As Passed by the Senate

128th General Assembly
Regular Session
2009-2010
Sub. H. B. No. 318


Representative Sykes 

Cosponsors: Representatives Bolon, Chandler, DeBose, Foley, Hagan, Harris, Koziura, Letson, Luckie, Stewart, Szollosi, Ujvagi, Williams, B., Winburn, Yates, Yuko 



A BILL
To amend sections 5747.02 and 5747.056 of the Revised 1
Code and to amend Sections 265.10, 273.10, and 2
335.10 of Am. Sub. H.B. 1 of the 128th General 3
Assembly to postpone for two years the last of 4
five scheduled income tax rate reductions, to 5
create the Construction Reform Demonstration 6
Project, to provide for the granting of a delay in 7
implementing all-day kindergarten, and to make an 8
appropriation.9


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

       Section 1. That sections 5747.02 and 5747.056 of the Revised 10
Code be amended to read as follows:11

       Sec. 5747.02.  (A) For the purpose of providing revenue for 12
the support of schools and local government functions, to provide 13
relief to property taxpayers, to provide revenue for the general 14
revenue fund, and to meet the expenses of administering the tax 15
levied by this chapter, there is hereby levied on every 16
individual, trust, and estate residing in or earning or receiving 17
income in this state, on every individual, trust, and estate 18
earning or receiving lottery winnings, prizes, or awards pursuant 19
to Chapter 3770. of the Revised Code, and on every individual, 20
trust, and estate otherwise having nexus with or in this state 21
under the Constitution of the United States, an annual tax 22
measured in the case of individuals by Ohio adjusted gross income 23
less an exemption for the taxpayer, the taxpayer's spouse, and 24
each dependent as provided in section 5747.025 of the Revised 25
Code; measured in the case of trusts by modified Ohio taxable 26
income under division (D) of this section; and measured in the 27
case of estates by Ohio taxable income. The tax imposed by this 28
section on the balance thus obtained is hereby levied as follows: 29

       (1) For taxable years beginning in 2004: 30

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 31
OR 32
MODIFIED OHIO 33
TAXABLE INCOME (TRUSTS) 34
OR 35
OHIO TAXABLE INCOME (ESTATES) TAX 36

$5,000 or less .743% 37
More than $5,000 but not more than $10,000 $37.15 plus 1.486% of the amount in excess of $5,000 38
More than $10,000 but not more than $15,000 $111.45 plus 2.972% of the amount in excess of $10,000 39
More than $15,000 but not more than $20,000 $260.05 plus 3.715% of the amount in excess of $15,000 40
More than $20,000 but not more than $40,000 $445.80 plus 4.457% of the amount in excess of $20,000 41
More than $40,000 but not more than $80,000 $1,337.20 plus 5.201% of the amount in excess of $40,000 42
More than $80,000 but not more than $100,000 $3,417.60 plus 5.943% of the amount in excess of $80,000 43
More than $100,000 but not more than $200,000 $4,606.20 plus 6.9% of the amount in excess of $100,000 44
More than $200,000 $11,506.20 plus 7.5% of the amount in excess of $200,000 45

       (2) For taxable years beginning in 2005: 46

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 47
OR 48
MODIFIED OHIO 49
TAXABLE INCOME (TRUSTS) 50
OR 51
OHIO TAXABLE INCOME (ESTATES) TAX 52

$5,000 or less .712% 53
More than $5,000 but not more than $10,000 $35.60 plus 1.424% of the amount in excess of $5,000 54
More than $10,000 but not more than $15,000 $106.80 plus 2.847% of the amount in excess of $10,000 55
More than $15,000 but not more than $20,000 $249.15 plus 3.559% of the amount in excess of $15,000 56
More than $20,000 but not more than $40,000 $427.10 plus 4.27% of the amount in excess of $20,000 57
More than $40,000 but not more than $80,000 $1,281.10 plus 4.983% of the amount in excess of $40,000 58
More than $80,000 but not more than $100,000 $3,274.30 plus 5.693% of the amount in excess of $80,000 59
More than $100,000 but not more than $200,000 $4,412.90 plus 6.61% of the amount in excess of $100,000 60
More than $200,000 $11,022.90 plus 7.185% of the amount in excess of $200,000 61

       (3) For taxable years beginning in 2006: 62

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 63
OR 64
MODIFIED OHIO 65
TAXABLE INCOME (TRUSTS) 66
OR 67
OHIO TAXABLE INCOME (ESTATES) TAX 68

$5,000 or less .681% 69
More than $5,000 but not more than $10,000 $34.05 plus 1.361% of the amount in excess of $5,000 70
More than $10,000 but not more than $15,000 $102.10 plus 2.722% of the amount in excess of $10,000 71
More than $15,000 but not more than $20,000 $238.20 plus 3.403% of the amount in excess of $15,000 72
More than $20,000 but not more than $40,000 $408.35 plus 4.083% of the amount in excess of $20,000 73
More than $40,000 but not more than $80,000 $1,224.95 plus 4.764% of the amount in excess of $40,000 74
More than $80,000 but not more than $100,000 $3,130.55 plus 5.444% of the amount in excess of $80,000 75
More than $100,000 but not more than $200,000 $4,219.35 plus 6.32% of the amount in excess of $100,000 76
More than $200,000 $10,539.35 plus 6.87% of the amount in excess of $200,000 77

       (4) For taxable years beginning in 2007: 78

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 79
OR 80
MODIFIED OHIO 81
TAXABLE INCOME (TRUSTS) 82
OR 83
OHIO TAXABLE INCOME (ESTATES) TAX 84

$5,000 or less .649% 85
More than $5,000 but not more than $10,000 $32.45 plus 1.299% of the amount in excess of $5,000 86
More than $10,000 but not more than $15,000 $97.40 plus 2.598% of the amount in excess of $10,000 87
More than $15,000 but not more than $20,000 $227.30 plus 3.247% of the amount in excess of $15,000 88
More than $20,000 but not more than $40,000 $389.65 plus 3.895% of the amount in excess of $20,000 89
More than $40,000 but not more than $80,000 $1,168.65 plus 4.546% of the amount in excess of $40,000 90
More than $80,000 but not more than $100,000 $2,987.05 plus 5.194% of the amount in excess of $80,000 91
More than $100,000 but not more than $200,000 $4,025.85 plus 6.031% of the amount in excess of $100,000 92
More than $200,000 $10,056.85 plus 6.555% of the amount in excess of $200,000 93

       (5) For taxable years beginning in 2008, 2009, or 2010: 94

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 95
OR 96
MODIFIED OHIO 97
TAXABLE INCOME (TRUSTS) 98
OR 99
OHIO TAXABLE INCOME (ESTATES) TAX 100

$5,000 or less .618% 101
More than $5,000 but not more than $10,000 $30.90 plus 1.236% of the amount in excess of $5,000 102
More than $10,000 but not more than $15,000 $92.70 plus 2.473% of the amount in excess of $10,000 103
More than $15,000 but not more than $20,000 $216.35 plus 3.091% of the amount in excess of $15,000 104
More than $20,000 but not more than $40,000 $370.90 plus 3.708% of the amount in excess of $20,000 105
More than $40,000 but not more than $80,000 $1,112.50 plus 4.327% of the amount in excess of $40,000 106
More than $80,000 but not more than $100,000 $2,843.30 plus 4.945% of the amount in excess of $80,000 107
More than $100,000 but not more than $200,000 $3,832.30 plus 5.741% of the amount in excess of $100,000 108
More than $200,000 $9,573.30 plus 6.24% of the amount in excess of $200,000 109

       (6) For taxable years beginning in 20092011 or thereafter: 110

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS) 111
OR 112
MODIFIED OHIO 113
TAXABLE INCOME (TRUSTS) 114
OR 115
OHIO TAXABLE INCOME (ESTATES) TAX 116

$5,000 or less .587% 117
More than $5,000 but not more than $10,000 $29.35 plus 1.174% of the amount in excess of $5,000 118
More than $10,000 but not more than $15,000 $88.05 plus 2.348% of the amount in excess of $10,000 119
More than $15,000 but not more than $20,000 $205.45 plus 2.935% of the amount in excess of $15,000 120
More than $20,000 but not more than $40,000 $352.20 plus 3.521% of the amount in excess of $20,000 121
More than $40,000 but not more than $80,000 $1,056.40 plus 4.109% of the amount in excess of $40,000 122
More than $80,000 but not more than $100,000 $2,700.00 plus 4.695% of the amount in excess of $80,000 123
More than $100,000 but not more than $200,000 $3,639.00 plus 5.451% of the amount in excess of $100,000 124
More than $200,000 $9,090.00 plus 5.925% of the amount in excess of $200,000 125

       In July of each year, beginning in 2010, the tax commissioner 126
shall adjust the income amounts prescribed in this division by 127
multiplying the percentage increase in the gross domestic product 128
deflator computed that year under section 5747.025 of the Revised 129
Code by each of the income amounts resulting from the adjustment 130
under this division in the preceding year, adding the resulting 131
product to the corresponding income amount resulting from the 132
adjustment in the preceding year, and rounding the resulting sum 133
to the nearest multiple of fifty dollars. The tax commissioner 134
also shall recompute each of the tax dollar amounts to the extent 135
necessary to reflect the adjustment of the income amounts. The 136
rates of taxation shall not be adjusted. 137

       The adjusted amounts apply to taxable years beginning in the 138
calendar year in which the adjustments are made. The tax 139
commissioner shall not make such adjustments in any year in which 140
the amount resulting from the adjustment would be less than the 141
amount resulting from the adjustment in the preceding year. 142

       (B) If the director of budget and management makes a 143
certification to the tax commissioner under division (B) of 144
section 131.44 of the Revised Code, the amount of tax as 145
determined under division (A) of this section shall be reduced by 146
the percentage prescribed in that certification for taxable years 147
beginning in the calendar year in which that certification is 148
made. 149

       (C) The levy of this tax on income does not prevent a 150
municipal corporation, a joint economic development zone created 151
under section 715.691, or a joint economic development district 152
created under section 715.70 or 715.71 or sections 715.72 to 153
715.81 of the Revised Code from levying a tax on income. 154

       (D) This division applies only to taxable years of a trust 155
beginning in 2002 or thereafter. 156

       (1) The tax imposed by this section on a trust shall be 157
computed by multiplying the Ohio modified taxable income of the 158
trust by the rates prescribed by division (A) of this section. 159

       (2) A nonresident trust may claim a credit against the tax 160
computed under division (D) of this section equal to the lesser of 161
(1) the tax paid to another state or the District of Columbia on 162
the nonresident trust's modified nonbusiness income, other than 163
the portion of the nonresident trust's nonbusiness income that is 164
qualifying investment income as defined in section 5747.012 of the 165
Revised Code, or (2) the effective tax rate, based on modified 166
Ohio taxable income, multiplied by the nonresident trust's 167
modified nonbusiness income other than the portion of the 168
nonresident trust's nonbusiness income that is qualifying 169
investment income. The credit applies before any other applicable 170
credits. 171

       (3) The credits enumerated in divisions (A)(1) to (13) of 172
section 5747.98 of the Revised Code do not apply to a trust 173
subject to division (D) of this section. Any credits enumerated in 174
other divisions of section 5747.98 of the Revised Code apply to a 175
trust subject to division (D) of this section. To the extent that 176
the trust distributes income for the taxable year for which a 177
credit is available to the trust, the credit shall be shared by 178
the trust and its beneficiaries. The tax commissioner and the 179
trust shall be guided by applicable regulations of the United 180
States treasury regarding the sharing of credits. 181

       (E) For the purposes of this section, "trust" means any trust 182
described in Subchapter J of Chapter 1 of the Internal Revenue 183
Code, excluding trusts that are not irrevocable as defined in 184
division (I)(3)(b) of section 5747.01 of the Revised Code and that 185
have no modified Ohio taxable income for the taxable year, 186
charitable remainder trusts, qualified funeral trusts and preneed 187
funeral contract trusts established pursuant to sections 4717.31 188
to 4717.38 of the Revised Code that are not qualified funeral 189
trusts, endowment and perpetual care trusts, qualified settlement 190
trusts and funds, designated settlement trusts and funds, and 191
trusts exempted from taxation under section 501(a) of the Internal 192
Revenue Code. 193

       Sec. 5747.056. For taxable years beginning in 2005 or 194
thereafter, a credit shall be allowed per return against the tax 195
imposed by section 5747.02 of the Revised Code for a return not 196
filed by an estate or trust that indicates Ohio adjusted gross 197
income less exemptions of ten thousand dollars or less. For 198
taxable years beginning in 2005, the credit shall equal one 199
hundred seven dollars. For taxable years beginning in 2006, the 200
credit shall equal one hundred two dollars. For taxable years 201
beginning in 2007, the credit shall equal ninety-eight dollars. 202
For taxable years beginning in 2008, 2009, or 2010, the credit 203
shall equal ninety-three dollars. For taxable years beginning in 204
20092011 or thereafter, the credit shall equal eighty-eight 205
dollars. The credit shall be claimed in the order required under 206
section 5747.98 of the Revised Code.207

       Section 2.  That existing sections 5747.02 and 5747.056 of 208
the Revised Code are hereby repealed.209

       Section 3.  That Sections 265.10, 273.10, and 335.10 of Am. 210
Sub. H.B. 1 of the 128th General Assembly be amended to read as 211
follows:212

       Sec. 265.10. EDU DEPARTMENT OF EDUCATION213

General Revenue Fund214

GRF 200100 Personal Services $ 10,490,789 $ 10,723,972 215
GRF 200320 Maintenance and Equipment $ 3,110,071 $ 3,144,897 216
GRF 200408 Early Childhood Education $ 23,268,341 $ 23,268,341 217
GRF 200416 Career-Technical Education Match $ 2,233,195 $ 2,233,195 218
GRF 200420 Computer/Application/ Network Development $ 4,880,871 $ 4,880,871 219
GRF 200421 Alternative Education Programs $ 7,814,479 $ 7,918,749 220
GRF 200422 School Management Assistance $ 1,950,521 $ 3,230,469 221
GRF 200424 Policy Analysis $ 356,311 $ 361,065 222
GRF 200425 Tech Prep Consortia Support $ 1,243,943 $ 1,260,542 223
GRF 200426 Ohio Educational Computer Network $ 20,156,602 $ 20,425,556 224
GRF 200427 Academic Standards $ 5,300,074 $ 5,300,074 225
GRF 200431 School Improvement Initiatives $ 7,294,175 $ 7,391,503 226
GRF 200437 Student Assessment $ 55,954,648 $ 56,703,265 227
GRF 200439 Accountability/Report Cards $ 3,804,673 $ 3,804,673 228
GRF 200442 Child Care Licensing $ 865,590 $ 877,140 229
GRF 200446 Education Management Information System $ 13,199,152 $ 11,934,284 230
GRF 200447 GED Testing $ 975,536 $ 988,553 231
GRF 200448 Educator Preparation $ 1,310,750 $ 1,328,240 232
GRF 200455 Community Schools $ 1,000,000 $ 1,000,000 233
GRF 200457 STEM Initiatives $ 5,000,000 $ 5,000,000 234
GRF 200458 School Employees Health Care Board $ 800,000 $ 800,000 235
GRF 200502 Pupil Transportation $ 448,022,619 $ 462,822,619 236
GRF 200505 School Lunch Match $ 9,100,000 $ 9,100,000 237
GRF 200511 Auxiliary Services $ 111,979,388 $ 111,979,388 238
GRF 200532 Nonpublic Administrative Cost Reimbursement $ 50,838,939 $ 50,838,939 239
GRF 200540 Special Education Enhancements $ 134,150,233 $ 135,820,668 240
GRF 200545 Career-Technical Education Enhancements $ 7,752,662 $ 7,802,699 241
GRF 200550 Foundation Funding $ 5,130,669,418 5,415,906,323 $ 4,746,289,372 5,312,560,800 242
GRF 200551 Foundation Funding – Federal Stimulus $ 387,583,913 $ 457,449,362 243
GRF 200578 Violence Prevention and School Safety $ 200,000 $ 200,000 244
GRF 200901 Property Tax Allocation - Education $ 1,053,262,363 $ 1,020,655,157 245
TOTAL GRF General Revenue Fund $ 7,504,569,256 7,789,806,161 $ 7,175,533,593 7,741,805,021 246

General Services Fund Group247

1380 200606 Computer Services-Operational Support $ 7,600,091 $ 7,600,091 248
4520 200638 Miscellaneous Educational Services $ 275,000 $ 275,000 249
4L20 200681 Teacher Certification and Licensure $ 8,013,206 $ 8,147,756 250
5960 200656 Ohio Career Information System $ 529,761 $ 529,761 251
5H30 200687 School District Solvency Assistance $ 18,000,000 $ 18,000,000 252
TOTAL GSF General Services 253
Fund Group $ 34,418,058 $ 34,552,608 254

Federal Special Revenue Fund Group255

3090 200601 Educationally Disadvantaged Programs $ 8,405,512 $ 8,405,512 256
3670 200607 School Food Services $ 6,324,707 $ 6,577,695 257
3680 200614 Veterans' Training $ 778,349 $ 793,846 258
3690 200616 Career-Technical Education Federal Enhancement $ 5,000,000 $ 5,000,000 259
3700 200624 Education of Exceptional Children $ 2,664,000 $ 2,755,000 260
3740 200647 Troops to Teachers $ 100,000 $ 100,000 261
3780 200660 Learn and Serve $ 619,211 $ 619,211 262
3AF0 200603 Schools Medicaid Administrative Claims $ 639,000 $ 639,000 263
3AN0 200671 School Improvement Grants $ 17,909,676 $ 17,936,675 264
3AX0 200698 Improving Health and Educational Outcomes of Young People $ 630,954 $ 630,954 265
3BK0 200628 Longitudinal Data Systems $ 100,000 $ 0 266
3BV0 200636 Character Education $ 700,000 $ 0 267
3C50 200661 Early Childhood Education $ 14,189,711 $ 14,554,749 268
3CF0 200644 Foreign Language Assistance $ 25,000 $ 0 269
3CG0 200646 Teacher Incentive Fund $ 3,007,975 $ 1,157,834 270
3D10 200664 Drug Free Schools $ 13,347,966 $ 13,347,966 271
3D20 200667 Honors Scholarship Program $ 6,990,000 $ 6,985,000 272
3DJ0 200699 IDEA Part B - Federal Stimulus $ 218,868,026 $ 218,868,026 273
3DK0 200642 Title 1A - Federal Stimulus $ 186,336,737 $ 186,336,737 274
3DL0 200650 IDEA Preschool - Federal Stimulus $ 6,679,679 $ 6,679,679 275
3DM0 200651 Title IID Technology - Federal Stimulus $ 11,951,000 $ 11,951,000 276
3DP0 200652 Title I School Improvement - Federal Stimulus $ 54,221,000 $ 54,221,000 277
3H90 200605 Head Start Collaboration Project $ 225,000 $ 225,000 278
3L60 200617 Federal School Lunch $ 295,421,000 $ 310,150,675 279
3L70 200618 Federal School Breakfast $ 80,850,000 $ 84,892,500 280
3L80 200619 Child/Adult Food Programs $ 89,250,000 $ 93,712,500 281
3L90 200621 Career-Technical Education Basic Grant $ 48,029,701 $ 48,029,701 282
3M00 200623 ESEA Title 1A $ 530,000,000 $ 530,010,000 283
3M10 200678 Innovative Education $ 1,000,000 $ 0 284
3M20 200680 Individuals with Disabilities Education Act $ 413,391,594 $ 421,241,163 285
3S20 200641 Education Technology $ 9,487,397 $ 9,487,397 286
3T40 200613 Public Charter Schools $ 14,275,618 $ 14,291,353 287
3Y20 200688 21st Century Community Learning Centers $ 36,000,000 $ 36,000,000 288
3Y40 200632 Reading First $ 27,366,373 $ 24,455,172 289
3Y60 200635 Improving Teacher Quality $ 101,778,397 $ 101,778,400 290
3Y70 200689 English Language Acquisition $ 8,142,299 $ 8,142,299 291
3Y80 200639 Rural and Low Income Technical Assistance $ 1,500,000 $ 1,500,000 292
3Z20 200690 State Assessments $ 12,923,799 $ 12,923,799 293
3Z30 200645 Consolidated Federal Grant Administration $ 8,499,279 $ 8,499,280 294
3Z70 200697 General Supervisory Enhancement Grant $ 887,319 $ 0 295
TOTAL FED Federal Special 296
Revenue Fund Group $ 2,238,516,279 $ 2,262,899,123 297

State Special Revenue Fund Group298

4540 200610 Guidance and Testing $ 450,000 $ 450,000 299
4550 200608 Commodity Foods $ 24,000,000 $ 24,000,000 300
4R70 200695 Indirect Operational Support $ 6,050,000 $ 6,250,000 301
4V70 200633 Interagency Operational Support $ 1,111,838 $ 1,117,725 302
5980 200659 Auxiliary Services Reimbursement $ 1,328,910 $ 1,328,910 303
5BB0 200696 State Action for Education Leadership $ 1,250,000 $ 600,000 304
5BJ0 200626 Half-Mill Maintenance Equalization $ 16,100,000 $ 16,600,000 305
5U20 200685 National Education Statistics $ 300,000 $ 300,000 306
5W20 200663 Early Learning Initiative $ 2,200,000 $ 2,200,000 307
5X90 200911 NGA STEM $ 100,000 $ 0 308
6200 200615 Educational Improvement Grants $ 3,000,000 $ 3,000,000 309
TOTAL SSR State Special Revenue 310
Fund Group $ 55,890,748 $ 55,846,635 311

Lottery Profits Education Fund Group312

7017 200612 Foundation Funding $ 990,236,905 705,000,000 $ 1,277,271,428 711,000,000 313
TOTAL LPE Lottery Profits 314
Education Fund Group $ 990,236,905 705,000,000 $ 1,277,271,428 711,000,000 315

Revenue Distribution Fund Group316

7047 200909 School District Property Tax Replacement-Business $ 1,150,207,366 $ 1,150,207,366 317
7053 200900 School District Property Tax Replacement-Utility $ 91,123,523 $ 91,123,523 318
TOTAL RDF Revenue Distribution 319
Fund Group $ 1,241,330,889 $ 1,241,330,889 320
TOTAL ALL BUDGET FUND GROUPS $ 12,064,962,135 $ 12,047,434,276 321


       Sec. 273.10. ERB STATE EMPLOYMENT RELATIONS BOARD323

General Revenue Fund324

GRF 125321 Operating Expenses $ 2,863,613 3,863,613 $ 2,863,613 3,863,613 325
TOTAL GRF General Revenue Fund $ 2,868,613 3,863,613 $ 2,863,613 3,863,613 326

General Services Fund Group327

5720 125603 Training and Publications $ 87,075 $ 87,075 328
TOTAL GSF General Services 329
Fund Group $ 87,075 $ 87,075 330
TOTAL ALL BUDGET FUND GROUPS $ 2,950,688 3,950,688 $ 2,950,688 3,950,688 331


       Sec. 335.10. DMH DEPARTMENT OF MENTAL HEALTH333

General Revenue Fund334

GRF 332401 Forensic Services $ 3,089,969 $ 3,244,251 335
GRF 333321 Central Administration $ 17,204,000 $ 17,204,000 336
GRF 333402 Resident Trainees $ 504,416 $ 529,602 337
GRF 333403 Pre-Admission Screening Expenses $ 514,446 $ 540,132 338
GRF 333415 Lease-Rental Payments $ 21,333,500 $ 21,951,800 339
GRF 333416 Research Program Evaluation $ 554,763 $ 582,462 340
GRF 334408 Community and Hospital Mental Health Services $ 371,742,870 379,092,870 $ 369,982,336 377,332,336 341
GRF 334506 Court Costs $ 618,253 $ 649,122 342
GRF 335404 Behavioral Health Services-Children $ 7,460,800 $ 7,460,800 343
GRF 335405 Family & Children First $ 1,430,654 $ 1,502,086 344
GRF 335419 Community Medication Subsidy $ 9,959,798 $ 9,959,798 345
GRF 335505 Local Mental Health Systems of Care $ 11,650,000 $ 20,644,308 346
TOTAL GRF General Revenue Fund $ 446,063,469 453,413,469 $ 454,250,697 461,600,697 347

General Services Fund Group348

1490 333609 Central Office Operating $ 1,200,000 $ 1,200,000 349
1490 334609 Hospital - Operating Expenses $ 36,050,000 $ 36,050,000 350
1500 334620 Special Education $ 150,000 $ 150,000 351
4P90 335604 Community Mental Health Projects $ 250,000 $ 250,000 352
1510 336601 Office of Support Services $ 148,998,000 $ 159,279,140 353
TOTAL GSF General Services Fund Group $ 186,648,000 $ 196,929,140 354

Federal Special Revenue Fund Group355

3240 333605 Medicaid/Medicare $ 154,500 $ 154,500 356
3A60 333608 Community and Hospital Services $ 140,000 $ 140,000 357
3A70 333612 Social Services Block Grant $ 25,000 $ 25,000 358
3A80 333613 Federal Grant - Administration $ 4,888,105 $ 4,888,105 359
3A90 333614 Mental Health Block Grant - Administration $ 748,470 $ 748,470 360
3B10 333635 Community Medicaid Expansion $ 13,691,682 $ 13,691,682 361
3240 334605 Medicaid/Medicare $ 25,200,000 $ 30,200,000 362
3A60 334608 Federal Miscellaneous $ 586,224 $ 586,224 363
3A80 334613 Federal Letter of Credit $ 200,000 $ 200,000 364
3B00 334617 Elementary/Secondary Education Act $ 182,334 $ 182,334 365
3A60 335608 Federal Miscellaneous $ 2,178,699 $ 2,178,699 366
3A70 335612 Social Services Block Grant $ 8,632,288 $ 8,632,288 367
3A80 335613 Federal Grant - Community Mental Health Board Subsidy $ 2,595,040 $ 2,595,040 368
3A90 335614 Mental Health Block Grant $ 14,220,930 $ 14,220,930 369
3B10 335635 Community Medicaid Expansion $ 382,835,386 $ 361,335,572 370
TOTAL FED Federal Special Revenue Fund Group $ 456,278,658 $ 439,778,844 371

State Special Revenue Fund Group372

2320 333621 Family and Children First Administration $ 725,000 $ 725,000 373
4850 333632 Mental Health Operating $ 134,233 $ 134,233 374
4X50 333607 Behavioral Health Medicaid Services $ 3,000,624 $ 3,000,624 375
5V20 333611 Non-Federal Miscellaneous $ 560,000 $ 560,000 376
4850 334632 Mental Health Operating $ 2,400,000 $ 2,400,000 377
6920 334636 Community Mental Health Board Risk Fund $ 80,000 $ 80,000 378
5AU0 335615 Behavioral Healthcare $ 6,690,000 $ 6,690,000 379
5CH0 335622 Residential Support Service $ 1,500,000 $ 1,500,000 380
6320 335616 Community Capital Replacement $ 350,000 $ 350,000 381
TOTAL SSR State Special Revenue Fund Group $ 15,439,857 $ 15,439,857 382
TOTAL ALL BUDGET FUND GROUPS $ 1,104,429,984 1,111,779,984 $ 1,106,398,538 1,113,748,538 383


       Section 4.  That existing Sections 265.10, 273.10, and 335.10 385
of Am. Sub. H.B. 1 of the 128th General Assembly are hereby 386
repealed.387

       Section 5.  For a taxpayer's taxable year ending in 2009, any 388
underpayment of estimated tax due under section 5747.09 of the 389
Revised Code before the effective date of this section shall be 390
considered to be due to reasonable cause, and the interest penalty 391
imposed by that section shall not apply, if the underpayment would 392
have met any of the requirements for reasonable cause enumerated 393
in division (E) of that section if not for the delay in the 394
reduction of the rates in section 5747.02 of the Revised Code by 395
this act.396

       Section 6. Notwithstanding any provision of law to the 397
contrary, if the unobligated balance of the General Revenue Fund 398
at the end of fiscal year 2010 exceeds $190,000,000, then an 399
amount equal to the unexpended, unencumbered portion of the 400
General Revenue Fund appropriations for the Department of 401
Education at the end of fiscal year 2010 up to $20,761,069 is 402
hereby reappropriated to appropriation item 200511, Auxiliary 403
Services, and up to $8,971,578 is hereby reappropriated to 404
appropriation item 200532, Nonpublic Administrative Cost 405
Reimbursement, for fiscal year 2011. These amounts are in addition 406
to any appropriations in Am. Sub. H.B. 1 of the 128th General 407
Assembly.408

       Section 7. Notwithstanding any provision of law to the 409
contrary, if the unobligated balance of the General Revenue Fund 410
at the end of fiscal year 2011 exceeds $30,000,000, then on July 411
1, 2011, or as soon as possible thereafter, the Director of Budget 412
and Management shall transfer cash in an amount equal to the 413
unexpended, unencumbered portion of the General Revenue Fund 414
appropriations for the Department of Education at the end of 415
fiscal year 2011 up to $29,732,647 from the General Revenue Fund 416
to the Auxiliary Services Stabilization Fund, which is hereby 417
created in the state treasury. The Superintendent of Public 418
Instruction shall request the Controlling Board to authorize 419
expenditures from the Auxiliary Services Stabilization Fund for 420
the purposes of Auxiliary Services and Nonpublic Administrative 421
Cost Reimbursement.422

       Section 8. (A) During fiscal year 2010, the Chancellor of the 423
Ohio Board of Regents, in consultation with representatives of 424
state institutions of higher education and with Controlling Board 425
approval, shall designate one construction project at each of 426
three different state institutions of higher education as a 427
Construction Reform Demonstration Project that may utilize 428
alternative methods of construction delivery in accordance with 429
this section. In selecting projects to be so designated, the 430
Chancellor shall consider the following:431

       (1) The geographic distribution of the projects throughout 432
the state;433

       (2) The extent to which the projects, when considered 434
together, represent different types of public construction 435
projects, such as new construction, building renovation, and 436
infrastructure replacement; will have different uses; are of 437
different sizes; and will utilize different methods of 438
construction delivery.439

       (B) To be eligible for designation as a Construction Reform 440
Demonstration Project by the Chancellor, the state institution of 441
higher education proposing the project shall demonstrate all of 442
the following to the Chancellor:443

       (1) The project is amenable to the use of, and would make use 444
of, any of the alternative methods of construction delivery 445
described in division (C) of this section.446

       (2) The state institution of higher education has a 447
comprehensive, credible funding plan that does not rely on any 448
subsequent state capital money.449

       (3) The state institution of higher education has satisfied 450
all internal requirements of the state institution of higher 451
education that are necessary to allow bidding on the project to 452
begin before the end of fiscal year 2010.453

       (4) The state institution of higher education has a 454
reasonable plan for meeting or exceeding the EDGE Contracting Goal 455
for the project, as determined in accordance with division (D)(1) 456
of this section, through the expected provision of contracts to 457
qualified EDGE business enterprises.458

       (5) The project will qualify for LEED certification.459

       (C)(1) Subject to division (C)(2) of this section, each state 460
institution of higher education undertaking a Construction Reform 461
Demonstration Project designated by the Chancellor under division 462
(A) of this section shall, notwithstanding any law to the 463
contrary, utilize one or more of the following alternative methods 464
of construction delivery to develop the project:465

       (a) Construction manager at risk. For purposes of this 466
section, "construction manager at risk" means a person with 467
substantial discretion and authority to plan, coordinate, manage, 468
direct, and construct all phases of a project for the 469
construction, demolition, alteration, repair, or reconstruction of 470
any public building, structure, or other improvement and who 471
provides the state institution of higher education a guaranteed 472
maximum price utilizing an open book pricing method, wherein the 473
construction manager at risk provides the state institution of 474
higher education all books, records, documents, and other data in 475
its possession related to itself, its subcontractors, and material 476
suppliers pertaining to the bidding, pricing, or performance of a 477
construction management contract. The construction manager at risk 478
shall be selected using a qualifications based selection process, 479
including best value criteria. "Best value criteria" includes 480
technical design, technical approach, quality of proposed 481
personnel, management plan, or other factors that are determined 482
to derive or offer the greatest value to the state institution of 483
higher education.484

       (b) Design build. For purposes of this section, "design 485
build" means services that form an integrated delivery system for 486
which a person is responsible to a state institution of higher 487
education for both the design and construction, demolition, 488
alteration, repair, or reconstruction of a public improvement. The 489
design-builder shall be selected using a qualifications based 490
selection process, including best value criteria, and using a 491
bridging design delivery in which the state institution of higher 492
education utilizes a criteria or concept architect to develop the 493
program of requirements and the preliminary project scope, and to 494
validate that the state institution of higher education's design 495
intent is implemented.496

       (c) General Contracting. For purposes of this section, 497
"general contracting" means contracting that is exempt from the 498
requirement of Chapter 153. of the Revised Code to award multiple 499
prime contracts for a project up to $600,000 in total project 500
value. 501

       (d) Design Assist. For purposes of this section, "design 502
assist" means the procurement method by which, prior to completion 503
of design, a construction contract may be awarded on a best value 504
basis pursuant to which a contractor provides design assistance to 505
the architect or engineer of record through a design professional 506
separately retained by the contractor. A design assist method also 507
may be used in conjunction with any of the other construction 508
delivery methods set forth in division (C) of this section.509

       (2) In developing their Construction Demonstration Reform 510
Projects, the state institutions of higher education are not 511
exempt from the applicable provisions of law concerning any of the 512
following:513

       (a) Prevailing wage;514

       (b) Bonding;515

       (c) EDGE;516

       (d) Retainage;517

       (e) Prompt pay;518

       (f) Equal employment opportunity and affirmative action 519
construction compliance;520

       (g) Domestic steel; 521

       (h) Public notice and advertising.522

       (D)(1) Each state institution of higher education undertaking 523
a Construction Reform Demonstration Project designated by the 524
Chancellor shall use best efforts to seek to maximize EDGE 525
business enterprise contracting on the project, based upon 526
percentage goals determined as follows:527

       (a) For each project, the Equal Opportunity Division of the 528
Department of Administrative Services shall determine the 529
Demonstration EDGE Percentage by taking into consideration the 530
percentage goal stated in the Technical Assistance Guide for 531
Federal Construction Contracts for the county in which the project 532
will be located and any other factors deemed relevant by the 533
Division. 534

       (b) For each project, the Division shall apply the 535
Demonstration EDGE Percentage to the total project cost to 536
establish the project's EDGE Contracting Goal.537

       (2) All business enterprises certified as minority business 538
enterprises under the laws of this state as of the effective date 539
of this section shall, for purposes of contracting on any of the 540
Construction Reform Demonstration Projects, be considered EDGE 541
business enterprises.542

       (3) The Division shall assist state institutions of higher 543
education in maximizing the utilization of EDGE contractors on 544
Construction Reform Demonstration projects, as follows:545

       (a) At each of the following EDGE compliance check points, 546
the Division shall certify that the project is in reasonable 547
attainment of the EDGE contracting goal for the project:548

       (i) Prior to each contract being awarded, based on the 549
submission of a reasonable, credible plan for meeting the goal;550

       (ii) Once monthly for each contract awarded for work on the 551
project.552

       (b) In determining whether certification under division 553
(D)(3)(a) of this section is warranted, the Division may undertake 554
onsite inspections and may review any contractor records related 555
to the project that it deems necessary.556

       (c) No payment to a contractor shall be made in the absence 557
of a certification required by division (D)(3)(a) of this section.558

       (d) The Division shall establish a stakeholder advisory 559
panel, which shall include two representatives of the Ohio 560
Legislative Black Caucus, two minority contractors, and the 561
Chancellor, to consult with and advise the Division regarding its 562
preparation of regular reports to the Governor, the House of 563
Representatives, and the Senate regarding the satisfaction of EDGE 564
contracting goals on the Construction Reform Demonstration 565
Projects. The panel shall also advise the Division on strategies 566
for maximizing participation of EDGE contractors and ways that the 567
Division could provide problem-solving assistance to the state 568
institutions of higher education undertaking a Construction Reform 569
Demonstration Project and the contractors on the projects to 570
advance the achievement of EDGE contracting goals on those 571
projects.572

       (4) The state institutions of higher education undertaking a 573
Construction Reform Demonstration Project shall pay to the 574
Department of Administrative Services, for staff and other 575
expenses associated with the Division's responsibilities under 576
division (D) of this section, an aggregate amount equal to 577
$150,000 per year in each year in which any of the projects 578
remains uncompleted. The portion of the $150,000 to be paid by any 579
one of the state institutions of higher education with projects 580
underway during that year shall be based on the expenditures of 581
each project in that year compared with the other projects, all as 582
determined by the Division.583

       (E) The state institutions of higher education that are 584
undertaking a Construction Reform Demonstration Project shall 585
cooperate with and provide the Chancellor with all requested 586
information in order to facilitate the Chancellor's study of the 587
cost effectiveness and efficiencies associated with the use of the 588
alternative construction delivery methods.589

       The Chancellor shall prepare semi-annual reports of the 590
Chancellor's findings and a final report. A copy of each report 591
shall be submitted to the Governor, the House of Representatives, 592
and the Senate. 593

       The state institutions of higher education may, at their 594
discretion and in consultation with the Chancellor, transfer funds 595
to the Board of Regents to assist in covering the costs associated 596
with the Chancellor's study and the preparation of the reports.597

       (F) This section shall expire on the date that all of the 598
Construction Reform Demonstration Projects have been completed or 599
on January 1, 2014, whichever is later.600

       Section 9. A school district may seek a delay, until fiscal 601
year 2012, of the requirement to implement all-day kindergarten 602
for all students in that district. The Superintendent of Public 603
Instruction shall grant the requested delay, which may be a 604
request affecting some or all students in the district, upon the 605
submission of a request for such a delay which provides:606

        (A) A resolution from the school district board of education 607
requesting the delay, providing its justification for seeking such 608
a delay; and609

        (B) The submission of a plan for the full implementation of 610
all-day kindergarten in 2012.611

       Section 10. Notwithstanding sections 4141.10 and 4141.11 of 612
the Revised Code, on the effective date of the amendment of 613
Section 273.10 of Am. Sub. H.B. 1 of the 128th General Assembly, 614
or as soon as possible thereafter, and on July 1, 2010, or as soon 615
as possible thereafter, the Director of Budget and Management 616
shall transfer $1,000,000 cash from the Unemployment Compensation 617
Special Administrative Fund (Fund 4A90) used by the Department of 618
Job and Family Services to the General Revenue Fund.619

       Section 11. The amendment by this act of sections 5747.02 and 620
5747.056 of the Revised Code provides for or is essential to the 621
implementation of a tax levy. Therefore, under Ohio Constitution, 622
Article II, Section 1d, the amendment is not subject to the 623
referendum and goes into immediate effect when this act becomes 624
law.625

       Section 12.  The amendment by this act of Sections 265.10, 626
273.10, and 335.10 of Am. Sub. H.B. 1 of the 128th General 627
Assembly and Sections 6, 7, 10, 11, and 12 of this act are exempt 628
from the referendum under Ohio Constitution, Article II, Section 629
1d and section 1.471 of the Revised Code and therefore go into 630
immediate effect when this act becomes law.631