salaries by391
ten thousand five hundred sixty;392

       (d) Multiply each per cent determined in division (L)(1)(a) 393
of this section by the quotient obtained in division (L)(1)(c) of 394
this section;395

       (e) One hundred five per cent of each product thus obtained 396
shall be the hourly rate for the corresponding level of training, 397
experience, or other professional qualification in the schedule 398
for the ensuing fiscal year.399

       (2) Annually, assign each certificated employee on the400
instructional staff of the superintendent's respective school to 401
an hourly rate on the schedule that is commensurate with the402
employee's training, experience, and other professional 403
qualifications.404

       If an employee is employed on the basis of an academic year, 405
the employee's annual salary shall be calculated by multiplying 406
the employee's assigned hourly rate times one thousand seven 407
hundred sixty. If an employee is not employed on the basis of an 408
academic year, the employee's annual salary shall be calculated in 409
accordance with the following formula:410

       (a) Multiply the number of days the employee is required to 411
work pursuant to the employee's contract by eight;412

       (b) Multiply the product of division (L)(2)(a) of this413
section by the employee's assigned hourly rate.414

       Each employee shall be paid an annual salary in biweekly415
installments. The amount of each installment shall be calculated416
by dividing the employee's annual salary by the number of biweekly 417
installments to be paid during the year.418

       Sections 124.13 and 124.19 of the Revised Code do not apply419
to an employee who is paid under this division.420

       As used in this division, "academic year" means the number of 421
days in each school year that the schools are required to be open 422
for instruction with pupils in attendance. Upon completing an 423
academic year, an employee paid under this division shall be424
deemed to have completed one year of service. An employee paid425
under this division is eligible to receive a pay supplement under426
division (L)(1), (2), or (3) of section 124.181 of the Revised427
Code for which the employee qualifies, but is not eligible to 428
receive a pay supplement under division (L)(4) or (5) of that 429
section. An employee paid under this division is eligible to 430
receive a pay supplement under division (L)(6) of section 124.181 431
of the Revised Code for which the employee qualifies, except that 432
the supplement is not limited to a maximum of five per cent of the 433
employee's regular base salary in a calendar year.434

       (M) Division (A) of this section does not apply to "exempt435
employees," as defined in section 124.152 of the Revised Code, who436
are paid under that section.437

       Notwithstanding any other provisions of this chapter, when an 438
employee transfers between bargaining units or transfers out of or 439
into a bargaining unit, the director of administrative services 440
shall establish the employee's compensation and adjust the maximum 441
leave accrual schedule as the director deems equitable.442

       Sec. 124.18.  (A) Forty hours shall be the standard work 443
week for all employees whose salary or wage is paid in whole or in444
part by the state or by any state-supported college or university. 445
When any employee whose salary or wage is paid in whole or in part 446
by the state or by any state-supported college or university is 447
required by an authorized administrative authority to be in an 448
active pay status more than forty hours in any calendar week, the 449
employee shall be compensated for such time over forty hours, 450
except as otherwise provided in this section, at one and one-half 451
times the employee's regular rate of pay. The use of sick leave or 452
any leave used in lieu of sick leave shall not be considered to be 453
active pay status for the purposes of earning overtime or 454
compensatory time by employees whose wages are paid directly by 455
warrant of the director of budget and management. A flexible-hours456
employee is not entitled to compensation for overtime work unless457
the employee's authorized administrative authority required the 458
employee to be in active pay status for more than forty hours in a 459
calendar week, regardless of the number of hours the employee 460
works on any day in the same calendar week.461

       Such compensation for overtime work shall be paid no later 462
than at the conclusion of the next succeeding pay period.463

       If the employee elects to take compensatory time off in lieu 464
of overtime pay for any overtime worked, such compensatory time 465
shall be granted by the employee's administrative superior, on a 466
time and one-half basis, at a time mutually convenient to the 467
employee and the administrative superior. Compensatory time is not 468
available for use until it appears on the employee's earning 469
statement and the compensation described in the earning statement 470
is available to the employee.471

       An employee may accrue compensatory time to a maximum of two 472
hundred forty hours, except that public safety employees and other 473
employees who meet the criteria established in the "Federal Fair 474
Labor Standards Act of 1938," 52 Stat. 1060, 29 U.S.C.A. 207, 213, 475
as amended, may accrue a maximum of four hundred eighty hours of 476
compensatory time. An employee shall be paid at the employee's 477
regular rate of pay for any hours of compensatory time accrued in 478
excess of these maximum amounts if the employee has not used the 479
compensatory time within onethree hundred eightysixty-five days 480
after it is granted, if the employee transfers to another agency 481
of the state, or if a change in the employee's status exempts the 482
employee from the payment of overtime compensation. Upon the 483
termination of employment, any employee with accrued but unused 484
compensatory time shall be paid for that time at a rate that is 485
the greater of the employee's final regular rate of pay or the 486
employee's average regular rate of pay during the employee's last 487
three years of employment with the state.488

       No overtime, as described in this section, can be paid unless 489
it has been authorized by the authorized administrative authority. 490
Employees may be exempted from the payment of compensation as 491
required by this section only under the criteria for exemption 492
from the payment of overtime compensation established in the 493
"Federal Fair Labor Standards Act of 1938," 52 Stat. 1060, 29 494
U.S.C.A. 207, 213, as amended. With the approval of the director 495
of administrative services, the appointing authority may establish 496
a policy to grant compensatory time or to pay compensation to 497
state employees who are exempt from overtime compensation. With 498
the approval of the board of county commissioners, a county human 499
services department may establish a policy to grant compensatory500
time or to pay compensation to employees of the department who are 501
exempt from overtime compensation.502

       (B)(1) An employee, whose salary or wage is paid in whole or 503
in part by the state, shall be paid for the holidays declared in504
section 124.19 of the Revised Code and shall not be required to505
work on those holidays, unless, in the opinion of the employee's506
responsible administrative authority, failure to work on those507
holidays would impair the public service. An508

       (2) An employee paid directly by warrant of the director of 509
budget and management who is scheduled to work on a holidaythe 510
first day of January, the commemoration of memorial day, the 511
fourth day of July, the fourth Thursday in November, or the 512
twenty-fifth day of December and who does not report to work the 513
day before, the day of, or the day after the holiday due to an 514
illness of the employee or of a member of the employee's immediate 515
family shall not receive holiday pay as provided by this division, 516
unless the employee can provide documentation of extenuating 517
circumstances that prohibited the employee from so reporting to 518
work. AnIf the employee works a shift between the employee's 519
scheduled shift and the holiday, the employee shall be paid for 520
the holiday.521

       (3) An employee also shall not be paid for a holiday unless 522
the employee was in active pay status on the scheduled work day 523
immediately preceding the holiday, except that an employee need 524
not be in active pay status on that work day in order to be paid 525
for the holiday if the employee is participating in a mandatory or 526
voluntary cost savings day under section 124.392 of the Revised 527
Code. 528

       (2)(4) If any of the holidays declared in section 124.19 of 529
the Revised Code falls on Saturday, the Friday immediately 530
preceding shall be observed as the holiday. If any of the holidays 531
declared in section 124.19 of the Revised Code falls on Sunday,532
the Monday immediately succeeding shall be observed as the 533
holiday. Employees whose work schedules are based on the 534
requirements of a seven-days-a-week work operation shall observe535
holidays on the actual days specified in section 124.19 of the 536
Revised Code.537

       (3)(5) If an employee's work schedule is other than Monday 538
through Friday, the employee shall be entitled to eight hours of539
holiday pay for holidays observed on the employee's day off 540
regardless of the day of the week on which they are observed. 541

       (4)(6) A full-time permanent employee is entitled to a 542
minimum of eight hours of pay for each holiday regardless of the 543
employee's work shift and work schedule. A flexible-hours 544
employee, who is normally scheduled to work in excess of eight 545
hours on a day on which a holiday falls, either shall be required 546
to work an alternate schedule for that week or shall receive 547
additional holiday pay for the hours the employee is normally 548
scheduled to work. Such an alternate schedule may require a 549
flexible-hours employee to work five shifts consisting of eight 550
hours each during the week including the holiday, and, in that 551
case, the employee shall receive eight hours of holiday pay for 552
the day the holiday is observed. 553

       (5) Part-time(7) Except as provided under section 124.392 of 554
the Revised Code, part-time permanent employees shall receive four 555
hours of holiday pay on a pro-rated basis, based upon the daily 556
average of actual hours worked, excluding overtime hours worked, 557
in the previous calendar quarter. The figure shall be calculated 558
for the preceding calendar quarter on the first day of January, 559
April, July, and October of each yearregardless of the employee's 560
work shift and work schedule. 561

       (6)(8) When an employee who is eligible for overtime pay 562
under this section is required by the employee's responsible563
administrative authority to work on the day observed as a holiday, 564
the employee shall be entitled to pay for such time worked at one 565
and one-half times the employee's regular rate of pay in addition 566
to the employee's regular pay, or to be granted compensatory time 567
off at time and one-half thereafter, at the employee's option. 568
Payment at such rate shall be excluded in the calculation of hours 569
in active pay status.570

       (C) Each appointing authority may designate the number of571
employees in an agency who are flexible-hours employees. The572
appointing authority may establish for each flexible-hours573
employee a specified minimum number of hours to be worked each day 574
that is consistent with the "Federal Fair Labor Standards Act of 575
1938," 52 Stat. 1060, 29 U.S.C.A. 207, 213, as amended.576

       (D) This section shall be uniformly administered for 577
employees as defined in section 124.01 of the Revised Code and by 578
the personnel departments of state-supported colleges and 579
universities for employees of state-supported colleges and 580
universities. If employees are not paid directly by warrant of the 581
director of budget and management, the political subdivision shall 582
determine whether the use of sick leave shall be considered to be 583
active pay status for purposes of those employees earning overtime 584
or compensatory time.585

       (E) Policies relating to the payment of overtime pay or the586
granting of compensatory time off shall be adopted by the chief 587
administrative officer of the house of representatives for 588
employees of the house of representatives, by the clerk of the 589
senate for employees of the senate, and by the director of the 590
legislative service commission for all other legislative 591
employees.592

       (F) As used in this section, "regular rate of pay" means the593
base rate of pay an employee receives plus any pay supplements594
received pursuant to section 124.181 of the Revised Code.595

       Sec. 124.181.  (A) Except as provided in divisiondivisions596
(M) and (P) of this section, any employee paid in accordance with 597
schedule B of section 124.15 or schedule E-1 or schedule E-1 for 598
step seven only of section 124.152 of the Revised Code is 599
eligible for the pay supplements provided in this section upon 600
application by the appointing authority substantiating the601
employee's qualifications for the supplement and with the602
approval of the director of administrative services except as603
provided in division (E) of this section.604

       (B)(1) Except as provided in section 124.183 of the Revised 605
Code, in computing any of the pay supplements provided in this 606
section for an employee paid in accordance with schedule B of 607
section 124.15 of the Revised Code, the classification salary base 608
shall be the minimum hourly rate of the pay range, provided in 609
that section, in which the employee is assigned at the time of 610
computation.611

       (2) Except as provided in section 124.183 of the Revised 612
Code, in computing any of the pay supplements provided in this 613
section for an employee paid in accordance with schedule E-1 of 614
section 124.152 of the Revised Code, the classification salary 615
base shall be the minimum hourly rate of the pay range, provided 616
in that section, in which the employee is assigned at the time of 617
computation.618

       (3) Except as provided in section 124.183 of the Revised 619
Code, in computing any of the pay supplements provided in this 620
section for an employee paid in accordance with schedule E-1 for 621
step seven only of section 124.152 of the Revised Code, the 622
classification salary base shall be the minimum hourly rate in the 623
corresponding pay range, provided in schedule E-1 of that section, 624
to which the employee is assigned at the time of the computation.625

       (C) The effective date of any pay supplement, except as 626
provided in section 124.183 of the Revised Code or unless627
otherwise provided in this section, shall be determined by the 628
director.629

       (D) The director shall, by rule, establish standards630
regarding the administration of this section.631

       (E)(1) Except as otherwise provided in this division,632
beginning on the first day of the pay period within which the633
employee completes five years of total service with the state634
government or any of its political subdivisions, each employee in635
positions paid in accordance with schedule B of section 124.15 of 636
the Revised Code or in accordance with schedule E-1 or schedule 637
E-1 for step seven only of section 124.152 of the Revised Code 638
shall receive an automatic salary adjustment equivalent to two and 639
one-half per cent of the classification salary base, to the 640
nearest whole cent. Each employee shall receive thereafter an 641
annual adjustment equivalent to one-half of one per cent of the 642
employee's classification salary base, to the nearest whole cent, 643
for each additional year of qualified employment until a maximum 644
of ten per cent of the employee's classification salary base is645
reached. The granting of longevity adjustments shall not be646
affected by promotion, demotion, or other changes in647
classification held by the employee, nor by any change in pay648
range for the employee's class or grade. Longevity pay adjustments649
shall become effective at the beginning of the pay period within 650
which the employee completes the necessary length of service,651
except that when an employee requests credit for prior service, 652
the effective date of the prior service credit and of any 653
longevity adjustment shall be the first day of the pay period654
following approval of the credit by the director of administrative 655
services. No employee, other than an employee who submits proof of 656
prior service within ninety days after the date of the employee's 657
hiring, shall receive any longevity adjustment for the period 658
prior to the director's approval of a prior service credit. Time 659
spent on authorized leave of absence shall be counted for this 660
purpose.661

       (2) An employee who has retired in accordance with the662
provisions of any retirement system offered by the state and who663
is employed by the state or any political subdivision of the state 664
on or after June 24, 1987, shall not have prior service with the 665
state or any political subdivision of the state counted for the 666
purpose of determining the amount of the salary adjustment 667
provided under this division.668

       (3) There shall be a moratorium on employees' receipt under 669
this division of credit for service with the state government or 670
any of its political subdivisions during the period from July 1, 671
2003, through June 30, 2005. In calculating the number of years of 672
total service under this division, no credit shall be included for 673
service during the moratorium. The moratorium shall apply to the 674
employees of the secretary of state, the auditor of state, the 675
treasurer of state, and the attorney general, who are subject to 676
this section unless the secretary of state, the auditor of state, 677
the treasurer of state, or the attorney general decides to exempt 678
the office's employees from the moratorium and so notifies the 679
director of administrative services in writing on or before July 680
1, 2003.681

        If an employee is exempt from the moratorium, receives credit 682
for a period of service during the moratorium, and takes a 683
position with another entity in the state government or any of its 684
political subdivisions, either during or after the moratorium, and 685
if that entity's employees are or were subject to the moratorium, 686
the employee shall continue to retain the credit. However, if the 687
moratorium is in effect upon the taking of the new position, the 688
employee shall cease receiving additional credit as long as the 689
employee is in the position, until the moratorium expires.690

       (F) When an exceptional condition exists that creates a691
temporary or a permanent hazard for one or more positions in a692
class paid in accordance with schedule B of section 124.15 of the 693
Revised Code or in accordance with schedule E-1 or schedule E-1 694
for step seven only of section 124.152 of the Revised Code, a695
special hazard salary adjustment may be granted for the time the696
employee is subjected to the hazardous condition. All special697
hazard conditions shall be identified for each position and698
incidence from information submitted to the director on an699
appropriate form provided by the director and categorized into700
standard conditions of: some unusual hazard not common to the701
class; considerable unusual hazard not common to the class; and702
exceptional hazard not common to the class.703

       (1) A hazardous salary adjustment of five per cent of the704
employee's classification salary base may be applied in the case705
of some unusual hazardous condition not common to the class for706
those hours worked, or a fraction of those hours worked, while the 707
employee was subject to the unusual hazard condition.708

       (2) A hazardous salary adjustment of seven and one-half per 709
cent of the employee's classification salary base may be applied 710
in the case of some considerable hazardous condition not common to 711
the class for those hours worked, or a fraction of those hours 712
worked, while the employee was subject to the considerable hazard 713
condition.714

       (3) A hazardous salary adjustment of ten per cent of the715
employee's classification salary base may be applied in the case716
of some exceptional hazardous condition not common to the class717
for those hours worked, or a fraction of those hours worked, when 718
the employee was subject to the exceptional hazard condition.719

       (4) Each claim for temporary hazard pay shall be submitted as 720
a separate payment and shall be subject to an administrative audit 721
by the director as to the extent and duration of the employee's 722
exposure to the hazardous condition.723

       (G) When a full-time employee whose salary or wage is paid724
directly by warrant of the director of budget and management and 725
who also is eligible for overtime under the "Fair Labor Standards726
Act of 1938," 52 Stat. 1060, 29 U.S.C.A. 207, 213, as amended, is 727
ordered by the appointing authority to report back to work after 728
termination of the employee's regular work schedule and the729
employee reports, the employee shall be paid for such time. The 730
employee shall be entitled to four hours at the employee's total 731
rate of pay or overtime compensation for the actual hours worked, 732
whichever is greater. This division does not apply to work that is 733
a continuation of or immediately preceding an employee's regular 734
work schedule.735

       (H) When a certain position or positions paid in accordance 736
with schedule B of section 124.15 of the Revised Code or in 737
accordance with schedule E-1 or schedule E-1 for step seven only 738
of section 124.152 of the Revised Code require the ability to 739
speak or write a language other than English, a special pay 740
supplement may be granted to attract bilingual individuals, to 741
encourage present employees to become proficient in other 742
languages, or to retain qualified bilingual employees. The 743
bilingual pay supplement provided in this division may be granted 744
in the amount of five per cent of the employee's classification 745
salary base for each required foreign language and shall remain in 746
effect as long as the bilingual requirement exists.747

       (I) The director of administrative services may establish a 748
shift differential for employees. The differential shall be paid 749
to employees in positions working in other than the regular or 750
first shift. In those divisions or agencies where only one shift 751
prevails, no shift differential shall be paid regardless of the 752
hours of the day that are worked. The director and the appointing 753
authority shall designate which positions shall be covered by this754
division.755

       (J) Whenever an employee is assigned to work in a higher756
level position for a continuous period of more than two weeks but757
no more than two years because of a vacancy, the employee's pay 758
may be established at a rate that is approximately four per cent 759
above the employee's current base rate for the period the employee 760
occupies the position, provided that this temporary occupancy is761
approved by the director. Employees paid under this division shall 762
continue to receive any of the pay supplements due them under763
other divisions of this section based on the step one base rate 764
for their normal classification.765

       (K) If a certain position, or positions, within a class paid 766
in accordance with schedule B of section 124.15 of the Revised 767
Code or in accordance with schedule E-1 or schedule E-1 for step 768
seven only of section 124.152 of the Revised Code are mandated by 769
state or federal law or regulation or other regulatory agency or 770
other certification authority to have special technical 771
certification, registration, or licensing to perform the functions 772
which are under the mandate, a special professional achievement 773
pay supplement may be granted. This special professional 774
achievement pay supplement shall not be granted when all 775
incumbents in all positions in a class require a license as 776
provided in the classification description published by the 777
department of administrative services; to licensees where no 778
special or extensive training is required; when certification is 779
granted upon completion of a stipulated term of in-service780
training; when an appointing authority has required certification; 781
or any other condition prescribed by the director.782

       (1) Before this supplement may be applied, evidence as to the 783
requirement must be provided by the agency for each position784
involved, and certification must be received from the director as 785
to the director's concurrence for each of the positions so 786
affected.787

       (2) The professional achievement pay supplement provided in 788
this division shall be granted in an amount up to ten per cent of 789
the employee's classification salary base and shall remain in 790
effect as long as the mandate exists.791

       (L) Those employees assigned to teaching supervisory,792
principal, assistant principal, or superintendent positions who793
have attained a higher educational level than a basic bachelor's794
degree may receive an educational pay supplement to remain in795
effect as long as the employee's assignment and classification796
remain the same.797

       (1) An educational pay supplement of two and one-half per798
cent of the employee's classification salary base may be applied799
upon the achievement of a bachelor's degree plus twenty quarter800
hours of postgraduate work.801

       (2) An educational pay supplement of an additional five per 802
cent of the employee's classification salary base may be applied 803
upon achievement of a master's degree.804

       (3) An educational pay supplement of an additional two and805
one-half per cent of the employee's classification salary base may 806
be applied upon achievement of a master's degree plus thirty807
quarter hours of postgraduate work.808

       (4) An educational pay supplement of five per cent of the809
employee's classification salary base may be applied when the810
employee is performing as a master teacher.811

       (5) An educational pay supplement of five per cent of the812
employee's classification salary base may be applied when the813
employee is performing as a special education teacher.814

       (6) Those employees in teaching supervisory, principal,815
assistant principal, or superintendent positions who are816
responsible for specific extracurricular activity programs shall817
receive overtime pay for those hours worked in excess of their818
normal schedule, at their straight time hourly rate up to a819
maximum of five per cent of their regular base salary in any820
calendar year.821

       (M)(1) A state agency, board, or commission may establish a822
supplementary compensation schedule for those licensed physicians823
employed by the agency, board, or commission in positions824
requiring a licensed physician. The supplementary compensation825
schedule, together with the compensation otherwise authorized by826
this chapter, shall provide for the total compensation for these827
employees to range appropriately, but not necessarily uniformly,828
for each classification title requiring a licensed physician, in829
accordance with a schedule approved by the state controlling830
board. The individual salary levels recommended for each such831
physician employed shall be approved by the director. 832
Notwithstanding section 124.11 of the Revised Code, such personnel 833
are in the unclassified civil service.834

       (2) The director of administrative services may approve835
supplementary compensation for the director of health, if the 836
director is a licensed physician, in accordance with a 837
supplementary compensation schedule approved under division (M)(1) 838
of this section or in accordance with another supplementary 839
compensation schedule the director of administrative services 840
considers appropriate. The supplementary compensation shall not841
exceed twenty per cent of the director of health's base rate of 842
pay.843

       (N) Notwithstanding sections 117.28, 117.30, 117.33, 117.36,844
117.42, and 131.02 of the Revised Code, the state shall not 845
institute any civil action to recover and shall not seek 846
reimbursement for overpayments made in violation of division (E) 847
of this section or division (C) of section 9.44 of the Revised848
Code for the period starting after June 24, 1987, and ending on 849
October 31, 1993.850

       (O) Employees of the office of the treasurer of state who are851
exempt from collective bargaining coverage may be granted a merit 852
pay supplement of up to one and one-half per cent of their step 853
rate. The rate at which this supplement is granted shall be based 854
on performance standards established by the treasurer of state. 855
Any supplements granted under this division shall be administered 856
on an annual basis.857

       (P) Intermittent employees appointed under section 124.30 of 858
the Revised Code are not eligible for the pay supplements 859
provided by this section.860

       Sec. 124.34.  (A) The tenure of every officer or employee in861
the classified service of the state and the counties, civil862
service townships, cities, city health districts, general health863
districts, and city school districts of the state, holding a864
position under this chapter, shall be during good behavior and865
efficient service. No officer or employee shall be reduced in pay 866
or position, fined, suspended, or removed, or have the officer's 867
or employee's longevity reduced or eliminated, except as provided 868
in section 124.32 of the Revised Code, and for incompetency, 869
inefficiency, dishonesty, drunkenness, immoral conduct, 870
insubordination, discourteous treatment of the public, neglect of 871
duty, violation of any policy or work rule of the officer's or 872
employee's appointing authority, violation of this chapter or the 873
rules of the director of administrative services or the 874
commission, any other failure of good behavior, any other acts of 875
misfeasance, malfeasance, or nonfeasance in office, or conviction 876
of a felony. The denial of a one-time pay supplement or a bonus to 877
an officer or employee is not a reduction in pay for purposes of 878
this section.879

       This section does not apply to any modifications or 880
reductions in pay authorized by section 124.392 of the Revised 881
Code.882

       An appointing authority may require an employee who is883
suspended to report to work to serve the suspension. An employee884
serving a suspension in this manner shall continue to be885
compensated at the employee's regular rate of pay for hours886
worked. The disciplinary action shall be recorded in the887
employee's personnel file in the same manner as other disciplinary888
actions and has the same effect as a suspension without pay for889
the purpose of recording disciplinary actions.890

       A finding by the appropriate ethics commission, based upon a891
preponderance of the evidence, that the facts alleged in a892
complaint under section 102.06 of the Revised Code constitute a893
violation of Chapter 102., section 2921.42, or section 2921.43 of894
the Revised Code may constitute grounds for dismissal. Failure to895
file a statement or falsely filing a statement required by section896
102.02 of the Revised Code may also constitute grounds for897
dismissal. The tenure of an employee in the career professional898
service of the department of transportation is subject to section899
5501.20 of the Revised Code.900

       Conviction of a felony is a separate basis for reducing in901
pay or position, suspending, or removing an officer or employee,902
even if the officer or employee has already been reduced in pay or903
position, suspended, or removed for the same conduct that is the904
basis of the felony. An officer or employee may not appeal to the905
state personnel board of review or the commission any disciplinary906
action taken by an appointing authority as a result of the907
officer's or employee's conviction of a felony. If an officer or908
employee removed under this section is reinstated as a result of909
an appeal of the removal, any conviction of a felony that occurs910
during the pendency of the appeal is a basis for further911
disciplinary action under this section upon the officer's or912
employee's reinstatement.913

       A person convicted of a felony immediately forfeits the914
person's status as a classified employee in any public employment915
on and after the date of the conviction for the felony. If an916
officer or employee is removed under this section as a result of917
being convicted of a felony or is subsequently convicted of a918
felony that involves the same conduct that was the basis for the919
removal, the officer or employee is barred from receiving any920
compensation after the removal notwithstanding any modification or921
disaffirmance of the removal, unless the conviction for the felony922
is subsequently reversed or annulled.923

       Any person removed for conviction of a felony is entitled to924
a cash payment for any accrued but unused sick, personal, and925
vacation leave as authorized by law. If subsequently reemployed in 926
the public sector, the person shall qualify for and accrue these 927
forms of leave in the manner specified by law for a newly928
appointed employee and shall not be credited with prior public929
service for the purpose of receiving these forms of leave.930

       As used in this division, "felony" means any of the931
following:932

       (1) A felony that is an offense of violence as defined in933
section 2901.01 of the Revised Code;934

       (2) A felony that is a felony drug abuse offense as defined935
in section 2925.01 of the Revised Code;936

       (3) A felony under the laws of this or any other state or the937
United States that is a crime of moral turpitude;938

       (4) A felony involving dishonesty, fraud, or theft;939

       (5) A felony that is a violation of section 2921.05, 2921.32, 940
or 2921.42 of the Revised Code.941

       (B) In case of a reduction, a suspension of forty or more942
work hours in the case of an employee exempt from the payment of943
overtime compensation, a suspension of twenty-four or more work 944
hours in the case of an employee required to be paid overtime 945
compensation, a fine of forty or more hours' pay in the case of an 946
employee exempt from the payment of overtime compensation, a fine 947
of twenty-four or more hours' pay in the case of an employee 948
required to be paid overtime compensation, or removal, except for 949
the reduction or removal of a probationary employee, the950
appointing authority shall serve the employee with a copy of the 951
order of reduction, fine, suspension, or removal, which order 952
shall state the reasons for the action.953

       Within ten days following the date on which the order is954
served or, in the case of an employee in the career professional955
service of the department of transportation, within ten days956
following the filing of a removal order, the employee, except as957
otherwise provided in this section, may file an appeal of the958
order in writing with the state personnel board of review or the959
commission. For purposes of this section, the date on which an960
order is served is the date of hand delivery of the order or the961
date of delivery of the order by certified United States mail,962
whichever occurs first. If an appeal is filed, the board or963
commission shall forthwith notify the appointing authority and964
shall hear, or appoint a trial board to hear, the appeal within965
thirty days from and after its filing with the board or966
commission. The board, commission, or trial board may affirm, 967
disaffirm, or modify the judgment of the appointing authority.968
However, in an appeal of a removal order based upon a violation of 969
a last chance agreement, the board, commission, or trial board may 970
only determine if the employee violated the agreement and thus 971
affirm or disaffirm the judgment of the appointing authority.972

       In cases of removal or reduction in pay for disciplinary973
reasons, either the appointing authority or the officer or974
employee may appeal from the decision of the state personnel board975
of review or the commission, and any such appeal shall be to the976
court of common pleas of the county in which the appointing 977
authority is located, or to the court of common pleas of Franklin 978
county, as provided by section 119.12 of the Revised Code.979

       (C) In the case of the suspension for any period of time, or980
a fine, demotion, or removal, of a chief of police, a chief of a 981
fire department, or any member of the police or fire department of 982
a city or civil service township, who is in the classified civil 983
service, the appointing authority shall furnish the chief or 984
member with a copy of the order of suspension, fine, demotion, or 985
removal, which order shall state the reasons for the action. The 986
order shall be filed with the municipal or civil service township 987
civil service commission. Within ten days following the filing of 988
the order, the chief or member may file an appeal, in writing, 989
with the commission. If an appeal is filed, the commission shall990
forthwith notify the appointing authority and shall hear, or991
appoint a trial board to hear, the appeal within thirty days from992
and after its filing with the commission, and it may affirm,993
disaffirm, or modify the judgment of the appointing authority. An994
appeal on questions of law and fact may be had from the decision995
of the commission to the court of common pleas in the county in 996
which the city or civil service township is situated. The appeal997
shall be taken within thirty days from the finding of the998
commission.999

       (D) A violation of division (A)(7) of section 2907.03 of the1000
Revised Code is grounds for termination of employment of a1001
nonteaching employee under this section.1002

       (E) As used in this section, "last chance agreement" means an1003
agreement signed by both an appointing authority and an officer or1004
employee of the appointing authority that describes the type of1005
behavior or circumstances that, if it occurs, will automatically1006
lead to removal of the officer or employee without the right of1007
appeal to the state personnel board of review or the appropriate1008
commission.1009

       Sec. 124.385.  (A) An employee is eligible for disability1010
leave benefits under this section if the employee has completed1011
one year of continuous state service immediately prior to the date1012
of the disability and if any of the following applies:1013

       (1) The employee is a full-time permanent employee and is1014
eligible for sick leave credit pursuant to division (B) of section1015
124.382 of the Revised Code.1016

       (2) The employee is a part-time permanent employee who has1017
worked at least fifteen hundred hours within the twelve-month1018
period immediately preceding the date of disability and is1019
eligible for sick leave credit under division (B) of section1020
124.382 of the Revised Code.1021

       (3) The employee is a full-time permanent or part-time1022
permanent employee, is on disability leave or leave of absence for1023
medical reasons, and would be eligible for sick leave credit1024
pursuant to division (B) of section 124.382 of the Revised Code1025
except that the employee is in no pay status due to the employee's1026
medical condition.1027

       (B) The director of administrative services, by rule adopted1028
in accordance with Chapter 119. of the Revised Code, shall1029
establish a disability leave program. The rule shall include, but1030
shall not be limited to, the following:1031

       (1) Procedures to be followed for determining disability;1032

       (2) Provisions for the allowance of disability leave due to1033
illness or injury;1034

       (3) Provisions for the continuation of service credit for1035
employees granted disability leave, including service credit1036
towards retirement, as provided by the applicable statute;1037

       (4) The establishment of a minimum level of benefit and of a1038
waiting period before benefits begin;1039

       (5) Provisions setting a maximum length of benefit and1040
requiring that employees eligible to apply for disability1041
retirement shall do so prior to completing the first six months of1042
their period of disability. The director's rules shall indicate1043
those employees required to apply for disability retirement. If an1044
employee is approved to receive disability retirement, the1045
employee shall receive the retirement benefit and a supplement1046
payment that equals a percentage of the employee's base rate of1047
pay and that, when added to the retirement benefit, equals no more1048
than the percentage of pay received by employees after the first1049
six months of disability. This supplemental payment shall not be 1050
considered earnable salary, compensation, or salary, and is not1051
subject to contributions, under Chapter 145., 742., 3307., 3309.,1052
or 5505. of the Revised Code.1053

       (6) Provisions that allow employees to utilize available sick 1054
leave, personal leave, compensatory time, or vacation leave 1055
balances to supplement the benefits payable under this section. 1056
The balances used to supplement the benefits, plus any amount1057
contributed by the state as provided in division (D) of this1058
section, shall be paid at the employee's base rate of pay in an1059
amount sufficient to give employees up to one hundred per cent of1060
pay for time on disability.1061

       (7) Procedures for appealing denial of payment of a claim,1062
including the following:1063

       (a) A maximum of thirty days to file an appeal by the1064
employee;1065

       (b) A maximum of fifteen days for the parties to select a1066
third-party opinion pursuant to division (F) of this section,1067
unless an extension is agreed to by the parties;1068

       (c) A maximum of thirty days for the third party to render an 1069
opinion.1070

       (8) Provisions for approving leave of absence for medical1071
reasons where an employee is in no pay status because the employee1072
has used all the employee's sick leave, personal leave, vacation1073
leave, and compensatory time;1074

       (9) Provisions for precluding the payment of benefits if the1075
injury for which the benefits are sought is covered by a workers'1076
compensation plan;1077

       (10) Provisions for precluding the payment of benefits in1078
order to ensure that benefits are provided in a consistent manner.1079

       (C) Except as provided in division (B)(6) of this section,1080
time off for an employee granted disability leave is not1081
chargeable to any other leave granted by other sections of the1082
Revised Code.1083

       (D) While an employee is on an approved disability leave, the 1084
employer's and employee's share of health, life, and other1085
insurance benefits shall be paid by the state, and the retirement1086
contribution shall be paid as follows:1087

       (1) The employer's share shall be paid by the state.1088

       (2) For the first three months, the employee's share shall be 1089
paid by the employee.1090

       (3) After the first three months, the employee's share shall1091
be paid by the state.1092

       (E) The approval for disability leave shall be made by the1093
director, upon recommendation by the appointing authority. The 1094
director may delegate to any appointing authority the authority to 1095
approve disability benefits for a standard recovery period.1096

       (F) If a request for disability leave is denied based on a1097
medical determination, the director shall obtain a medical opinion1098
from a third party. The decision of the third party is binding.1099

       (G) The rule adopted by the director under division (B) of1100
this section shall not deny disability leave benefits for an1101
illness or injury to an employee who is a veteran of the United1102
States armed forces because the employee contracted the illness or1103
received the injury in the course of or as a result of military1104
service and the illness or injury is or may be covered by a1105
compensation plan administered by the United States department of1106
veterans affairs.1107

       Sec. 124.392.  (A) As used in this section, "exempt:1108

       (1) "Exempt employee" has the same meaning as in section 1109
124.152 of the Revised Code.1110

       (2) "Fiscal emergency" means a fiscal emergency declared by 1111
the governor under section 126.05 of the Revised Code.1112

       (B) The director of administrative services may establish a 1113
voluntary cost savings program for exempt employees. The1114

       (C) The director of administrative services shall establish a 1115
mandatory cost savings program applicable to exempt employees. 1116
Subject to division (C)(1) of this section, the program may 1117
include, but is not limited to, a loss of pay or loss of holiday 1118
pay as determined by the director. The program may be administered 1119
differently among exempt employees based on their classifications, 1120
appointment categories, appointing authorities, or other relevant 1121
distinctions.1122

       (1) Each full-time exempt employee shall participate in the 1123
program for a total of eighty hours of mandatory cost savings in 1124
both fiscal year 2010 and fiscal year 2011. Each part-time exempt 1125
employee shall participate in the program by not receiving holiday 1126
pay during both fiscal year 2010 and fiscal year 2011. Each 1127
employee of the secretary of state, auditor of state, treasurer of 1128
state, and attorney general shall participate in the program 1129
unless the secretary of state, auditor of state, treasurer of 1130
state, or attorney general decides to exempt the officer's 1131
employees from the program and so notifies the director of 1132
administrative services in writing on or before July 1, 2009.1133

       (2) After June 30, 2011, the director of administrative 1134
services, in consultation with the director of budget and 1135
management, may implement mandatory cost savings days applicable 1136
to exempt employees in the event of a fiscal emergency. Each 1137
employee of the secretary of state, auditor of state, treasurer of 1138
state, and attorney general shall participate in the mandatory 1139
cost savings days unless the secretary of state, auditor of state, 1140
treasurer of state, or attorney general decides to exempt the 1141
officer's employees from the mandatory cost savings days and so 1142
notifies the director of administrative services in the manner the 1143
director of administrative services prescribes by rule adopted 1144
under this section.1145

       (D) The director shall adopt rules in accordance with Chapter 1146
119. of the Revised Code to provide for the administration of the 1147
programmandatory cost savings program and days.1148

       (E) The cost savings fund is hereby created in the state 1149
treasury. Savings accrued through employee participation in the 1150
mandatory cost savings program and in mandatory cost savings days 1151
shall be allocated to the fund. The fund may be used to pay 1152
employees who participated in the mandatory cost savings program 1153
or in mandatory cost savings days. Any investment earnings of the 1154
fund shall be credited to the fund.1155

       Sec. 126.05.  On or before the tenth day of each month, the1156
director of budget and management shall furnish to the governor1157
statements in such form as the governor requires showing the1158
condition of the general revenue fund. The statements shall1159
provide a summary of the status of appropriations to enable the1160
governor to exercise and maintain effective supervision and1161
control over the expenditures of the state. The director shall1162
also furnish statements the governor requests showing the1163
condition of any other fund.1164

       If the governor ascertains that the available revenue1165
receipts and balances for the general revenue fund for the current 1166
fiscal year will in all probability be less than the1167
appropriations for the year, hethe governor shall issue such1168
orders to the state agencies as will prevent their expenditures 1169
and incurred obligations from exceeding such revenue receipts and 1170
balances.1171

       If the governor ascertains that the available revenue1172
receipts and balances for any fund other than the general revenue1173
fund for the current fiscal year will in all probability be less1174
than the appropriations for the year, hethe governor may issue1175
such orders to the state agencies as will prevent their 1176
expenditures and incurred obligations from exceeding such revenue 1177
receipts and balances.1178

       If the governor determines that the available revenue 1179
receipts and balances in any fund or across funds will likely be 1180
less than the appropriations for the year, the governor may 1181
declare a fiscal emergency and may issue such orders as necessary 1182
to the director of budget and management to reduce expenditures, 1183
or to the director of administrative services to implement 1184
personnel actions consistent therewith, including, but not 1185
limited to, mandatory cost savings days under section 124.392 of 1186
the Revised Code.1187

       As used in this section, "expenditures and incurred1188
obligations" includes all moneys expended or obligated pursuant to 1189
appropriations by the general assembly that are calculated and1190
distributed pursuant to a distribution formula in law.1191

       Sec. 2305.24.  Any information, data, reports, or records1192
made available to a quality assurance committee or utilization1193
committee of a hospital or long-term care facility or of any1194
not-for-profit health care corporation that is a member of the1195
hospital or long-term care facility or of which the hospital or1196
long-term care facility is a member are confidential and shall be 1197
used by the committee and the committee members only in the 1198
exercise of the proper functions of the committee. Any1199
information, data, reports, or records made available to a1200
utilization committee of a state or local medical society composed1201
of doctors of medicine or doctors of osteopathic medicine are 1202
confidential and shall be used by the committee and the committee1203
members only in the exercise of the proper functions of the1204
committee. A right of action similar to that a patient may have1205
against an attending physician for misuse of information, data,1206
reports, or records arising out of the physician-patient1207
relationship shall accrue against a member of a quality assurance1208
committee or utilization committee for misuse of any information,1209
data, reports, or records furnished to the committee by an1210
attending physician. No physician, institution, hospital, or1211
long-term care facility furnishing information, data, reports, or1212
records to a committee with respect to any patient examined or1213
treated by the physician or confined in the institution, hospital,1214
or long-term care facility shall, by reason of the furnishing, be 1215
deemed liable in damages to any person, or be held to answer for 1216
betrayal of a professional confidence within the meaning and 1217
intent of section 4731.22 of the Revised Code. Information, data, 1218
or reports furnished to a utilization committee of a state or 1219
local medical society shall contain no name of any person involved 1220
therein.1221

       Any information, data, reports, or records made available to 1222
a quality assurance committee of the bureau of workers' 1223
compensation or the industrial commission that is responsible for 1224
reviewing the professional qualifications and the performance of 1225
providers conducting medical examinations or file reviews for the 1226
bureau or the commission are confidential and shall be used by the 1227
committee and the committee members only in the exercise of the 1228
proper functions of the committee.1229

       As used in this section, "utilization committee" is the1230
committee established to administer a utilization review plan of a1231
hospital, of a not-for-profit health care corporation which is a1232
member of the hospital or of which the hospital is a member, or of1233
a skilled nursing facility as provided in the "Health Insurance1234
for the Aged Act," 79 Stat. 313 (1965), 42 U.S.C. 1395x(k).1235

       Sec. 2305.25. As used in this section and sections 2305.2511236
to 2305.253 of the Revised Code:1237

       (A)(1) "Health care entity" means an entity, whether acting1238
on its own behalf or on behalf of or in affiliation with other1239
health care entities, that conducts as part of its regular1240
business activities professional credentialing or quality review1241
activities involving the competence of, professional conduct of,1242
or quality of care provided by health care providers, including1243
both individuals who provide health care and entities that provide1244
health care.1245

       (2) "Health care entity" includes any entity described in1246
division (A)(1) of this section, regardless of whether it is a1247
government entity; for-profit or nonprofit corporation; limited1248
liability company; partnership; professional corporation; state or1249
local society composed of physicians, dentists, optometrists,1250
psychologists, or pharmacists; or other health care organization.1251

       (B) "Health insuring corporation" means an entity that holds1252
a certificate of authority under Chapter 1751. of the Revised1253
Code. "Health insuring corporation" includes wholly owned1254
subsidiaries of a health insuring corporation.1255

       (C) "Hospital" means either of the following:1256

       (1) An institution that has been registered or licensed by1257
the department of health as a hospital;1258

       (2) An entity, other than an insurance company authorized to1259
do business in this state, that owns, controls, or is affiliated1260
with an institution that has been registered or licensed by the1261
department of health as a hospital.1262

       (D) "Incident report or risk management report" means a1263
report of an incident involving injury or potential injury to a1264
patient as a result of patient care provided by health care1265
providers, including both individuals who provide health care and1266
entities that provide health care, that is prepared by or for the1267
use of a peer review committee of a health care entity and is1268
within the scope of the functions of that committee.1269

       (E)(1) "Peer review committee" means a utilization review1270
committee, quality assessment committee, performance improvement1271
committee, tissue committee, credentialing committee, or other1272
committee that does either of the following:1273

       (a) Conducts professional credentialing or quality review1274
activities involving the competence of, professional conduct of,1275
or quality of care provided by health care providers, including1276
both individuals who provide health care and entities that provide1277
health care;1278

       (b) Conducts any other attendant hearing process initiated as 1279
a result of a peer review committee's recommendations or actions.1280

       (2) "Peer review committee" includes all of the following:1281

       (a) A peer review committee of a hospital or long-term care1282
facility or a peer review committee of a nonprofit health care1283
corporation that is a member of the hospital or long-term care1284
facility or of which the hospital or facility is a member;1285

       (b) A peer review committee of a community mental health1286
center;1287

       (c) A board or committee of a hospital, a long-term care1288
facility, or other health care entity when reviewing professional1289
qualifications or activities of health care providers, including1290
both individuals who provide health care and entities that provide1291
health care;1292

       (d) A peer review committee, professional standards review1293
committee, or arbitration committee of a state or local society1294
composed of members who are in active practice as physicians,1295
dentists, optometrists, psychologists, or pharmacists;1296

       (e) A peer review committee of a health insuring corporation1297
that has at least a two-thirds majority of member physicians in1298
active practice and that conducts professional credentialing and1299
quality review activities involving the competence or professional1300
conduct of health care providers that adversely affects or could1301
adversely affect the health or welfare of any patient;1302

       (f) A peer review committee of a health insuring corporation1303
that has at least a two-thirds majority of member physicians in1304
active practice and that conducts professional credentialing and1305
quality review activities involving the competence or professional1306
conduct of a health care facility that has contracted with the1307
health insuring corporation to provide health care services to1308
enrollees, which conduct adversely affects, or could adversely1309
affect, the health or welfare of any patient;1310

       (g) A peer review committee of a sickness and accident1311
insurer that has at least a two-thirds majority of physicians in1312
active practice and that conducts professional credentialing and1313
quality review activities involving the competence or professional1314
conduct of health care providers that adversely affects or could1315
adversely affect the health or welfare of any patient;1316

       (h) A peer review committee of a sickness and accident1317
insurer that has at least a two-thirds majority of physicians in1318
active practice and that conducts professional credentialing and1319
quality review activities involving the competence or professional1320
conduct of a health care facility that has contracted with the1321
insurer to provide health care services to insureds, which conduct1322
adversely affects, or could adversely affect, the health or1323
welfare of any patient;1324

       (i) A peer review committee of any insurer authorized under1325
Title XXXIX of the Revised Code to do the business of medical1326
professional liability insurance in this state that conducts1327
professional quality review activities involving the competence or1328
professional conduct of health care providers that adversely1329
affects or could affect the health or welfare of any patient;1330

       (j) A peer review committee of the bureau of workers' 1331
compensation or the industrial commission that is responsible for 1332
reviewing the professional qualifications and the performance of 1333
providers conducting medical examinations or file reviews for the 1334
bureau or the commission;1335

       (k) Any other peer review committee of a health care entity.1336

       (F) "Physician" means an individual authorized to practice1337
medicine and surgery, osteopathic medicine and surgery, or1338
podiatric medicine and surgery.1339

       (G) "Sickness and accident insurer" means an entity1340
authorized under Title XXXIX of the Revised Code to do the1341
business of sickness and accident insurance in this state.1342

       (H) "Tort action" means a civil action for damages for1343
injury, death, or loss to a patient of a health care entity. "Tort1344
action" includes a product liability claim, as defined in section 1345
2307.71 of the Revised Code, and an asbestos claim, as defined in 1346
section 2307.91 of the Revised Code, but does not include a civil 1347
action for a breach of contract or another agreement between1348
persons.1349

       Sec. 4121.04.  (A) There is hereby created the industrial1350
commission nominating council consisting of fourfive employer1351
representatives and, four labor representatives, one 1352
representative from the Ohio association for justice, and two 1353
members of the public, each of a different political party, who 1354
are appointed by the governor. The nominating council shall make1355
recommendations to the governor for the appointment of members 1356
to the industrial commission as provided in section 4121.02 of 1357
the Revised Code.1358

       (B) The governor shall make initial appointments to the1359
nominating council within fourteen days after October 20, 1993, by 1360
appointing two persons, each of a different political party, as 1361
public representatives and the four employer and four employee 1362
representatives. In making the appointments, the governor shall 1363
select the members representing employees from a list of eight 1364
names submitted by the Ohio federation of labor, the member 1365
representing the Ohio association for justice from a list of two 1366
names submitted by the Ohio association of justice, and the 1367
members representing employers from a list of eightten names 1368
submitted jointly by the major statewide Ohio industry 1369
organizations representing self-insuring employers, manufacturers, 1370
retail merchants, and chambers of commerce, provided that such 1371
organizations have been in existence since prior to November 3, 1372
1974, and further provided that from the list submitted from the 1373
organizations representing industry, the. The governor shall 1374
appoint at least one member from each of the Ohio industry1375
organizations which represent self-insuring employers,1376
manufacturers, retail merchants, and chambers of commerce. Of the 1377
list submitted by the Ohio industry organizations representing 1378
industry, two individuals from each of the Ohio industry1379
organizations which represent self-insuring employers, 1380
manufacturers, retail merchants, and chambers of commerce shall be 1381
included in the list. One employer and employee representative 1382
shall serve an initial term of office ending October 20, 1994, one1383
employer and one employee representative shall serve an initial1384
term of office ending October 20, 1995, one employer and one 1385
employee representative shall serve an initial term of office 1386
ending October 20, 1996, and one employer and one employee1387
representative shall serve an initial term of office ending four1388
years after the effective date of this section. Thereafter, terms1389
Terms of office of employer and employee representatives are for1390
four years, each term ending on the same day as the date of their1391
original appointment. The Ohio federation of labor for a vacancy1392
of an employee representative on the council, and the Ohio1393
industry organizations, for a vacancy of an employer1394
representative on the council, shall submit to the governor a list 1395
containing two names for appointment and the governor shall1396
appoint an individual from the list to fill the vacancy provided1397
that the list submitted to fill an industry representative vacancy 1398
shall contain the names of individuals who represent the1399
organizations for which a vacancy has occurred. One public member 1400
shall represent the interests of small business and shall serve an 1401
initial term of office ending October 20, 1994, and the remaining 1402
public member shall serve a term of office ending October 20, 1403
1995. Thereafter, publicPublic members shall serve for a term of 1404
two years, each term ending on the same day as the date of their 1405
original appointment. The governor shall fill a vacancy occurring 1406
on the nominating council for a public member in the same manner 1407
as for the original appointment but only for the unexpired part of 1408
the term. As used in this division, "small business" means any 1409
manufacturing establishment employing five hundred or fewer 1410
employees or any retail, or other service establishment employing 1411
one hundred or fewer employees. The representative from the Ohio 1412
association for justice shall serve for a term of four years, each 1413
term ending on the twentieth day of October of the appropriate 1414
year. The governor shall fill a vacancy occurring on the 1415
nominating council for the representative from the Ohio 1416
association for justice in the same manner as the original 1417
appointment. In the event that an appointment to the council 1418
does not conform to this division, such organizations may 1419
challenge the appointment pursuant to division (E) of this 1420
section, provided that the industry organizations only may 1421
challenge the appointment of an industry representative, and 1422
further provided that the labor organization only may challenge 1423
the appointment of a labor representative.1424

       (C) At the time of the initial appointment of the members to 1425
the nominating council, the governor shall immediately call a 1426
meeting of the nominating council in order to make the initial 1427
recommendations to the governor for the appointment of industrial 1428
commission members under section 4121.02 of the Revised Code. At 1429
that meeting, the members shall elect a chairperson and such other 1430
officers as it determines necessary. Thereafter, theThe1431
nominating council annually shall meet and elect such officers as 1432
it determines appropriate and shall meet at such other times as 1433
it determines appropriate in order to make recommendations to the 1434
governor for the appointment of industrial commission members 1435
pursuant to section 4121.02 of the Revised Code.1436

       (D) Members of the nominating council shall be paid fifty 1437
dollars per day and their actual and necessary expenses while 1438
engaged in the performance of their duties as members of the 1439
nominating council, which the industrial commission shall pay from 1440
funds which the industrial commission uses to pay its operating 1441
expenses.1442

       (E) An association generally recognized as representing the1443
interests of labor or industry may file, within fifteen days after 1444
the governor's appointment of a member, a challenge in the common 1445
pleas court of Franklin county asserting that a representative 1446
named to represent its interests is not representative of the 1447
interests the appointee has been appointed to represent. An 1448
appointee whose appointment has been challenged shall not receive 1449
any pay nor serve on the nominating council until the court, 1450
acting without a jury and following the expedited timetable 1451
provided for hearing on restraining orders in Civil Rule 65, makes 1452
a determination that the appointee is a true and qualified 1453
representative of the group for which the appointee is selected 1454
and possesses all of the qualifications.1455

       A challenged appointee may request the attorney general to 1456
represent the appointee in an action brought under this division 1457
and the attorney general shall provide the appointee with1458
competent representation without charge.1459

       (F) As used in this section, "Ohio industry organizations" 1460
means all of the following organizations: 1461

       (1) The Ohio self-insurers' association;1462

       (2) The Ohio manufacturers' association;1463

       (3) The Ohio council of retail merchants;1464

       (4) The Ohio chamber of commerce;1465

       (5) The national federation of independent business.1466

       Sec. 4123.511.  (A) Within seven days after receipt of any 1467
claim under this chapter, the bureau of workers' compensation1468
shall notify the claimant and the employer of the claimant of the1469
receipt of the claim and of the facts alleged therein. If the1470
bureau receives from a person other than the claimant written or1471
facsimile information or information communicated verbally over1472
the telephone indicating that an injury or occupational disease1473
has occurred or been contracted which may be compensable under 1474
this chapter, the bureau shall notify the employee and the 1475
employer of the information. If the information is provided 1476
verbally over the telephone, the person providing the information 1477
shall provide written verification of the information to the 1478
bureau according to division (E) of section 4123.84 of the Revised 1479
Code. The receipt of the information in writing or facsimile, or 1480
if initially by telephone, the subsequent written verification, 1481
and the notice by the bureau shall be considered an application 1482
for compensation under section 4123.84 or 4123.85 of the Revised 1483
Code, provided that the conditions of division (E) of section 1484
4123.84 of the Revised Code apply to information provided verbally 1485
over the telephone. Upon receipt of a claim, the bureau shall 1486
advise the claimant of the claim number assigned and the 1487
claimant's right to representation in the processing of a claim or 1488
to elect no representation. If the bureau determines that a claim 1489
is determined to be a compensable lost-time claim, the bureau 1490
shall notify the claimant and the employer of the availability of 1491
rehabilitation services. No bureau or industrial commission 1492
employee shall directly or indirectly convey any information in 1493
derogation of this right. This section shall in no way abrogate 1494
the bureau's responsibility to aid and assist a claimant in the 1495
filing of a claim and to advise the claimant of the claimant's 1496
rights under the law.1497

       The administrator of workers' compensation shall assign all1498
claims and investigations to the bureau service office from which1499
investigation and determination may be made most expeditiously.1500

       The bureau shall investigate the facts concerning an injury 1501
or occupational disease and ascertain such facts in whatever 1502
manner is most appropriate and may obtain statements of the 1503
employee, employer, attending physician, and witnesses in whatever 1504
manner is most appropriate.1505

       The administrator, with the advice and consent of the bureau 1506
of workers' compensation board of directors, may adopt rules that 1507
identify specified medical conditions that have a historical 1508
record of being allowed whenever included in a claim. The 1509
administrator may grant immediate allowance of any medical 1510
condition identified in those rules upon the filing of a claim 1511
involving that medical condition and may make immediate payment of 1512
medical bills for any medical condition identified in those rules 1513
that is included in a claim. If an employer contests the allowance 1514
of a claim involving any medical condition identified in those 1515
rules, and the claim is disallowed, payment for the medical 1516
condition included in that claim shall be charged to and paid from 1517
the surplus fund created under section 4123.34 of the Revised 1518
Code.1519

       (B)(1) Except as provided in division (B)(2) of this section, 1520
in claims other than those in which the employer is a1521
self-insuring employer, if the administrator determines under1522
division (A) of this section that a claimant is or is not entitled 1523
to an award of compensation or benefits, the administrator shall 1524
issue an order no later than twenty-eight days after the sending 1525
of the notice under division (A) of this section, granting or 1526
denying the payment of the compensation or benefits, or both as is 1527
appropriate to the claimant. Notwithstanding the time limitation 1528
specified in this division for the issuance of an order, if a 1529
medical examination of the claimant is required by statute, the 1530
administrator promptly shall schedule the claimant for that1531
examination and shall issue an order no later than twenty-eight 1532
days after receipt of the report of the examination. The 1533
administrator shall notify the claimant and the employer of the 1534
claimant and their respective representatives in writing of the 1535
nature of the order and the amounts of compensation and benefit 1536
payments involved. The employer or claimant may appeal the order 1537
pursuant to division (C) of this section within fourteen days 1538
after the date of the receipt of the order. The employer and 1539
claimant may waive, in writing, their rights to an appeal under 1540
this division.1541

       (2) Notwithstanding the time limitation specified in division 1542
(B)(1) of this section for the issuance of an order, if the 1543
employer certifies a claim for payment of compensation or1544
benefits, or both, to a claimant, and the administrator has1545
completed the investigation of the claim, the payment of benefits1546
or compensation, or both, as is appropriate, shall commence upon1547
the later of the date of the certification or completion of the1548
investigation and issuance of the order by the administrator,1549
provided that the administrator shall issue the order no later1550
than the time limitation specified in division (B)(1) of this1551
section.1552

       (3) If an appeal is made under division (B)(1) or (2) of this 1553
section, the administrator shall forward the claim file to the 1554
appropriate district hearing officer within seven days of the1555
appeal. In contested claims other than state fund claims, the1556
administrator shall forward the claim within seven days of the 1557
administrator's receipt of the claim to the industrial commission,1558
which shall refer the claim to an appropriate district hearing 1559
officer for a hearing in accordance with division (C) of this 1560
section.1561

       (C) If an employer or claimant timely appeals the order of1562
the administrator issued under division (B) of this section or in1563
the case of other contested claims other than state fund claims,1564
the commission shall refer the claim to an appropriate district1565
hearing officer according to rules the commission adopts under1566
section 4121.36 of the Revised Code. The district hearing officer 1567
shall notify the parties and their respective representatives of 1568
the time and place of the hearing.1569

       The district hearing officer shall hold a hearing on a1570
disputed issue or claim within forty-five days after the filing of 1571
the appeal under this division and issue a decision within seven 1572
days after holding the hearing. The district hearing officer shall 1573
notify the parties and their respective representatives in writing 1574
of the order. Any party may appeal an order issued under this 1575
division pursuant to division (D) of this section within fourteen 1576
days after receipt of the order under this division.1577

       (D) Upon the timely filing of an appeal of the order of the 1578
district hearing officer issued under division (C) of this1579
section, the commission shall refer the claim file to an1580
appropriate staff hearing officer according to its rules adopted1581
under section 4121.36 of the Revised Code. The staff hearing1582
officer shall hold a hearing within forty-five days after the1583
filing of an appeal under this division and issue a decision1584
within seven days after holding the hearing under this division. 1585
The staff hearing officer shall notify the parties and their 1586
respective representatives in writing of the staff hearing1587
officer's order. Any party may appeal an order issued under this 1588
division pursuant to division (E) of this section within fourteen 1589
days after receipt of the order under this division.1590

       (E) Upon the filing of a timely appeal of the order of the1591
staff hearing officer issued under division (D) of this section,1592
the commission or a designated staff hearing officer, on behalf of 1593
the commission, shall determine whether the commission will hear 1594
the appeal. If the commission or the designated staff hearing 1595
officer decides to hear the appeal, the commission or the 1596
designated staff hearing officer shall notify the parties and 1597
their respective representatives in writing of the time and place 1598
of the hearing. The commission shall hold the hearing within 1599
forty-five days after the filing of the notice of appeal and, 1600
within seven days after the conclusion of the hearing, the 1601
commission shall issue its order affirming, modifying, or 1602
reversing the order issued under division (D) of this section. The 1603
commission shall notify the parties and their respective 1604
representatives in writing of the order. If the commission or the 1605
designated staff hearing officer determines not to hear the 1606
appeal, within fourteen days after the filing of the notice of 1607
appealexpiration of the period in which an appeal of the order of 1608
the staff hearing officer may be filed as provided in division (D) 1609
of this section, the commission or the designated staff hearing1610
officer shall issue an order to that effect and notify the 1611
parties and their respective representatives in writing of that 1612
order.1613

       Except as otherwise provided in this chapter and Chapters1614
4121., 4127., and 4131. of the Revised Code, any party may appeal1615
an order issued under this division to the court pursuant to1616
section 4123.512 of the Revised Code within sixty days after1617
receipt of the order, subject to the limitations contained in that 1618
section.1619

       (F) Every notice of an appeal from an order issued under1620
divisions (B), (C), (D), and (E) of this section shall state the1621
names of the claimant and employer, the number of the claim, the1622
date of the decision appealed from, and the fact that the1623
appellant appeals therefrom.1624

       (G) All of the following apply to the proceedings under1625
divisions (C), (D), and (E) of this section:1626

       (1) The parties shall proceed promptly and without1627
continuances except for good cause;1628

       (2) The parties, in good faith, shall engage in the free1629
exchange of information relevant to the claim prior to the conduct 1630
of a hearing according to the rules the commission adopts under 1631
section 4121.36 of the Revised Code;1632

       (3) The administrator is a party and may appear and 1633
participate at all administrative proceedings on behalf of the 1634
state insurance fund. However, in cases in which the employer is 1635
represented, the administrator shall neither present arguments nor 1636
introduce testimony that is cumulative to that presented or 1637
introduced by the employer or the employer's representative. The 1638
administrator may file an appeal under this section on behalf of 1639
the state insurance fund; however, except in cases arising under 1640
section 4123.343 of the Revised Code, the administrator only may 1641
appeal questions of law or issues of fraud when the employer 1642
appears in person or by representative.1643

       (H) Except as provided in section 4121.63 of the Revised Code 1644
and division (K) of this section, payments of compensation to a 1645
claimant or on behalf of a claimant as a result of any order 1646
issued under this chapter shall commence upon the earlier of the 1647
following:1648

       (1) Fourteen days after the date the administrator issues an 1649
order under division (B) of this section, unless that order is1650
appealed;1651

       (2) The date when the employer has waived the right to appeal 1652
a decision issued under division (B) of this section;1653

       (3) If no appeal of an order has been filed under this1654
section or to a court under section 4123.512 of the Revised Code,1655
the expiration of the time limitations for the filing of an appeal 1656
of an order;1657

       (4) The date of receipt by the employer of an order of a 1658
district hearing officer, a staff hearing officer, or the 1659
industrial commission issued under division (C), (D), or (E) of 1660
this section.1661

       (I) Payments of medical benefits payable under this chapter 1662
or Chapter 4121., 4127., or 4131. of the Revised Code shall 1663
commence upon the earlier of the following:1664

       (1) The date of the issuance of the staff hearing officer's 1665
order under division (D) of this section;1666

       (2) The date of the final administrative or judicial1667
determination.1668

       (J) The administrator shall charge the compensation payments 1669
made in accordance with division (H) of this section or medical 1670
benefits payments made in accordance with division (I) of this 1671
section to an employer's experience immediately after the employer 1672
has exhausted the employer's administrative appeals as provided in 1673
this section or has waived the employer's right to an 1674
administrative appeal under division (B) of this section, subject 1675
to the adjustment specified in division (H) of section 4123.512 of 1676
the Revised Code.1677

       (K) Upon the final administrative or judicial determination 1678
under this section or section 4123.512 of the Revised Code of an1679
appeal of an order to pay compensation, if a claimant is found to 1680
have received compensation pursuant to a prior order which is 1681
reversed upon subsequent appeal, the claimant's employer, if a 1682
self-insuring employer, or the bureau, shall withhold from any1683
amount to which the claimant becomes entitled pursuant to any1684
claim, past, present, or future, under Chapter 4121., 4123.,1685
4127., or 4131. of the Revised Code, the amount of previously paid1686
compensation to the claimant which, due to reversal upon appeal, 1687
the claimant is not entitled, pursuant to the following criteria:1688

       (1) No withholding for the first twelve weeks of temporary1689
total disability compensation pursuant to section 4123.56 of the1690
Revised Code shall be made;1691

       (2) Forty per cent of all awards of compensation paid1692
pursuant to sections 4123.56 and 4123.57 of the Revised Code,1693
until the amount overpaid is refunded;1694

       (3) Twenty-five per cent of any compensation paid pursuant to 1695
section 4123.58 of the Revised Code until the amount overpaid is 1696
refunded;1697

       (4) If, pursuant to an appeal under section 4123.512 of the 1698
Revised Code, the court of appeals or the supreme court reverses 1699
the allowance of the claim, then no amount of any compensation 1700
will be withheld.1701

       The administrator and self-insuring employers, as 1702
appropriate, are subject to the repayment schedule of this 1703
division only with respect to an order to pay compensation that 1704
was properly paid under a previous order, but which is1705
subsequently reversed upon an administrative or judicial appeal. 1706
The administrator and self-insuring employers are not subject to, 1707
but may utilize, the repayment schedule of this division, or any 1708
other lawful means, to collect payment of compensation made to a 1709
person who was not entitled to the compensation due to fraud as 1710
determined by the administrator or the industrial commission.1711

       (L) If a staff hearing officer or the commission fails to1712
issue a decision or the commission fails to refuse to hear an1713
appeal within the time periods required by this section, payments1714
to a claimant shall cease until the staff hearing officer or1715
commission issues a decision or hears the appeal, unless the1716
failure was due to the fault or neglect of the employer or the1717
employer agrees that the payments should continue for a longer1718
period of time.1719

       (M) Except as otherwise provided in this section or section 1720
4123.522 of the Revised Code, no appeal is timely filed under this 1721
section unless the appeal is filed with the time limits set forth 1722
in this section.1723

       (N) No person who is not an employee of the bureau or1724
commission or who is not by law given access to the contents of a1725
claims file shall have a file in the person's possession.1726

       (O) Upon application of a party who resides in an area in 1727
which an emergency or disaster is declared, the industrial 1728
commission and hearing officers of the commission may waive the 1729
time frame within which claims and appeals of claims set forth in 1730
this section must be filed upon a finding that the applicant was 1731
unable to comply with a filing deadline due to an emergency or a 1732
disaster. 1733

       As used in this division:1734

       (1) "Emergency" means any occasion or instance for which the 1735
governor of Ohio or the president of the United States publicly 1736
declares an emergency and orders state or federal assistance to 1737
save lives and protect property, the public health and safety, or 1738
to lessen or avert the threat of a catastrophe.1739

       (2) "Disaster" means any natural catastrophe or fire, flood, 1740
or explosion, regardless of the cause, that causes damage of 1741
sufficient magnitude that the governor of Ohio or the president of 1742
the United States, through a public declaration, orders state or 1743
federal assistance to alleviate damage, loss, hardship, or 1744
suffering that results from the occurrence.1745

       Section 102. That existing sections 124.15, 124.18, 124.181, 1746
124.34, 124.385, 124.392, 126.05, 2305.24, 2305.25, 4121.04, and 1747
4123.511 of the Revised Code are hereby repealed.1748

       Section 201. All items in this section are hereby 1749
appropriated out of any moneys in the state treasury to the 1750
credit of the designated fund. For all appropriations made in this 1751
section, those in the first column are for fiscal year 2010, and 1752
those in the second column are for fiscal year 2011.1753

Appropriations 1754

FND AI AI TITLE FY 2010 FY 2011 1755

OIC INDUSTRIAL COMMISSION
1756

Workers' Compensation Fund Group 1757

5W30 845321 Operating Expenses $ 50,838,924 $ 52,838,924 1758
5W30 845402 Rent - William Green Building $ 6,149,960 $ 6,011,960 1759
5W30 845410 Attorney General Payments $ 3,793,650 $ 3,793,650 1760
TOTAL WCF Workers' Compensation 1761
Fund Group $ 60,782,534 $ 62,644,534 1762
TOTAL ALL BUDGET FUND GROUPS $ 60,782,534 $ 62,644,534 1763

       RENT - WILLIAM GREEN BUILDING 1764

       The foregoing appropriation item 845402, Rent - William Green 1765
Building, shall be used for rent and operating expenses for the 1766
space occupied by the Industrial Commission in the William Green 1767
Building. 1768

       Section 210. Nothing in this act shall affect the term of 1769
any member of the Industrial Commission Nominating Council 1770
serving on the effective date of this section.1771

       The Governor shall appoint to the Industrial Commission 1772
Nominating Council a person to serve as a member who represents 1773
employers and a person to serve as a representative from the Ohio 1774
Association for Justice not later than fourteen days after the 1775
effective date of this section, and those members shall take 1776
office not later than ninety days after the effective date of 1777
this section. The Governor shall choose the employer 1778
representative from a list of two names selected by the National 1779
Federation of Independent Business and shall appoint that 1780
employer representative to a term ending October 20, 2013. The 1781
Governor shall appoint the representative from the Ohio 1782
Association for Justice to a term ending October 20, 2010.1783

       Except as otherwise provided in this section, the 1784
appointments made by the Governor pursuant to this section shall 1785
comply with section 4121.04 of the Revised Code, as amended by 1786
this act.1787

       Section 310. Within the limits set forth in this act, the 1788
Director of Budget and Management shall establish accounts 1789
indicating the source and amount of funds for each appropriation 1790
made in this act, and shall determine the form and manner in which 1791
appropriation accounts shall be maintained.1792

       Section 315. Except as provided in divisions (C) and (D) of 1793
this section, there is hereby appropriated for the period July 1, 1794
2009, through July 7, 2009, to each agency, board, commission, 1795
department, office, authority, or other organization for which an 1796
appropriation was made by the 127th General Assembly, out of 1797
money in the state treasury to the credit of the respective 1798
funds of the state from which appropriations were made for the 1799
2009 fiscal year, for each specific item for which an 1800
appropriation was made by the 127th General Assembly, taking 1801
into account Controlling Board actions and executive budget 1802
reductions, an amount equal to the following:1803

       (A) For General Revenue Fund appropriation items, seventy per 1804
cent of one fifty-second of each item's adjusted spending levels 1805
for the 2009 fiscal year as adjusted by all budget directives 1806
issued by the Office of Budget and Management pursuant to 1807
Executive Order 2008-01S. Where additional amounts are necessary 1808
to pay the wages, benefits, and other payroll related expenses of 1809
state employees, those additional amounts are hereby appropriated. 1810

       (B) For federal special revenue, state special revenue, or 1811
proprietary appropriation items, one hundred per cent of one 1812
fifty-second of each item's adjusted spending levels for the 2009 1813
fiscal year as adjusted by all budget directives issued by the 1814
Office of Budget and Management pursuant to Executive Order 1815
2008-01S. 1816

       (C) It is expressly provided as follows:1817

       (1) There is hereby appropriated from the money in the state 1818
treasury an amount equal to one hundred per cent of spending 1819
levels equal to the second foundation payment made in June of 2009 1820
for appropriation item 200550, Foundation Funding. 1821

       (2) There is hereby appropriated from the money in the state 1822
treasury an amount equal to one-twelfth of spending levels for the 1823
2009 fiscal year for appropriation item 235501, State Share of 1824
Instruction.1825

       (3) There is hereby appropriated to those agencies mentioned 1826
in Section 420 of this act those moneys received from the federal 1827
government pursuant to the American Reinvestment and Recovery Act. 1828

       (4) There is hereby appropriated those amounts necessary for 1829
expenses incurred in appropriation item 600525 for Medicaid. Rates 1830
reimbursed for providers for the period from July 1, 2009, through 1831
July 7, 2009, shall be the same as rates on June 29, 2009.1832

       (5) No money is appropriated for programs or agencies that 1833
were terminated by action of law, other than the expiration of an 1834
appropriation item, prior to June 30, 2009.1835

       (6) No money shall be spent by any state agency for any 1836
program that is new or to the extent it has been expanded other 1837
than by operation of law.1838

       (7) Specific appropriations are made elsewhere in this act 1839
for the purpose of paying debt service and financing costs on 1840
bonds or notes of the state issued under the Ohio Constitution and 1841
acts of the General Assembly. If it is determined that additional 1842
appropriations are necessary for this purpose, such amounts are 1843
hereby appropriated.1844

       (8) No money is appropriated for any purpose for which 1845
appropriations are made elsewhere in this act.1846

       (9) No money is appropriated for capital purposes other than 1847
by reappropriation of unexpended balances of existing 1848
appropriations.1849

       (10) No money is appropriated for purposes that have full 1850
fiscal year 2010 appropriations by another act of the General 1851
Assembly.1852

       (D) There is hereby appropriated for the period July 1, 2009, 1853
through July 7, 2009, to the legislative and judicial branches and 1854
their respective agencies seventy per cent of one-fifty second of 1855
those agencies' adjusted spending levels for the 2009 fiscal year 1856
as adjusted by all budget directives issued by the Office of 1857
Budget and Management pursuant to the Executive Order 2008-01S.1858

       The Director of Budget and Management shall make any 1859
determinations necessary to decide which provision applies from 1860
this section. All appropriations contained in this act, except for 1861
appropriation item 911401, Emergency Purposes/Contingencies and 1862
appropriation item 911412, OBM-Uneven Cash Distribution, shall be 1863
cumulative with any subsequent appropriation act of the 128th 1864
General Assembly, and the Director of Budget and Management shall 1865
account for expenditures from appropriations contained in this act 1866
accordingly.1867

       Section 320. There is hereby appropriated for the fiscal year 1868
2010-2011 biennium, out of money in the state treasury to the 1869
credit of the General Revenue Fund, the following sums:1870

Appropriations

CEB CONTROLLING BOARD
1871

General Revenue Fund1872

GRF 911401 Emergency Purposes/Contingencies $ 20,000,000 1873
GRF 911412 OBM-Uneven Cash Distribution $ 250,000,000 1874
TOTAL GRF General Revenue Fund $ 270,000,000 1875
TOTAL ALL BUDGET FUND GROUPS $ 270,000,000 1876

       EMERGENCY PURPOSES/CONTINGENCIES AND OBM-UNEVEN CASH 1877
DISTRIBUTION1878

       The foregoing appropriation item 911401, Emergency 1879
Purposes/Contingencies, may be transferred by the Controlling 1880
Board to any agency, board, commission, department, office, 1881
authority, or other organization that urgently requires funds in 1882
excess of those appropriated in Section 315 of this act because of 1883
cash flow, seasonal, contractual obligation, or other special 1884
factors.1885

       The foregoing appropriation item 911412, OBM-Uneven Cash 1886
Distribution, may be transferred by the Director of Budget and 1887
Management to any agency, board, commission, department, office, 1888
authority, or other organization when the Director determines that 1889
because of cash flow, seasonal, contractual obligation, or other 1890
special factors requiring a higher disbursement, the specific 1891
appropriations made to the agency, board, commission, department, 1892
office, authority, or other organization are inadequate to carry 1893
out the purpose for which the specific appropriations are made.1894

       For the same purposes as the preceding paragraph there is 1895
hereby appropriated up to $200,000,000 from funds other than the 1896
General Revenue Fund for use by the Director of Budget and 1897
Management for Uneven Cash Distributions for non-GRF appropriation 1898
items.1899

       When transfers are made from either appropriation item 1900
911401, Emergency Purposes/Contingencies, or 911412, OBM-Uneven 1901
Cash Distribution, to other appropriation items, the 1902
appropriations to the affected items shall be increased by any 1903
estimated amount of federal reimbursement that will be received. 1904
Such additional amounts are hereby appropriated.1905

       Section 325. For the period July 1, 2009, through June 30, 1906
2011, there is hereby appropriated from the General Revenue Fund, 1907
Liquor Control Fund, and any other fund designated by or pursuant 1908
to applicable proceedings authorizing the issuance of bonds, 1909
notes, or other obligations of the state issued pursuant to the 1910
Ohio Constitution and acts of the General Assembly, amounts 1911
necessary to fully and timely pay debt service and financing 1912
costs on those bonds, notes, or other obligations.1913

       Section 330. There is hereby appropriated necessary amounts 1914
determined by the Director of Budget and Management out of money 1915
in the state treasury to the following appropriation items for the 1916
fiscal year ending June 30, 2010, for the purposes of 1917
administering the following employee benefits program in 1918
accordance with law.1919

       PAY EMPLOYEE BENEFITS FUNDS1920

Accrued Leave Liability Fund Group1921

8060 995666 Accrued Leave Fund 1922
8070 995667 Disability Fund 1923

Agency Fund Group1924

1240 995673 Payroll Deductions 1925
8080 995668 State Employee Health Benefit Fund 1926
8090 995669 Dependent Care Spending Account 1927
8100 995670 Life Insurance Investment Fund 1928
8110 995671 Parental Leave Benefit Fund 1929
8130 995672 Health Care Spending Account 1930
8140 995674 Cost Savings Day Fund 1931

       Except for the Cost Savings Day Fund described and 1932
appropriated below, the foregoing funds shall be used consistent 1933
with the purposes enumerated in Am. Sub. H.B. 119 of the 127th 1934
General Assembly. 1935

       There is hereby appropriated the amounts determined necessary 1936
by the Director of Budget and Management during the fiscal year 1937
ending June 30, 2010, for appropriation item 995674, Cost Savings 1938
Day Fund, which shall be used by the Director in accordance with 1939
the provisions of division (E) of section 124.392 of the Revised 1940
Code to pay employees who participated in a mandatory cost 1941
savings program, or to reimburse employees who did not fully 1942
participate in a mandatory cost savings program by the close of 1943
each fiscal year. Notwithstanding any provision of law to the 1944
contrary, in fiscal year 2010 the Director may transfer agency 1945
savings achieved from the use of a mandatory cost savings program 1946
to the General Revenue Fund or any other fund as deemed necessary 1947
by the Director. The Director may make temporary cash transfers 1948
from the General Revenue Fund to ensure sufficient balances in 1949
the Cost Savings Fund and may replenish the General Revenue Fund 1950
for such transfers.1951

       Section 335. There is hereby appropriated necessary amounts 1952
determined by the Director of Budget and Management out of money 1953
in the state treasury to the following appropriation items during 1954
the fiscal year ending June 30, 2010, for the purposes of 1955
administering and distributing revenue distribution funds in 1956
accordance with law.1957

REVENUE DISTRIBUTION FUNDS
1958

Volunteer Firefighters' Dependents Fund1959

7085 800985 Volunteer Firemen's Dependents Fund 1960
Agency Fund Group 1961
4P80 001698 Cash Management Improvement Fund 1962
6080 001699 Investment Earnings 1963
7062 110962 Resort Area Excise Tax 1964
7063 110963 Permissive Tax Distribution 1965
7067 110967 School District Income Tax 1966

Holding Account Redistribution1967

R045 110617 International Fuel Tax Distribution 1968
Revenue Distribution Fund Group 1969
7049 038900 Indigent Drivers Alcohol Treatment 1970
7050 762900 International Registration Plan Distribution 1971
7051 762901 Auto Registration Distribution 1972
7054 110954 Local Government Property Tax Replacement - Utility 1973
7060 110960 Gasoline Excise Tax Fund 1974
7065 110965 Public Library Fund 1975
7066 800966 Undivided Liquor Permits 1976
7068 110968 State and Local Government Highway Distribution 1977
7069 110969 Local Government Fund 1978
7081 110981 Local Government Property Tax Replacement-Business 1979
7082 110982 Horse Racing Tax 1980
7083 700900 Ohio Fairs Fund 1981

       GENERAL REVENUE FUND TRANSFERS TO LOCAL GOVERNMENT PROPERTY 1982
TAX REPLACEMENT FUND (FUND 7081)1983

        Notwithstanding any provision of law to the contrary, in 1984
fiscal year 2010, the Director of Budget and Management may 1985
transfer from the General Revenue Fund to the Local Government 1986
Property Tax Replacement Fund - Business (Fund 7081) in the 1987
Revenue Distribution Fund, those amounts necessary to reimburse 1988
local taxing units under section 5751.22 of the Revised Code. 1989
Also, in fiscal year 2010, the Director of Budget and Management 1990
may make temporary transfers from the General Revenue Fund to 1991
ensure sufficient balances in the Local Government Property Tax 1992
Replacement Fund - Business (Fund 7081) and to replenish the 1993
General Revenue Fund for such transfers.1994

       Section 340.  TRANSFERS FROM THE BUDGET STABILIZATION FUND1995

       Notwithstanding any provision of law to the contrary, the 1996
Director of Budget and Management, in fiscal year 2009, may 1997
transfer cash from the Budget Stabilization Fund to the General 1998
Revenue Fund. The transferred funds are to be used to help balance 1999
General Revenue Fund revenues with General Revenue Fund current 2000
expenses in fiscal year 2009. Before any such transfer, the 2001
Director shall notify the Governor, the Speaker of the House of 2002
Representatives, the President of the Senate, and the Minority 2003
Leaders of the House of Representatives and the Senate of the 2004
date and amount of the transfer and the cash balance remaining in 2005
the Budget Stabilization Fund. 2006

       Section 350. EXPENDITURES AND APPROPRIATION INCREASES2007
APPROVED BY THE CONTROLLING BOARD2008

       Any money that the Controlling Board approves for expenditure 2009
and any increase in appropriations that the Controlling Board 2010
approves pursuant to section 127.14, 131.35, or 131.39 of the 2011
Revised Code or any other provision of law is appropriated for the 2012
period ending June 30, 2011.2013

       Section 360. PERSONAL SERVICE EXPENSES2014

       Unless otherwise prohibited by law, any appropriation from2015
which personal service expenses are paid shall bear the employer's2016
share of public employees' retirement, workers' compensation,2017
disabled workers' relief, and all group insurance programs; the2018
costs of centralized accounting, centralized payroll processing,2019
and related personnel reports and services; the cost of the Office2020
of Collective Bargaining; the cost of the Personnel Board of2021
Review; the cost of the Employee Assistance Program; the cost of2022
the affirmative action and equal employment opportunity programs 2023
administered by the Department of Administrative Services; the 2024
costs of interagency information management infrastructure; and 2025
the cost of administering the state employee merit system as 2026
required by section 124.07 of the Revised Code. These costs shall 2027
be determined in conformity with the appropriate sections of law 2028
and paid in accordance with procedures specified by the Office of2029
Budget and Management. Expenditures from appropriation item 2030
070601, Public Audit Expense - Local Government, may be exempted2031
from the requirements of this section.2032

       Section 365. REISSUANCE OF VOIDED WARRANTS2033

       In order to provide funds for the reissuance of voided2034
warrants pursuant to section 126.37 of the Revised Code, there is2035
appropriated, out of money in the state treasury from the fund2036
credited as provided in section 126.37 of the Revised Code, that2037
amount sufficient to pay such warrants when approved by the Office2038
of Budget and Management.2039

       Section 370. LEASE PAYMENTS TO OPFC, OBA, AND TREASURER OF2040
STATE2041

       Certain appropriations are in this act for the purpose of2042
making lease rental payments pursuant to leases and agreements 2043
relating to bonds or notes issued under Section 2i of Article 2044
VIII, Ohio Constitution, and Chapter 152. of the Revised Code by 2045
the Ohio Building Authority or the Treasurer of State or, 2046
previously, by the Ohio Public Facilities Commission, pursuant to2047
the Ohio Constitution and acts of the General Assembly. If it is2048
determined that additional amounts are necessary for this purpose, 2049
such amounts are hereby appropriated.2050

       Section 375. AUTHORIZATION FOR TREASURER OF STATE AND OBM TO2051
EFFECTUATE CERTAIN DEBT SERVICE PAYMENTS2052

       The Office of Budget and Management shall process payments 2053
from general obligation and lease rental payment appropriation2054
items during the period from July 1, 2009, to June 30, 2011,2055
relating to bonds or notes issued under Sections 2i, 2k, 2l, 2m, 2056
2n, 2o, 2p, 2q, and 15 of Article VIII, Ohio Constitution, and2057
Chapters 151. and 154. of the Revised Code. Payments shall be 2058
made upon certification by the Treasurer of State, Officer of the 2059
Sinking Fund, of the dates and amounts due on those dates.2060

       Section 380.  AUTHORIZATION FOR OHIO BUILDING AUTHORITY AND 2061
OBM TO EFFECTUATE CERTAIN LEASE RENTAL PAYMENTS2062

       The Office of Budget and Management shall process payments 2063
from lease rental payment appropriation items during the period 2064
from July 1, 2009, to June 30, 2011, pursuant to the lease 2065
agreements entered into relating to bonds or notes issued under 2066
Section 2i of Article VIII, Ohio Constitution, and Chapter 152. of 2067
the Revised Code. Payments shall be made upon certification by the 2068
Ohio Building Authority of the dates and the amounts due on those 2069
dates. 2070

       Section 385. STATE AND LOCAL REBATE AUTHORIZATION2071

       There is hereby appropriated, from those funds designated by2072
or pursuant to the applicable proceedings authorizing the issuance2073
of state obligations, amounts computed at the time to represent2074
the portion of investment income to be rebated or amounts in lieu2075
of or in addition to any rebate amount to be paid to the federal2076
government in order to maintain the exclusion from gross income2077
for federal income tax purposes of interest on those state2078
obligations pursuant to section 148(f) of the Internal Revenue2079
Code.2080

       Rebate payments shall be approved and vouchered by the Office2081
of Budget and Management.2082

       Section 390. APPROPRIATIONS RELATED TO CASH TRANSFERS AND2083
REESTABLISHMENT OF ENCUMBRANCES2084

       Any cash transferred by the Director of Budget and Management2085
as provided by section 126.15 of the Revised Code is appropriated.2086
Any amounts necessary to reestablish appropriations or2087
encumbrances as provided in section 126.15 of the Revised Code are 2088
hereby appropriated.2089

       Section 395. FEDERAL CASH MANAGEMENT IMPROVEMENT ACT2090

       Pursuant to the plan for compliance with the Federal Cash2091
Management Improvement Act required by section 131.36 of the2092
Revised Code, the Director of Budget and Management may cancel and 2093
reestablish all or parts of encumbrances in like amounts within 2094
the funds identified by the plan. The amounts necessary to 2095
reestablish all or parts of encumbrances are hereby appropriated.2096

       Section 400. STATEWIDE INDIRECT COST RECOVERY2097

       Whenever the Director of Budget and Management determines2098
that an appropriation made to a state agency from a fund of the2099
state is insufficient to provide for the recovery of statewide2100
indirect costs pursuant to section 126.12 of the Revised Code, the2101
amount required for such purpose is appropriated from the2102
available receipts of such fund.2103

       Section 405. GRF TRANSFERS ON BEHALF OF THE STATEWIDE2104
INDIRECT COST ALLOCATION PLAN2105

       The total transfers made from the General Revenue Fund by the2106
Director of Budget and Management under this section shall not 2107
exceed the amounts transferred into the General Revenue Fund2108
pursuant to section 126.12 of the Revised Code.2109

       The director of an agency may certify to the Director of 2110
Budget and Management the amount of expenses not allowed to be 2111
included in the Statewide Indirect Cost Allocation plan under 2112
federal regulations, from any fund included in the Statewide 2113
Indirect Cost Allocation plan, prepared as required by section 2114
126.12 of the Revised Code.2115

       Upon determining that no alternative source of funding is2116
available to pay for such expenses, the Director of Budget and2117
Management may transfer from the General Revenue Fund into the2118
fund for which the certification is made, up to the amount of the2119
certification. The director of the agency receiving such funds2120
shall include, as part of the next budget submission prepared2121
pursuant to section 126.02 of the Revised Code, a request for2122
funding for such activities from an alternative source such that2123
further federal disallowances would not be required.2124

       Section 410. REAPPROPRIATION OF UNEXPENDED ENCUMBERED2125
BALANCES OF OPERATING APPROPRIATIONS2126

       An unexpended balance of an operating appropriation or2127
reappropriation that a state agency lawfully encumbered prior to2128
the close of a fiscal year is reappropriated on the first day of2129
July of the following fiscal year from the fund from which it was2130
originally appropriated or reappropriated for the following period2131
and shall remain available only for the purpose of discharging the2132
encumbrance:2133

       (A) For an encumbrance for personal services, maintenance,2134
equipment, or items for resale, other than an encumbrance for an2135
item of special order manufacture not available on term contract2136
or in the open market or for reclamation of land or oil and gas2137
wells for a period of not more than five months from the end of2138
the fiscal year;2139

       (B) For an encumbrance for an item of special order2140
manufacture not available on term contract or in the open market,2141
for a period of not more than five months from the end of the2142
fiscal year or, with the written approval of the Director of2143
Budget and Management, for a period of not more than twelve months2144
from the end of the fiscal year;2145

       (C) For an encumbrance for reclamation of land or oil and gas 2146
wells, for a period ending when the encumbered appropriation is 2147
expended or for a period of two years, whichever is less;2148

       (D) For an encumbrance for any other expense, for such period 2149
as the director approves, provided such period does not exceed two 2150
years.2151

       Any operating appropriations for which unexpended balances2152
are reappropriated beyond a five-month period from the end of the2153
fiscal year by division (B) of this section shall be reported to 2154
the Controlling Board by the Director of Budget and Management by 2155
the thirty-first day of December of each year. The report on each 2156
such item shall include the item, the cost of the item, and the 2157
name of the vendor. This report to the board shall be updated on a2158
quarterly basis for encumbrances remaining open.2159

       Upon the expiration of the reappropriation period set out in2160
division (A), (B), (C), or (D) of this section, a reappropriation2161
made by this section lapses, and the Director of Budget and 2162
Management shall cancel the encumbrance of the unexpended2163
reappropriation not later than the end of the weekend following 2164
the expiration of the reappropriation period.2165

       Notwithstanding the preceding paragraph, with the approval of2166
the Director of Budget and Management, an unexpended balance of an2167
encumbrance that was reappropriated on the first day of July by 2168
this section for a period specified in division (C) or (D) of this 2169
section and that remains encumbered at the close of the fiscal 2170
biennium is hereby reappropriated on the first day of July of the 2171
following fiscal biennium from the fund from which it was 2172
originally appropriated or reappropriated for the applicable 2173
period specified in division (C) or (D) of this section and shall 2174
remain available only for the purpose of discharging the 2175
encumbrance.2176

       The Director of Budget and Management may correct accounting 2177
errors committed by the staff of the Office of Budget and 2178
Management, such as reestablishing encumbrances or appropriations 2179
canceled in error, during the cancellation of operating 2180
encumbrances in November and of nonoperating encumbrances in 2181
December.2182

       If the Controlling Board approved a purchase, that approval2183
remains in effect as long as the appropriation used to make that2184
purchase remains encumbered.2185

       Section 415. FEDERAL GOVERNMENT INTEREST REQUIREMENTS2186

       Notwithstanding any provision of law to the contrary, on or2187
before the first day of September of each fiscal year, the2188
Director of Budget and Management, in order to reduce the payment2189
of adjustments to the federal government, as determined by the2190
plan prepared pursuant to division (A) of section 126.12 of the2191
Revised Code, may designate such funds as the director considers2192
necessary to retain their own interest earnings.2193

       Section 420.  FEDERAL STABILIZATION APPROPRIATIONS2194

       There is hereby appropriated in anticipation of receiving 2195
federal stabilization funds from the American Recovery and 2196
Reinvestment Act, Title XIV for the following items: 2197

       (A) Board of Regents appropriation item 235644, State Share 2198
of Instruction - Federal Stimulus – Education, $5,959,116; 2199

       (B) Department of Education appropriation item 200551 2200
Foundation Funding - Federal Stimulus, $7,453,537; and 2201

       (C) Department of Rehabilitation and Corrections 2202
appropriation item 501620 Institutional Operations-Federal 2203
Stimulus, $638,881.2204

       Section 425.  NEGATIVE CASH BALANCES2205

       Notwithstanding the provisions of section 126.06 of the 2206
Revised Code or any other provision of law to the contrary, for 2207
the period July 1, 2009, through June 30, 2011, the Director of 2208
Budget and Management may allow the negative cash balance of the 2209
General Revenue Fund to exceed ten per cent of the total revenue 2210
of the General Revenue Fund in the preceding fiscal year. 2211

       Section 430.  TRANSFERS TO THE BUDGET STABILIZATION FUND AND 2212
INCOME TAX REDUCTION FUND2213

       Notwithstanding section 131.44 of the Revised Code or any 2214
other provision of law to the contrary, for the period July 1, 2215
2009, through June 30, 2011, the Director of Budget and Management 2216
shall determine what, if any, surplus revenue exists in each 2217
preceding fiscal year. If the Director determines that 2218
insufficient revenues exist or that transfers to the budget 2219
stabilization fund or the income tax reduction fund are 2220
impracticable, the Director shall not be required to transfer from 2221
the General Revenue Fund the unencumbered balance on the preceding 2222
thirtieth day of June in excess of one-half of one per cent of the 2223
General Revenue Fund revenues in the preceding fiscal year to the 2224
budget stabilization fund or the income tax reduction fund. 2225

       Section 803.10. Law contained in the main operating 2226
appropriations act of the 128th General Assembly that applies 2227
generally to the appropriations made in that act also applies 2228
generally to the appropriations made in this act. 2229

       Section 805.10. The provisions of law contained in this act, 2230
and their applications, are severable. If any provision of law 2231
contained in this act, or if any application of any provision of 2232
law contained in this act, is held invalid, the invalidity does 2233
not affect other provisions of law contained in this act and their 2234
applications that can be given effect without the invalid 2235
provision or application. 2236

       Section 807.10. An item that composes the whole or part of an 2237
uncodified section of law contained in this act has no effect 2238
after June 30, 2011, unless the context clearly indicates 2239
otherwise. 2240

       Section 809.10. Except as otherwise provided in this act, the 2241
amendment or enactment by this act of a section of law is exempt 2242
from the referendum because it is or relates to an appropriation 2243
for current expenses within the meaning of Ohio Constitution, 2244
Article II, Section 1d and section 1.471 of the Revised Code and 2245
therefore takes effect immediately when this act becomes law. 2246

       Section 809.12.  The amendment of sections 2305.24, 2305.25, 2247
and 4123.511 of the Revised Code by this act are subject to the 2248
referendum under Ohio Constitution, Article II, Section 1c and 2249
therefore take effect on the ninety-first day after this act is 2250
filed with the Secretary of State.2251