As Reported by the House State Government Committee

128th General Assembly Regular Session 2009-2010

Sub. H. B. No. 230

Representatives Moran, Zehringer 

Cosponsors: Representatives Blair, Book, DeGeeter, Domenick, Gardner, Garland, Goyal, Murray, Sayre, Slesnick, Stewart, Williams, B., Gerberry, Lundy, Daniels, Adams, J., Grossman, Hall, Hite, Stebelton 

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A BILL

To amend sections 103.051, 103.0511, 121.24, 122.08,

1

122.081, and 127.18 and to enact sections 121.81,

2

121.811, 121.812, 121.813, 121.814, 121.815,

3

121.82, 122.084, and 3745.016 of the Revised Code

4

to enact the Common Sense Regulation Act to

5

improve state agency regulatory processes,

6

especially as they relate to small businesses, to

7

require state departments to develop customer

8

service training programs, and to require the

9

Director of Environmental Protection to provide

10

environmental regulatory compliance assistance to

11

small businesses.

12

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

Section 1. That sections 103.051, 103.0511, 121.24, 122.08,	13
122.081, and 127.18 be amended and that sections 121.81, 121.811,	14
121.812, 121.813, 121.814, 121.815, 121.82, 122.084, and	15
3745.016 of the Revised Code be enacted to read as follows:	16

Sec. 103.051.  The "Register of Ohio" is an electronic	17
publication that functions as a gazette to which members of the	18
public may readily resort for notice of and information about	19
rule-making processes. The director of the legislative service	20
commission shall publish the register. The register is to include	21
all rule-making documents that are required by statute to be	22
published in the register and a link to the centralized electronic	23
system for regulatory notification. The director shall display	24
the register free of charge on the internet, and shall ensure	25
that printed copies of all or part of a document published in the	26
register can be easily produced by users of the internet.	27

The director, taking into consideration the public notice and	28
information functions performed by the register, shall update the	29
register at reasonable intervals, but not less often than weekly.	30
The director shall establish a reasonable deadline before each	31
updating. A document received by the director on or before a	32
deadline is to be published in the register upon the register's	33
next updating. The director shall purge a document from the	34
register when its display no longer serves the public notice and	35
information functions performed by the register.	36

The director upon request of any person shall provide the	37
person with a printed copy of all or part of a document published	38
in the register. The director may charge and collect a fee for	39
this service. Any such fee is not to exceed the actual cost of	40
printing and delivering the printed copy to the person requesting	41
it. The director shall deposit the fees into the state treasury to	42
the credit of the register of Ohio fund.	43

Sec. 103.0511.  The director of the legislative service	44
commission shall establish and maintain, and enhance and improve,	45
an electronic rule-filing system connecting:	46

(A) The legislative service commission, the joint committee	47
on agency rule review, the secretary of state, and the office of	48
entrepreneurship and small business division;	49

(B) The governor, the senate and house of representatives,	50
and the clerks of the senate and house of representatives;	51

(C) Each agency that files rules and other rule-making and	52
rule-related documents with the legislative service commission,	53
the joint committee on agency rule review, the governor, the	54
secretary of state, the office ofentrepreneurship and small	55
business division, the general assembly, or a committee of the	56
senate or house of representatives under section 111.15, 117.20,	57
119.03, 119.031, 119.032, 119.0311, 119.04, 121.24, 121.39,	58
127.18, 4141.14, 5117.02, or 5703.14 of the Revised Code or any	59
other statute;	60

(D) The several publishers of the Administrative Code; and

61

(E) Any other person or governmental officer or entity whose	62
inclusion in the system is required for the system to be a	63
complete electronic rule-filing system.	64

The electronic rule-filing system is to enable rules and	65
rule-making and rule-related documents to be filed, and official	66
responses to these filings to be made, exclusively by electronic	67
means.	68

Sec. 121.24.  (A) As used in this section:

69

(1) "Agency" means any agency as defined in division (A)(2)	70
of section 111.15 or division (A) of section 119.01 of the Revised	71
Code.	72

(2) "Employee" means a person who is employed by a small	73
business or small organization for at least one thousand eight	74
hundred hours per year.	75

(3) A rule is "filed in final form" when it is filed with the	76
secretary of state, the director of the legislative service	77
commission, and the joint committee on agency rule review under	78
division (B)(1) of section 111.15, division (A)(1) of section	79
119.04, division (B)(1) of section 4141.14, or division (A) of	80
section 5703.14 of the Revised Code.	81

(4) "History trail" means the supplementary information	82
required to be provided on each copy of a proposed rule, which	83
information is not part of the text of the rule, and sets forth	84
the statute prescribing the procedure in accordance with which the	85
proposed rule is required to be adopted, the statute that	86
authorizes the agency to adopt the proposed rule, the statute that	87
the agency intends to amplify or implement by adopting the	88
proposed rule, the effective dates of any previous versions of the	89
rule that is the subject of the proposal, and other similar	90
information as prescribed in rules of the legislative service	91
commission.	92

(5) "Individual" means any individual who is affected by a	93
rule in the individual's capacity as an officer or employee of a	94
small business or small organization.	95

(6) "Rule summary and fiscal analysis" means a rule summary	96
and fiscal analysis of a proposed rule that provides the	97
information required by division (B) of section 127.18 of the	98
Revised Code, and that has been prepared in the form prescribed by	99
the joint committee on agency rule review under division (E) of	100
that section.	101

(7) "Rate" means any rate, classification, fare, toll,	102
rental, or charge of a public utility.	103

(8) "Rule" means any rule, regulation, or standard having a	104
general and uniform operation, including any appendix thereto,	105
that is adopted, promulgated, and enforced by an agency under the	106
authority of the laws governing the agency. "Rule" includes the	107
adoption of a new rule or the amendment or rescission of an	108
existing rule. "Rule" does not include any of the following:	109

(a) A rule proposed under section 1121.05, 1121.06, 1155.18,	110
1163.22, or 1349.33 of the Revised Code;	111

(b) A rule governing the internal management of an agency	112
that does not affect private rights;	113

(c) A rule authorized by law to be issued as a temporary	114
written order;	115

(d) Except as otherwise provided in division (A)(8)(d) of	116
this section, a rule or order, whether of a quasi-legislative or	117
quasi-judicial nature, proposed by the public utilities	118
commission. Any rule or order, whether of a quasi-legislative or	119
quasi-judicial nature, proposed by the public utilities commission	120
that determines a rate of a public utility to be just and	121
reasonable is a "rule" for purposes of this section, unless the	122
rule or order contains findings that the public utility, in	123
applying for approval of the rate under section 4909.18 of the	124
Revised Code, stated facts and grounds sufficient for the	125
commission to determine that the proposed rate was just and	126
reasonable.	127

(e) A proposed rule, the adoption of which is mandated by a	128
federal law or rule, and which must be adopted substantially as	129
prescribed by federal law or rule, to become effective within one	130
hundred twenty days of adoption, so long as the history trail of	131
the proposed rule contains a statement that it is proposed for the	132
purpose of complying with a federal law or rule and a citation to	133
the federal law or rule that mandates substantial compliance;	134

(9) "Small business" means an independently owned and	135
operated business having fewer than four hundred employees.	136

(10) "Small organization" means an unincorporated	137
association, sheltered workshop, or nonprofit enterprise having	138
fewer than four hundred employees. This definition is not limited	139
to the types of small organizations expressly mentioned, and	140
includes all other types of small organizations, so long as such	141
organizations have fewer than four hundred employees.	142

(B) If an agency intends to adopt a rule, and reasonably	143
believes that the proposed rule, if adopted, will be likely to	144
affect individuals, small businesses, or small organizations, the	145
agency shall comply with the following procedure in adopting the	146
rule, in addition to any other procedure required by section	147
111.15, 119.03, 119.032, 119.04, 127.18, 4141.14, or 5117.02 of	148
the Revised Code or any other statute of this state:	149

(1) The agency shall prepare a complete and accurate rule	150
summary and fiscal analysis of the original version of the	151
proposed rule.	152

(2) After complying with division (B)(1) of this section, and	153
at least sixty days before the agency files the proposed rule in	154
final form, the agency shall file with the office of	155
entrepreneurship and small business division, in electronic form,	156
the full text of the original version of the proposed rule and the	157
rule summary and fiscal analysis of such proposed rule.	158

(3) During a period commencing on the date the original	159
version of the proposed rule is filed pursuant to division (B)(2)	160
of this section and ending forty days thereafter:	161

(a) The chairperson of the standing committee of the senate	162
or house of representatives having jurisdiction over individuals,	163
small businesses, or small organizations, or any other person	164
having an interest in the proposed rule, may submit comments in	165
electronic form to the agency, to the joint committee on agency	166
rule review, or to both, concerning the expected effect of the	167
proposed rule, if adopted, upon individuals, small businesses, and	168
small organizations. The agency and joint committee shall accept	169
all such timely submitted written comments.	170

(b) The chairperson of the standing committee of the senate	171
or house of representatives having jurisdiction over individuals,	172
small businesses, or small organizations, in electronic form, may	173
request the agency to appear before the committee and testify,	174
answer questions asked by members of the committee, and produce	175
information in the possession of the agency as requested by the	176
committee, concerning the expected effect of the proposed rule, if	177
adopted, upon individuals, small businesses, or small	178
organizations. Upon receipt of a request from the chairperson of	179
the appropriate standing committee of the senate or house of	180
representatives under division (B)(3)(b) of this section, the	181
agency shall designate an officer or employee of the agency to	182
appear before the committee, and shall otherwise comply with the	183
request, in the manner directed by the request.	184

(4) The agency shall not proceed to file the proposed rule in	185
final form until it has considered any comments timely submitted	186
to it under division (B)(3)(a) of this section, has identified the	187
issues raised by the comments, has assessed the proposed rule in	188
light of the issues raised by the comments, and has made such	189
revisions in the proposed rule as it considers advisable in light	190
of its assessment.	191

An agency is not required to put any revised version of a	192
proposed rule through the procedure of divisions (B)(1) to (4) of	193
this section.	194

(C) Any original version of a proposed rule, rule summary and	195
fiscal analysis, or written comment filed or submitted under	196
division (B) of this section shall be preserved by the agency with	197
which it is filed or to which it is submitted, and is a public	198
record open to public inspection.	199

(D) Each agency shall prepare a plan that provides for the	200
periodic review, at least once every five years, of each rule of	201
the agency that is not otherwise subject to review under section	202
119.032 of the Revised Code and that affects individuals, small	203
businesses, or small organizations. The purpose of each periodic	204
review shall be to determine whether the rule that is being	205
reviewed should be continued without change or amended or	206
rescinded, consistent with the purpose, scope, and intent of the	207
applicable statute authorizing adoption of the rule, so as to	208
minimize the economic impact of the rule upon individuals, small	209
businesses, or small organizations. Accordingly, in making each	210
periodic review of a rule, the agency shall consider the continued	211
need for the rule, the nature of any written complaints or	212
comments that the agency has received with regard to the rule, the	213
extent to which the rule duplicates, overlaps, or conflicts with	214
other currently effective rules, and the degree to which	215
technology, economic conditions, and other relevant factors have	216
changed in the area affected by the rule.	217

Each agency shall annually report to the governor and general	218
assembly, with regard to each of its rules that have been reviewed	219
under this division during the preceding calendar year, the title	220
and administrative code rule number of the rule, a brief summary	221
of the content and operation of the rule, and a brief summary of	222
the results of the review. If the agency is otherwise required to	223
make an annual report to the governor and general assembly, the	224
agency shall report this information in an appropriately	225
designated section of its annual report, whether its annual report	226
is in print or electronic form or both. If, however, the agency is	227
not otherwise required to make an annual report to the governor	228
and general assembly, the agency, on or before the first day of	229
February, shall report this information in a separate report, in	230
electonicelectronic form, to the governor and general assembly.	231
In addition to the submissions required by section 101.68 of the	232
Revised Code, and in addition to any requirement of that section	233
to submit notice of the availability of a report instead of copies	234
of the report, the agency shall submit its annual or separate	235
report in electronic form, which provides the information required	236
by this division, to the chairpersons of the standing committees	237
of the senate and house of representatives having jurisdiction	238
over individuals, small businesses, and small organizations.	239

Each agency having rules in effect on January 1, 1985, that	240
affect individuals, small businesses, or small organizations shall	241
divide those rules into groups, so that at least one-fifth of	242
those rules are reviewed during each year of a five-year period	243
commencing on January 1, 1985. A rule that is newly adopted after	244
January 1, 1985, shall be reviewed five years after its effective	245
date. When a rule has once been reviewed, it shall thereafter be	246
reviewed again at five-year intervals.	247

(E) Each agency shall designate an individual or office	248
within the agency to be responsible for complying with this	249
division. Each individual or office that has been so designated	250
shall, within ten days after receiving a request therefor from any	251
person:	252

(1) Provide the person with copies of any rule proposed by	253
the agency that would affect individuals, small businesses, or	254
small organizations;	255

(2) Provide the person with copies of the rule summary and	256
fiscal analysis of any rule proposed by the agency that would	257
affect individuals, small businesses, or small organizations; or	258

(3) Find, collate, and make available to the person any	259
information in the possession of the agency regarding a rule	260
proposed by the agency, which information would be of interest to	261
individuals, small businesses, or small organizations.	262

The agency shall inform the office ofentrepreneurship and	263
small business division in writing of the name, address, and	264
telephone number of each individual or office designated under	265
this division. The agency shall promptly inform the office of	266
entrepreneurship and small business division in writing of any	267
change in the information thus provided.	268

(F) Division (B) of this section does not apply to any	269
emergency rule adopted under division (B)(2) of section 111.15 or	270
division (F) of section 119.03 of the Revised Code, except that	271
the emergency rule becomes subject to such division when it is	272
adopted pursuant to the procedure of section 111.15 or 119.03 of	273
the Revised Code for the adoption of rules not of an emergency	274
nature.	275

(G) The department of taxation shall provide a copy of the	276
full text of any rule proposed by the department that may affect	277
any business in electronic form to the office ofentrepreneurship	278
and small business division, and the department shall designate an	279
office within the agency responsible for providing a copy of any	280
such rule within ten days of receiving a request from any person.	281

Sec. 121.81. As used in sections 121.81 and 121.811 to	282
121.815 of the Revised Code:	283

(A) "Rule" means the adoption of a new rule or the amendment	284
or rescission of an existing rule. "Rule" does not include an	285
emergency rule, but does include a rule that is to replace an	286
emergency rule upon its expiration.	287

(B) A "small business" is an independently owned and operated	288
for-profit or nonprofit business entity, including affiliates, and	289
regardless of legal form, that has fewer than four hundred	290
employees.	291

(C) A "state agency" is a discrete unit that is organized as	292
a part of, and that carries out one or more functions of, state	293
government and that is authorized or required by statute to adopt	294
rules. "State agency" does not include the elected state officers	295
or their offices, the general assembly or any legislative agency,	296
or the courts or any judicial agency.	297

Sec. 121.811. Sections 121.81 and 121.812 to 121.815 of the	298
Revised Code are the Common Sense Regulation Act.	299

Sec. 121.812. (A) On and after July 1, 2010, in the course of	300
developing a rule for proposal and adoption, and in any event	301
before proposing the rule by filing it under divisions (D) and	302
(E) of section 111.15 or divisions (B) and (H) of section 119.03	303
of the Revised Code, or when reviewing a rule under section	304
119.032 of the Revised Code, a state agency shall evaluate the	305
rule in light of each of the following considerations:	306

(1) Whether the rule is necessary to give effect to the	307
statute that underlies the rule;	308

(2) Whether the rule unnecessarily duplicates a federal	309
regulation or the rules of the state agency or of another state	310
agency;	311

(3) Whether the state agency has notified all interested	312
persons who have registered through the centralized electronic	313
system for regulatory notification to receive notice that the	314
agency is developing and drafting the rule for proposal and	315
adoption, and whether the state agency has afforded those	316
persons an opportunity to comment to the state agency	317
concerning the substance and the drafting of the rule;	318

(4) Whether the rule is drafted so that its desired outcome	319
will be achieved, and whether the desired outcome of the rule is	320
based on the best information, including scientific and technical	321
data, that reasonably can be obtained;	322

(5) Whether the rule will be understandable to the persons	323
to whom the rule is addressed;	324

(6) Whether the rule can be applied consistently by the	325
state agency to the persons who will be affected by the rule;	326

(7) Whether, when achieving its underlying regulatory	327
objectives, the rule is a reasonable balance between its	328
underlying regulatory objectives and the regulatory burden it	329
imposes;	330

(8) Whether it would be advisable for the rule to expire on a	331
specific future date.	332

(B) The state agency shall prepare a report of its evaluation	333
of the rule. The director of administrative services shall	334
prescribe the form of the report, designing the form so that it	335
will elicit from a state agency when the form is completed whether	336
the state agency has evaluated a rule in light of all the	337
considerations listed in divisions (A)(1) to (8) of this section.	338
The form in addition shall require the state agency to explain the	339
following in particular:	340

(1) If the rule is duplicative, why the duplication is	341
necessary;	342

(2) If the state agency has not notified all interested	343
persons who have registered through the centralized electronic	344
system for regulatory notification to receive notice that the	345
agency is developing and drafting the rule for proposal and	346
adoption, why this is the case; and	347

(3) If the rule, when achieving its regulatory objectives, is	348
not a reasonable balance between its underlying regulatory	349
objectives and the regulatory burden it imposes, why this is the	350
case.	351

If an existing rule is reviewed under section 119.032 of the	352
Revised Code, but not changed, the state agency may include in the	353
report the reason why the rule was left unchanged.	354

(C) The head of the state agency or the state agency's chief	355
legal officer shall review the rule and the report for clarity	356
to ensure the state agency has made a good faith effort to	357
evaluate the rule in light of the considerations. The state	358
agency's report shall indicate whether the head of the state	359
agency or the state agency's chief legal officer has completed	360
this review.	361

(D) The state agency shall transmit a copy of its report	362
electronically to the director of administrative services or the	363
director's designee. The director or the director's designee	364
shall publish a summary of the report on the web site of the	365
centralized electronic system for regulatory notification.	366

Sec. 121.813. The director of administrative services, not	367
later than July 1, 2010, shall establish, and thereafter shall	368
maintain and improve, a centralized electronic system for	369
regulatory notification that:	370

(A) Enables interested persons to register to receive notices	371
and other information from a state agency concerning a rule that	372
the state agency is developing and drafting;	373

(B) Enables the director to publish on the system summaries	374
of reports the director receives under section 121.812 of the	375
Revised Code; and	376

(C) Enables interested persons to register to receive notices	377
of semiannual meetings that are to be convened under section	378
121.814 of the Revised Code.	379

The director shall design the centralized electronic system	380
for regulatory notification so that it enables interested persons	381
to comment electronically on agency regulatory processes.	382

The centralized electronic system for regulatory	383
notification is complementary to the register of Ohio. The	384
director of the legislative service commission and the director of	385
administrative services shall consult with each other and link the	386
centralized electronic system for regulatory notification and the	387
register of Ohio.	388

Sec. 121.814. (A) The director of administrative services or	389
the director's designee shall convene semiannual meetings, at	390
convenient times and locations, at which interested persons may	391
comment on agency regulatory processes that are causing	392
unreasonable impediments to the efficient and successful	393
operation of small businesses. The small business advocate shall	394
attend and participate in each semiannual meeting. Comments at a	395
semiannual meeting may be recorded.	396

The director or the director's designee shall transmit notice	397
of a semiannual meeting, at least one month in advance of the	398
meeting, to interested persons who have registered to receive	399
notices of the meetings through the centralized electronic system	400
for regulatory notification.	401

(B) Based on comments made at each semiannual meeting, the	402
director or the director's designee shall prepare a priority	403
schedule identifying agency processes that are causing	404
unreasonable impediments to the efficient and successful	405
operation of small businesses, and identifying innovative	406
management tools, such as kaizen, value stream mapping,	407
networking, and root cause analysis, that a state agency might	408
bring to bear to reduce or eliminate these impediments. In	409
identifying agency processes that are causing unreasonable	410
impediments, the director or the director's designee particularly	411
shall take account of state agency processes that derogate the	412
considerations listed in section 121.812 of the Revised Code.	413

The director or the director's designee shall transmit a copy	414
of the priority schedule to each state agency that is identified	415
in the priority schedule, and shall monitor the efforts state	416
agencies are making to reduce or eliminate impediments identified	417
in the priority schedule. Each state agency identified in a	418
priority schedule shall make efforts to reduce or eliminate the	419
identified impediments and any other impediments it may discover.	420
At each semiannual meeting after the first, the director or the	421
director's designee shall report to those in attendance on the	422
progress state agencies are making at reducing or eliminating	423
previously identified impediments to the efficient and successful	424
operation of small businesses.	425

The director or the director's designee shall post the	426
priority schedule on the web site of the centralized electronic	427
system for regulatory notification.	428

Sec. 121.815. The directors of each of the following state	429
agencies shall appoint an ombudsperson: the departments of	430
administrative services, agriculture, commerce, development,	431
health, insurance, job and family services, natural resources,	432
taxation, and transportation, the environmental protection agency,	433
the industrial commission, and the bureau of workers'	434
compensation. The ombudsperson shall report to, and is entitled to	435
have regular direct access to and the attention of, the director	436
or other head of the state agency.	437

An ombudsperson shall serve as a problem-solving liaison	438
between the state agency and those who are affected by its rules	439
and regulatory processes when normal state agency processes do not	440
produce a satisfactory result. A small business also may request	441
the small business advocate to assist when normal state agency	442
processes do not produce a satisfactory result. The ombudsperson	443
or small business advocate may not, however, become involved with	444
resolving matters that are the subject of an on-going judicial or	445
administrative enforcement action.	446

If the ombudsperson, with or without the assistance of the	447
small business advocate, is unable to resolve a matter, the	448
ombudsperson may call upon the governor's designee to assist in	449
resolving the matter. The governor's designee shall assist in a	450
neutral way to resolve the matter. The governor's designee shall	451
identify options, and strategies and tactics, for resolving the	452
matter, but may not impose a resolution or make or reverse legal	453
decisions to resolve the matter.	454

A state agency named in this section shall publish on its web	455
site the name, address, telephone number, and e-mail address of	456
its ombudsperson, together with a brief explanation of the	457
ombudsperson's role in resolving matters.	458

An ombudsperson shall consult with the small business	459
advocate and negotiate arrangements to facilitate mutual	460
interaction and avoid duplication of effort.	461

Sec. 121.82.  (A) As used in this section, "department" means	462
the several departments of state administration enumerated in	463
section 121.02 of the Revised Code.	464

(B)(1) It is the policy of this state to improve the customer	465
service provided by departments. Each department shall emphasize	466
improved customer service, efficiency, and productivity in	467
employee orientation and employee training. In light of this	468
policy, not later than January 1, 2011, each department, with the	469
assistance of the department of administrative services, shall	470
adopt customer service principles identifying the best practices	471
to be used to provide improved customer service.	472

(2) Not later than January 1, 2011, each department, with the	473
assistance of the department of administrative services, shall	474
develop a customer service training program that employees	475
designated by the department can complete to improve customer	476
service, efficiency, and productivity. The customer service	477
training program shall emphasize the customer service principles	478
adopted by the department.	479

(C) Each employee who participates in a customer service	480
training program, upon completion of the program, shall sign a	481
written statement acknowledging that the employee understands the	482
customer service principles adopted by the department and will	483
follow them.	484

(D) On its web site, each department shall:

485

(1) In a frequently-asked-question format, post answers to	486
frequently asked questions about the department's regulatory	487
mission and processes; and	488

(2) Include a customer service survey that users may complete	489
online, or download, complete, and e-mail to the department.	490

A department shall review all customer service surveys that	491
are completed and returned to the department, and may send the	492
surveys to the governor or the governor's designee.	493

Sec. 122.08.  (A) There is hereby created within the	494
department of development an officea division to be known as the	495
office ofentrepreneurship and small business division. The office	496
division shall be under the supervision of a manager appointed by	497
the director of development. The manager shall be known as the	498
small business advocate.	499

(B) The officedivision shall do all of the following:

500

(1) Act as liaison facilitating interactions between the	501
small business community and state governmental agencies;	502

(2) Furnish information and technical assistance to persons	503
and small businesses concerning the establishment and maintenance	504
of a small business, and concerning state laws and rules relevant	505
to the operation of a small business. In conjunction with these	506
duties, the officedivision shall keep a record of all state	507
agency rules affecting individuals, small businesses, or small	508
organizations, as defined in section 121.24 of the Revised Code,	509
and may testify before the joint committee on agency rule review	510
concerning any proposed rule affecting individuals, small	511
businesses, or small organizations.	512

(3) Prepare and publish the small business register under	513
section 122.081 of the Revised Code;	514

(4) Receive complaints from small businesses concerning	515
governmental activity, compile and analyze those complaints, and	516
periodically make recommendations to the governor and the general	517
assembly on changes in state laws or agency rules needed to	518
eliminate burdensome and unproductive governmental regulation to	519
improve the economic climate within which small businesses	520
operate;	521

(5) Receive complaints or questions from small businesses and	522
direct those businesses to the appropriate governmental agency.	523
If, within a reasonable period of time, a complaint is not	524
satisfactorily resolved or a question is not satisfactorily	525
answered, the officedivision shall, on behalf of the small	526
business, make every effort to secure a satisfactory result. For	527
this purpose, the officedivision may consult with any state	528
governmental agency and may make any suggestion or request that	529
seems appropriate.	530

(6) Utilize, to the maximum extent possible, the printed and	531
electronic media to disseminate information of current concern and	532
interest to the small business community and to make known to	533
small businesses the services available through the office	534
division. The officedivision shall publish such books, pamphlets,	535
and other printed materials, and shall participate in such trade	536
association meetings, conventions, fairs, and other meetings	537
involving the small business community, as the managersmall	538
business advocate considers appropriate.	539

(7) Prepare for inclusion in the department of development's	540
annual report to the governor and general assembly, a description	541
of the activities of the officedivision and a report of the	542
number of rules affecting individuals, small businesses, and small	543
organizations that were filed with the officedivision under	544
division (B)(2) of section 121.24 of the Revised Code, during the	545
preceding calendar year;	546

(8) Operate the Ohio first-stop business connection to assist	547
individuals in identifying and preparing applications for business	548
licenses, permits, and certificates and to serve as the central	549
public distributor for all forms, applications, and other	550
information related to business licensing. Each state agency,	551
board, and commission shall cooperate in providing assistance,	552
information, and materials to enable the connection to perform its	553
duties under this division.	554

(9) Establish and maintain a toll-free telephone number	555
persons may call during regular business hours, and an e-mail	556
address to which persons may transmit e-mail at any time, to	557
comment to the small business advocate concerning statutes and	558
rules and state agency processes affecting individuals, small	559
businesses, and small organizations. The telephone answering point	560
shall be equipped to record calls that are received after regular	561
business hours.	562

(10) Consult with each ombudsperson appointed under section	563
121.815 of the Revised Code and negotiate arrangements to	564
facilitate mutual interaction and avoid duplication of effort.	565

(C) The officedivision may, upon the request of a state	566
agency, assist the agency with the preparation of any rule that	567
will affect individuals, small businesses, or small organizations.	568

(D) The director of development shall assign employees and	569
furnish equipment and supplies to the officedivision as the	570
director considers necessary for the proper performance of the	571
duties assigned to the officedivision.	572

Sec. 122.081.  (A) The office ofentrepreneurship and small	573
business division in the department of development shall prepare	574
and publish a "small business register" or contract with any	575
person as provided in this section to prepare and publish the	576
register. The small business register shall contain the following	577
information regarding each proposed rule filed with the office of	578
entrepreneurship and small business division under division (B)(2)	579
of section 121.24 of the Revised Code:	580

(1) The title and administrative code rule number of the	581
proposed rule;	582

(2) A brief summary of the proposed rule;

583

(3) The date on which the proposed rule was filed with the	584
office ofentrepreneurship and small business division under	585
division (B)(2) of section 121.24 of the Revised Code; and	586

(4) The name, address, and telephone number of the individual	587
or office within the agency that proposed the rule who has been	588
designated as being responsible for complying with division (E) of	589
section 121.24 of the Revised Code with regard to the proposed	590
rule.	591

(B) The small business register shall be published on a	592
weekly basis. The information required under division (A) of this	593
section shall be published in the register no later than two weeks	594
after the proposed rule to which the information relates is filed	595
with the office ofentrepreneurship and small business division	596
under division (B)(2) of section 121.24 of the Revised Code. The	597
office ofentrepreneurship and small business division shall	598
furnish the small business register, on a single copy or	599
subscription basis, to any person who requests it and pays a	600
single copy price or subscription rate fixed by the office	601
division. The officedivision shall furnish the chairmen	602
chairpersons of the standing committees of the senate and house	603
of representatives having jurisdiction over individuals, small	604
businesses, and small organizations with free subscriptions to	605
the small business register.	606

(C) Upon the request of the office ofentrepreneurship and	607
small business division, the director of administrative services	608
shall, in accordance with the competitive selection procedure of	609
Chapter 125. of the Revised Code, let a contract for the	610
compilation, printing, and distribution of the small business	611
register.	612

(D) The office ofentrepreneurship and small business	613
division shall adopt, and may amend or rescind, in accordance with	614
Chapter 119. of the Revised Code, such rules as are necessary to	615
enable it to properly carry out this section.	616

Sec. 122.084. The entrepreneurship and small business	617
division shall establish the Ohio small business panel. The Ohio	618
small business panel shall meet semi-annually to discuss issues	619
relevant to small businesses, including matters such as the	620
special challenges involved in establishing and in efficiently	621
and successfully operating a small business and the statutes and	622
rules and state agency processes that are involved in or relate	623
to the operation of small businesses. As a result of its	624
discussions, the panel may make recommendations for changes in	625
statutes and rules and in state agency processes that are needed	626
to reduce or eliminate burdensome or unproductive governmental	627
regulation to improve the economic climate within which small	628
businesses operate.	629

The panel may report its recommendations, together with	630
supporting commentary, in a communique. The small business	631
advocate may transmit the communique electronically to the	632
governor, the general assembly, and each state agency to which the	633
recommendations apply.	634

The Ohio small business panel shall consist of the small	635
business advocate and four members appointed by the governor, two	636
members appointed by the president of the senate, and two members	637
appointed by the speaker of the house of representatives. Each	638
member shall be representative of the small business community.	639
Initial appointments to the panel shall be made on or before	640
January 1, 2010. Members of the panel shall serve without	641
compensation and without reimbursement for expenses.	642

The terms of office of all members of the panel, except the	643
small business advocate, shall be for three years, beginning on	644
the first day of January and ending at the close of business on	645
the thirty-first day of December. A vacancy on the panel shall be	646
filled in the same manner as the initial appointment. Any member	647
appointed to fill a vacancy occurring prior to the expiration of	648
the term for which the member's predecessor was appointed shall	649
hold office for the remainder of the term. The term of office for	650
the small business advocate shall be for the entirety of the	651
advocate's employment as the small business advocate.	652

The small business advocate shall be the chairperson of the	653
panel, and shall appoint a secretary from among the panel's	654
members.	655

Five members of the panel constitute a quorum, and the	656
affirmative vote of five members is necessary for any action taken	657
by the panel.	658

Sec. 127.18.  (A) As used in this section:

659

(1) "Rule-making agency" has the same meaning as in division	660
(I) of section 119.01 of the Revised Code.	661

(2) "Rule" includes the adoption, amendment, or rescission of	662
a rule.	663

(3) "Proposed rule" means the original version of a proposed	664
rule, and each revised version of the same proposed rule, that is	665
filed with the joint committee on agency rule review under	666
division (D) of section 111.15 or division (H) of section 119.03	667
of the Revised Code.	668

(B) A rule-making agency shall prepare, in the form	669
prescribed by the joint committee on agency rule review under	670
division (E) of this section, a complete and accurate rule summary	671
and fiscal analysis of each proposed rule that it files under	672
division (D) of section 111.15 or division (H) of section 119.03	673
of the Revised Code. A rule-making agency, when completing the	674
rule summary and fiscal analysis, is encouraged to identify and	675
estimate the number of businesses subject to the proposed rule.	676
The rule summary and fiscal analysis shall include all of the	677
following information:	678

(1) The name, address, and telephone number of the	679
rule-making agency, and the name and telephone number of an	680
individual or office within the agency designated by that agency	681
to be responsible for coordinating and making available	682
information in the possession of the agency regarding the proposed	683
rule;	684

(2) The Ohio Administrative Code rule number of the proposed	685
rule;	686

(3) A brief summary of, and the legal basis for, the proposed	687
rule, including citations identifying the statute that prescribes	688
the procedure in accordance with which the rule-making agency is	689
required to adopt the proposed rule, the statute that authorizes	690
the agency to adopt the proposed rule, and the statute that the	691
agency intends to amplify or implement by adopting the proposed	692
rule;	693

(4) An estimate, in dollars, of the amount by which the	694
proposed rule would increase or decrease revenues or expenditures	695
during the current biennium;	696

(5) A citation identifying the appropriation that authorizes	697
each expenditure that would be necessitated by the proposed rule;	698

(6) A summary of the estimated cost of compliance with the	699
rule to all directly affected persons;	700

(7) The reasons why the rule is being proposed;

701

(8) If the rule has a fiscal effect on school districts,	702
counties, townships, or municipal corporations, an estimate in	703
dollars of the cost of compliance with the rule, or, if dollar	704
amounts cannot be determined, a written explanation of why it was	705
not possible to ascertain dollar amounts;	706

(9) If the rule has a fiscal effect on school districts,	707
counties, townships, or municipal corporations and is the result	708
of a federal requirement, a clear explanation that the proposed	709
state rule does not exceed the scope and intent of the	710
requirement, or, if the state rule does exceed the minimum	711
necessary federal requirement, a justification of the excess cost,	712
and an estimate of the costs, including those costs for local	713
governments, exceeding the federal requirement;	714

(10) If the rule has a fiscal effect on school districts,	715
counties, townships, or municipal corporations, a comprehensive	716
cost estimate that includes the procedure and method of	717
calculating the costs of compliance and identifies major cost	718
categories including personnel costs, new equipment or other	719
capital costs, operating costs, and indirect central service costs	720
related to the rule. The fiscal analysis shall also include a	721
written explanation of the agency's and the affected local	722
government's ability to pay for the new requirements and a	723
statement of any impact the rule will have on economic	724
development.	725

(11) If the rule incorporates a text or other material by	726
reference, and the agency claims the incorporation by reference is	727
exempt from compliance with sections 121.71 to 121.74 of the	728
Revised Code because the text or other material is generally	729
available to persons who reasonably can be expected to be affected	730
by the rule, an explanation of how the text or other material is	731
generally available to those persons;	732

(12) If the rule incorporates a text or other material by	733
reference, and it was infeasible for the agency to file the text	734
or other material electronically, an explanation of why filing the	735
text or other material electronically was infeasible;	736

(13) If the rule is being rescinded and incorporates a text	737
or other material by reference, and it was infeasible for the	738
agency to file the text or other material, an explanation of why	739
filing the text or other material was infeasible;	740

(14) Any other information the joint committee on agency rule	741
review considers necessary to make the proposed rule or the fiscal	742
effect of the proposed rule fully understandable.	743

The rule summary and fiscal analysis also shall include a box	744
the rule-making agency can check to indicate that it has evaluated	745
the rule under section 121.812 of the Revised Code and that its	746
report of the evaluation was reviewed by the head of the state	747
agency or the state agency's chief legal officer. Failure to	748
evaluate a rule under that section and to check the box	749
constitutes only failure to prepare a complete and accurate rule	750
summary and fiscal analysis under division (I)(1)(d) of section	751
119.03 of the Revised Code.	752

(C) The rule-making agency shall file the rule summary and	753
fiscal analysis in electronic form along with the proposed rule	754
that it files under divisions (D) and (E) of section 111.15 or	755
divisions (B) and (H) of section 119.03 of the Revised Code. The	756
joint committee on agency rule review shall not accept any	757
proposed rule for filing unless a copy of the rule summary and	758
fiscal analysis of the proposed rule, completely and accurately	759
prepared, is filed along with the proposed rule.	760

(D) The joint committee on agency rule review shall review	761
the fiscal effect of each proposed rule that is filed under	762
division (D) of section 111.15 or division (H) of section 119.03	763
of the Revised Code.	764

(E) The joint committee on agency rule review shall prescribe	765
the form in which each rule-making agency shall prepare its rule	766
summary and fiscal analysis of a proposed rule.	767

(F) This section does not require the auditor of state or the	768
auditor of state's designee to prepare or attach a rule summary	769
and fiscal analysis to any copy of a rule proposed under section	770
117.12, 117.19, 117.38, or 117.43 of the Revised Code.	771

Sec. 3745.016. (A) As used in this section, "small business"	772
means:	773

(1) A "small business stationary source" as defined in	774
section 3704.01 of the Revised Code; or	775

(2) If the business does not have a source of an air	776
pollutant, an independently owned or operated business having one	777
hundred or fewer employees.	778

(B) The director of environmental protection shall	779
establish, as part of the environmental protection agency, a	780
program for providing environmental regulatory compliance	781
assistance to small businesses. The program shall:	782

(1) Provide environmental regulatory compliance assistance,	783
including on-site environmental regulatory compliance assistance,	784
upon the request of a small business, to assist the small	785
business in identifying relevant environmental regulations and	786
compliance requirements and in completing application and	787
reporting forms relating to environmental regulatory	788
requirements;	789

(2) Develop educational materials for small businesses	790
regarding state and federal environmental regulatory compliance	791
requirements, and distribute the materials to them free of	792
charge;	793

(3) Reach out to small businesses and provide them with	794
training on state and federal environmental regulatory compliance	795
requirements free of charge; and	796

(4) Provide other environmental regulatory compliance	797
assistance to small businesses that will help to improve their	798
compliance with environmental regulation and thereby help to	799
improve the overall cleanliness of Ohio's environment.	800

(C) Any information, regardless of its form or	801
characteristics, that is created or obtained by the environmental	802
protection agency in the course of administering the environmental	803
regulatory compliance assistance program that identifies or	804
describes an individual facility or operation at a small business	805
is confidential and not a public record open to public inspection	806
unless:	807

(1) The information reveals a clear and immediate danger to	808
the environment and the health, safety, or welfare of the public;	809

(2) The information is obtained independently by the director	810
of environmental protection or authorized employees or agents of	811
the environmental protection agency as part of a compliance	812
inspection or investigation or in a judicial or administrative	813
enforcement proceeding; or	814

(3) The information is emissions data or otherwise pertains	815
to a contaminant source, and treating the information as	816
confidential would be inconsistent with the requirements of law.	817

Information that is confidential under this division may not	818
be used in any manner for purposes of the enforcement of any	819
environmental compliance requirement or as evidence in any	820
judicial or administrative enforcement proceeding. This paragraph	821
does not confer immunity on a small business from judicial or	822
administrative enforcement that is based upon information	823
obtained by the director of environmental protection or	824
employees or agents of the environmental protection agency,	825
insofar as they are not engaged in administering the	826
environmental regulatory compliance assistance program.	827

Section 2. That existing sections 103.051, 103.0511, 121.24,	828
122.08, 122.081, and 127.18 of the Revised Code are hereby	829
repealed.	830

Section 3. This act includes amendments re-naming and	831
re-characterizing the Office of Small Business as the	832
Entrepreneurship and Small Business Division. These amendments do	833
not otherwise affect the organization or the organizational	834
position of the office-now-division as part of the Department of	835
Development. Other amendments pertaining to the	836
office-now-division affect its functions.	837