As Reported by the Committee of Conference

128th General Assembly Regular Session 2009-2010

Am. Sub. S. B. No. 181

Senator Stewart 

Cosponsors: Senators Goodman, Schaffer, Seitz, Niehaus, Faber, Gibbs, Gillmor, Harris, Hughes, Patton, Wagoner, Wilson, Carey 

Representatives Weddington, Boyd, DeBose, Domenick, Driehaus, Evans, Garland, Hagan, Letson, Luckie, Mallory, Reece, Sayre, Williams, B., Williams, S., Winburn, Yuko 

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A BILL

To amend sections 122.12, 135.143, 148.06, 926.31,

1

1501.04, 1517.23, 3302.03, 3313.44, 4928.01,

2

5709.62, 5709.63, 5709.632, 5739.02, 5751.08,

3

5751.09, 6109.22, and 6111.036, to enact sections

4

1513.372, 1517.03, 1517.04, and 5709.084 of the

5

Revised Code, to amend Sections 265.30.40 and

6

265.40.60 of Am. Sub. H.B. 1 of the 128th General

7

Assembly, to amend Section 265.10 of Am. Sub. H.B.

8

1 of the 128th General Assembly, as subsequently

9

amended, and to repeal Sections 6 and 7 of Sub.

10

H.B. 318 of the 128th General Assembly to provide

11

immunity from liability for eligible landowners

12

who provide access to abandoned mine land located

13

on their land for purposes of acid mine drainage

14

abatement and to provide immunity from liability

15

for nonprofit organizations that provide funding

16

or services for such acid mine drainage abatement,

17

to designate that methane gas emitted from an

18

abandoned coal mine constitutes a renewable energy

19

resource rather than an advanced energy resource

20

for purposes of the law governing the promotion of

21

renewable energy usage, electricity supplied from

22

renewable energy sources, and renewable energy

23

credits, to reestablish the Ohio Natural Areas

24

Council, and to expand the purposes for which the

25

Water Supply Revolving Loan Account in the

26

Drinking Water Assistance Fund and the Water

27

Pollution Control Loan Fund may be used; to revise

28

the performance ratings for school districts and

29

buildings; to require the Director of Budget and

30

Management, upon the request of the Director of

31

Natural Resources and beginning July 1, 2010, and

32

ending January 1, 2012, to transfer an amount not

33

to exceed $1.2 million from the Natural Areas and

34

Preserves Fund to the Departmental Projects Fund

35

for the purpose of supporting permanent employees

36

of the Division of Natural Areas and Preserves

37

through January 1, 2012; to require the

38

Administrator of the Bureau of Workers'

39

Compensation, beginning July 1, 2010, and ending

40

December 31, 2010, to transfer a portion of the

41

investment earnings of the Coal-Workers

42

Pneumoconiosis Fund to the Strip Mining

43

Administration Fund; to include NASCAR races,

44

certain Olympic-style boxing competitions, and the

45

Air New Zealand Golden Oldies World Rugby Festival

46

as sporting events for which state grants may be

47

awarded to a county or municipal corporation; to

48

alter the authority of the Treasurer of State to

49

invest in single-issuer debt; to authorize

50

regional water and sewer districts and regional

51

transit authorities to offer additional deferred

52

compensation plans; to modify the law governing

53

which entities are subject to testing of

54

agricultural commodities; to exempt from taxation

55

property leased by a school district for a term of

56

at least fifty years; to exempt convention centers

57

in large-population counties from property

58

taxation and to exempt, for one year, construction

59

materials incorporated into such convention

60

centers from sales and use taxation; to extend

61

enterprise zone authority for one year; to

62

permanently authorize the Tax Commissioner to

63

refund erroneously made commercial activity tax

64

payments made by persons not required to pay the

65

tax; to expressly permit consensual extensions of

66

the four-year time limit on assessments and refund

67

requests for the commercial activity tax; to

68

reauthorize and make appropriations for the

69

Department of Development's Job Ready Sites

70

Program for fiscal years 2011 and 2012; to

71

reauthorize and make appropriations for the

72

Department of Development's Clean Ohio

73

Revitalization Program for fiscal years 2011 and

74

2012; to require the Chancellor of the Board of

75

Regents to develop a work force development pilot

76

program for areas of the state with high

77

unemployment; and to provide for adjustments to

78

payments to schools, to provide for adjustments to

79

payments to nonpublic schools, and to make an

80

appropriation.

81

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

Section 1. That sections 122.12, 135.143, 148.06, 926.31,	82
1501.04, 1517.23, 3302.03, 3313.44, 4928.01, 5709.62, 5709.63,	83
5709.632, 5739.02, 5751.08, 5751.09, 6109.22, and 6111.036 be	84
amended and sections 1513.372, 1517.03, 1517.04, and 5709.084 of	85
the Revised Code be enacted to read as follows:	86

Sec. 122.12.  As used in this section and in section 122.121	87
of the Revised Code:	88

(A) "Endorsing county" means a county that contains a site	89
selected by a site selection organization for one or more games.	90

(B) "Endorsing municipality" means a municipal corporation	91
that contains a site selected by a site selection organization for	92
one or more games.	93

(C) "Game support contract" means a joinder undertaking,	94
joinder agreement, or similar contract executed by an endorsing	95
municipality or endorsing county and a site selection	96
organization.	97

(D) "Game" means a national football league "super bowl," a	98
national collegiate athletic association championship game or	99
match, the national basketball association all-star game, the	100
national hockey league all-star game, the major league baseball	101
all-star game, a national collegiate athletic association bowl	102
championship series game, a world cup soccer game, a national	103
association for stock car auto racing race, the nationnational	104
senior games, the air New Zealand golden oldies world rugby	105
festival, the golden gloves of America, inc., national golden	106
gloves tournament, the USA boxing association national	107
championships, the international boxing association world cup or	108
world championships, or the olympic games.	109

(E) "Joinder agreement" means an agreement entered into by an	110
endorsing municipality or endorsing county, or more than one	111
endorsing municipality or county acting collectively and a site	112
selection organization setting out representations and assurances	113
by each endorsing municipality or endorsing county in connection	114
with the selection of a site in this state for the location of a	115
game.	116

(F) "Joinder undertaking" means an agreement entered into by	117
an endorsing municipality or endorsing county, or more than one	118
endorsing municipality or county acting collectively and a site	119
selection organization that each endorsing municipality or	120
endorsing county will execute a joinder agreement in the event	121
that the site selection organization selects a site in this state	122
for a game.	123

(G) "Local organizing committee" means a nonprofit	124
corporation or its successor in interest that:	125

(1) Has been authorized by an endorsing municipality,	126
endorsing county, or more than one endorsing municipality or	127
county acting collectively to pursue an application and bid on the	128
applicant's behalf to a site selection organization for selection	129
as the site of one or more games; or	130

(2) With the authorization of an endorsing municipality,	131
endorsing county, or more than one endorsing municipality or	132
county acting collectively, has executed an agreement with a site	133
selection organization regarding a bid to host one or more games.	134

(H) "Site selection organization" means the national football	135
league, the national collegiate athletic association, the national	136
basketball association, the national hockey league, major league	137
baseball, the federation internationale de football association,	138
the international world games association, the United States	139
olympic committee, the national association for stock car auto	140
racing, the national senior games association, the air New Zealand	141
golden oldies world rugby secretariat, golden gloves of America,	142
inc., the USA boxing association, the international boxing	143
association, or the national governing body of a sport that is	144
recognized as such by the United States olympic committee.	145

Sec. 135.143.  (A) The treasurer of state may invest or	146
execute transactions for any part or all of the interim funds of	147
the state in the following classifications of obligations:	148

(1) United States treasury bills, notes, bonds, or any other	149
obligations or securities issued by the United States treasury or	150
any other obligation guaranteed as to principal and interest by	151
the United States;	152

(2) Bonds, notes, debentures, or any other obligations or	153
securities issued by any federal government agency or	154
instrumentality;	155

(3) Bonds and other direct obligations of the state of Ohio	156
issued by the treasurer of state and of the Ohio public facilities	157
commission, the Ohio building authority, and the Ohio housing	158
finance agency;	159

(4)(a) Written repurchase agreements with any eligible Ohio	160
financial institution that is a member of the federal reserve	161
system or federal home loan bank or any recognized United States	162
government securities dealer, under the terms of which agreement	163
the treasurer of state purchases and the eligible financial	164
institution or dealer agrees unconditionally to repurchase any of	165
the securities that are listed in division (A)(1), (2), or (6) of	166
this section and that will mature or are redeemable within ten	167
years from the date of purchase. The market value of securities	168
subject to these transactions must exceed the principal value of	169
the repurchase agreement by an amount specified by the treasurer	170
of state, and the securities must be delivered into the custody of	171
the treasurer of state or the qualified trustee or agent	172
designated by the treasurer of state. The agreement shall contain	173
the requirement that for each transaction pursuant to the	174
agreement, the participating institution or dealer shall provide	175
all of the following information:	176

(i) The par value of the securities;

177

(ii) The type, rate, and maturity date of the securities;

178

(iii) A numerical identifier generally accepted in the	179
securities industry that designates the securities.	180

(b) The treasurer of state also may sell any securities,	181
listed in division (A)(1), (2), or (6) of this section, regardless	182
of maturity or time of redemption of the securities, under the	183
same terms and conditions for repurchase, provided that the	184
securities have been fully paid for and are owned by the treasurer	185
of state at the time of the sale.	186

(5) Securities lending agreements with any eligible financial	187
institution that is a member of the federal reserve system or	188
federal home loan bank or any recognized United States government	189
securities dealer, under the terms of which agreements the	190
treasurer of state lends securities and the eligible financial	191
institution or dealer agrees to simultaneously exchange similar	192
securities or cash, equal value for equal value.	193

Securities and cash received as collateral for a securities	194
lending agreement are not interim funds of the state. The	195
investment of cash collateral received pursuant to a securities	196
lending agreement may be invested only in such instruments	197
specified by the treasurer of state in accordance with a written	198
investment policy.	199

(6) Various forms of commercial paper issued by any	200
corporation that is incorporated under the laws of the United	201
States or a state, which notes are rated at the time of purchase	202
in the two highest categories by two nationally recognized rating	203
agencies, provided that the total amount invested under this	204
section in any commercial paper at any time shall not exceed	205
twenty-five per cent of the state's total average portfolio, as	206
determined and calculated by the treasurer of state;	207

(7) Bankers acceptances, maturing in two hundred seventy days	208
or less, which are eligible for purchase by the federal reserve	209
system, provided that the total amount invested in bankers	210
acceptances at any time shall not exceed ten per cent of the	211
state's total average portfolio, as determined and calculated by	212
the treasurer of state;	213

(8) Certificates of deposit in eligible institutions applying	214
for interim moneys as provided in section 135.08 of the Revised	215
Code, including linked deposits as provided in sections 135.61 to	216
135.67 of the Revised Code, agricultural linked deposits as	217
provided in sections 135.71 to 135.76 of the Revised Code, and	218
housing linked deposits as provided in sections 135.81 to 135.87	219
of the Revised Code;	220

(9) The state treasurer's investment pool authorized under	221
section 135.45 of the Revised Code;	222

(10) Debt interests, other than commercial paper described in	223
division (A)(6) of this section, rated at the time of purchase in	224
the three highest categories by two nationally recognized rating	225
agencies and issued by corporations that are incorporated under	226
the laws of the United States or a state, or issued by foreign	227
nations diplomatically recognized by the United States government,	228
or any instrument based on, derived from, or related to such	229
interests. All interest and principal shall be denominated and	230
payable in United States funds. The, provided that:	231

(a) The investments made under division (A)(10) of this	232
sectionin debt interests shall not exceed in the aggregate	233
twenty-five per cent of the state's total average portfolio, as	234
determined and calculated by the treasurer of state. The;	235

(b) The investments made under division (A)(10) of this	236
section in debt interests issued by foreign nations shall not	237
exceed in the aggregate one per cent of the state's total average	238
portfolio, as determined and calculated by the treasurer of state.	239
The;	240

(c) The investments made under division (A)(10) of this	241
section in the debt interests of a single issuer shall not exceed	242
in the aggregate one-half of one per cent of the state's total	243
average portfolio, as determined and calculated by the treasurer	244
of stateexcept that debt interests of a single issuer that is a	245
foreign nation shall not exceed in the aggregate one per cent of	246
the state's portfolio.	247

The treasurer of state shall invest under division (A)(10) of	248
this section in a debt interest issued by a foreign nation only if	249
the debt interest is backed by the full faith and credit of that	250
foreign nation, and provided that all interest and principal shall	251
be denominated and payable in United States funds. For	252

For purposes of division (A)(10) of this section, a debt	253
interest is rated in the three highest categories by two	254
nationally recognized rating agencies if either the debt interest	255
itself or the issuer of the debt interest is rated, or is	256
implicitly rated, at the time of purchase in the three highest	257
categories by two nationally recognized rating agencies.	258

For purposes of division (A)(10) of this section, the	259
"state's portfolio" means the state's total average portfolio, as	260
determined and calculated by the treasurer of state.	261

(11) No-load money market mutual funds consisting exclusively	262
of obligations described in division (A)(1), (2), or (6) of this	263
section and repurchase agreements secured by such obligations.	264

(12) Obligations of a board of education issued under	265
authority of section 133.10 or 133.301 of the Revised Code.	266

(B) Whenever, during a period of designation, the treasurer	267
of state classifies public moneys as interim moneys, the treasurer	268
of state shall notify the state board of deposit of such action.	269
The notification shall be given within thirty days after such	270
classification and, in the event the state board of deposit does	271
not concur in such classification or in the investments or	272
deposits made under this section, the board may order the	273
treasurer of state to sell or liquidate any of the investments or	274
deposits, and any such order shall specifically describe the	275
investments or deposits and fix the date upon which they are to be	276
sold or liquidated. Investments or deposits so ordered to be sold	277
or liquidated shall be sold or liquidated for cash by the	278
treasurer of state on the date fixed in such order at the then	279
current market price. Neither the treasurer of state nor the	280
members of the state board of deposit shall be held accountable	281
for any loss occasioned by sales or liquidations of investments or	282
deposits at prices lower than their cost. Any loss or expense	283
incurred in making these sales or liquidations is payable as other	284
expenses of the treasurer's office.	285

(C) If any securities or obligations invested in by the	286
treasurer of state pursuant to this section are registrable either	287
as to principal or interest, or both, such securities or	288
obligations shall be registered in the name of the treasurer of	289
state.	290

(D) The treasurer of state is responsible for the safekeeping	291
of all securities or obligations under this section. Any such	292
securities or obligations may be deposited for safekeeping as	293
provided in section 113.05 of the Revised Code.	294

(E) Interest earned on any investments or deposits authorized	295
by this section shall be collected by the treasurer of state and	296
credited by the treasurer of state to the proper fund of the	297
state.	298

(F) Whenever investments or deposits acquired under this	299
section mature and become due and payable, the treasurer of state	300
shall present them for payment according to their tenor, and shall	301
collect the moneys payable thereon. The moneys so collected shall	302
be treated as public moneys subject to sections 135.01 to 135.21	303
of the Revised Code.	304

(G) The treasurer of state and any board of education issuing	305
obligations referred to in division (A)(12) of this section may	306
enter into an agreement providing for:	307

(1) The purchase of those obligations by the treasurer of	308
state on terms and subject to conditions set forth in the	309
agreement;	310

(2) The payment by the board of education to the treasurer of	311
state of a reasonable fee as consideration for the agreement of	312
the treasurer of state to purchase those obligations; provided,	313
however, that the treasurer of state shall not be authorized to	314
enter into any such agreement with the board of education of a	315
school district that has an outstanding obligation with respect to	316
a loan received under authority of section 3313.483 of the Revised	317
Code.	318

(H) For purposes of division (G) of this section, a fee shall	319
not be considered reasonable unless it is set to recover only the	320
direct costs and a reasonable estimate of the indirect costs	321
associated with the purchasing of obligations of a school board	322
under division (G) of this section and any reselling of the	323
obligations or any interest in the obligations, including	324
interests in a fund comprised of the obligations. No money from	325
the general revenue fund shall be used to subsidize the purchase	326
or resale of these obligations.	327

(I) All money collected by the treasurer of state from the	328
fee imposed by division (G) of this section shall be deposited to	329
the credit of the state school board obligations fund, which is	330
hereby created in the state treasury. Money credited to the fund	331
shall be used solely to pay the treasurer of state's direct and	332
indirect costs associated with purchasing and reselling	333
obligations of a board of education under division (G) of this	334
section.	335

Sec. 148.06.  As used in this section:

336

(A) "Government unit" means a county, park district of any	337
kind, conservancy district, sanitary district, regional water and	338
sewer district, regional transit authority, health district,	339
public library district, or county law library.	340

(B) "Governing board" means, in the case of the county, the	341
board of county commissioners; in the case of a park district, the	342
board of park commissioners; in the case of a conservancy	343
district, the district's board of directors; in the case of a	344
sanitary district, the district's board of directors; in the case	345
of a regional water and sewer district, the district's board of	346
trustees; in the case of a regional transit authority, the	347
authority's board of trustees; in the case of a health district,	348
the board of health; in the case of a public library district, the	349
board of library trustees; and in the case of a county law	350
library, the board of trustees of the law library association.	351

In addition to the program of deferred compensation that may	352
be offered under this chapter, a governing board may offer to all	353
of the officers and employees of the government unit not to exceed	354
two additional programs for deferral of compensation designed for	355
favorable tax treatment of the compensation so deferred. Any such	356
program shall include a reasonable number of options to the	357
officer or employee for the investment of the deferred funds,	358
including annuities, variable annuities, regulated investment	359
trusts, or other forms of investment approved by the governing	360
board, that will assure the desired tax treatment of the funds.	361

Any income deferred under such a plan shall continue to be	362
included as regular compensation for the purpose of computing the	363
contributions to and benefits from the officer's or employee's	364
retirement system but shall not be included in the computation of	365
any federal and state income taxes withheld on behalf of any such	366
employee.	367

Sec. 926.31.  (A) Upon receipt of any shipment of an	368
agricultural commodity from a producerdepositor or hisa	369
depositor's agent, either for sale or for storage under a bailment	370
agreement, the licensed handler shall cause a representative	371
sample to be drawn for testing by an agricultural commodity tester	372
to determine the quality of the commodity. At the request of the	373
producerdepositor or histhe depositor's agent, the tester shall	374
immediately test the sample and shall notify the producer	375
depositor or histhe depositor's agent of the results of the test	376
and of any price discount, premium, or conditioning charge that is	377
applicable to the value of the commodity. Upon notification of the	378
test and the value adjustment to be applied, the producer	379
depositor or histhe depositor's agent shall do one of the	380
following:	381

(1) Refuse to sell or store the commodity unless hethe	382
depositor or agent has unloaded the commodity prior to testing;	383

(2) Agree to sell or store the commodity and accept the	384
agricultural commodity tester's results of the testing of the	385
shipment and the applicable value adjustment;	386

(3) Agree to sell or store the commodity but reject the	387
agricultural commodity tester's results of the testing of the	388
shipment and order the handler to forward the sample to a	389
federally licensed grain inspector immediately for a final testing	390
of the shipment. The producerdepositor, histhe depositor's	391
agent, or the handler may specify in writing which testing factor	392
or factors hethe depositor, depositor's agent, or handler wishes	393
the federal inspector to test.	394

(B) If, either prior to or during the unloading of the	395
shipment, the licensed handler believes that the original sample	396
drawn is not representative of the shipment, or if the producer	397
depositor or histhe depositor's agent requests a second sample to	398
be drawn, the handler shall cause a second sample to be drawn and	399
used for the testing of the shipment.	400

(C) Any determination of a federally licensed grain inspector	401
under this section shall be binding on both the licensed handler	402
and the producerdepositor or histhe depositor's agent as the	403
basis for determining the premium or discount and settlement	404
price, if the shipment was delivered for sale, or the conditioning	405
charge, if the shipment was received for storage under a bailment	406
agreement. The cost of the federal inspection and the actual cost	407
of forwarding the sample for such inspection shall be borne by the	408
handler, if the test increases the value of the agricultural	409
commodity as originally determined by the agricultural commodity	410
tester, or by the producerdepositor, if the test does not change	411
or lowers the value of the commodity.	412

(D) Any licensed handler and any producerdepositor or his	413
the agent of a depositor may enter into an agreement whereby	414
representative samples of each of several shipments of the same	415
agricultural commodity that arrive at the handler's warehouse or	416
facility during any one business day shall be combined to obtain a	417
single result of the testing of the combined shipments of the	418
commodity.	419

(E) No person shall offer for sale or storage any	420
agricultural commodity that is:	421

(1) Treated with any poisonous material or that contains	422
rodent excreta or any other material in such amounts as to render	423
the commodity unfit for animal or human consumption;	424

(2) Knowingly or purposely loaded unevenly so as to conceal	425
amounts of the commodity that are inferior.	426

(F) Nothing in this section shall be construed to relieve any	427
contractual obligations in effect between the licensed handler or	428
the producerdepositor.	429

Sec. 1501.04.  There is hereby created in the department of	430
natural resources a recreation and resources commission composed	431
of the chairperson of the wildlife council created under section	432
1531.03 of the Revised Code, the chairperson of the parks and	433
recreation council created under section 1541.40 of the Revised	434
Code, the chairperson of the waterways safety council created	435
under section 1547.73 of the Revised Code, the chairperson of the	436
technical advisory council on oil and gas created under section	437
1509.38 of the Revised Code, the chairperson of the forestry	438
advisory council created under section 1503.40 of the Revised	439
Code, the chairperson of the Ohio soil and water conservation	440
commission created under section 1515.02 of the Revised Code, the	441
chairperson of the Ohio natural areas council created under	442
section 1517.03 of the Revised Code, the chairperson of the Ohio	443
water advisory council created under section 1521.031 of the	444
Revised Code, the chairperson of the recycling and litter	445
prevention advisory council created under section 1502.04 of the	446
Revised Code, the chairperson of the Ohio geology advisory council	447
created under section 1505.11 of the Revised Code, and five	448
members appointed by the governor with the advice and consent of	449
the senate, not more than three of whom shall belong to the same	450
political party. The director of natural resources shall be an ex	451
officio member of the commission, with a voice in its	452
deliberations, but without the power to vote.	453

Terms of office of members of the commission appointed by the	454
governor shall be for five years, commencing on the second day of	455
February and ending on the first day of February. Each member	456
shall hold office from the date of appointment until the end of	457
the term for which the member was appointed.	458

In the event of the death, removal, resignation, or	459
incapacity of a member of the commission, the governor, with the	460
advice and consent of the senate, shall appoint a successor who	461
shall hold office for the remainder of the term for which the	462
member's predecessor was appointed. Any member shall continue in	463
office subsequent to the expiration date of the member's term	464
until the member's successor takes office, or until a period of	465
sixty days has elapsed, whichever occurs first.	466

The governor may remove any appointed member of the	467
commission for misfeasance, nonfeasance, or malfeasance in office.	468

The commission shall exercise no administrative function, but	469
may do any of the following:	470

(A) Advise with and recommend to the director as to plans and	471
programs for the management, development, utilization, and	472
conservation of the natural resources of the state;	473

(B) Advise with and recommend to the director as to methods	474
of coordinating the work of the divisions of the department;	475

(C) Consider and make recommendations upon any matter that	476
the director may submit to it;	477

(D) Submit to the governor biennially recommendations for	478
amendments to the conservation laws of the state.	479

Each member of the commission, before entering upon the	480
discharge of the member's duties, shall take and subscribe to an	481
oath of office, which oath, in writing, shall be filed in the	482
office of the secretary of state.	483

The members of the commission shall serve without	484
compensation, but shall be entitled to receive their actual and	485
necessary expenses incurred in the performance of their official	486
duties.	487

The commission, by a majority vote of all its members, shall	488
adopt and amend bylaws.	489

To be eligible for appointment, a person shall be a citizen	490
of the United States and an elector of the state and shall possess	491
a knowledge of and have an interest in the natural resources of	492
this state.	493

The commission shall hold at least four regular quarterly	494
meetings each year. Special meetings shall be held at such times	495
as the bylaws of the commission provide. Notices of all meetings	496
shall be given in such manner as the bylaws provide. The	497
commission shall choose annually from among its members a	498
chairperson to preside over its meetings and a secretary to keep a	499
record of its proceedings. A majority of the members of the	500
commission constitutes a quorum. No advice shall be given or	501
recommendation made without a majority of the members of the	502
commission concurring in it.	503

Sec. 1513.372. (A) As used in this section:

504

(1) "Abandoned mine land" means land or water resources	505
adversely affected by coal mining practices to which one of the	506
following applies:	507

(a) The coal mining practices occurred prior to August 3,	508
1977, and there is no continuing reclamation responsibility under	509
state or federal law.	510

(b) The coal mining practices occurred prior to April 10,	511
1972.	512

(c) The coal mining practices were conducted pursuant to a	513
license that was issued prior to April 10, 1972.	514

(2) "Eligible landowner" means a landowner who provides	515
access without charge or other consideration to abandoned mine	516
land that is located on the landowner's property for the purpose	517
of allowing the implementation of a reclamation project on the	518
abandoned mine land. "Eligible landowner" does not include a	519
person that is responsible under state or federal law to reclaim	520
the land or address acid mine drainage existing or emanating from	521
the abandoned mine land.	522

(3) "Landowner" means a person who holds a fee interest in	523
real property.	524

(4) "Nonprofit organization" means a corporation,	525
association, group, institution, society, or other organization	526
that is exempt from federal income taxation under section	527
501(c)(3) of the "Internal Revenue Code of 1986," 100 Stat. 2085,	528
26 U.S.C. 501(c)(3), as amended, that provides funding or services	529
at no cost or at cost for a reclamation project.	530

(5) "Reclamation project" means an acid mine drainage	531
abatement project that is conducted in compliance with this	532
chapter and rules adopted under it on abandoned mine land that is	533
located on property owned by an eligible landowner.	534

(6) "Reclamation project work area" means the portion of a	535
parcel of real property on which a reclamation project is	536
conducted and the roads providing ingress to and egress from the	537
reclamation project.	538

(B) Except as provided in divisions (C) and (D) of this	539
section, an eligible landowner or nonprofit organization is immune	540
from liability as follows:	541

(1) For any injury to or damage suffered by a person working	542
under the direct supervision of the division of mineral resources	543
management while the person is within the reclamation project work	544
area;	545

(2) For any injury to or damage suffered by a third party	546
that arises out of or occurs as a result of an act or omission of	547
the division during the construction, operation, and maintenance	548
of the reclamation project;	549

(3) For any failure of an acid mine drainage abatement	550
facility constructed or installed during a reclamation project	551
that is supervised by the division;	552

(4) For the operation, maintenance, or repair of any acid	553
mine drainage abatement facility constructed or installed during a	554
reclamation project unless the eligible landowner negligently	555
damages or destroys the acid mine drainage abatement facility or	556
denies access to the division of mineral resources management that	557
is responsible for the operation, maintenance, or repair of the	558
acid mine drainage abatement facility.	559

(C) The eligible landowner shall notify the division of a	560
known, latent, dangerous condition located at a reclamation	561
project work area that is not the subject of the reclamation	562
project. The immunity established in division (B) of this section	563
does not apply to any injury, damage, or pollution resulting from	564
the eligible landowner's failure to notify the division of such a	565
known, latent, dangerous condition.	566

(D) The immunity established in division (B) of this section	567
does not apply in both of the following circumstances:	568

(1) An injury to a person within the reclamation project work	569
area that results from an eligible landowner's or nonprofit	570
organization's acts or omissions that are reckless or constitute	571
gross negligence or willful or wanton misconduct;	572

(2) An eligible landowner or nonprofit organization who	573
engages in any unlawful activities with respect to a reclamation	574
project.	575

(E) The chief of the division of mineral resources management	576
shall adopt rules in accordance with Chapter 119. of the Revised	577
Code that are necessary to implement this section.	578

Sec. 1517.03.  There is hereby created the Ohio natural areas	579
council to advise the chief of the division of natural areas and	580
preserves on the administration of nature preserves and the	581
preservation of natural areas.	582

The council shall have no fewer than five members as	583
determined by the director of natural resources. The members shall	584
be appointed by the director.	585

Not later than thirty days after the effective date of this	586
section, the director shall make initial appointments to the	587
council. The director shall establish the terms of office of the	588
members of the council.	589

The council annually shall select from among its members a	590
chairperson and a secretary. Members of the council shall receive	591
no compensation and shall not be reimbursed for expenses incurred	592
as members of the council.	593

The council shall hold at least one regular meeting in each	594
calendar year. Special meetings may be called by the chairperson	595
and shall be called by the chairperson upon written request by two	596
or more members of the council. A written notice of the time and	597
place of each meeting shall be sent to each member and to the	598
director. A majority of the members of the council constitutes a	599
quorum. The council shall keep a record of its proceedings at each	600
meeting and shall send a copy of the record to the director. The	601
record shall be open to the public for inspection.	602

Sec. 1517.04.  The Ohio natural areas council shall do all of	603
the following:	604

(A) Review and make recommendations regarding criteria used	605
by the department of natural resources for acquisition and	606
dedication of nature preserves;	607

(B) Review and make recommendations regarding inventories and	608
registries of natural areas and preserves;	609

(C) Review and make recommendations regarding departmental	610
plans for the selection of particular natural areas for state	611
acquisition;	612

(D) Advise the chief of the division of natural areas and	613
preserves on policies and rules governing the management,	614
protection, and use of nature preserves;	615

(E) Recommend the extent and type of visitation and use to be	616
permitted within each nature preserve;	617

(F) Advise and consult with the chief and with employees of	618
the division of natural areas and preserves on preservation	619
matters;	620

(G) Advise the chief on the program to identify and protect	621
the state's cave resources that is established under this chapter.	622

Sec. 1517.23. TheWith the advice of the Ohio natural areas	623
council created in section 1517.03 of the Revised Code, the chief	624
of the division of natural areas and preserves shall do both of	625
the following:	626

(A) Formulate policies and plans and establish a program	627
incorporating them for the identification and protection of the	628
state's cave resources and adopt, amend, or rescind rules in	629
accordance with Chapter 119. of the Revised Code to implement that	630
program;	631

(B) Provide technical assistance and management advice to	632
owners upon request concerning the protection of caves on their	633
land.	634

Sec. 3302.03.  (A) Annually the department of education shall	635
report for each school district and each school building in a	636
district all of the following:	637

(1) The extent to which the school district or building meets	638
each of the applicable performance indicators created by the state	639
board of education under section 3302.02 of the Revised Code and	640
the number of applicable performance indicators that have been	641
achieved;	642

(2) The performance index score of the school district or	643
building;	644

(3) Whether the school district or building has made adequate	645
yearly progress;	646

(4) Whether the school district or building is excellent,	647
effective, needs continuous improvement, is under an academic	648
watch, or is in a state of academic emergency.	649

(B) Except as otherwise provided in divisionsdivision (B)(6)	650
and (7) of this section:	651

(1) A school district or building shall be declared excellent	652
if it fulfills one of the following requirements:	653

(a) It makes adequate yearly progress and either meets at	654
least ninety-four per cent of the applicable state performance	655
indicators or has a performance index score established by the	656
department.	657

(b) It has failed to make adequate yearly progress for not	658
more than two consecutive years and either meets at least	659
ninety-four per cent of the applicable state performance	660
indicators or has a performance index score established by the	661
department, except that if it does not make adequate yearly	662
progress for two or more of the same subgroups for three or more	663
consecutive years, it shall be declared effective.	664

(2) A school district or building shall be declared effective	665
if it fulfills one of the following requirements:	666

(a) It makes adequate yearly progress and either meets at	667
least seventy-five per cent but less than ninety-four per cent of	668
the applicable state performance indicators or has a performance	669
index score established by the department.	670

(b) It does not make adequate yearly progress and either	671
meets at least seventy-five per cent of the applicable state	672
performance indicators or has a performance index score	673
established by the department, except that if it does not make	674
adequate yearly progress for two or more of the same subgroups for	675
three or more consecutive years, it shall be declared in need of	676
continuous improvement.	677

(3) A school district or building shall be declared to be in	678
need of continuous improvement if it fulfills one of the following	679
requirements:	680

(a) It makes adequate yearly progress, meets less than	681
seventy-five per cent of the applicable state performance	682
indicators, and has a performance index score established by the	683
department.	684

(b) It does not make adequate yearly progress and either	685
meets at least fifty per cent but less than seventy-five per cent	686
of the applicable state performance indicators or has a	687
performance index score established by the department.	688

(4) A school district or building shall be declared to be	689
under an academic watch if it does not make adequate yearly	690
progress and either meets at least thirty-one per cent but less	691
than fifty per cent of the applicable state performance indicators	692
or has a performance index score established by the department.	693

(5) A school district or building shall be declared to be in	694
a state of academic emergency if it does not make adequate yearly	695
progress, does not meet at least thirty-one per cent of the	696
applicable state performance indicators, and has a performance	697
index score established by the department.	698

(6) When designating performance ratings for school districts	699
and buildings under divisions (B)(1) to (5) of this section, the	700
department shall not assign a school district or building a lower	701
designation from its previous year's designation based solely on	702
one subgroup not making adequate yearly progress.	703

(7) Division (B)(7)(6) of this section does not apply to any	704
community school established under Chapter 3314. of the Revised	705
Code in which a majority of the students are enrolled in a dropout	706
prevention and recovery program.	707

A school district or building shall not be assigned a higher	708
performance rating than in need of continuous improvement if at	709
least ten per cent but not more than fifteen per cent of the	710
enrolled students do not take all achievement assessments	711
prescribed for their grade level under division (A)(1) or (B)(1)	712
of section 3301.0710 of the Revised Code from which they are not	713
excused pursuant to division (C)(1) or (3) of section 3301.0711 of	714
the Revised Code. A school district or building shall not be	715
assigned a higher performance rating than under an academic watch	716
if more than fifteen per cent but not more than twenty per cent of	717
the enrolled students do not take all achievement assessments	718
prescribed for their grade level under division (A)(1) or (B)(1)	719
of section 3301.0710 of the Revised Code from which they are not	720
excused pursuant to division (C)(1) or (3) of section 3301.0711 of	721
the Revised Code. A school district or building shall not be	722
assigned a higher performance rating than in a state of academic	723
emergency if more than twenty per cent of the enrolled students do	724
not take all achievement assessments prescribed for their grade	725
level under division (A)(1) or (B)(1) of section 3301.0710 of the	726
Revised Code from which they are not excused pursuant to division	727
(C)(1) or (3) of section 3301.0711 of the Revised Code.	728

(C)(1) The department shall issue annual report cards for	729
each school district, each building within each district, and for	730
the state as a whole reflecting performance on the indicators	731
created by the state board under section 3302.02 of the Revised	732
Code, the performance index score, and adequate yearly progress.	733

(2) The department shall include on the report card for each	734
district information pertaining to any change from the previous	735
year made by the school district or school buildings within the	736
district on any performance indicator.	737

(3) When reporting data on student performance, the	738
department shall disaggregate that data according to the following	739
categories:	740

(a) Performance of students by age group;

741

(b) Performance of students by race and ethnic group;

742

(c) Performance of students by gender;

743

(d) Performance of students grouped by those who have been	744
enrolled in a district or school for three or more years;	745

(e) Performance of students grouped by those who have been	746
enrolled in a district or school for more than one year and less	747
than three years;	748

(f) Performance of students grouped by those who have been	749
enrolled in a district or school for one year or less;	750

(g) Performance of students grouped by those who are	751
economically disadvantaged;	752

(h) Performance of students grouped by those who are enrolled	753
in a conversion community school established under Chapter 3314.	754
of the Revised Code;	755

(i) Performance of students grouped by those who are	756
classified as limited English proficient;	757

(j) Performance of students grouped by those who have	758
disabilities;	759

(k) Performance of students grouped by those who are	760
classified as migrants;	761

(l) Performance of students grouped by those who are	762
identified as gifted pursuant to Chapter 3324. of the Revised	763
Code.	764

The department may disaggregate data on student performance	765
according to other categories that the department determines are	766
appropriate. To the extent possible, the department shall	767
disaggregate data on student performance according to any	768
combinations of two or more of the categories listed in divisions	769
(C)(3)(a) to (l) of this section that it deems relevant.	770

In reporting data pursuant to division (C)(3) of this	771
section, the department shall not include in the report cards any	772
data statistical in nature that is statistically unreliable or	773
that could result in the identification of individual students.	774
For this purpose, the department shall not report student	775
performance data for any group identified in division (C)(3) of	776
this section that contains less than ten students.	777

(4) The department may include with the report cards any	778
additional education and fiscal performance data it deems	779
valuable.	780

(5) The department shall include on each report card a list	781
of additional information collected by the department that is	782
available regarding the district or building for which the report	783
card is issued. When available, such additional information shall	784
include student mobility data disaggregated by race and	785
socioeconomic status, college enrollment data, and the reports	786
prepared under section 3302.031 of the Revised Code.	787

The department shall maintain a site on the world wide web.	788
The report card shall include the address of the site and shall	789
specify that such additional information is available to the	790
public at that site. The department shall also provide a copy of	791
each item on the list to the superintendent of each school	792
district. The district superintendent shall provide a copy of any	793
item on the list to anyone who requests it.	794

(6)(a) This division does not apply to conversion community	795
schools that primarily enroll students between sixteen and	796
twenty-two years of age who dropped out of high school or are at	797
risk of dropping out of high school due to poor attendance,	798
disciplinary problems, or suspensions.	799

For any district that sponsors a conversion community school	800
under Chapter 3314. of the Revised Code, the department shall	801
combine data regarding the academic performance of students	802
enrolled in the community school with comparable data from the	803
schools of the district for the purpose of calculating the	804
performance of the district as a whole on the report card issued	805
for the district.	806

(b) Any district that leases a building to a community school	807
located in the district or that enters into an agreement with a	808
community school located in the district whereby the district and	809
the school endorse each other's programs may elect to have data	810
regarding the academic performance of students enrolled in the	811
community school combined with comparable data from the schools of	812
the district for the purpose of calculating the performance of the	813
district as a whole on the district report card. Any district that	814
so elects shall annually file a copy of the lease or agreement	815
with the department.	816

(7) The department shall include on each report card the	817
percentage of teachers in the district or building who are highly	818
qualified, as defined by the "No Child Left Behind Act of 2001,"	819
and a comparison of that percentage with the percentages of such	820
teachers in similar districts and buildings.	821

(8) The department shall include on the report card the	822
number of lead teachers employed by each district and each	823
building once the data is available from the education management	824
information system established under section 3301.0714 of the	825
Revised Code.	826

(D)(1) In calculating English language arts, mathematics,	827
social studies, or science assessment passage rates used to	828
determine school district or building performance under this	829
section, the department shall include all students taking an	830
assessment with accommodation or to whom an alternate assessment	831
is administered pursuant to division (C)(1) or (3) of section	832
3301.0711 of the Revised Code.	833

(2) In calculating performance index scores, rates of	834
achievement on the performance indicators established by the state	835
board under section 3302.02 of the Revised Code, and adequate	836
yearly progress for school districts and buildings under this	837
section, the department shall do all of the following:	838

(a) Include for each district or building only those students	839
who are included in the ADM certified for the first full school	840
week of October and are continuously enrolled in the district or	841
building through the time of the spring administration of any	842
assessment prescribed by division (A)(1) or (B)(1) of section	843
3301.0710 of the Revised Code that is administered to the	844
student's grade level;	845

(b) Include cumulative totals from both the fall and spring	846
administrations of the third grade English language arts	847
achievement assessment;	848

(c) Except as required by the "No Child Left Behind Act of	849
2001" for the calculation of adequate yearly progress, exclude for	850
each district or building any limited English proficient student	851
who has been enrolled in United States schools for less than one	852
full school year.	853

Sec. 3313.44.  Real or personal property vested inowned by	854
or leased to any board of education for a lease term of at least	855
fifty years shall be exempt from taxation and from sale on	856
execution or other writ or order in the nature of an execution.	857

Sec. 4928.01.  (A) As used in this chapter:

858

(1) "Ancillary service" means any function necessary to the	859
provision of electric transmission or distribution service to a	860
retail customer and includes, but is not limited to, scheduling,	861
system control, and dispatch services; reactive supply from	862
generation resources and voltage control service; reactive supply	863
from transmission resources service; regulation service; frequency	864
response service; energy imbalance service; operating	865
reserve-spinning reserve service; operating reserve-supplemental	866
reserve service; load following; back-up supply service;	867
real-power loss replacement service; dynamic scheduling; system	868
black start capability; and network stability service.	869

(2) "Billing and collection agent" means a fully independent	870
agent, not affiliated with or otherwise controlled by an electric	871
utility, electric services company, electric cooperative, or	872
governmental aggregator subject to certification under section	873
4928.08 of the Revised Code, to the extent that the agent is under	874
contract with such utility, company, cooperative, or aggregator	875
solely to provide billing and collection for retail electric	876
service on behalf of the utility company, cooperative, or	877
aggregator.	878

(3) "Certified territory" means the certified territory	879
established for an electric supplier under sections 4933.81 to	880
4933.90 of the Revised Code.	881

(4) "Competitive retail electric service" means a component	882
of retail electric service that is competitive as provided under	883
division (B) of this section.	884

(5) "Electric cooperative" means a not-for-profit electric	885
light company that both is or has been financed in whole or in	886
part under the "Rural Electrification Act of 1936," 49 Stat. 1363,	887
7 U.S.C. 901, and owns or operates facilities in this state to	888
generate, transmit, or distribute electricity, or a not-for-profit	889
successor of such company.	890

(6) "Electric distribution utility" means an electric utility	891
that supplies at least retail electric distribution service.	892

(7) "Electric light company" has the same meaning as in	893
section 4905.03 of the Revised Code and includes an electric	894
services company, but excludes any self-generator to the extent	895
that it consumes electricity it so produces, sells that	896
electricity for resale, or obtains electricity from a generating	897
facility it hosts on its premises.	898

(8) "Electric load center" has the same meaning as in section	899
4933.81 of the Revised Code.	900

(9) "Electric services company" means an electric light	901
company that is engaged on a for-profit or not-for-profit basis in	902
the business of supplying or arranging for the supply of only a	903
competitive retail electric service in this state. "Electric	904
services company" includes a power marketer, power broker,	905
aggregator, or independent power producer but excludes an electric	906
cooperative, municipal electric utility, governmental aggregator,	907
or billing and collection agent.	908

(10) "Electric supplier" has the same meaning as in section	909
4933.81 of the Revised Code.	910

(11) "Electric utility" means an electric light company that	911
has a certified territory and is engaged on a for-profit basis	912
either in the business of supplying a noncompetitive retail	913
electric service in this state or in the businesses of supplying	914
both a noncompetitive and a competitive retail electric service in	915
this state. "Electric utility" excludes a municipal electric	916
utility or a billing and collection agent.	917

(12) "Firm electric service" means electric service other	918
than nonfirm electric service.	919

(13) "Governmental aggregator" means a legislative authority	920
of a municipal corporation, a board of township trustees, or a	921
board of county commissioners acting as an aggregator for the	922
provision of a competitive retail electric service under authority	923
conferred under section 4928.20 of the Revised Code.	924

(14) A person acts "knowingly," regardless of the person's	925
purpose, when the person is aware that the person's conduct will	926
probably cause a certain result or will probably be of a certain	927
nature. A person has knowledge of circumstances when the person is	928
aware that such circumstances probably exist.	929

(15) "Level of funding for low-income customer energy	930
efficiency programs provided through electric utility rates" means	931
the level of funds specifically included in an electric utility's	932
rates on October 5, 1999, pursuant to an order of the public	933
utilities commission issued under Chapter 4905. or 4909. of the	934
Revised Code and in effect on October 4, 1999, for the purpose of	935
improving the energy efficiency of housing for the utility's	936
low-income customers. The term excludes the level of any such	937
funds committed to a specific nonprofit organization or	938
organizations pursuant to a stipulation or contract.	939

(16) "Low-income customer assistance programs" means the	940
percentage of income payment plan program, the home energy	941
assistance program, the home weatherization assistance program,	942
and the targeted energy efficiency and weatherization program.	943

(17) "Market development period" for an electric utility	944
means the period of time beginning on the starting date of	945
competitive retail electric service and ending on the applicable	946
date for that utility as specified in section 4928.40 of the	947
Revised Code, irrespective of whether the utility applies to	948
receive transition revenues under this chapter.	949

(18) "Market power" means the ability to impose on customers	950
a sustained price for a product or service above the price that	951
would prevail in a competitive market.	952

(19) "Mercantile customer" means a commercial or industrial	953
customer if the electricity consumed is for nonresidential use and	954
the customer consumes more than seven hundred thousand kilowatt	955
hours per year or is part of a national account involving multiple	956
facilities in one or more states.	957

(20) "Municipal electric utility" means a municipal	958
corporation that owns or operates facilities to generate,	959
transmit, or distribute electricity.	960

(21) "Noncompetitive retail electric service" means a	961
component of retail electric service that is noncompetitive as	962
provided under division (B) of this section.	963

(22) "Nonfirm electric service" means electric service	964
provided pursuant to a schedule filed under section 4905.30 of the	965
Revised Code or pursuant to an arrangement under section 4905.31	966
of the Revised Code, which schedule or arrangement includes	967
conditions that may require the customer to curtail or interrupt	968
electric usage during nonemergency circumstances upon notification	969
by an electric utility.	970

(23) "Percentage of income payment plan arrears" means funds	971
eligible for collection through the percentage of income payment	972
plan rider, but uncollected as of July 1, 2000.	973

(24) "Person" has the same meaning as in section 1.59 of the	974
Revised Code.	975

(25) "Advanced energy project" means any technologies,	976
products, activities, or management practices or strategies that	977
facilitate the generation or use of electricity or energy and that	978
reduce or support the reduction of energy consumption or support	979
the production of clean, renewable energy for industrial,	980
distribution, commercial, institutional, governmental, research,	981
not-for-profit, or residential energy users, including, but not	982
limited to, advanced energy resources and renewable energy	983
resources. "Advanced energy project" also includes any project	984
described in division (A), (B), or (C) of section 4928.621 of the	985
Revised Code.	986

(26) "Regulatory assets" means the unamortized net regulatory	987
assets that are capitalized or deferred on the regulatory books of	988
the electric utility, pursuant to an order or practice of the	989
public utilities commission or pursuant to generally accepted	990
accounting principles as a result of a prior commission	991
rate-making decision, and that would otherwise have been charged	992
to expense as incurred or would not have been capitalized or	993
otherwise deferred for future regulatory consideration absent	994
commission action. "Regulatory assets" includes, but is not	995
limited to, all deferred demand-side management costs; all	996
deferred percentage of income payment plan arrears;	997
post-in-service capitalized charges and assets recognized in	998
connection with statement of financial accounting standards no.	999
109 (receivables from customers for income taxes); future nuclear	1000
decommissioning costs and fuel disposal costs as those costs have	1001
been determined by the commission in the electric utility's most	1002
recent rate or accounting application proceeding addressing such	1003
costs; the undepreciated costs of safety and radiation control	1004
equipment on nuclear generating plants owned or leased by an	1005
electric utility; and fuel costs currently deferred pursuant to	1006
the terms of one or more settlement agreements approved by the	1007
commission.	1008

(27) "Retail electric service" means any service involved in	1009
supplying or arranging for the supply of electricity to ultimate	1010
consumers in this state, from the point of generation to the point	1011
of consumption. For the purposes of this chapter, retail electric	1012
service includes one or more of the following "service	1013
components": generation service, aggregation service, power	1014
marketing service, power brokerage service, transmission service,	1015
distribution service, ancillary service, metering service, and	1016
billing and collection service.	1017

(28) "Starting date of competitive retail electric service"	1018
means January 1, 2001.	1019

(29) "Customer-generator" means a user of a net metering	1020
system.	1021

(30) "Net metering" means measuring the difference in an	1022
applicable billing period between the electricity supplied by an	1023
electric service provider and the electricity generated by a	1024
customer-generator that is fed back to the electric service	1025
provider.	1026

(31) "Net metering system" means a facility for the	1027
production of electrical energy that does all of the following:	1028

(a) Uses as its fuel either solar, wind, biomass, landfill	1029
gas, or hydropower, or uses a microturbine or a fuel cell;	1030

(b) Is located on a customer-generator's premises;

1031

(c) Operates in parallel with the electric utility's	1032
transmission and distribution facilities;	1033

(d) Is intended primarily to offset part or all of the	1034
customer-generator's requirements for electricity.	1035

(32) "Self-generator" means an entity in this state that owns	1036
or hosts on its premises an electric generation facility that	1037
produces electricity primarily for the owner's consumption and	1038
that may provide any such excess electricity to another entity,	1039
whether the facility is installed or operated by the owner or by	1040
an agent under a contract.	1041

(33) "Rate plan" means the standard service offer in effect	1042
on the effective date of the amendment of this section by S.B. 221	1043
of the 127th general assembly, July 31, 2008.	1044

(34) "Advanced energy resource" means any of the following:

1045

(a) Any method or any modification or replacement of any	1046
property, process, device, structure, or equipment that increases	1047
the generation output of an electric generating facility to the	1048
extent such efficiency is achieved without additional carbon	1049
dioxide emissions by that facility;	1050

(b) Any distributed generation system consisting of customer	1051
cogeneration of electricity and thermal output simultaneously,	1052
primarily to meet the energy needs of the customer's facilities;	1053

(c) Clean coal technology that includes a carbon-based	1054
product that is chemically altered before combustion to	1055
demonstrate a reduction, as expressed as ash, in emissions of	1056
nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or	1057
sulfur trioxide in accordance with the American society of testing	1058
and materials standard D1757A or a reduction of metal oxide	1059
emissions in accordance with standard D5142 of that society, or	1060
clean coal technology that includes the design capability to	1061
control or prevent the emission of carbon dioxide, which design	1062
capability the commission shall adopt by rule and shall be based	1063
on economically feasible best available technology or, in the	1064
absence of a determined best available technology, shall be of the	1065
highest level of economically feasible design capability for which	1066
there exists generally accepted scientific opinion;	1067

(d) Advanced nuclear energy technology consisting of	1068
generation III technology as defined by the nuclear regulatory	1069
commission; other, later technology; or significant improvements	1070
to existing facilities;	1071

(e) Any fuel cell used in the generation of electricity,	1072
including, but not limited to, a proton exchange membrane fuel	1073
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	1074
solid oxide fuel cell;	1075

(f) Advanced solid waste or construction and demolition	1076
debris conversion technology, including, but not limited to,	1077
advanced stoker technology, and advanced fluidized bed	1078
gasification technology, that results in measurable greenhouse gas	1079
emissions reductions as calculated pursuant to the United States	1080
environmental protection agency's waste reduction model (WARM).	1081

(g) Demand-side management and any energy efficiency	1082
improvement;	1083

(h) Methane gas emitted from an operating or abandoned coal	1084
mine.	1085

(35) "Renewable energy resource" means solar photovoltaic or	1086
solar thermal energy, wind energy, power produced by a	1087
hydroelectric facility, geothermal energy, fuel derived from solid	1088
wastes, as defined in section 3734.01 of the Revised Code, through	1089
fractionation, biological decomposition, or other process that	1090
does not principally involve combustion, biomass energy,	1091
biologically derived methane gas, or energy derived from	1092
nontreated by-products of the pulping process or wood	1093
manufacturing process, including bark, wood chips, sawdust, and	1094
lignin in spent pulping liquors. "Renewable energy resource"	1095
includes, but is not limited to, any fuel cell used in the	1096
generation of electricity, including, but not limited to, a proton	1097
exchange membrane fuel cell, phosphoric acid fuel cell, molten	1098
carbonate fuel cell, or solid oxide fuel cell; wind turbine	1099
located in the state's territorial waters of Lake Erie; methane	1100
gas emitted from an abandoned coal mine; storage facility that	1101
will promote the better utilization of a renewable energy resource	1102
that primarily generates off peak; or distributed generation	1103
system used by a customer to generate electricity from any such	1104
energy. As used in division (A)(35) of this section,	1105
"hydroelectric facility" means a hydroelectric generating facility	1106
that is located at a dam on a river, or on any water discharged to	1107
a river, that is within or bordering this state or within or	1108
bordering an adjoining state and meets all of the following	1109
standards:	1110

(a) The facility provides for river flows that are not	1111
detrimental for fish, wildlife, and water quality, including	1112
seasonal flow fluctuations as defined by the applicable licensing	1113
agency for the facility.	1114

(b) The facility demonstrates that it complies with the water	1115
quality standards of this state, which compliance may consist of	1116
certification under Section 401 of the "Clean Water Act of 1977,"	1117
91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates that it has	1118
not contributed to a finding by this state that the river has	1119
impaired water quality under Section 303(d) of the "Clean Water	1120
Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.	1121

(c) The facility complies with mandatory prescriptions	1122
regarding fish passage as required by the federal energy	1123
regulatory commission license issued for the project, regarding	1124
fish protection for riverine, anadromous, and catadromus	1125
catadromous fish.	1126

(d) The facility complies with the recommendations of the	1127
Ohio environmental protection agency and with the terms of its	1128
federal energy regulatory commission license regarding watershed	1129
protection, mitigation, or enhancement, to the extent of each	1130
agency's respective jurisdiction over the facility.	1131

(e) The facility complies with provisions of the "Endangered	1132
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	1133
amended.	1134

(f) The facility does not harm cultural resources of the	1135
area. This can be shown through compliance with the terms of its	1136
federal energy regulatory commission license or, if the facility	1137
is not regulated by that commission, through development of a plan	1138
approved by the Ohio historic preservation office, to the extent	1139
it has jurisdiction over the facility.	1140

(g) The facility complies with the terms of its federal	1141
energy regulatory commission license or exemption that are related	1142
to recreational access, accommodation, and facilities or, if the	1143
facility is not regulated by that commission, the facility	1144
complies with similar requirements as are recommended by resource	1145
agencies, to the extent they have jurisdiction over the facility;	1146
and the facility provides access to water to the public without	1147
fee or charge.	1148

(h) The facility is not recommended for removal by any	1149
federal agency or agency of any state, to the extent the	1150
particular agency has jurisdiction over the facility.	1151

(B) For the purposes of this chapter, a retail electric	1152
service component shall be deemed a competitive retail electric	1153
service if the service component is competitive pursuant to a	1154
declaration by a provision of the Revised Code or pursuant to an	1155
order of the public utilities commission authorized under division	1156
(A) of section 4928.04 of the Revised Code. Otherwise, the service	1157
component shall be deemed a noncompetitive retail electric	1158
service.	1159

Sec. 5709.084. Real and personal property comprising a	1160
convention center that is constructed or, in the case of personal	1161
property, acquired after January 1, 2010, are exempt from taxation	1162
if the convention center is located in a county having a	1163
population, when construction of the convention center commences,	1164
of more than one million two hundred thousand according to the	1165
most recent federal decennial census, and if the convention	1166
center, or the land upon which the convention center is situated,	1167
is owned or leased by the county. For the purposes of this	1168
section, construction of the convention center commences upon the	1169
earlier of issuance of debt to finance all or a portion of the	1170
convention center, demolition of existing structures on the site,	1171
or grading of the site in preparation for construction.	1172

As used in this section, "convention center" has the same	1173
meaning as in section 307.695 of the Revised Code.	1174

Sec. 5709.62.  (A) In any municipal corporation that is	1175
defined by the United States office of management and budget as a	1176
principal city of a metropolitan statistical area, the legislative	1177
authority of the municipal corporation may designate one or more	1178
areas within its municipal corporation as proposed enterprise	1179
zones. Upon designating an area, the legislative authority shall	1180
petition the director of development for certification of the area	1181
as having the characteristics set forth in division (A)(1) of	1182
section 5709.61 of the Revised Code as amended by Substitute	1183
Senate Bill No. 19 of the 120th general assembly. Except as	1184
otherwise provided in division (E) of this section, on and after	1185
July 1, 1994, legislative authorities shall not enter into	1186
agreements under this section unless the legislative authority has	1187
petitioned the director and the director has certified the zone	1188
under this section as amended by that act; however, all agreements	1189
entered into under this section as it existed prior to July 1,	1190
1994, and the incentives granted under those agreements shall	1191
remain in effect for the period agreed to under those agreements.	1192
Within sixty days after receiving such a petition, the director	1193
shall determine whether the area has the characteristics set forth	1194
in division (A)(1) of section 5709.61 of the Revised Code, and	1195
shall forward the findings to the legislative authority of the	1196
municipal corporation. If the director certifies the area as	1197
having those characteristics, and thereby certifies it as a zone,	1198
the legislative authority may enter into an agreement with an	1199
enterprise under division (C) of this section.	1200

(B) Any enterprise that wishes to enter into an agreement	1201
with a municipal corporation under division (C) of this section	1202
shall submit a proposal to the legislative authority of the	1203
municipal corporation on a form prescribed by the director of	1204
development, together with the application fee established under	1205
section 5709.68 of the Revised Code. The form shall require the	1206
following information:	1207

(1) An estimate of the number of new employees whom the	1208
enterprise intends to hire, or of the number of employees whom the	1209
enterprise intends to retain, within the zone at a facility that	1210
is a project site, and an estimate of the amount of payroll of the	1211
enterprise attributable to these employees;	1212

(2) An estimate of the amount to be invested by the	1213
enterprise to establish, expand, renovate, or occupy a facility,	1214
including investment in new buildings, additions or improvements	1215
to existing buildings, machinery, equipment, furniture, fixtures,	1216
and inventory;	1217

(3) A listing of the enterprise's current investment, if any,	1218
in a facility as of the date of the proposal's submission.	1219

The enterprise shall review and update the listings required	1220
under this division to reflect material changes, and any agreement	1221
entered into under division (C) of this section shall set forth	1222
final estimates and listings as of the time the agreement is	1223
entered into. The legislative authority may, on a separate form	1224
and at any time, require any additional information necessary to	1225
determine whether an enterprise is in compliance with an agreement	1226
and to collect the information required to be reported under	1227
section 5709.68 of the Revised Code.	1228

(C) Upon receipt and investigation of a proposal under	1229
division (B) of this section, if the legislative authority finds	1230
that the enterprise submitting the proposal is qualified by	1231
financial responsibility and business experience to create and	1232
preserve employment opportunities in the zone and improve the	1233
economic climate of the municipal corporation, the legislative	1234
authority, on or before October 15, 20102011, may do one of the	1235
following:	1236

(1) Enter into an agreement with the enterprise under which	1237
the enterprise agrees to establish, expand, renovate, or occupy a	1238
facility and hire new employees, or preserve employment	1239
opportunities for existing employees, in return for one or more of	1240
the following incentives:	1241

(a) Exemption for a specified number of years, not to exceed	1242
fifteen, of a specified portion, up to seventy-five per cent, of	1243
the assessed value of tangible personal property first used in	1244
business at the project site as a result of the agreement. If an	1245
exemption for inventory is specifically granted in the agreement	1246
pursuant to this division, the exemption applies to inventory	1247
required to be listed pursuant to sections 5711.15 and 5711.16 of	1248
the Revised Code, except that, in the instance of an expansion or	1249
other situations in which an enterprise was in business at the	1250
facility prior to the establishment of the zone, the inventory	1251
that is exempt is that amount or value of inventory in excess of	1252
the amount or value of inventory required to be listed in the	1253
personal property tax return of the enterprise in the return for	1254
the tax year in which the agreement is entered into.	1255

(b) Exemption for a specified number of years, not to exceed	1256
fifteen, of a specified portion, up to seventy-five per cent, of	1257
the increase in the assessed valuation of real property	1258
constituting the project site subsequent to formal approval of the	1259
agreement by the legislative authority;	1260

(c) Provision for a specified number of years, not to exceed	1261
fifteen, of any optional services or assistance that the municipal	1262
corporation is authorized to provide with regard to the project	1263
site.	1264

(2) Enter into an agreement under which the enterprise agrees	1265
to remediate an environmentally contaminated facility, to spend an	1266
amount equal to at least two hundred fifty per cent of the true	1267
value in money of the real property of the facility prior to	1268
remediation as determined for the purposes of property taxation to	1269
establish, expand, renovate, or occupy the remediated facility,	1270
and to hire new employees or preserve employment opportunities for	1271
existing employees at the remediated facility, in return for one	1272
or more of the following incentives:	1273

(a) Exemption for a specified number of years, not to exceed	1274
fifteen, of a specified portion, not to exceed fifty per cent, of	1275
the assessed valuation of the real property of the facility prior	1276
to remediation;	1277

(b) Exemption for a specified number of years, not to exceed	1278
fifteen, of a specified portion, not to exceed one hundred per	1279
cent, of the increase in the assessed valuation of the real	1280
property of the facility during or after remediation;	1281

(c) The incentive under division (C)(1)(a) of this section,	1282
except that the percentage of the assessed value of such property	1283
exempted from taxation shall not exceed one hundred per cent;	1284

(d) The incentive under division (C)(1)(c) of this section.

1285

(3) Enter into an agreement with an enterprise that plans to	1286
purchase and operate a large manufacturing facility that has	1287
ceased operation or announced its intention to cease operation, in	1288
return for exemption for a specified number of years, not to	1289
exceed fifteen, of a specified portion, up to one hundred per	1290
cent, of the assessed value of tangible personal property used in	1291
business at the project site as a result of the agreement, or of	1292
the assessed valuation of real property constituting the project	1293
site, or both.	1294

(D)(1) Notwithstanding divisions (C)(1)(a) and (b) of this	1295
section, the portion of the assessed value of tangible personal	1296
property or of the increase in the assessed valuation of real	1297
property exempted from taxation under those divisions may exceed	1298
seventy-five per cent in any year for which that portion is	1299
exempted if the average percentage exempted for all years in which	1300
the agreement is in effect does not exceed sixty per cent, or if	1301
the board of education of the city, local, or exempted village	1302
school district within the territory of which the property is or	1303
will be located approves a percentage in excess of seventy-five	1304
per cent.	1305

(2) Notwithstanding any provision of the Revised Code to the	1306
contrary, the exemptions described in divisions (C)(1)(a), (b),	1307
and (c), (C)(2)(a), (b), and (c), and (C)(3) of this section may	1308
be for up to fifteen years if the board of education of the city,	1309
local, or exempted village school district within the territory of	1310
which the property is or will be located approves a number of	1311
years in excess of ten.	1312

(3) For the purpose of obtaining the approval of a city,	1313
local, or exempted village school district under division (D)(1)	1314
or (2) of this section, the legislative authority shall deliver to	1315
the board of education a notice not later than forty-five days	1316
prior to approving the agreement, excluding Saturdays, Sundays,	1317
and legal holidays as defined in section 1.14 of the Revised Code.	1318
The notice shall state the percentage to be exempted, an estimate	1319
of the true value of the property to be exempted, and the number	1320
of years the property is to be exempted. The board of education,	1321
by resolution adopted by a majority of the board, shall approve or	1322
disapprove the agreement and certify a copy of the resolution to	1323
the legislative authority not later than fourteen days prior to	1324
the date stipulated by the legislative authority as the date upon	1325
which approval of the agreement is to be formally considered by	1326
the legislative authority. The board of education may include in	1327
the resolution conditions under which the board would approve the	1328
agreement, including the execution of an agreement to compensate	1329
the school district under division (B) of section 5709.82 of the	1330
Revised Code. The legislative authority may approve the agreement	1331
at any time after the board of education certifies its resolution	1332
approving the agreement to the legislative authority, or, if the	1333
board approves the agreement conditionally, at any time after the	1334
conditions are agreed to by the board and the legislative	1335
authority.	1336

If a board of education has adopted a resolution waiving its	1337
right to approve agreements and the resolution remains in effect,	1338
approval of an agreement by the board is not required under this	1339
division. If a board of education has adopted a resolution	1340
allowing a legislative authority to deliver the notice required	1341
under this division fewer than forty-five business days prior to	1342
the legislative authority's approval of the agreement, the	1343
legislative authority shall deliver the notice to the board not	1344
later than the number of days prior to such approval as prescribed	1345
by the board in its resolution. If a board of education adopts a	1346
resolution waiving its right to approve agreements or shortening	1347
the notification period, the board shall certify a copy of the	1348
resolution to the legislative authority. If the board of education	1349
rescinds such a resolution, it shall certify notice of the	1350
rescission to the legislative authority.	1351

(4) The legislative authority shall comply with section	1352
5709.83 of the Revised Code unless the board of education has	1353
adopted a resolution under that section waiving its right to	1354
receive such notice.	1355

(E) This division applies to zones certified by the director	1356
of development under this section prior to July 22, 1994.	1357

On or before October 15, 20102011, the legislative authority	1358
that designated a zone to which this division applies may enter	1359
into an agreement with an enterprise if the legislative authority	1360
finds that the enterprise satisfies one of the criteria described	1361
in divisions (E)(1) to (5) of this section:	1362

(1) The enterprise currently has no operations in this state	1363
and, subject to approval of the agreement, intends to establish	1364
operations in the zone;	1365

(2) The enterprise currently has operations in this state	1366
and, subject to approval of the agreement, intends to establish	1367
operations at a new location in the zone that would not result in	1368
a reduction in the number of employee positions at any of the	1369
enterprise's other locations in this state;	1370

(3) The enterprise, subject to approval of the agreement,	1371
intends to relocate operations, currently located in another	1372
state, to the zone;	1373

(4) The enterprise, subject to approval of the agreement,	1374
intends to expand operations at an existing site in the zone that	1375
the enterprise currently operates;	1376

(5) The enterprise, subject to approval of the agreement,	1377
intends to relocate operations, currently located in this state,	1378
to the zone, and the director of development has issued a waiver	1379
for the enterprise under division (B) of section 5709.633 of the	1380
Revised Code.	1381

The agreement shall require the enterprise to agree to	1382
establish, expand, renovate, or occupy a facility in the zone and	1383
hire new employees, or preserve employment opportunities for	1384
existing employees, in return for one or more of the incentives	1385
described in division (C) of this section.	1386

(F) All agreements entered into under this section shall be	1387
in the form prescribed under section 5709.631 of the Revised Code.	1388
After an agreement is entered into under this section, if the	1389
legislative authority revokes its designation of a zone, or if the	1390
director of development revokes a zone's certification, any	1391
entitlements granted under the agreement shall continue for the	1392
number of years specified in the agreement.	1393

(G) Except as otherwise provided in this division, an	1394
agreement entered into under this section shall require that the	1395
enterprise pay an annual fee equal to the greater of one per cent	1396
of the dollar value of incentives offered under the agreement or	1397
five hundred dollars; provided, however, that if the value of the	1398
incentives exceeds two hundred fifty thousand dollars, the fee	1399
shall not exceed two thousand five hundred dollars. The fee shall	1400
be payable to the legislative authority once per year for each	1401
year the agreement is effective on the days and in the form	1402
specified in the agreement. Fees paid shall be deposited in a	1403
special fund created for such purpose by the legislative authority	1404
and shall be used by the legislative authority exclusively for the	1405
purpose of complying with section 5709.68 of the Revised Code and	1406
by the tax incentive review council created under section 5709.85	1407
of the Revised Code exclusively for the purposes of performing the	1408
duties prescribed under that section. The legislative authority	1409
may waive or reduce the amount of the fee charged against an	1410
enterprise, but such a waiver or reduction does not affect the	1411
obligations of the legislative authority or the tax incentive	1412
review council to comply with section 5709.68 or 5709.85 of the	1413
Revised Code.	1414

(H) When an agreement is entered into pursuant to this	1415
section, the legislative authority authorizing the agreement shall	1416
forward a copy of the agreement to the director of development and	1417
to the tax commissioner within fifteen days after the agreement is	1418
entered into. If any agreement includes terms not provided for in	1419
section 5709.631 of the Revised Code affecting the revenue of a	1420
city, local, or exempted village school district or causing	1421
revenue to be foregoneforgone by the district, including any	1422
compensation to be paid to the school district pursuant to section	1423
5709.82 of the Revised Code, those terms also shall be forwarded	1424
in writing to the director of development along with the copy of	1425
the agreement forwarded under this division.	1426

(I) After an agreement is entered into, the enterprise shall	1427
file with each personal property tax return required to be filed,	1428
or annual report required to be filed under section 5727.08 of the	1429
Revised Code, while the agreement is in effect, an informational	1430
return, on a form prescribed by the tax commissioner for that	1431
purpose, setting forth separately the property, and related costs	1432
and values, exempted from taxation under the agreement.	1433

(J) Enterprises may agree to give preference to residents of	1434
the zone within which the agreement applies relative to residents	1435
of this state who do not reside in the zone when hiring new	1436
employees under the agreement.	1437

(K) An agreement entered into under this section may include	1438
a provision requiring the enterprise to create one or more	1439
temporary internship positions for students enrolled in a course	1440
of study at a school or other educational institution in the	1441
vicinity, and to create a scholarship or provide another form of	1442
educational financial assistance for students holding such a	1443
position in exchange for the student's commitment to work for the	1444
enterprise at the completion of the internship.	1445

(L) The tax commissioner's authority in determining the	1446
accuracy of any exemption granted by an agreement entered into	1447
under this section is limited to divisions (C)(1)(a) and (b),	1448
(C)(2)(a), (b), and (c), (C)(3), (D), and (I) of this section and	1449
divisions (B)(1) to (10) of section 5709.631 of the Revised Code	1450
and, as authorized by law, to enforcing any modification to, or	1451
revocation of, that agreement by the legislative authority of a	1452
municipal corporation or the director of development.	1453

Sec. 5709.63.  (A) With the consent of the legislative	1454
authority of each affected municipal corporation or of a board of	1455
township trustees, a board of county commissioners may, in the	1456
manner set forth in section 5709.62 of the Revised Code, designate	1457
one or more areas in one or more municipal corporations or in	1458
unincorporated areas of the county as proposed enterprise zones. A	1459
board of county commissioners may designate no more than one area	1460
within a township, or within adjacent townships, as a proposed	1461
enterprise zone. The board shall petition the director of	1462
development for certification of the area as having the	1463
characteristics set forth in division (A)(1) or (2) of section	1464
5709.61 of the Revised Code as amended by Substitute Senate Bill	1465
No. 19 of the 120th general assembly. Except as otherwise provided	1466
in division (D) of this section, on and after July 1, 1994, boards	1467
of county commissioners shall not enter into agreements under this	1468
section unless the board has petitioned the director and the	1469
director has certified the zone under this section as amended by	1470
that act; however, all agreements entered into under this section	1471
as it existed prior to July 1, 1994, and the incentives granted	1472
under those agreements shall remain in effect for the period	1473
agreed to under those agreements. The director shall make the	1474
determination in the manner provided under section 5709.62 of the	1475
Revised Code.	1476

Any enterprise wishing to enter into an agreement with the	1477
board under division (B) or (D) of this section shall submit a	1478
proposal to the board on the form and accompanied by the	1479
application fee prescribed under division (B) of section 5709.62	1480
of the Revised Code. The enterprise shall review and update the	1481
estimates and listings required by the form in the manner required	1482
under that division. The board may, on a separate form and at any	1483
time, require any additional information necessary to determine	1484
whether an enterprise is in compliance with an agreement and to	1485
collect the information required to be reported under section	1486
5709.68 of the Revised Code.	1487

(B) If the board of county commissioners finds that an	1488
enterprise submitting a proposal is qualified by financial	1489
responsibility and business experience to create and preserve	1490
employment opportunities in the zone and to improve the economic	1491
climate of the municipal corporation or municipal corporations or	1492
the unincorporated areas in which the zone is located and to which	1493
the proposal applies, the board, on or before October 15, 2010	1494
2011, and with the consent of the legislative authority of each	1495
affected municipal corporation or of the board of township	1496
trustees may do either of the following:	1497

(1) Enter into an agreement with the enterprise under which	1498
the enterprise agrees to establish, expand, renovate, or occupy a	1499
facility in the zone and hire new employees, or preserve	1500
employment opportunities for existing employees, in return for the	1501
following incentives:	1502

(a) When the facility is located in a municipal corporation,	1503
the board may enter into an agreement for one or more of the	1504
incentives provided in division (C) of section 5709.62 of the	1505
Revised Code, subject to division (D) of that section;	1506

(b) When the facility is located in an unincorporated area,	1507
the board may enter into an agreement for one or more of the	1508
following incentives:	1509

(i) Exemption for a specified number of years, not to exceed	1510
fifteen, of a specified portion, up to sixty per cent, of the	1511
assessed value of tangible personal property first used in	1512
business at a project site as a result of the agreement. If an	1513
exemption for inventory is specifically granted in the agreement	1514
pursuant to this division, the exemption applies to inventory	1515
required to be listed pursuant to sections 5711.15 and 5711.16 of	1516
the Revised Code, except, in the instance of an expansion or other	1517
situations in which an enterprise was in business at the facility	1518
prior to the establishment of the zone, the inventory that is	1519
exempt is that amount or value of inventory in excess of the	1520
amount or value of inventory required to be listed in the personal	1521
property tax return of the enterprise in the return for the tax	1522
year in which the agreement is entered into.	1523

(ii) Exemption for a specified number of years, not to exceed	1524
fifteen, of a specified portion, up to sixty per cent, of the	1525
increase in the assessed valuation of real property constituting	1526
the project site subsequent to formal approval of the agreement by	1527
the board;	1528

(iii) Provision for a specified number of years, not to	1529
exceed fifteen, of any optional services or assistance the board	1530
is authorized to provide with regard to the project site;	1531

(iv) The incentive described in division (C)(2) of section	1532
5709.62 of the Revised Code.	1533

(2) Enter into an agreement with an enterprise that plans to	1534
purchase and operate a large manufacturing facility that has	1535
ceased operation or has announced its intention to cease	1536
operation, in return for exemption for a specified number of	1537
years, not to exceed fifteen, of a specified portion, up to one	1538
hundred per cent, of tangible personal property used in business	1539
at the project site as a result of the agreement, or of real	1540
property constituting the project site, or both.	1541

(C)(1)(a) Notwithstanding divisions (B)(1)(b)(i) and (ii) of	1542
this section, the portion of the assessed value of tangible	1543
personal property or of the increase in the assessed valuation of	1544
real property exempted from taxation under those divisions may	1545
exceed sixty per cent in any year for which that portion is	1546
exempted if the average percentage exempted for all years in which	1547
the agreement is in effect does not exceed fifty per cent, or if	1548
the board of education of the city, local, or exempted village	1549
school district within the territory of which the property is or	1550
will be located approves a percentage in excess of sixty per cent.	1551

(b) Notwithstanding any provision of the Revised Code to the	1552
contrary, the exemptions described in divisions (B)(1)(b)(i),	1553
(ii), (iii), and (iv) and (B)(2) of this section may be for up to	1554
fifteen years if the board of education of the city, local, or	1555
exempted village school district within the territory of which the	1556
property is or will be located approves a number of years in	1557
excess of ten.	1558

(c) For the purpose of obtaining the approval of a city,	1559
local, or exempted village school district under division	1560
(C)(1)(a) or (b) of this section, the board of county	1561
commissioners shall deliver to the board of education a notice not	1562
later than forty-five days prior to approving the agreement,	1563
excluding Saturdays, Sundays, and legal holidays as defined in	1564
section 1.14 of the Revised Code. The notice shall state the	1565
percentage to be exempted, an estimate of the true value of the	1566
property to be exempted, and the number of years the property is	1567
to be exempted. The board of education, by resolution adopted by a	1568
majority of the board, shall approve or disapprove the agreement	1569
and certify a copy of the resolution to the board of county	1570
commissioners not later than fourteen days prior to the date	1571
stipulated by the board of county commissioners as the date upon	1572
which approval of the agreement is to be formally considered by	1573
the board of county commissioners. The board of education may	1574
include in the resolution conditions under which the board would	1575
approve the agreement, including the execution of an agreement to	1576
compensate the school district under division (B) of section	1577
5709.82 of the Revised Code. The board of county commissioners may	1578
approve the agreement at any time after the board of education	1579
certifies its resolution approving the agreement to the board of	1580
county commissioners, or, if the board of education approves the	1581
agreement conditionally, at any time after the conditions are	1582
agreed to by the board of education and the board of county	1583
commissioners.	1584

If a board of education has adopted a resolution waiving its	1585
right to approve agreements and the resolution remains in effect,	1586
approval of an agreement by the board of education is not required	1587
under division (C) of this section. If a board of education has	1588
adopted a resolution allowing a board of county commissioners to	1589
deliver the notice required under this division fewer than	1590
forty-five business days prior to approval of the agreement by the	1591
board of county commissioners, the board of county commissioners	1592
shall deliver the notice to the board of education not later than	1593
the number of days prior to such approval as prescribed by the	1594
board of education in its resolution. If a board of education	1595
adopts a resolution waiving its right to approve agreements or	1596
shortening the notification period, the board of education shall	1597
certify a copy of the resolution to the board of county	1598
commissioners. If the board of education rescinds such a	1599
resolution, it shall certify notice of the rescission to the board	1600
of county commissioners.	1601

(2) The board of county commissioners shall comply with	1602
section 5709.83 of the Revised Code unless the board of education	1603
has adopted a resolution under that section waiving its right to	1604
receive such notice.	1605

(D) This division applies to zones certified by the director	1606
of development under this section prior to July 22, 1994.	1607

On or before October 15, 20102011, and with the consent of	1608
the legislative authority of each affected municipal corporation	1609
or board of township trustees of each affected township, the board	1610
of county commissioners that designated a zone to which this	1611
division applies may enter into an agreement with an enterprise if	1612
the board finds that the enterprise satisfies one of the criteria	1613
described in divisions (D)(1) to (5) of this section:	1614

(1) The enterprise currently has no operations in this state	1615
and, subject to approval of the agreement, intends to establish	1616
operations in the zone;	1617

(2) The enterprise currently has operations in this state	1618
and, subject to approval of the agreement, intends to establish	1619
operations at a new location in the zone that would not result in	1620
a reduction in the number of employee positions at any of the	1621
enterprise's other locations in this state;	1622

(3) The enterprise, subject to approval of the agreement,	1623
intends to relocate operations, currently located in another	1624
state, to the zone;	1625

(4) The enterprise, subject to approval of the agreement,	1626
intends to expand operations at an existing site in the zone that	1627
the enterprise currently operates;	1628

(5) The enterprise, subject to approval of the agreement,	1629
intends to relocate operations, currently located in this state,	1630
to the zone, and the director of development has issued a waiver	1631
for the enterprise under division (B) of section 5709.633 of the	1632
Revised Code.	1633

The agreement shall require the enterprise to agree to	1634
establish, expand, renovate, or occupy a facility in the zone and	1635
hire new employees, or preserve employment opportunities for	1636
existing employees, in return for one or more of the incentives	1637
described in division (B) of this section.	1638

(E) All agreements entered into under this section shall be	1639
in the form prescribed under section 5709.631 of the Revised Code.	1640
After an agreement under this section is entered into, if the	1641
board of county commissioners revokes its designation of a zone,	1642
or if the director of development revokes a zone's certification,	1643
any entitlements granted under the agreement shall continue for	1644
the number of years specified in the agreement.	1645

(F) Except as otherwise provided in this division, an	1646
agreement entered into under this section shall require that the	1647
enterprise pay an annual fee equal to the greater of one per cent	1648
of the dollar value of incentives offered under the agreement or	1649
five hundred dollars; provided, however, that if the value of the	1650
incentives exceeds two hundred fifty thousand dollars, the fee	1651
shall not exceed two thousand five hundred dollars. The fee shall	1652
be payable to the board of county commissioners once per year for	1653
each year the agreement is effective on the days and in the form	1654
specified in the agreement. Fees paid shall be deposited in a	1655
special fund created for such purpose by the board and shall be	1656
used by the board exclusively for the purpose of complying with	1657
section 5709.68 of the Revised Code and by the tax incentive	1658
review council created under section 5709.85 of the Revised Code	1659
exclusively for the purposes of performing the duties prescribed	1660
under that section. The board may waive or reduce the amount of	1661
the fee charged against an enterprise, but such waiver or	1662
reduction does not affect the obligations of the board or the tax	1663
incentive review council to comply with section 5709.68 or 5709.85	1664
of the Revised Code, respectively.	1665

(G) With the approval of the legislative authority of a	1666
municipal corporation or the board of township trustees of a	1667
township in which a zone is designated under division (A) of this	1668
section, the board of county commissioners may delegate to that	1669
legislative authority or board any powers and duties of the board	1670
of county commissioners to negotiate and administer agreements	1671
with regard to that zone under this section.	1672

(H) When an agreement is entered into pursuant to this	1673
section, the board of county commissioners authorizing the	1674
agreement or the legislative authority or board of township	1675
trustees that negotiates and administers the agreement shall	1676
forward a copy of the agreement to the director of development and	1677
to the tax commissioner within fifteen days after the agreement is	1678
entered into. If any agreement includes terms not provided for in	1679
section 5709.631 of the Revised Code affecting the revenue of a	1680
city, local, or exempted village school district or causing	1681
revenue to be foregone by the district, including any compensation	1682
to be paid to the school district pursuant to section 5709.82 of	1683
the Revised Code, those terms also shall be forwarded in writing	1684
to the director of development along with the copy of the	1685
agreement forwarded under this division.	1686

(I) After an agreement is entered into, the enterprise shall	1687
file with each personal property tax return required to be filed,	1688
or annual report that is required to be filed under section	1689
5727.08 of the Revised Code, while the agreement is in effect, an	1690
informational return, on a form prescribed by the tax commissioner	1691
for that purpose, setting forth separately the property, and	1692
related costs and values, exempted from taxation under the	1693
agreement.	1694

(J) Enterprises may agree to give preference to residents of	1695
the zone within which the agreement applies relative to residents	1696
of this state who do not reside in the zone when hiring new	1697
employees under the agreement.	1698

(K) An agreement entered into under this section may include	1699
a provision requiring the enterprise to create one or more	1700
temporary internship positions for students enrolled in a course	1701
of study at a school or other educational institution in the	1702
vicinity, and to create a scholarship or provide another form of	1703
educational financial assistance for students holding such a	1704
position in exchange for the student's commitment to work for the	1705
enterprise at the completion of the internship.	1706

(L) The tax commissioner's authority in determining the	1707
accuracy of any exemption granted by an agreement entered into	1708
under this section is limited to divisions (B)(1)(b)(i) and (ii),	1709
(B)(2), (C), and (I) of this section, division (B)(1)(b)(iv) of	1710
this section as it pertains to divisions (C)(2)(a), (b), and (c)	1711
of section 5709.62 of the Revised Code, and divisions (B)(1) to	1712
(10) of section 5709.631 of the Revised Code and, as authorized by	1713
law, to enforcing any modification to, or revocation of, that	1714
agreement by the board of county commissioners or the director of	1715
development or, if the board's powers and duties are delegated	1716
under division (G) of this section, by the legislative authority	1717
of a municipal corporation or board of township trustees.	1718

Sec. 5709.632.  (A)(1) The legislative authority of a	1719
municipal corporation defined by the United States office of	1720
management and budget as a principal city of a metropolitan	1721
statistical area may, in the manner set forth in section 5709.62	1722
of the Revised Code, designate one or more areas in the municipal	1723
corporation as a proposed enterprise zone.	1724

(2) With the consent of the legislative authority of each	1725
affected municipal corporation or of a board of township trustees,	1726
a board of county commissioners may, in the manner set forth in	1727
section 5709.62 of the Revised Code, designate one or more areas	1728
in one or more municipal corporations or in unincorporated areas	1729
of the county as proposed urban jobs and enterprise zones, except	1730
that a board of county commissioners may designate no more than	1731
one area within a township, or within adjacent townships, as a	1732
proposed urban jobs and enterprise zone.	1733

(3) The legislative authority or board of county	1734
commissioners may petition the director of development for	1735
certification of the area as having the characteristics set forth	1736
in division (A)(3) of section 5709.61 of the Revised Code. Within	1737
sixty days after receiving such a petition, the director shall	1738
determine whether the area has the characteristics set forth in	1739
that division and forward the findings to the legislative	1740
authority or board of county commissioners. If the director	1741
certifies the area as having those characteristics and thereby	1742
certifies it as a zone, the legislative authority or board may	1743
enter into agreements with enterprises under division (B) of this	1744
section. Any enterprise wishing to enter into an agreement with a	1745
legislative authority or board of county commissioners under this	1746
section and satisfying one of the criteria described in divisions	1747
(B)(1) to (5) of this section shall submit a proposal to the	1748
legislative authority or board on the form prescribed under	1749
division (B) of section 5709.62 of the Revised Code and shall	1750
review and update the estimates and listings required by the form	1751
in the manner required under that division. The legislative	1752
authority or board may, on a separate form and at any time,	1753
require any additional information necessary to determine whether	1754
an enterprise is in compliance with an agreement and to collect	1755
the information required to be reported under section 5709.68 of	1756
the Revised Code.	1757

(B) Prior to entering into an agreement with an enterprise,	1758
the legislative authority or board of county commissioners shall	1759
determine whether the enterprise submitting the proposal is	1760
qualified by financial responsibility and business experience to	1761
create and preserve employment opportunities in the zone and to	1762
improve the economic climate of the municipal corporation or	1763
municipal corporations or the unincorporated areas in which the	1764
zone is located and to which the proposal applies, and whether the	1765
enterprise satisfies one of the following criteria:	1766

(1) The enterprise currently has no operations in this state	1767
and, subject to approval of the agreement, intends to establish	1768
operations in the zone;	1769

(2) The enterprise currently has operations in this state	1770
and, subject to approval of the agreement, intends to establish	1771
operations at a new location in the zone that would not result in	1772
a reduction in the number of employee positions at any of the	1773
enterprise's other locations in this state;	1774

(3) The enterprise, subject to approval of the agreement,	1775
intends to relocate operations, currently located in another	1776
state, to the zone;	1777

(4) The enterprise, subject to approval of the agreement,	1778
intends to expand operations at an existing site in the zone that	1779
the enterprise currently operates;	1780

(5) The enterprise, subject to approval of the agreement,	1781
intends to relocate operations, currently located in this state,	1782
to the zone, and the director of development has issued a waiver	1783
for the enterprise under division (B) of section 5709.633 of the	1784
Revised Code.	1785

(C) If the legislative authority or board determines that the	1786
enterprise is so qualified and satisfies one of the criteria	1787
described in divisions (B)(1) to (5) of this section, the	1788
legislative authority or board may, after complying with section	1789
5709.83 of the Revised Code and on or before October 15, 2010	1790
2011, and, in the case of a board of commissioners, with the	1791
consent of the legislative authority of each affected municipal	1792
corporation or of the board of township trustees, enter into an	1793
agreement with the enterprise under which the enterprise agrees to	1794
establish, expand, renovate, or occupy a facility in the zone and	1795
hire new employees, or preserve employment opportunities for	1796
existing employees, in return for the following incentives:	1797

(1) When the facility is located in a municipal corporation,	1798
a legislative authority or board of commissioners may enter into	1799
an agreement for one or more of the incentives provided in	1800
division (C) of section 5709.62 of the Revised Code, subject to	1801
division (D) of that section;	1802

(2) When the facility is located in an unincorporated area, a	1803
board of commissioners may enter into an agreement for one or more	1804
of the incentives provided in divisions (B)(1)(b), (B)(2), and	1805
(B)(3) of section 5709.63 of the Revised Code, subject to division	1806
(C) of that section.	1807

(D) All agreements entered into under this section shall be	1808
in the form prescribed under section 5709.631 of the Revised Code.	1809
After an agreement under this section is entered into, if the	1810
legislative authority or board of county commissioners revokes its	1811
designation of the zone, or if the director of development revokes	1812
the zone's certification, any entitlements granted under the	1813
agreement shall continue for the number of years specified in the	1814
agreement.	1815

(E) Except as otherwise provided in this division, an	1816
agreement entered into under this section shall require that the	1817
enterprise pay an annual fee equal to the greater of one per cent	1818
of the dollar value of incentives offered under the agreement or	1819
five hundred dollars; provided, however, that if the value of the	1820
incentives exceeds two hundred fifty thousand dollars, the fee	1821
shall not exceed two thousand five hundred dollars. The fee shall	1822
be payable to the legislative authority or board of commissioners	1823
once per year for each year the agreement is effective on the days	1824
and in the form specified in the agreement. Fees paid shall be	1825
deposited in a special fund created for such purpose by the	1826
legislative authority or board and shall be used by the	1827
legislative authority or board exclusively for the purpose of	1828
complying with section 5709.68 of the Revised Code and by the tax	1829
incentive review council created under section 5709.85 of the	1830
Revised Code exclusively for the purposes of performing the duties	1831
prescribed under that section. The legislative authority or board	1832
may waive or reduce the amount of the fee charged against an	1833
enterprise, but such waiver or reduction does not affect the	1834
obligations of the legislative authority or board or the tax	1835
incentive review council to comply with section 5709.68 or 5709.85	1836
of the Revised Code, respectively.	1837

(F) With the approval of the legislative authority of a	1838
municipal corporation or the board of township trustees of a	1839
township in which a zone is designated under division (A)(2) of	1840
this section, the board of county commissioners may delegate to	1841
that legislative authority or board any powers and duties of the	1842
board to negotiate and administer agreements with regard to that	1843
zone under this section.	1844

(G) When an agreement is entered into pursuant to this	1845
section, the legislative authority or board of commissioners	1846
authorizing the agreement shall forward a copy of the agreement to	1847
the director of development and to the tax commissioner within	1848
fifteen days after the agreement is entered into. If any agreement	1849
includes terms not provided for in section 5709.631 of the Revised	1850
Code affecting the revenue of a city, local, or exempted village	1851
school district or causing revenue to be foregoneforgone by the	1852
district, including any compensation to be paid to the school	1853
district pursuant to section 5709.82 of the Revised Code, those	1854
terms also shall be forwarded in writing to the director of	1855
development along with the copy of the agreement forwarded under	1856
this division.	1857

(H) After an agreement is entered into, the enterprise shall	1858
file with each personal property tax return required to be filed	1859
while the agreement is in effect, an informational return, on a	1860
form prescribed by the tax commissioner for that purpose, setting	1861
forth separately the property, and related costs and values,	1862
exempted from taxation under the agreement.	1863

(I) An agreement entered into under this section may include	1864
a provision requiring the enterprise to create one or more	1865
temporary internship positions for students enrolled in a course	1866
of study at a school or other educational institution in the	1867
vicinity, and to create a scholarship or provide another form of	1868
educational financial assistance for students holding such a	1869
position in exchange for the student's commitment to work for the	1870
enterprise at the completion of the internship.	1871

Sec. 5739.02.  For the purpose of providing revenue with	1872
which to meet the needs of the state, for the use of the general	1873
revenue fund of the state, for the purpose of securing a thorough	1874
and efficient system of common schools throughout the state, for	1875
the purpose of affording revenues, in addition to those from	1876
general property taxes, permitted under constitutional	1877
limitations, and from other sources, for the support of local	1878
governmental functions, and for the purpose of reimbursing the	1879
state for the expense of administering this chapter, an excise tax	1880
is hereby levied on each retail sale made in this state.	1881

(A)(1) The tax shall be collected as provided in section	1882
5739.025 of the Revised Code. The rate of the tax shall be five	1883
and one-half per cent. The tax applies and is collectible when the	1884
sale is made, regardless of the time when the price is paid or	1885
delivered.	1886

(2) In the case of the lease or rental, with a fixed term of	1887
more than thirty days or an indefinite term with a minimum period	1888
of more than thirty days, of any motor vehicles designed by the	1889
manufacturer to carry a load of not more than one ton, watercraft,	1890
outboard motor, or aircraft, or of any tangible personal property,	1891
other than motor vehicles designed by the manufacturer to carry a	1892
load of more than one ton, to be used by the lessee or renter	1893
primarily for business purposes, the tax shall be collected by the	1894
vendor at the time the lease or rental is consummated and shall be	1895
calculated by the vendor on the basis of the total amount to be	1896
paid by the lessee or renter under the lease agreement. If the	1897
total amount of the consideration for the lease or rental includes	1898
amounts that are not calculated at the time the lease or rental is	1899
executed, the tax shall be calculated and collected by the vendor	1900
at the time such amounts are billed to the lessee or renter. In	1901
the case of an open-end lease or rental, the tax shall be	1902
calculated by the vendor on the basis of the total amount to be	1903
paid during the initial fixed term of the lease or rental, and for	1904
each subsequent renewal period as it comes due. As used in this	1905
division, "motor vehicle" has the same meaning as in section	1906
4501.01 of the Revised Code, and "watercraft" includes an outdrive	1907
unit attached to the watercraft.	1908

A lease with a renewal clause and a termination penalty or	1909
similar provision that applies if the renewal clause is not	1910
exercised is presumed to be a sham transaction. In such a case,	1911
the tax shall be calculated and paid on the basis of the entire	1912
length of the lease period, including any renewal periods, until	1913
the termination penalty or similar provision no longer applies.	1914
The taxpayer shall bear the burden, by a preponderance of the	1915
evidence, that the transaction or series of transactions is not a	1916
sham transaction.	1917

(3) Except as provided in division (A)(2) of this section, in	1918
the case of a sale, the price of which consists in whole or in	1919
part of the lease or rental of tangible personal property, the tax	1920
shall be measured by the installments of that lease or rental.	1921

(4) In the case of a sale of a physical fitness facility	1922
service or recreation and sports club service, the price of which	1923
consists in whole or in part of a membership for the receipt of	1924
the benefit of the service, the tax applicable to the sale shall	1925
be measured by the installments thereof.	1926

(B) The tax does not apply to the following:

1927

(1) Sales to the state or any of its political subdivisions,	1928
or to any other state or its political subdivisions if the laws of	1929
that state exempt from taxation sales made to this state and its	1930
political subdivisions;	1931

(2) Sales of food for human consumption off the premises	1932
where sold;	1933

(3) Sales of food sold to students only in a cafeteria,	1934
dormitory, fraternity, or sorority maintained in a private,	1935
public, or parochial school, college, or university;	1936

(4) Sales of newspapers and of magazine subscriptions and	1937
sales or transfers of magazines distributed as controlled	1938
circulation publications;	1939

(5) The furnishing, preparing, or serving of meals without	1940
charge by an employer to an employee provided the employer records	1941
the meals as part compensation for services performed or work	1942
done;	1943

(6) Sales of motor fuel upon receipt, use, distribution, or	1944
sale of which in this state a tax is imposed by the law of this	1945
state, but this exemption shall not apply to the sale of motor	1946
fuel on which a refund of the tax is allowable under division (A)	1947
of section 5735.14 of the Revised Code; and the tax commissioner	1948
may deduct the amount of tax levied by this section applicable to	1949
the price of motor fuel when granting a refund of motor fuel tax	1950
pursuant to division (A) of section 5735.14 of the Revised Code	1951
and shall cause the amount deducted to be paid into the general	1952
revenue fund of this state;	1953

(7) Sales of natural gas by a natural gas company, of water	1954
by a water-works company, or of steam by a heating company, if in	1955
each case the thing sold is delivered to consumers through pipes	1956
or conduits, and all sales of communications services by a	1957
telegraph company, all terms as defined in section 5727.01 of the	1958
Revised Code, and sales of electricity delivered through wires;	1959

(8) Casual sales by a person, or auctioneer employed directly	1960
by the person to conduct such sales, except as to such sales of	1961
motor vehicles, watercraft or outboard motors required to be	1962
titled under section 1548.06 of the Revised Code, watercraft	1963
documented with the United States coast guard, snowmobiles, and	1964
all-purpose vehicles as defined in section 4519.01 of the Revised	1965
Code;	1966

(9)(a) Sales of services or tangible personal property, other	1967
than motor vehicles, mobile homes, and manufactured homes, by	1968
churches, organizations exempt from taxation under section	1969
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit	1970
organizations operated exclusively for charitable purposes as	1971
defined in division (B)(12) of this section, provided that the	1972
number of days on which such tangible personal property or	1973
services, other than items never subject to the tax, are sold does	1974
not exceed six in any calendar year, except as otherwise provided	1975
in division (B)(9)(b) of this section. If the number of days on	1976
which such sales are made exceeds six in any calendar year, the	1977
church or organization shall be considered to be engaged in	1978
business and all subsequent sales by it shall be subject to the	1979
tax. In counting the number of days, all sales by groups within a	1980
church or within an organization shall be considered to be sales	1981
of that church or organization.	1982

(b) The limitation on the number of days on which tax-exempt	1983
sales may be made by a church or organization under division	1984
(B)(9)(a) of this section does not apply to sales made by student	1985
clubs and other groups of students of a primary or secondary	1986
school, or a parent-teacher association, booster group, or similar	1987
organization that raises money to support or fund curricular or	1988
extracurricular activities of a primary or secondary school.	1989

(c) Divisions (B)(9)(a) and (b) of this section do not apply	1990
to sales by a noncommercial educational radio or television	1991
broadcasting station.	1992

(10) Sales not within the taxing power of this state under	1993
the Constitution of the United States;	1994

(11) Except for transactions that are sales under division	1995
(B)(3)(r) of section 5739.01 of the Revised Code, the	1996
transportation of persons or property, unless the transportation	1997
is by a private investigation and security service;	1998

(12) Sales of tangible personal property or services to	1999
churches, to organizations exempt from taxation under section	2000
501(c)(3) of the Internal Revenue Code of 1986, and to any other	2001
nonprofit organizations operated exclusively for charitable	2002
purposes in this state, no part of the net income of which inures	2003
to the benefit of any private shareholder or individual, and no	2004
substantial part of the activities of which consists of carrying	2005
on propaganda or otherwise attempting to influence legislation;	2006
sales to offices administering one or more homes for the aged or	2007
one or more hospital facilities exempt under section 140.08 of the	2008
Revised Code; and sales to organizations described in division (D)	2009
of section 5709.12 of the Revised Code.	2010

"Charitable purposes" means the relief of poverty; the	2011
improvement of health through the alleviation of illness, disease,	2012
or injury; the operation of an organization exclusively for the	2013
provision of professional, laundry, printing, and purchasing	2014
services to hospitals or charitable institutions; the operation of	2015
a home for the aged, as defined in section 5701.13 of the Revised	2016
Code; the operation of a radio or television broadcasting station	2017
that is licensed by the federal communications commission as a	2018
noncommercial educational radio or television station; the	2019
operation of a nonprofit animal adoption service or a county	2020
humane society; the promotion of education by an institution of	2021
learning that maintains a faculty of qualified instructors,	2022
teaches regular continuous courses of study, and confers a	2023
recognized diploma upon completion of a specific curriculum; the	2024
operation of a parent-teacher association, booster group, or	2025
similar organization primarily engaged in the promotion and	2026
support of the curricular or extracurricular activities of a	2027
primary or secondary school; the operation of a community or area	2028
center in which presentations in music, dramatics, the arts, and	2029
related fields are made in order to foster public interest and	2030
education therein; the production of performances in music,	2031
dramatics, and the arts; or the promotion of education by an	2032
organization engaged in carrying on research in, or the	2033
dissemination of, scientific and technological knowledge and	2034
information primarily for the public.	2035

Nothing in this division shall be deemed to exempt sales to	2036
any organization for use in the operation or carrying on of a	2037
trade or business, or sales to a home for the aged for use in the	2038
operation of independent living facilities as defined in division	2039
(A) of section 5709.12 of the Revised Code.	2040

(13) Building and construction materials and services sold to	2041
construction contractors for incorporation into a structure or	2042
improvement to real property under a construction contract with	2043
this state or a political subdivision of this state, or with the	2044
United States government or any of its agencies; building and	2045
construction materials and services sold to construction	2046
contractors for incorporation into a structure or improvement to	2047
real property that are accepted for ownership by this state or any	2048
of its political subdivisions, or by the United States government	2049
or any of its agencies at the time of completion of the structures	2050
or improvements; building and construction materials sold to	2051
construction contractors for incorporation into a horticulture	2052
structure or livestock structure for a person engaged in the	2053
business of horticulture or producing livestock; building	2054
materials and services sold to a construction contractor for	2055
incorporation into a house of public worship or religious	2056
education, or a building used exclusively for charitable purposes	2057
under a construction contract with an organization whose purpose	2058
is as described in division (B)(12) of this section; building	2059
materials and services sold to a construction contractor for	2060
incorporation into a building under a construction contract with	2061
an organization exempt from taxation under section 501(c)(3) of	2062
the Internal Revenue Code of 1986 when the building is to be used	2063
exclusively for the organization's exempt purposes; building and	2064
construction materials sold for incorporation into the original	2065
construction of a sports facility under section 307.696 of the	2066
Revised Code; and building and construction materials and services	2067
sold to a construction contractor for incorporation into real	2068
property outside this state if such materials and services, when	2069
sold to a construction contractor in the state in which the real	2070
property is located for incorporation into real property in that	2071
state, would be exempt from a tax on sales levied by that state;	2072
and, until one calendar year after the construction of a	2073
convention center that qualifies for property tax exemption under	2074
section 5709.084 of the Revised Code is completed, building and	2075
construction materials and services sold to a construction	2076
contractor for incorporation into the real property comprising	2077
that convention center;	2078

(14) Sales of ships or vessels or rail rolling stock used or	2079
to be used principally in interstate or foreign commerce, and	2080
repairs, alterations, fuel, and lubricants for such ships or	2081
vessels or rail rolling stock;	2082

(15) Sales to persons primarily engaged in any of the	2083
activities mentioned in division (B)(42)(a) or (g) of this	2084
section, to persons engaged in making retail sales, or to persons	2085
who purchase for sale from a manufacturer tangible personal	2086
property that was produced by the manufacturer in accordance with	2087
specific designs provided by the purchaser, of packages, including	2088
material, labels, and parts for packages, and of machinery,	2089
equipment, and material for use primarily in packaging tangible	2090
personal property produced for sale, including any machinery,	2091
equipment, and supplies used to make labels or packages, to	2092
prepare packages or products for labeling, or to label packages or	2093
products, by or on the order of the person doing the packaging, or	2094
sold at retail. "Packages" includes bags, baskets, cartons,	2095
crates, boxes, cans, bottles, bindings, wrappings, and other	2096
similar devices and containers, but does not include motor	2097
vehicles or bulk tanks, trailers, or similar devices attached to	2098
motor vehicles. "Packaging" means placing in a package. Division	2099
(B)(15) of this section does not apply to persons engaged in	2100
highway transportation for hire.	2101

(16) Sales of food to persons using supplemental nutrition	2102
assistance program benefits to purchase the food. As used in this	2103
division, "food" has the same meaning as in 7 U.S.C. 2012 and	2104
federal regulations adopted pursuant to the Food and Nutrition Act	2105
of 2008.	2106

(17) Sales to persons engaged in farming, agriculture,	2107
horticulture, or floriculture, of tangible personal property for	2108
use or consumption directly in the production by farming,	2109
agriculture, horticulture, or floriculture of other tangible	2110
personal property for use or consumption directly in the	2111
production of tangible personal property for sale by farming,	2112
agriculture, horticulture, or floriculture; or material and parts	2113
for incorporation into any such tangible personal property for use	2114
or consumption in production; and of tangible personal property	2115
for such use or consumption in the conditioning or holding of	2116
products produced by and for such use, consumption, or sale by	2117
persons engaged in farming, agriculture, horticulture, or	2118
floriculture, except where such property is incorporated into real	2119
property;	2120

(18) Sales of drugs for a human being that may be dispensed	2121
only pursuant to a prescription; insulin as recognized in the	2122
official United States pharmacopoeia; urine and blood testing	2123
materials when used by diabetics or persons with hypoglycemia to	2124
test for glucose or acetone; hypodermic syringes and needles when	2125
used by diabetics for insulin injections; epoetin alfa when	2126
purchased for use in the treatment of persons with medical	2127
disease; hospital beds when purchased by hospitals, nursing homes,	2128
or other medical facilities; and medical oxygen and medical	2129
oxygen-dispensing equipment when purchased by hospitals, nursing	2130
homes, or other medical facilities;	2131

(19) Sales of prosthetic devices, durable medical equipment	2132
for home use, or mobility enhancing equipment, when made pursuant	2133
to a prescription and when such devices or equipment are for use	2134
by a human being.	2135

(20) Sales of emergency and fire protection vehicles and	2136
equipment to nonprofit organizations for use solely in providing	2137
fire protection and emergency services, including trauma care and	2138
emergency medical services, for political subdivisions of the	2139
state;	2140

(21) Sales of tangible personal property manufactured in this	2141
state, if sold by the manufacturer in this state to a retailer for	2142
use in the retail business of the retailer outside of this state	2143
and if possession is taken from the manufacturer by the purchaser	2144
within this state for the sole purpose of immediately removing the	2145
same from this state in a vehicle owned by the purchaser;	2146

(22) Sales of services provided by the state or any of its	2147
political subdivisions, agencies, instrumentalities, institutions,	2148
or authorities, or by governmental entities of the state or any of	2149
its political subdivisions, agencies, instrumentalities,	2150
institutions, or authorities;	2151

(23) Sales of motor vehicles to nonresidents of this state	2152
under the circumstances described in division (B) of section	2153
5739.029 of the Revised Code;	2154

(24) Sales to persons engaged in the preparation of eggs for	2155
sale of tangible personal property used or consumed directly in	2156
such preparation, including such tangible personal property used	2157
for cleaning, sanitizing, preserving, grading, sorting, and	2158
classifying by size; packages, including material and parts for	2159
packages, and machinery, equipment, and material for use in	2160
packaging eggs for sale; and handling and transportation equipment	2161
and parts therefor, except motor vehicles licensed to operate on	2162
public highways, used in intraplant or interplant transfers or	2163
shipment of eggs in the process of preparation for sale, when the	2164
plant or plants within or between which such transfers or	2165
shipments occur are operated by the same person. "Packages"	2166
includes containers, cases, baskets, flats, fillers, filler flats,	2167
cartons, closure materials, labels, and labeling materials, and	2168
"packaging" means placing therein.	2169

(25)(a) Sales of water to a consumer for residential use,	2170
except the sale of bottled water, distilled water, mineral water,	2171
carbonated water, or ice;	2172

(b) Sales of water by a nonprofit corporation engaged	2173
exclusively in the treatment, distribution, and sale of water to	2174
consumers, if such water is delivered to consumers through pipes	2175
or tubing.	2176

(26) Fees charged for inspection or reinspection of motor	2177
vehicles under section 3704.14 of the Revised Code;	2178

(27) Sales to persons licensed to conduct a food service	2179
operation pursuant to section 3717.43 of the Revised Code, of	2180
tangible personal property primarily used directly for the	2181
following:	2182

(a) To prepare food for human consumption for sale;

2183

(b) To preserve food that has been or will be prepared for	2184
human consumption for sale by the food service operator, not	2185
including tangible personal property used to display food for	2186
selection by the consumer;	2187

(c) To clean tangible personal property used to prepare or	2188
serve food for human consumption for sale.	2189

(28) Sales of animals by nonprofit animal adoption services	2190
or county humane societies;	2191

(29) Sales of services to a corporation described in division	2192
(A) of section 5709.72 of the Revised Code, and sales of tangible	2193
personal property that qualifies for exemption from taxation under	2194
section 5709.72 of the Revised Code;	2195

(30) Sales and installation of agricultural land tile, as	2196
defined in division (B)(5)(a) of section 5739.01 of the Revised	2197
Code;	2198

(31) Sales and erection or installation of portable grain	2199
bins, as defined in division (B)(5)(b) of section 5739.01 of the	2200
Revised Code;	2201

(32) The sale, lease, repair, and maintenance of, parts for,	2202
or items attached to or incorporated in, motor vehicles that are	2203
primarily used for transporting tangible personal property	2204
belonging to others by a person engaged in highway transportation	2205
for hire, except for packages and packaging used for the	2206
transportation of tangible personal property;	2207

(33) Sales to the state headquarters of any veterans'	2208
organization in this state that is either incorporated and issued	2209
a charter by the congress of the United States or is recognized by	2210
the United States veterans administration, for use by the	2211
headquarters;	2212

(34) Sales to a telecommunications service vendor, mobile	2213
telecommunications service vendor, or satellite broadcasting	2214
service vendor of tangible personal property and services used	2215
directly and primarily in transmitting, receiving, switching, or	2216
recording any interactive, one- or two-way electromagnetic	2217
communications, including voice, image, data, and information,	2218
through the use of any medium, including, but not limited to,	2219
poles, wires, cables, switching equipment, computers, and record	2220
storage devices and media, and component parts for the tangible	2221
personal property. The exemption provided in this division shall	2222
be in lieu of all other exemptions under division (B)(42)(a) of	2223
this section to which the vendor may otherwise be entitled, based	2224
upon the use of the thing purchased in providing the	2225
telecommunications, mobile telecommunications, or satellite	2226
broadcasting service.	2227

(35)(a) Sales where the purpose of the consumer is to use or	2228
consume the things transferred in making retail sales and	2229
consisting of newspaper inserts, catalogues, coupons, flyers, gift	2230
certificates, or other advertising material that prices and	2231
describes tangible personal property offered for retail sale.	2232

(b) Sales to direct marketing vendors of preliminary	2233
materials such as photographs, artwork, and typesetting that will	2234
be used in printing advertising material; of printed matter that	2235
offers free merchandise or chances to win sweepstake prizes and	2236
that is mailed to potential customers with advertising material	2237
described in division (B)(35)(a) of this section; and of equipment	2238
such as telephones, computers, facsimile machines, and similar	2239
tangible personal property primarily used to accept orders for	2240
direct marketing retail sales.	2241

(c) Sales of automatic food vending machines that preserve	2242
food with a shelf life of forty-five days or less by refrigeration	2243
and dispense it to the consumer.	2244

For purposes of division (B)(35) of this section, "direct	2245
marketing" means the method of selling where consumers order	2246
tangible personal property by United States mail, delivery	2247
service, or telecommunication and the vendor delivers or ships the	2248
tangible personal property sold to the consumer from a warehouse,	2249
catalogue distribution center, or similar fulfillment facility by	2250
means of the United States mail, delivery service, or common	2251
carrier.	2252

(36) Sales to a person engaged in the business of	2253
horticulture or producing livestock of materials to be	2254
incorporated into a horticulture structure or livestock structure;	2255

(37) Sales of personal computers, computer monitors, computer	2256
keyboards, modems, and other peripheral computer equipment to an	2257
individual who is licensed or certified to teach in an elementary	2258
or a secondary school in this state for use by that individual in	2259
preparation for teaching elementary or secondary school students;	2260

(38) Sales to a professional racing team of any of the	2261
following:	2262

(a) Motor racing vehicles;

2263

(b) Repair services for motor racing vehicles;

2264

(c) Items of property that are attached to or incorporated in	2265
motor racing vehicles, including engines, chassis, and all other	2266
components of the vehicles, and all spare, replacement, and	2267
rebuilt parts or components of the vehicles; except not including	2268
tires, consumable fluids, paint, and accessories consisting of	2269
instrumentation sensors and related items added to the vehicle to	2270
collect and transmit data by means of telemetry and other forms of	2271
communication.	2272

(39) Sales of used manufactured homes and used mobile homes,	2273
as defined in section 5739.0210 of the Revised Code, made on or	2274
after January 1, 2000;	2275

(40) Sales of tangible personal property and services to a	2276
provider of electricity used or consumed directly and primarily in	2277
generating, transmitting, or distributing electricity for use by	2278
others, including property that is or is to be incorporated into	2279
and will become a part of the consumer's production, transmission,	2280
or distribution system and that retains its classification as	2281
tangible personal property after incorporation; fuel or power used	2282
in the production, transmission, or distribution of electricity;	2283
and tangible personal property and services used in the repair and	2284
maintenance of the production, transmission, or distribution	2285
system, including only those motor vehicles as are specially	2286
designed and equipped for such use. The exemption provided in this	2287
division shall be in lieu of all other exemptions in division	2288
(B)(42)(a) of this section to which a provider of electricity may	2289
otherwise be entitled based on the use of the tangible personal	2290
property or service purchased in generating, transmitting, or	2291
distributing electricity.	2292

(41) Sales to a person providing services under division	2293
(B)(3)(r) of section 5739.01 of the Revised Code of tangible	2294
personal property and services used directly and primarily in	2295
providing taxable services under that section.	2296

(42) Sales where the purpose of the purchaser is to do any of	2297
the following:	2298

(a) To incorporate the thing transferred as a material or a	2299
part into tangible personal property to be produced for sale by	2300
manufacturing, assembling, processing, or refining; or to use or	2301
consume the thing transferred directly in producing tangible	2302
personal property for sale by mining, including, without	2303
limitation, the extraction from the earth of all substances that	2304
are classed geologically as minerals, production of crude oil and	2305
natural gas, farming, agriculture, horticulture, or floriculture,	2306
or directly in the rendition of a public utility service, except	2307
that the sales tax levied by this section shall be collected upon	2308
all meals, drinks, and food for human consumption sold when	2309
transporting persons. Persons engaged in rendering farming,	2310
agricultural, horticultural, or floricultural services, and	2311
services in the exploration for, and production of, crude oil and	2312
natural gas, for others are deemed engaged directly in farming,	2313
agriculture, horticulture, and floriculture, or exploration for,	2314
and production of, crude oil and natural gas. This paragraph does	2315
not exempt from "retail sale" or "sales at retail" the sale of	2316
tangible personal property that is to be incorporated into a	2317
structure or improvement to real property.	2318

(b) To hold the thing transferred as security for the	2319
performance of an obligation of the vendor;	2320

(c) To resell, hold, use, or consume the thing transferred as	2321
evidence of a contract of insurance;	2322

(d) To use or consume the thing directly in commercial	2323
fishing;	2324

(e) To incorporate the thing transferred as a material or a	2325
part into, or to use or consume the thing transferred directly in	2326
the production of, magazines distributed as controlled circulation	2327
publications;	2328

(f) To use or consume the thing transferred in the production	2329
and preparation in suitable condition for market and sale of	2330
printed, imprinted, overprinted, lithographic, multilithic,	2331
blueprinted, photostatic, or other productions or reproductions of	2332
written or graphic matter;	2333

(g) To use the thing transferred, as described in section	2334
5739.011 of the Revised Code, primarily in a manufacturing	2335
operation to produce tangible personal property for sale;	2336

(h) To use the benefit of a warranty, maintenance or service	2337
contract, or similar agreement, as described in division (B)(7) of	2338
section 5739.01 of the Revised Code, to repair or maintain	2339
tangible personal property, if all of the property that is the	2340
subject of the warranty, contract, or agreement would not be	2341
subject to the tax imposed by this section;	2342

(i) To use the thing transferred as qualified research and	2343
development equipment;	2344

(j) To use or consume the thing transferred primarily in	2345
storing, transporting, mailing, or otherwise handling purchased	2346
sales inventory in a warehouse, distribution center, or similar	2347
facility when the inventory is primarily distributed outside this	2348
state to retail stores of the person who owns or controls the	2349
warehouse, distribution center, or similar facility, to retail	2350
stores of an affiliated group of which that person is a member, or	2351
by means of direct marketing. This division does not apply to	2352
motor vehicles registered for operation on the public highways. As	2353
used in this division, "affiliated group" has the same meaning as	2354
in division (B)(3)(e) of section 5739.01 of the Revised Code and	2355
"direct marketing" has the same meaning as in division (B)(35) of	2356
this section.	2357

(k) To use or consume the thing transferred to fulfill a	2358
contractual obligation incurred by a warrantor pursuant to a	2359
warranty provided as a part of the price of the tangible personal	2360
property sold or by a vendor of a warranty, maintenance or service	2361
contract, or similar agreement the provision of which is defined	2362
as a sale under division (B)(7) of section 5739.01 of the Revised	2363
Code;	2364

(l) To use or consume the thing transferred in the production	2365
of a newspaper for distribution to the public;	2366

(m) To use tangible personal property to perform a service	2367
listed in division (B)(3) of section 5739.01 of the Revised Code,	2368
if the property is or is to be permanently transferred to the	2369
consumer of the service as an integral part of the performance of	2370
the service;	2371

(n) To use or consume the thing transferred in acquiring,	2372
formatting, editing, storing, and disseminating data or	2373
information by electronic publishing.	2374

As used in division (B)(42) of this section, "thing" includes	2375
all transactions included in divisions (B)(3)(a), (b), and (e) of	2376
section 5739.01 of the Revised Code.	2377

(43) Sales conducted through a coin operated device that	2378
activates vacuum equipment or equipment that dispenses water,	2379
whether or not in combination with soap or other cleaning agents	2380
or wax, to the consumer for the consumer's use on the premises in	2381
washing, cleaning, or waxing a motor vehicle, provided no other	2382
personal property or personal service is provided as part of the	2383
transaction.	2384

(44) Sales of replacement and modification parts for engines,	2385
airframes, instruments, and interiors in, and paint for, aircraft	2386
used primarily in a fractional aircraft ownership program, and	2387
sales of services for the repair, modification, and maintenance of	2388
such aircraft, and machinery, equipment, and supplies primarily	2389
used to provide those services.	2390

(45) Sales of telecommunications service that is used	2391
directly and primarily to perform the functions of a call center.	2392
As used in this division, "call center" means any physical	2393
location where telephone calls are placed or received in high	2394
volume for the purpose of making sales, marketing, customer	2395
service, technical support, or other specialized business	2396
activity, and that employs at least fifty individuals that engage	2397
in call center activities on a full-time basis, or sufficient	2398
individuals to fill fifty full-time equivalent positions.	2399

(46) Sales by a telecommunications service vendor of 900	2400
service to a subscriber. This division does not apply to	2401
information services, as defined in division (FF) of section	2402
5739.01 of the Revised Code.	2403

(47) Sales of value-added non-voice data service. This	2404
division does not apply to any similar service that is not	2405
otherwise a telecommunications service.	2406

(48)(a) Sales of machinery, equipment, and software to a	2407
qualified direct selling entity for use in a warehouse or	2408
distribution center primarily for storing, transporting, or	2409
otherwise handling inventory that is held for sale to independent	2410
salespersons who operate as direct sellers and that is held	2411
primarily for distribution outside this state;	2412

(b) As used in division (B)(48)(a) of this section:

2413

(i) "Direct seller" means a person selling consumer products	2414
to individuals for personal or household use and not from a fixed	2415
retail location, including selling such product at in-home product	2416
demonstrations, parties, and other one-on-one selling.	2417

(ii) "Qualified direct selling entity" means an entity	2418
selling to direct sellers at the time the entity enters into a tax	2419
credit agreement with the tax credit authority pursuant to section	2420
122.17 of the Revised Code, provided that the agreement was	2421
entered into on or after January 1, 2007. Neither contingencies	2422
relevant to the granting of, nor later developments with respect	2423
to, the tax credit shall impair the status of the qualified direct	2424
selling entity under division (B)(48) of this section after	2425
execution of the tax credit agreement by the tax credit authority.	2426

(c) Division (B)(48) of this section is limited to machinery,	2427
equipment, and software first stored, used, or consumed in this	2428
state within the period commencing June 24, 2008, and ending on	2429
the date that is five years after that date.	2430

(49) Sales of materials, parts, equipment, or engines used in	2431
the repair or maintenance of aircraft or avionics systems of such	2432
aircraft, and sales of repair, remodeling, replacement, or	2433
maintenance services in this state performed on aircraft or on an	2434
aircraft's avionics, engine, or component materials or parts. As	2435
used in division (B)(49) of this section, "aircraft" means	2436
aircraft of more than six thousand pounds maximum certified	2437
takeoff weight or used exclusively in general aviation.	2438

(50) Sales of full flight simulators that are used for pilot	2439
or flight-crew training, sales of repair or replacement parts or	2440
components, and sales of repair or maintenance services for such	2441
full flight simulators. "Full flight simulator" means a replica of	2442
a specific type, or make, model, and series of aircraft cockpit.	2443
It includes the assemblage of equipment and computer programs	2444
necessary to represent aircraft operations in ground and flight	2445
conditions, a visual system providing an out-of-the-cockpit view,	2446
and a system that provides cues at least equivalent to those of a	2447
three-degree-of-freedom motion system, and has the full range of	2448
capabilities of the systems installed in the device as described	2449
in appendices A and B of part 60 of chapter 1 of title 14 of the	2450
Code of Federal Regulations.	2451

(C) For the purpose of the proper administration of this	2452
chapter, and to prevent the evasion of the tax, it is presumed	2453
that all sales made in this state are subject to the tax until the	2454
contrary is established.	2455

(D) The levy of this tax on retail sales of recreation and	2456
sports club service shall not prevent a municipal corporation from	2457
levying any tax on recreation and sports club dues or on any	2458
income generated by recreation and sports club dues.	2459

(E) The tax collected by the vendor from the consumer under	2460
this chapter is not part of the price, but is a tax collection for	2461
the benefit of the state, and of counties levying an additional	2462
sales tax pursuant to section 5739.021 or 5739.026 of the Revised	2463
Code and of transit authorities levying an additional sales tax	2464
pursuant to section 5739.023 of the Revised Code. Except for the	2465
discount authorized under section 5739.12 of the Revised Code and	2466
the effects of any rounding pursuant to section 5703.055 of the	2467
Revised Code, no person other than the state or such a county or	2468
transit authority shall derive any benefit from the collection or	2469
payment of the tax levied by this section or section 5739.021,	2470
5739.023, or 5739.026 of the Revised Code.	2471

Sec. 5751.08.  (A) An application for refund to the taxpayer	2472
of the amount of taxes imposed under this chapter that are	2473
overpaid, paid illegally or erroneously, or paid on any illegal or	2474
erroneous assessment shall be filed by the reporting person with	2475
the tax commissioner, on the form prescribed by the commissioner,	2476
within four years after the date of the illegal or erroneous	2477
payment of the tax, or within any additional period allowed under	2478
division (F) of section 5751.09 of the Revised Code. The applicant	2479
shall provide the amount of the requested refund along with the	2480
claimed reasons for, and documentation to support, the issuance of	2481
a refund.	2482

(B) On the filing of the refund application, the tax	2483
commissioner shall determine the amount of refund to which the	2484
applicant is entitled. If the amount is not less than that	2485
claimed, the commissioner shall certify the amount to the director	2486
of budget and management and treasurer of state for payment from	2487
the tax refund fund created under section 5703.052 of the Revised	2488
Code. If the amount is less than that claimed, the commissioner	2489
shall proceed in accordance with section 5703.70 of the Revised	2490
Code.	2491

(C) Interest on a refund applied for under this section,	2492
computed at the rate provided for in section 5703.47 of the	2493
Revised Code, shall be allowed from the later of the date the tax	2494
was paid or when the tax payment was due.	2495

(D) A calendar quarter taxpayer with more than one million	2496
dollars in taxable gross receipts in a calendar year other than	2497
calendar year 2005 and that is not able to exclude one million	2498
dollars in taxable gross receipts because of the operation of the	2499
taxpayer's business in that calendar year may file for a refund	2500
under this section to obtain the full exclusion of one million	2501
dollars in taxable gross receipts for that calendar year.	2502

(E) No person with an active registration as a taxpayer under	2503
this chapter may claim a refund under this section for the tax	2504
imposed under division (B) of section 5751.03 of the Revised Code	2505
unless the person cancelled the registration before the tenth day	2506
of May of the current calendar year pursuant to division (D) of	2507
section 5751.04 of the Revised Code.	2508

(F) Except as provided in section 5751.0915751.081 of the	2509
Revised Code, the tax commissioner may, with the consent of the	2510
taxpayer, provide for the crediting against tax due for a tax year	2511
the amount of any refund due the taxpayer under this chapter for a	2512
preceding tax year.	2513

Sec. 5751.09.  (A) The tax commissioner may make an	2514
assessment, based on any information in the commissioner's	2515
possession, against any person that fails to file a return or pay	2516
any tax as required by this chapter. The commissioner shall give	2517
the person assessed written notice of the assessment as provided	2518
in section 5703.37 of the Revised Code. With the notice, the	2519
commissioner shall provide instructions on the manner in which to	2520
petition for reassessment and request a hearing with respect to	2521
the petition. The commissioner shall send any assessments against	2522
consolidated elected taxpayer and combined taxpayer groups under	2523
section 5751.011 or 5751.012 of the Revised Code to the taxpayer's	2524
"reporting person" as defined under division (R) of section	2525
5751.01 of the Revised Code. The reporting person shall notify all	2526
members of the group of the assessment and all outstanding taxes,	2527
interest, and penalties for which the assessment is issued.	2528

(B) Unless the person assessed, within sixty days after	2529
service of the notice of assessment, files with the tax	2530
commissioner, either personally or by certified mail, a written	2531
petition signed by the person or the person's authorized agent	2532
having knowledge of the facts, the assessment becomes final, and	2533
the amount of the assessment is due and payable from the person	2534
assessed to the treasurer of state. The petition shall indicate	2535
the objections of the person assessed, but additional objections	2536
may be raised in writing if received by the commissioner prior to	2537
the date shown on the final determination.	2538

If a petition for reassessment has been properly filed, the	2539
commissioner shall proceed under section 5703.60 of the Revised	2540
Code.	2541

(C)(1) After an assessment becomes final, if any portion of	2542
the assessment, including accrued interest, remains unpaid, a	2543
certified copy of the tax commissioner's entry making the	2544
assessment final may be filed in the office of the clerk of the	2545
court of common pleas in the county in which the person resides or	2546
has its principal place of business in this state, or in the	2547
office of the clerk of court of common pleas of Franklin county.	2548

(2) Immediately upon the filing of the entry, the clerk shall	2549
enter judgment for the state against the person assessed in the	2550
amount shown on the entry. The judgment may be filed by the clerk	2551
in a loose-leaf book entitled, "special judgments for the	2552
commercial activity tax" and shall have the same effect as other	2553
judgments. Execution shall issue upon the judgment at the request	2554
of the tax commissioner, and all laws applicable to sales on	2555
execution shall apply to sales made under the judgment.	2556

(3) The portion of the assessment not paid within sixty days	2557
after the day the assessment was issued shall bear interest at the	2558
rate per annum prescribed by section 5703.47 of the Revised Code	2559
from the day the tax commissioner issues the assessment until it	2560
is paid. Interest shall be paid in the same manner as the tax and	2561
may be collected by the issuance of an assessment under this	2562
section.	2563

(D) If the tax commissioner believes that collection of the	2564
tax will be jeopardized unless proceedings to collect or secure	2565
collection of the tax are instituted without delay, the	2566
commissioner may issue a jeopardy assessment against the person	2567
liable for the tax. Immediately upon the issuance of the jeopardy	2568
assessment, the commissioner shall file an entry with the clerk of	2569
the court of common pleas in the manner prescribed by division (C)	2570
of this section. Notice of the jeopardy assessment shall be served	2571
on the person assessed or the person's authorized agent in the	2572
manner provided in section 5703.37 of the Revised Code within five	2573
days of the filing of the entry with the clerk. The total amount	2574
assessed is immediately due and payable, unless the person	2575
assessed files a petition for reassessment in accordance with	2576
division (B) of this section and provides security in a form	2577
satisfactory to the commissioner and in an amount sufficient to	2578
satisfy the unpaid balance of the assessment. Full or partial	2579
payment of the assessment does not prejudice the commissioner's	2580
consideration of the petition for reassessment.	2581

(E) The tax commissioner shall immediately forward to the	2582
treasurer of state all amounts the commissioner receives under	2583
this section, and such amounts shall be considered as revenue	2584
arising from the tax imposed under this chapter.	2585

(F) Except as otherwise provided in this division, no	2586
assessment shall be made or issued against a taxpayer for the tax	2587
imposed under this chapter more than four years after the due date	2588
for the filing of the return for the tax period for which the tax	2589
was reported, or more than four years after the return for the tax	2590
period was filed, whichever is later. The time limit may be	2591
extended if both the taxpayer and the commissioner consent in	2592
writing to the extension or enter into an agreement waiving or	2593
extending the time limit. Any such extension shall extend the	2594
four-year time limit in division (B) of section 5751.08 of the	2595
Revised Code for the same period of time. Nothing in this division	2596
bars an assessment against a taxpayer that fails to file a return	2597
required by this chapter or that files a fraudulent return.	2598

(G) If the tax commissioner possesses information that	2599
indicates that the amount of tax a taxpayer is required to pay	2600
under this chapter exceeds the amount the taxpayer paid, the tax	2601
commissioner may audit a sample of the taxpayer's gross receipts	2602
over a representative period of time to ascertain the amount of	2603
tax due, and may issue an assessment based on the audit. The tax	2604
commissioner shall make a good faith effort to reach agreement	2605
with the taxpayer in selecting a representative sample. The tax	2606
commissioner may apply a sampling method only if the commissioner	2607
has prescribed the method by rule.	2608

(H) If the whereabouts of a person subject to this chapter is	2609
not known to the tax commissioner, the commissioner shall follow	2610
the procedures under section 5703.37 of the Revised Code.	2611

Sec. 6109.22.  (A) There is hereby created the drinking water	2612
assistance fund to provide financial and technical assistance for	2613
the purposes of protecting public health and achieving and	2614
maintaining compliance with the Safe Drinking Water Act and this	2615
chapter. In addition to the accounts created under divisions (G)	2616
and (H) of this section, the drinking water assistance fund may	2617
include any other accounts established by the director of	2618
environmental protection. The fund shall be administered by the	2619
director consistent with the Safe Drinking Water Act, this	2620
section, and rules adopted under division (M) of this section.	2621

(B) The drinking water assistance fund shall consist of the	2622
moneys credited to it from all capitalization grants received	2623
under the Safe Drinking Water Act except for moneys reserved by	2624
the governor pursuant to titleTitle III, section 302 of that act,	2625
all moneys credited to the fund from nonfederal sources,	2626
including, without limitation, the proceeds of state bonds or	2627
notes issued for the benefit of the fund, all payments of	2628
principal and interest on loans made from the fund, and all	2629
investment earnings on moneys held in the fund. On or before the	2630
date that a capitalization grant payment made under the authority	2631
of the Safe Drinking Water Act is credited to the fund, required	2632
matching moneys shall be credited to the fund. Any moneys	2633
transferred to or reserved from the drinking water assistance fund	2634
pursuant to titleTitle III, section 302 of the Safe Drinking	2635
Water Act shall be accounted for separately.	2636

(C) In a manner consistent with the Safe Drinking Water Act	2637
and the applicable drinking water assistance management plan	2638
prepared in accordance with this section, the director may reserve	2639
and award for assistance moneys allotted to the state under	2640
section 1452 of the Safe Drinking Water Act, provided that the	2641
director makes a determination that the use of the moneys will	2642
accomplish the state's objectives and the objectives established	2643
for capitalization grants under the Safe Drinking Water Act. The	2644
director may use a portion of the reserved moneys to enter into	2645
contracts with qualified organizations, including private	2646
nonprofit organizations, to provide statewide on-site technical	2647
assistance to small public water systems.	2648

(D) Subject to the terms of the agreements provided for in	2649
division (E) of this section, moneys in the drinking water	2650
assistance fund shall be held in trust by the Ohio water	2651
development authority for the purposes of this section, shall be	2652
kept in the same manner that funds of the authority are kept under	2653
section 6121.11 of the Revised Code, and may be invested in the	2654
same manner that funds of the authority are invested under section	2655
6121.12 of the Revised Code. Moneys in the drinking water	2656
assistance fund shall be separate and apart from and not a part of	2657
the state treasury or of the other funds of the authority. No	2658
withdrawals or disbursements shall be made from the drinking water	2659
assistance fund without the written authorization of the director.	2660

(E) The director shall adopt written criteria to ensure that	2661
fiscal controls are established for prudent administration of the	2662
drinking water assistance fund. For that purpose, the director and	2663
the authority shall enter into any necessary and appropriate	2664
agreements under which the authority may perform or provide any of	2665
the following:	2666

(1) Fiscal controls and accounting procedures governing fund	2667
balances, receipts, and disbursements;	2668

(2) Administration of loan accounts;

2669

(3) Maintenance, management, and investment of moneys in the	2670
fund.	2671

Any agreement entered into under division (E) of this section	2672
shall provide for the payment of reasonable fees to the authority	2673
for any services it performs under the agreement and may provide	2674
for reasonable fees for the assistance of financial or accounting	2675
advisors. Payment of any of the fees to the authority may be made	2676
from the drinking water assistance administrative account	2677
established under division (G) of this section.	2678

(F) The authority may make moneys available to the director	2679
for the purpose of providing matching moneys required to be	2680
credited to the drinking water assistance fund under division (B)	2681
of this section, subject to any terms that the director and the	2682
authority consider appropriate, and may pledge moneys that are	2683
held by the authority to secure the payment of bonds or notes	2684
issued by the authority to provide those matching moneys.	2685

The director and the authority may enter into trust	2686
agreements to enable the authority to issue and refund bonds or	2687
notes for the sole benefit of the drinking water assistance fund,	2688
including, without limitation, the raising of matching moneys	2689
required to be credited to the fund in accordance with division	2690
(B) of this section. The agreements may authorize the pledge of	2691
moneys accruing to the fund from payments of principal or interest	2692
or both on loans made from the fund to secure bonds or notes, the	2693
proceeds of which bonds or notes shall be for the sole benefit of	2694
the drinking water assistance fund. The agreements may contain any	2695
terms that the director and the authority consider reasonable and	2696
proper for the payment and security of the bondholders or	2697
noteholders.	2698

(G) There is hereby established within the drinking water	2699
assistance fund the drinking water assistance administrative	2700
account. No state matching moneys deposited into the fund under	2701
this section shall be used for the purpose of paying for or	2702
defraying the costs of administering this section. The director	2703
may establish and collect fees from applicants for assistance	2704
provided under this section. The total fees charged to an	2705
applicant under this division for assistance under this section	2706
shall not exceed the following:	2707

(1) For the environmental protection agency, one per cent of	2708
the principal amount of the assistance awarded to the applicant;	2709

(2) For the authority, thirty-five one-hundredths of one per	2710
cent of the principal amount of the assistance awarded to the	2711
applicant.	2712

All moneys from the fees shall be credited to the drinking	2713
water assistance administrative account in the fund. The moneys	2714
shall be used solely to defray the costs of administrating this	2715
section.	2716

(H) There is hereby established within the drinking water	2717
assistance fund the water supply revolving loan account. The	2718
director may provide financial assistance from the water supply	2719
revolving loan account for improvements to community water systems	2720
and to nonprofit noncommunity public water systems.	2721

(I) All moneys from the fund credited to the water supply	2722
revolving loan account, all interest earned on moneys credited to	2723
the account, and all payments of principal and interest on loans	2724
made from the account shall be dedicated in perpetuity and used	2725
and reused solely for the following purposes, except as otherwise	2726
provided in this section:	2727

(1) To make loans to community water systems and nonprofit	2728
noncommunity public water systems, subject to all of the following	2729
conditions:	2730

(a) The loans are made at or below market rates of interest,	2731
including, without limitation, interest-free loans;	2732

(b) Each recipient of a loan shall establish a dedicated	2733
source of security or revenue for repayment of the loan;	2734

(c) All payments of principal and interest on the loans shall	2735
be credited to the water supply revolving loan account.	2736

(2) To purchase or refinance at or below market rates	2737
interest debt obligations incurred after July 1, 1993, by	2738
municipal corporations, other political subdivisions, and	2739
interstate agencies having territory in the state;	2740

(3) To guarantee or purchase insurance for debt obligations	2741
when the guarantee or insurance would improve the borrower's	2742
access to credit markets or would reduce the interest paid on	2743
those obligations;	2744

(4) As a source of revenue or security for the payment of	2745
principal and interest on general obligation or revenue bonds or	2746
notes issued by this state if the proceeds of the sale of the	2747
bonds or notes are or will be deposited into the account;	2748

(5) To provide subsidies in addition to any other financial	2749
assistance afforded disadvantaged communities under this section;	2750

(6) To earn interest on moneys credited to the account;

2751

(7) To provide any other assistance authorized by the Safe	2752
Drinking Water Act or any other federal law related to the use of	2753
federal funds administered under the Safe Drinking Water Act.	2754

(J) The director may provide financial assistance from the	2755
water supply revolving loan account after determining all of the	2756
following:	2757

(1) The applicant for financial assistance has the legal,	2758
institutional, managerial, and financial capability to construct,	2759
operate, and maintain its public water system and the proposed	2760
improvements to it;	2761

(2) The applicant will implement a financial management plan	2762
that includes, without limitation, provisions for satisfactory	2763
repayment of the financial assistance;	2764

(3) The public water system of which the project for which	2765
assistance is proposed is a part is economically and nonmonetarily	2766
cost-effective, based on an evaluation of feasible alternatives	2767
that meet the drinking water treatment needs of the planning area	2768
in which the proposed project is located;	2769

(4) Based on a comprehensive environmental review approved by	2770
the director, there are no significant adverse environmental	2771
effects resulting from all necessary improvements to the public	2772
water system of which the project proposed for assistance is a	2773
part;	2774

(5) Public participation has occurred during the process of	2775
planning the project in compliance with applicable requirements	2776
under the Safe Drinking Water Act;	2777

(6) The application meets the requirements of this section	2778
and rules adopted under division (M) of this section and is	2779
consistent with section 1452 of the Safe Drinking Water Act and	2780
regulations adopted under it;	2781

(7) If the applicant for assistance is a water district	2782
formed under Chapter 6119. of the Revised Code that operates a	2783
public water system and that water district seeks to extend the	2784
distribution facilities, increase the number of service	2785
connections to its system, or provide for any other expansion of	2786
its system, the water district has consulted with the board of	2787
county commissioners from each county in which is located the	2788
proposed extension of distribution facilities, increase in the	2789
number of service connections, or other expansion of the public	2790
water system;	2791

(8) The application meets any other requirements that the	2792
director considers necessary or appropriate to protect public	2793
health and the environment and to ensure the financial integrity	2794
of the water supply revolving loan account.	2795

Upon approval by the director of an application for financial	2796
assistance, the Ohio water development authority shall disburse	2797
the appropriate financial assistance from the water supply	2798
revolving loan account. If the proposed financial assistance is a	2799
loan, and if the payments of the principal or interest on the loan	2800
are or are expected to be pledged to secure payment of bonds	2801
issued or expected to be issued by the authority, the director	2802
shall submit the application for the loan to the authority for	2803
review and approval with respect to any matters pertaining to	2804
security for and the marketability of authority bonds. Review and	2805
approval by the authority shall be required prior to the making of	2806
such a loan.	2807

(K) In accordance with rules adopted under division (M) of	2808
this section, the director periodically shall prepare a drinking	2809
water assistance management plan establishing the short-term and	2810
long-term goals for the assistance provided under this section,	2811
the allocation of available resources for the purposes of this	2812
section, the environmental, financial, and administrative terms,	2813
conditions, and criteria for the award of financial and technical	2814
assistance under this section, and the intended uses of	2815
capitalization grants and available moneys from the drinking water	2816
assistance fund. Criteria for awarding financial or technical	2817
assistance under this section shall not favor or disfavor any	2818
otherwise qualified nonprofit noncommunity public water system	2819
because it is owned by, operated by, or services a religious	2820
organization or a facility used for religious purposes. Prior to	2821
its adoption, the director shall make the drinking water	2822
assistance management plan available for public review and comment	2823
at a minimum of two public meetings and shall take adequate steps	2824
to ensure that reasonable public notice of each public meeting is	2825
given at least thirty days prior to the meeting.	2826

The plan shall include, without limitation, a system that	2827
prioritizes projects funded by the water supply revolving loan	2828
account based on the relative risk to human health being	2829
addressed, their necessity for ensuring compliance with	2830
requirements of the Safe Drinking Water Act, and their	2831
affordability to the applicants, as determined by the director.	2832
Financial assistance for projects from the water supply revolving	2833
loan account shall be limited to projects that are included in	2834
that prioritization and shall be awarded based upon their priority	2835
position and the applicants' readiness to proceed with their	2836
proposed activities as determined by the director. The drinking	2837
water assistance management plan shall include terms, conditions,	2838
amounts of moneys, and qualifying criteria, in addition to any	2839
other criteria established under this section, governing the	2840
financial assistance to be awarded to applicants from the water	2841
supply revolving loan account. The director shall determine the	2842
most effective use of the moneys in that account to achieve the	2843
state's drinking water assistance goals and objectives.	2844

(L) The director, consistent with this section and applicable	2845
rules adopted under division (M) of this section, may enter into	2846
an agreement with an applicant for assistance from the drinking	2847
water assistance fund. Based on the director's review and approval	2848
of the project plans submitted under section 6109.07 of the	2849
Revised Code, any determinations made under division (J) of this	2850
section if an applicant seeks funding from the water supply	2851
revolving loan account, and any other requirements of this section	2852
and rules adopted under it, the director may establish in the	2853
agreement environmental and financial terms and conditions of the	2854
financial assistance to be offered to the applicant. If the	2855
recipient of financial assistance under this section defaults on	2856
any payment required in the agreement for financial assistance or	2857
otherwise violates a term or condition of the agreement or of the	2858
plan approval for the project under section 6109.07 of the Revised	2859
Code, the director, in addition to any other available remedies,	2860
may terminate, suspend, or require immediate repayment of the	2861
financial assistance. The director also may take any enforcement	2862
action available under this chapter.	2863

(M) The director may adopt rules in accordance with Chapter	2864
119. of the Revised Code for the implementation and administration	2865
of this section. The rules shall be consistent with section 1452	2866
of the Safe Drinking Water Act.	2867

(N)(1) For the purposes of this section, appealable actions	2868
of the director pursuant to section 3745.04 of the Revised Code	2869
are limited to the following:	2870

(a) Adoption of the drinking water assistance management plan	2871
prepared under division (K) of this section;	2872

(b) Approval of priority systems, priority lists, and written	2873
program administration policies;	2874

(c) Approval or disapproval under this section of applicants'	2875
project plans submitted under section 6109.07 of the Revised Code;	2876

(d) Approval or disapproval of an application for assistance.

2877

(2) Notwithstanding section 119.06 of the Revised Code, the	2878
director may take the final actions described in divisions	2879
(N)(1)(a) to (d) of this section without holding an adjudication	2880
hearing in connection with the action and without first issuing a	2881
proposed action under section 3745.07 of the Revised Code.	2882

(3) Each action described in divisions (N)(1)(a) to (d) of	2883
this section and each approval of a plan under section 6109.07 of	2884
the Revised Code is a separate and discrete action of the	2885
director. Appeals are limited to the issues concerning the	2886
specific action appealed. Any appeal shall not include issues	2887
determined under the scope of any prior action.	2888

(O) The failure or inability of a public water system to	2889
obtain assistance under this section does not alter the obligation	2890
of the public water system to comply with all applicable	2891
requirements of this chapter and rules adopted under it.	2892

Sec. 6111.036.  (A) There is hereby created the water	2893
pollution control loan fund to provide financial, technical, and	2894
administrative assistance for the following purposes:	2895

(1) Construction of publicly owned wastewater treatment	2896
works, as "construction" and "treatment works" are defined in	2897
section 212 of the "Federal Water Pollution Control Act," by	2898
municipal corporations, other political subdivisions, and	2899
interstate agencies having territory in this state;	2900

(2) Implementation of nonpoint source pollution management	2901
programs under section 319 of that act;	2902

(3) Development and implementation of estuary conservation	2903
and management programs under section 320 of that act.	2904

To the extent they are otherwise allowable as determined by	2905
the director of environmental protection, the purposes identified	2906
under division (A) of this section are intended to include	2907
activities benefiting the waters of the state that are authorized	2908
under Chapter 3746. of the Revised Code.	2909

The fund shall be administered by the director consistent	2910
with the "Federal Water Pollution Control Act"; regulations	2911
adopted under it, including, without limitation, regulations	2912
establishing public participation requirements applicable to the	2913
providing of financial assistance; this section; and rules adopted	2914
under division (O) of this section.	2915

Moneys in the water pollution control loan fund shall be	2916
separate and apart from and not a part of the state treasury or of	2917
the other funds of the Ohio water development authority. Subject	2918
to the terms of the agreements provided for in divisions (B), (C),	2919
(D), and (F) of this section, moneys in the fund shall be held in	2920
trust by the Ohio water development authority for the purposes of	2921
this section, shall be kept in the same manner that funds of the	2922
authority are kept under section 6121.11 of the Revised Code, and	2923
may be invested in the same manner that funds of the authority are	2924
invested under section 6121.12 of the Revised Code. No withdrawals	2925
or disbursements shall be made from the water pollution control	2926
loan fund without the written authorization of the director or his	2927
the director's designated representative. The manner of	2928
authorization for any withdrawals or disbursements from the fund	2929
to be made by the authority shall be established in the agreements	2930
authorized under division (C) of this section.	2931

(B) The director may enter into agreements to receive and	2932
assign moneys credited or to be credited to the water pollution	2933
control loan fund. The director may reserve capitalization grant	2934
moneys allotted to the state under sections 601 and 604(c)(2) of	2935
the "Federal Water Pollution Control Act" for the other purposes	2936
authorized for the use of capitalization grant moneys under	2937
sections 603(d)(7) and 604(b) of that act.	2938

(C) The director shall ensure that fiscal controls are	2939
established for prudent administration of the water pollution	2940
control loan fund. For that purpose, the director and the Ohio	2941
water development authority shall enter into any necessary and	2942
appropriate agreements under which the authority may perform or	2943
provide any of the following:	2944

(1) Fiscal controls and accounting procedures governing fund	2945
balances, receipts, and disbursements;	2946

(2) Administration of loan accounts;

2947

(3) Maintaining, managing, and investing moneys in the fund.

2948

Any agreement entered into under this division shall provide	2949
for the payment of reasonable fees to the Ohio water development	2950
authority for any services it performs under the agreement and may	2951
provide for reasonable fees for the assistance of financial or	2952
accounting advisors. Payments of any such fees to the authority	2953
may be made from the water pollution control loan fund to the	2954
extent authorized by division (H)(7) of this section or from the	2955
water pollution control loan administrative fund created in	2956
division (E) of this section. The authority may enter into loan	2957
agreements with the director and recipients of financial	2958
assistance from the fund as provided in this section.	2959

(D) The water pollution control loan fund shall consist of	2960
the moneys credited to it from all capitalization grants received	2961
under sections 601 and 604(c)(2) of the "Federal Water Pollution	2962
Control Act," all moneys received as capitalization grants under	2963
section 205(m) of that act, all matching moneys credited to the	2964
fund arising from nonfederal sources, all payments of principal	2965
and interest for loans made from the fund, and all investment	2966
earnings on moneys held in the fund. On or before the date on	2967
which a quarterly capitalization grant payment will be received	2968
under that act, matching moneys equal to at least twenty per cent	2969
of the quarterly capitalization grant payment shall be credited to	2970
the fund. The Ohio water development authority may make moneys	2971
available to the director for the purpose of providing the	2972
matching moneys required by this division, subject to such terms	2973
as the director and the authority consider appropriate, and may	2974
pledge moneys that are held by the authority to secure the payment	2975
of bonds or notes issued by the authority to provide those	2976
matching moneys. The authority may make moneys available to the	2977
director for that purpose from any funds now or hereafter	2978
available to the authority from any source, including, without	2979
limitation, the proceeds of bonds or notes heretofore or hereafter	2980
issued by the authority under Chapter 6121. of the Revised Code.	2981
Matching moneys made available to the director by the authority	2982
from the proceeds of any such bonds or notes shall be made	2983
available subject to the terms of the trust agreements relating to	2984
the bonds or notes. Any such matching moneys shall be made	2985
available to the director pursuant to a written agreement between	2986
the director and the authority that contains such terms as the	2987
director and the authority consider appropriate, including,	2988
without limitation, a provision providing for repayment to the	2989
authority of those matching moneys from moneys deposited in the	2990
water pollution control loan fund, including, without limitation,	2991
the proceeds of bonds or notes issued by the authority for the	2992
benefit of the fund and payments of principal and interest on	2993
loans made from the fund, or from any other sources now or	2994
hereafter available to the director for the repayment of those	2995
matching moneys.	2996

(E) All moneys credited to the water pollution control loan	2997
fund, all interest earned on moneys in the fund, and all payments	2998
of principal and interest for loans made from the fund shall be	2999
dedicated in perpetuity and used and reused solely for the	3000
purposes set forth in division (A) of this section, except as	3001
otherwise provided in division (D) or (F) of this section. The	3002
director may establish and collect fees to be paid by recipients	3003
of financial assistance under this section, and all moneys arising	3004
from the fees shall be credited to the water pollution control	3005
loan administrative fund, which is hereby created in the state	3006
treasury, and shall be used to defray the costs of administering	3007
this section.	3008

(F) The director and the Ohio water development authority	3009
shall enter into trust agreements to enable the authority to issue	3010
and refund bonds or notes for the sole benefit of the water	3011
pollution control loan fund, including, without limitation, the	3012
raising of the matching moneys required by division (D) of this	3013
section. These agreements may authorize the pledge of moneys	3014
accruing to the fund from payments of principal and interest on	3015
loans made from the fund adequate to secure bonds or notes, the	3016
proceeds of which bonds or notes shall be for the sole benefit of	3017
the water pollution control loan fund. The agreements may contain	3018
such terms as the director and the authority consider reasonable	3019
and proper for the security of the bondholders or noteholders.	3020

(G) The director shall enter into binding commitments to	3021
provide financial assistance from the water pollution control loan	3022
fund in an amount equal to one hundred twenty per cent of the	3023
amount of each capitalization grant payment received, within one	3024
year after receiving each such grant payment. The director shall	3025
provide the financial assistance in compliance with this section	3026
and rules adopted under division (O) of this section. The director	3027
shall ensure that all moneys credited to the fund are disbursed in	3028
an expeditious and timely manner. During the second year of	3029
operation of the water pollution control loan program, the	3030
director also shall ensure that not less than twenty-five per cent	3031
of the financial assistance provided under this section during	3032
that year is provided for the purpose of division (H)(2) of this	3033
section for the purchase or refinancing of debt obligations	3034
incurred after March 7, 1985, but not later than July 1, 1988,	3035
except that if the amount of money reserved during the second year	3036
of operation of the program for the purchase or refinancing of	3037
those debt obligations exceeds the amount required for the	3038
projects that are eligible to receive financial assistance for	3039
that purpose, the director shall distribute the excess moneys in	3040
accordance with the current priority system and list prepared	3041
under division (I) of this section to provide financial assistance	3042
for projects that otherwise would not receive assistance in that	3043
year.	3044

(H) Moneys credited to the water pollution control loan fund	3045
shall be used only for the following purposes:	3046

(1) To make loans, subject to all of the following	3047
conditions:	3048

(a) The loans are made at or below market rates of interest,	3049
including, without limitation, interest free loans;	3050

(b) Periodic payments of principal and interest shall	3051
commence not later than one year after completion of the project,	3052
and all loans shall be fully amortized not later than twenty years	3053
after project completion;	3054

(c) Each recipient of a loan shall establish a dedicated	3055
source of revenue for repayment of the loan;	3056

(d) All payments of principal and interest on the loans shall	3057
be credited to the fund, except as otherwise provided in division	3058
(D) or (F) of this section.	3059

(2) To purchase or refinance at or below market rates of	3060
interest debt obligations incurred after March 7, 1985, by	3061
municipal corporations, other political subdivisions, and	3062
interstate agencies having territory in the state;	3063

(3) To guarantee or purchase insurance for debt obligations	3064
of municipal corporations, other political subdivisions, and	3065
interstate agencies having territory within the state when the	3066
guarantee or insurance would improve the borrower's access to	3067
credit markets or would reduce the interest rate paid on those	3068
obligations;	3069

(4) As a source of revenue or security for the payment of	3070
principal and interest on general obligation or revenue bonds or	3071
notes issued by this state if the proceeds of the sale of the	3072
bonds or notes will be deposited in the fund;	3073

(5) To provide loan guarantees for revolving loan funds	3074
established by municipal corporations and other political	3075
subdivisions that are similar to the water pollution control loan	3076
fund;	3077

(6) To earn interest on moneys credited to the fund;

3078

(7) To pay the reasonable costs of administering the fund and	3079
this section, except that cumulative expenditures from the fund	3080
for administrative costs shall not at any time exceed four per	3081
cent of the total amount of the capitalization grants received;	3082

(8) To provide assistance in any manner or for any purpose	3083
that is consistent with Title VI of the Federal Water Pollution	3084
Control Act or with any other federal law related to the use of	3085
federal funds administered under Title VI of the Federal Water	3086
Pollution Control Act.	3087

(I) The director periodically shall prepare in accordance	3088
with rules adopted under division (O) of this section a state	3089
priority system and list ranking assistance proposals principally	3090
on the basis of their relative water quality and public health	3091
benefits and the financial need of the applicants for assistance.	3092
Assistance for proposed activities from the water pollution	3093
control loan fund shall be limited to those activities appearing	3094
on that priority list and shall be awarded based upon their	3095
priority sequence on the list and the applicants' readiness to	3096
proceed with their proposed activities. The director annually	3097
shall prepare and circulate for public review and comment a plan	3098
that defines the goals and intended uses of the fund, as required	3099
by section 606(c) of the "Federal Water Pollution Control Act."	3100

(J) Financial assistance from the water pollution control	3101
loan fund first shall be used to ensure maintenance of progress,	3102
as determined by the governor, toward compliance with enforceable	3103
deadlines, goals, and requirements under the "Federal Water	3104
Pollution Control Act" that are pertinent to the purposes of the	3105
fund set forth in divisions (A)(1) to (3) of this section,	3106
including, without limitation, the municipal compliance deadline	3107
under that act.	3108

(K) The director may provide financial assistance from the	3109
water pollution control loan fund for a publicly owned treatment	3110
works project only after determining that:	3111

(1) Sewerage systems tributary to the treatment works are not	3112
subject to excessive infiltration and inflow;	3113

(2) The applicant for financial assistance has the legal,	3114
institutional, managerial, and financial capability to construct,	3115
operate, and maintain its publicly owned treatment works;	3116

(3) The applicant will implement a financial management plan	3117
that includes, without limitation, provisions for satisfactory	3118
repayment of the financial assistance, a proportional user charge	3119
system to pay the operation, maintenance, and replacement expenses	3120
of the project, and, if appropriate in the director's judgment, an	3121
adequate capital improvements fund;	3122

(4) The proposed disposal system of which the project is a	3123
part is economically and nonmonetarily cost-effective, based upon	3124
an evaluation of feasible alternatives that meet the waste water	3125
treatment needs of the planning area in which the proposed project	3126
is located;	3127

(5) Based upon the environmental review conducted by the	3128
director under division (L) of this section, there are no	3129
significant adverse environmental effects resulting from the	3130
proposed disposal system and the system has been selected from	3131
among environmentally sound alternatives;	3132

(6) Public participation has occurred during the process of	3133
planning the project in compliance with applicable requirements	3134
under the "Federal Water Pollution Control Act";	3135

(7) The applicant has submitted a facilities plan for the	3136
project that meets the applicable program requirements and that	3137
has been approved by the director;	3138

(8) The application meets the requirements of this section	3139
and rules adopted under division (O) of this section and is	3140
consistent with the intent of Title VI of the "Federal Water	3141
Pollution Control Act" and regulations adopted under it;	3142

(9) The application meets such other requirements as the	3143
director considers necessary or appropriate to protect the	3144
environment or ensure the financial integrity of the fund while	3145
implementing this section.	3146

(L) The director shall perform and document for public review	3147
an independent, comprehensive environmental review of the	3148
assistance proposal for each activity receiving financial	3149
assistance under this section. The review shall serve as the basis	3150
for the determinations to be made under division (K)(5) or (Q)(4)	3151
of this section, as applicable, and may include, without	3152
limitation, an environmental assessment, any necessary	3153
supplemental studies, and an enforceable mitigation plan. The	3154
director may establish environmental impact mitigation terms or	3155
conditions for the implementation of an assistance proposal,	3156
including, without limitation, the installation or modification of	3157
a disposal system, in histhe director's approval of the plans for	3158
the installation or modification as authorized by section 6111.44	3159
of the Revised Code or through other legally enforceable means.	3160
The review shall be conducted in accordance with applicable rules	3161
adopted under division (O) of this section.	3162

(M) The director, consistent with this section and applicable	3163
rules adopted under division (O) of this section, may enter into	3164
any agreement with an applicant that is necessary or appropriate	3165
to provide assistance from the water pollution control loan fund.	3166
Based upon histhe director's review of an assistance proposal,	3167
including, without limitation, approval for the project under	3168
section 6111.44 of the Revised Code, the environmental review	3169
conducted under division (L) of this section, and the other	3170
requirements of this section and rules adopted under it, the	3171
director may establish in the agreement terms and conditions of	3172
the assistance to be offered to an applicant. In addition to any	3173
other available remedies, the director may terminate, suspend, or	3174
require immediate repayment of financial assistance provided under	3175
this section to, or take any other enforcement action available	3176
under this chapter against, a recipient of financial assistance	3177
under this section who defaults on any payment required in the	3178
agreement for financial assistance or otherwise violates a term or	3179
condition of the agreement or of the plan approval for the project	3180
under section 6111.44 of the Revised Code.	3181

(N) Based upon the director's judgment as to the financial	3182
need of the applicant and as to what constitutes the most	3183
effective allocation of funds to achieve statewide water pollution	3184
control objectives, the director may establish the terms,	3185
conditions, and amount of financial assistance to be offered to an	3186
applicant from the water pollution control loan fund. The	3187
director, to the extent consistent with the water quality	3188
improvement priorities reflected in the current priority system	3189
and list prepared under division (I) of this section and with the	3190
long-term financial integrity of the fund, shall ensure each year	3191
that financial assistance in an amount equal to the cost of the	3192
assistance proposals of applicants having a high level of economic	3193
need that are on the current priority list and for which funding	3194
is available in that year is made available from the fund to those	3195
applicants at an interest rate that is lower than that offered to	3196
other applicants for financial assistance from the fund for	3197
assistance proposals that are on the current priority list and for	3198
which funding is available in that year.	3199

The director shall determine the economic need of applicants	3200
for financial assistance in accordance with uniform criteria	3201
established in rules adopted under division (O) of this section.	3202

(O) The director may adopt rules in accordance with Chapter	3203
119. of the Revised Code for the implementation and administration	3204
of this section and section 6111.037 of the Revised Code. Any such	3205
rules governing the planning, design, and construction of water	3206
pollution control projects, establishing an environmental review	3207
process, establishing requirements for the preparation of	3208
environmental impact reports and mitigation plans, governing the	3209
establishment of priority systems for providing financial	3210
assistance under this section and section 6111.037 of the Revised	3211
Code, and governing the terms and conditions of assistance, shall	3212
be consistent with the intent of Titles II and VI and sections 319	3213
and 320 of the "Federal Water Pollution Control Act." The rules	3214
governing the establishment of priority systems for financial	3215
assistance and governing terms and conditions of assistance shall	3216
provide for the most effective allocation of moneys from the water	3217
pollution control loan fund to achieve water quality and public	3218
health objectives throughout the state as determined by the	3219
director.	3220

(P)(1) For the purpose of this section, appealable actions of	3221
the director pursuant to section 3745.04 of the Revised Code are	3222
limited to the following:	3223

(a) Approval of draft priority systems, draft priority lists,	3224
and draft written program administration policies;	3225

(b) Approval or disapproval of project facility plans under	3226
division (K)(7) of this section;	3227

(c) Approval or disapproval of plans and specifications for a	3228
project under section 6111.44 of the Revised Code and issuance of	3229
a permit to install in connection with a project pursuant to rules	3230
adopted under section 6111.03 of the Revised Code;	3231

(d) Approval or disapproval of an application for assistance.

3232

(2) Notwithstanding section 119.06 of the Revised Code, the	3233
director may take final action described in division (P)(1)(a),	3234
(b), (c), or (d) of this section without holding an adjudication	3235
hearing in connection with the action and without first issuing a	3236
proposed action under section 3745.07 of the Revised Code.	3237

(3) Each action described in divisions (P)(1)(a), (b), (c),	3238
and (d) of this section is a separate and discrete action of the	3239
director. Appeals of any such action are limited to the issues	3240
concerning the specific action appealed, and the appeal shall not	3241
include issues determined under the scope of any prior action.	3242

(Q) The director may provide financial assistance for the	3243
implementation of a nonpoint source management program activity	3244
only after determining all of the following:	3245

(1) The activity is consistent with the state's nonpoint	3246
source management program;	3247

(2) The applicant has the legal, institutional, managerial,	3248
and financial capability to implement, operate, and maintain the	3249
activity;	3250

(3) The cost of the activity is reasonable considering	3251
monetary and nonmonetary factors;	3252

(4) Based on the environmental review conducted by the	3253
director under division (L) of this section, the activity will not	3254
result in significant adverse environmental impacts;	3255

(5) The application meets the requirements of this section	3256
and rules adopted under division (O) of this section and is	3257
consistent with the intent of Title VI of the "Federal Water	3258
Pollution Control Act" and regulations adopted under it;	3259

(6) The applicant will implement a financial management plan,	3260
including, without limitation, provisions for satisfactory	3261
repayment of the financial assistance;	3262

(7) The application meets such other requirements as the	3263
director considers necessary or appropriate to protect the	3264
environment and ensure the financial integrity of the fund while	3265
implementing this section.	3266

(R) As used in this section, "Federal Water Pollution Control	3267
Act" means the "Federal Water Pollution Control Act Amendments of	3268
1972," 86 Stat. 886, 33 U.S.C.A. 1251, as amended by the "Clean	3269
Water Act of 1977," 91 Stat. 1566, 33 U.S.C.A. 1251, the "Act of	3270
October 21, 1980," 94 Stat. 2360, 33 U.S.C.A. 1254, the "Municipal	3271
Wastewater Treatment Construction Grant Amendments of 1981," 95	3272
Stat. 1623, 33 U.S.C.A. 1281, and the "Water Quality Act of 1987,"	3273
101 Stat. 7, 33 U.S.C.A. 1251.	3274

Section 2. That existing sections 122.12, 135.143, 148.06,	3275
926.31, 1501.04, 1517.23, 3302.03, 3313.44, 4928.01, 5709.62,	3276
5709.63, 5709.632, 5739.02, 5751.08, 5751.09, 6109.22, and	3277
6111.036 of the Revised Code are hereby repealed.	3278

Section 3. Beginning July 1, 2010, and ending January 1,	3279
2012, the Director of Budget and Management, upon the request of	3280
the Director of Natural Resources, shall transfer an amount not to	3281
exceed $1.2 million from the Natural Areas and Preserves Fund	3282
created in section 1517.11 of the Revised Code (Fund 5220) to the	3283
Departmental Projects Fund (Fund 1550) for the purpose of paying	3284
the salaries of permanent employees of the Division of Natural	3285
Areas and Preserves through January 1, 2012. If such an amount is	3286
so transferred, the Director of Natural Resources, not later than	3287
March 1, 2011, shall submit to the Speaker of the House of	3288
Representatives and the President of the Senate a detailed report	3289
of expenditures from the Departmental Projects Fund (Fund 1550)	3290
for payment of salaries of permanent employees of the Division of	3291
Natural Areas and Preserves.	3292

Section 4. Beginning July 1, 2010, and ending December 31,	3293
2010, the Administrator of the Bureau of Workers' Compensation	3294
shall transfer a portion of the investment earnings credited to	3295
the Coal-Workers Pneumoconiosis Fund created in section 4131.03 of	3296
the Revised Code in an amount not to exceed $2.28 million to the	3297
Strip Mining Administration Fund (Fund 5260) for the purposes	3298
specified in section 1513.181 of the Revised Code. Transfers from	3299
the Coal-Workers Pneumoconiosis Fund to the Strip Mining	3300
Administration Fund (Fund 5260) are prohibited after December 31,	3301
2010.	3302

Section 5. That section 3313.44 of the Revised Code, as	3303
amended by this act, is remedial in nature and applies to tax	3304
years at issue in any application for exemption from taxation	3305
pending before the Tax Commissioner, Ohio Board of Tax Appeals,	3306
any Court of Appeals, or the Supreme Court on the effective date	3307
of this act and to the property that is the subject of the	3308
application.	3309

Section 6. A person may request a refund of the annual	3310
minimum commercial activity tax paid for calendar year 2007, 2008,	3311
or 2009 under Chapter 5751. of the Revised Code if the person	3312
satisfies both of the following:	3313

(A) The person was not subject to the tax for 2007, 2008, or	3314
2009 because the person was an excluded person under division	3315
(E)(1) of section 5751.01 of the Revised Code.	3316

(B) The person erroneously registered for the tax and failed	3317
to cancel the registration before the tenth day of February of the	3318
calendar year for which the tax was paid.	3319

Section 7. The items set forth in this section are hereby	3320
appropriated for fiscal years 2011 and 2012 out of any moneys in	3321
the state treasury to the credit of the Job Ready Site Development	3322
Fund (Fund 7012) that are not otherwise appropriated:	3323

Appropriations

DEV DEPARTMENT OF DEVELOPMENT	3324

C19502		Job Ready Sites		$	30,000,000		3325
Total Department of Development				$	30,000,000		3326
TOTAL Job Ready Site Development Fund				$	30,000,000		3327

Section 8. JOB READY SITE DEVELOPMENT

3329

The Ohio Public Facilities Commission, upon request of the	3330
Department of Development, is hereby authorized to issue and sell,	3331
in accordance with Section 2p of Article VIII, Ohio Constitution,	3332
and pursuant to sections 151.01 and 151.11 of the Revised Code,	3333
original obligations of the State of Ohio in an aggregate amount	3334
not to exceed $30,000,000 in addition to the original issuance of	3335
obligations heretofore authorized by prior acts of the General	3336
Assembly. These authorized obligations shall be issued and sold	3337
from time to time, subject to applicable constitutional and	3338
statutory limitations, as needed to ensure sufficient moneys to	3339
the credit of the Job Ready Site Development Fund (Fund 7012) to	3340
pay costs of sites and facilities.	3341

Section 9. The items set forth in this section are hereby	3342
appropriated for fiscal years 2011 and 2012 out of any moneys in	3343
the state treasury to the credit of the Clean Ohio Revitalization	3344
Fund (Fund 7003) that are not otherwise appropriated:	3345

Appropriations

DEV DEPARTMENT OF DEVELOPMENT	3346

C19500		Clean Ohio Revitalization		$	80,000,000		3347
C19501		Clean Ohio Assistance		$	20,000,000		3348
Total Department of Development				$	100,000,000		3349
TOTAL Clean Ohio Assistance Fund				$	100,000,000		3350

Section 10. CLEAN OHIO REVITALIZATION

3352

The Treasurer of State is hereby authorized to issue and	3353
sell, in accordance with Section 2o and 2q of Article VIII, Ohio	3354
Constitution, and pursuant to sections 151.01 and 151.40 of the	3355
Revised Code, original obligations in an aggregate principal	3356
amount not to exceed $100,000,000 in addition to the original	3357
issuance of obligations heretofore authorized by prior acts of the	3358
General Assembly. These authorized obligations shall be issued and	3359
sold from time to time, subject to applicable constitutional and	3360
statutory limitations, as needed to ensure sufficient moneys to	3361
the credit of the Clean Ohio Revitalization Fund (Fund 7003) to	3362
pay costs of revitalization projects.	3363

CLEAN OHIO PROJECT SAVINGS REALLOCATION

3364

Notwithstanding division (A) of section 122.658 of the	3365
Revised Code, the Director of Development may reallocate moneys	3366
for the purposes of section 122.653 or 122.656 of the Revised Code	3367
if the Department of Development realizes Clean Ohio Fund project	3368
savings attributable to any of the following instances:	3369

(A) The completion of any project for less than the amount of	3370
grant funds awarded, subject to the local matching funds	3371
participation requirement;	3372

(B) The cancellation of grant awards in which Clean Ohio Fund	3373
moneys have been encumbered for a project but not disbursed,	3374
including those for which a grantee has decided not to proceed	3375
with a project or for which the project term has expired without	3376
substantial project progress; or	3377

(C) Any recapture of Clean Ohio Fund moneys due to a	3378
grantee's default or failure to perform the conditions of the	3379
grant agreement.	3380

Section 11. (A) The ARRA Compliance Fund (Fund 5JA0) is	3381
hereby created in the state treasury. The fund shall be used by	3382
the Department of Education to make adjustments to state support	3383
for local education agencies to meet State Fiscal Stabilization	3384
Fund requirements under the American Recovery and Reinvestment	3385
Act. These requirements are that the state maintain support for	3386
elementary and secondary education to at least the level supported	3387
for fiscal year 2006, and that state payments under the primary	3388
funding formula to local education agencies for fiscal year 2010	3389
and fiscal year 2011 be not less than payments under the primary	3390
funding formula for fiscal year 2009. However, if payments under	3391
the primary funding formula for fiscal year 2010 or fiscal year	3392
2011 are lower than payments under the primary funding formula for	3393
fiscal year 2009, the shortfall in payments must be proportional	3394
to the corresponding shortfall in state aid to public institutions	3395
of higher education. The adjustments under division (B) of this	3396
section shall be made only for the purpose of meeting State Fiscal	3397
Stabilization Fund requirements for fiscal year 2010 under the	3398
American Recovery and Reinvestment Act.	3399

(B) If state payments for elementary and secondary education	3400
provided under the primary funding formula for fiscal year 2010	3401
are less than required, as described in division (A) of this	3402
section, on or before June 1, 2010, or as soon as possible	3403
thereafter, the Superintendent of Public Instruction shall certify	3404
to the Director of Budget and Management the amount by which	3405
funding levels are lower than required as the "ARRA compliance	3406
difference." The Superintendent of Public Instruction, in	3407
consultation with the Director of Budget and Management, shall	3408
identify encumbrances that are no longer needed for fiscal year	3409
2010 and prior years against General Revenue Fund appropriations	3410
in the Department of Education's budget equal to the ARRA	3411
compliance difference. The Director of Budget and Management shall	3412
transfer cash in the amount of the identified fiscal year 2010	3413
encumbered balances no longer needed in appropriation item 200502,	3414
Pupil Transportation, and appropriation item 200550, Foundation	3415
Funding, and up to $20,000,000 of identified encumbered balances	3416
no longer needed in other General Revenue Fund appropriation items	3417
in the Department of Education's budget, from the General Revenue	3418
Fund to the ARRA Compliance Fund (Fund 5JA0). The amount of	3419
transferred encumbered balances from appropriation items other	3420
than 200502 and 200550 shall not total more than $20,000,000. The	3421
Department of Education shall seek Controlling Board approval if	3422
the needed cash transfer into the ARRA Compliance Fund (Fund 5JA0)	3423
exceeds $25,000,000. The transferred cash shall be used by the	3424
Department of Education to provide additional subsidy, on a per	3425
pupil basis, to city, local, and exempted village school	3426
districts, community schools, and STEM schools.	3427

Section 12. That Sections 265.30.40 and 265.40.60 of Am. Sub.	3428
H.B. 1 of the 128th General Assembly be amended to read as	3429
follows:	3430

Sec. 265.30.40. FOUNDATION FUNDING

3431

The foregoing appropriation item 200550, Foundation Funding,	3432
includes $92,300,000 in fiscal year 2010 and $92,700,000 in fiscal	3433
year 2011 for the state education aid offset due to the change in	3434
public utility valuation as a result of Am. Sub. S.B. 3 and Am.	3435
Sub. S.B. 287, both of the 123rd General Assembly. For each fiscal	3436
year, this amount represents the greater of the total state	3437
education aid offset calculated for that fiscal year or for fiscal	3438
year 2009 due to the valuation change for school districts and the	3439
total state education aid offset calculated for fiscal year 2009	3440
for joint vocational school districts from all relevant	3441
appropriation line item sources. Upon certification by the	3442
Department of Education, in consultation with the Department of	3443
Taxation, to the Director of Budget and Management of the actual	3444
state aid offsets, the cash transfer from the School District	3445
Property Tax Replacement - Utility Fund (Fund 7053) to the General	3446
Revenue Fund shall be decreased or increased by the Director of	3447
Budget and Management to match the certification in accordance	3448
with section 5727.84 of the Revised Code.	3449

The foregoing appropriation item 200550, Foundation Funding,	3450
includes $127,700,000 in fiscal year 2010 and $126,600,000 in	3451
fiscal year 2011 for the state education aid offset because of the	3452
changes in tangible personal property valuation as a result of Am.	3453
Sub. H.B. 66 of the 126th General Assembly. For each fiscal year,	3454
this amount represents the greater of the total state education	3455
aid offset calculated for that fiscal year or for fiscal year 2009	3456
because of the valuation change for school districts and the total	3457
state education aid offset calculated for fiscal year 2009 for	3458
joint vocational school districts from all relevant appropriation	3459
item sources. Upon certification by the Department of Education of	3460
the actual state education aid offsets to the Director of Budget	3461
and Management, the cash transfer from the School District	3462
Tangible Property Tax Replacement - Business Fund (Fund 7047) to	3463
the General Revenue Fund shall be decreased or increased by the	3464
Director of Budget and Management to match the certification in	3465
accordance with section 5751.21 of the Revised Code.	3466

Of the foregoing appropriation item 200550, Foundation	3467
Funding, up to $425,000 shall be expended in each fiscal year for	3468
court payments under section 2151.362 of the Revised Code.	3469

Of the foregoing appropriation item 200550, Foundation	3470
Funding, up to $15,000,000 in each fiscal year shall be reserved	3471
for payments under sections 3317.026, 3317.027, and 3317.028 of	3472
the Revised Code except that the Controlling Board may increase	3473
the $15,000,000 amount if presented with such a request from the	3474
Department of Education.	3475

Of the foregoing appropriation item 200550, Foundation	3476
Funding, up to $8,100,000 in each fiscal year shall be used to	3477
fund gifted education units at educational service centers under	3478
division (L) of section 3317.024 of the Revised Code,	3479
notwithstanding divisions (D)(3) and (6) of section 3317.018 of	3480
the Revised Code.	3481

Of the foregoing appropriation item 200550, Foundation	3482
Funding, an amount shall be available in each fiscal year to be	3483
used by the Department of Education for transitional aid for	3484
school districts under section 3306.19 of the Revised Code.	3485

Of the foregoing appropriation item 200550, Foundation	3486
Funding, up to $10,000,000 in each fiscal year shall be used to	3487
provide additional state aid to school districts for special	3488
education students under division (C)(3) of section 3317.022 of	3489
the Revised Code, except that the Controlling Board may increase	3490
these amounts if presented with such a request from the Department	3491
of Education at the final meeting of the fiscal year; up to	3492
$2,000,000 in each fiscal year shall be reserved for Youth	3493
Services tuition payments under section 3317.024 of the Revised	3494
Code; and up to $46,400,000 in each fiscal year shall be reserved	3495
to fund the state reimbursement of educational service centers	3496
under section 3317.11 of the Revised Code and the section of this	3497
actAm. Sub. H.B. 1 of the 128th General Assembly entitled	3498
"EDUCATIONAL SERVICE CENTERS FUNDING."	3499

Of the foregoing appropriation item 200550, Foundation	3500
Funding, up to $1,000,000 in each fiscal year shall be used by the	3501
Department of Education for a program to pay for educational	3502
services for youth who have been assigned by a juvenile court or	3503
other authorized agency to any of the facilities described in	3504
division (A) of the section of this actAm. Sub. H.B. 1 of the	3505
128th General Assembly entitled "PRIVATE TREATMENT FACILITY	3506
PROJECT."	3507

Of the foregoing appropriation item 200550, Foundation	3508
Funding, up to $8,686,000 in fiscal year 2010 and up to $8,722,860	3509
in fiscal year 2011 shall be used to operate school choice	3510
programs.	3511

Of the portion of the funds distributed to the Cleveland	3512
Municipal School District under this section, up to $11,901,887 in	3513
each fiscal year shall be used to operate the school choice	3514
program in the Cleveland Municipal School District under sections	3515
3313.974 to 3313.979 of the Revised Code. Notwithstanding	3516
divisions (B) and (C) of section 3313.978 and division (C) of	3517
section 3313.979 of the Revised Code, up to $1,000,000 in each	3518
fiscal year of this amount shall be used by the Cleveland	3519
Municipal School District to provide tutorial assistance as	3520
provided in division (H) of section 3313.974 of the Revised Code.	3521
The Cleveland Municipal School District shall report the use of	3522
these funds in the district's three-year continuous improvement	3523
plan as described in section 3302.04 of the Revised Code in a	3524
manner approved by the Department of Education.	3525

Of the foregoing appropriation item 200550, Foundation	3526
Funding, an amount shall be available in each fiscal year to be	3527
paid to joint vocational school districts in accordance with the	3528
section of this actAm. Sub. H.B. 1 of the 128th General Assembly	3529
entitled "FUNDING FOR JOINT VOCATIONAL SCHOOL DISTRICTS."	3530

Of the foregoing appropriation item 200550, Foundation	3531
Funding, $10,500,000 in fiscal year 2010 shall be transferred to	3532
appropriation item 200511, Auxiliary Services, for the purpose of	3533
implementing section 3317.06 of the Revised Code.	3534

Of the foregoing appropriation item 200550, Foundation	3535
Funding, $4,500,000 in fiscal year 2010 shall be transferred to	3536
appropriation item 200532, Nonpublic Administrative Cost	3537
Reimbursement, for the purpose of implementing section 3317.063 of	3538
the Revised Code.	3539

Appropriation items 200502, Pupil Transportation, 200540,	3540
Special Education Enhancements, 200550, Foundation Funding, and	3541
200551, Foundation Funding - Federal Stimulus, other than specific	3542
set-asides, are collectively used in each fiscal year to pay state	3543
formula aid obligations for school districts, community schools,	3544
and joint vocational school districts under this actAm. Sub.	3545
H.B. 1 of the 128th General Assembly. The first priority of these	3546
appropriation items, with the exception of specific set-asides, is	3547
to fund state formula aid obligations. It may be necessary to	3548
reallocate funds among these appropriation items or use excess	3549
funds from other general revenue fund appropriation items in the	3550
Department of Education's budget in each fiscal year, in order to	3551
meet state formula aid obligations. If it is determined that it is	3552
necessary to transfer funds among these appropriation items or to	3553
transfer funds from other General Revenue Fund appropriations in	3554
the Department of Education's budget to meet state formula aid	3555
obligations, the Department of Education shall seek approval from	3556
the Controlling Board to transfer funds as needed.	3557

Sec. 265.40.60. LOTTERY PROFITS EDUCATION RESERVE FUND

3558

(A) There is hereby created the Lottery Profits Education	3559
Reserve Fund (Fund 7018) in the State Treasury. Investment	3560
earnings of the Lottery Profits Education Reserve Fund shall be	3561
credited to the fund. The Superintendent of Public Instruction may	3562
certify cash balances exceeding $75,000,000 in Fund 7018 to the	3563
Director of Budget and Management in June of any given fiscal	3564
year. Prior to making the certification, the Superintendent of	3565
Public Instruction shall determine whether the funds above the	3566
$75,000,000 threshold are needed to help pay for foundation	3567
program obligations for that fiscal year.	3568

For fiscal years 2010 and 2011, notwithstanding any	3569
provisions of law to the contrary, amounts necessary to make loans	3570
authorized by sections 3317.0210, 3317.0211, and 3317.62 of the	3571
Revised Code are hereby appropriated to Fund 7018. Loan repayments	3572
from loans made in previous years shall be deposited to the fund.	3573

(B) Notwithstanding any other provision of law to the	3574
contrary, the Director of Budget and Management shall transfer	3575
$40,000,000 cash from Fund 7018 to the Lottery Profits Education	3576
Fund (Fund 7017) in fiscal year 2010.	3577

(B)(C) On July 15, 2009, or as soon as possible thereafter,	3578
the Director of the Ohio Lottery Commission shall certify to the	3579
Director of Budget and Management the amount by which lottery	3580
profit transfers received by the Lottery Profits Education Fund	3581
(Fund 7017)Fund 7017 exceeded $667,900,000 in fiscal year 2009.	3582
The Director of Budget and Management may transfer the amount so	3583
certified, plus the cash balance in Fund 7017, to Fund 7018.	3584

(C)(D) On July 15, 2010, or as soon as possible thereafter,	3585
the Director of the Ohio Lottery Commission shall certify to the	3586
Director of Budget and Management the amount by which lottery	3587
profit transfers received by Fund 7017 exceeded $705,000,000 in	3588
fiscal year 2010. The Director of Budget and Management may	3589
transfer the amount so certified, plus the cash balance in Fund	3590
7017, to Fund 7018.	3591

(D)(E) Any amounts transferred under division (B)(C) or	3592
(C)(D) of this section may be made available by the Controlling	3593
Board in fiscal years 2010 or 2011, at the request of the	3594
Superintendent of Public Instruction, to provide assistance and	3595
grants to school districts to enable them to remain solvent and to	3596
pay unforeseeable expenses of a temporary or emergency nature that	3597
they are unable to pay from existing resources under section	3598
3316.20 of the Revised Code, and to provide state foundation	3599
payments to school districts.	3600

Section 13. That existing Sections 265.30.40 and 265.40.60 of	3601
Am. Sub. H.B. 1 of the 128th General Assembly are hereby repealed.	3602

Section 14. That Section 265.10 of Am. Sub. H.B. 1 of the	3603
128th General Assembly, as subsequently amended by Sub. H.B. 318	3604
of the 128th General Assembly, be amended to read as follows:	3605

Sec. 265.10. EDU DEPARTMENT OF EDUCATION

3606

General Revenue Fund	3607

GRF	200100		Personal Services		$	10,490,789		$	10,723,972		3608
GRF	200320		Maintenance and Equipment		$	3,110,071		$	3,144,897		3609
GRF	200408		Early Childhood Education		$	23,268,341		$	23,268,341		3610
GRF	200416		Career-Technical Education Match		$	2,233,195		$	2,233,195		3611
GRF	200420		Computer/Application/ Network Development		$	4,880,871		$	4,880,871		3612
GRF	200421		Alternative Education Programs		$	7,814,479		$	7,918,749		3613
GRF	200422		School Management Assistance		$	1,950,521		$	3,230,469		3614
GRF	200424		Policy Analysis		$	356,311		$	361,065		3615
GRF	200425		Tech Prep Consortia Support		$	1,243,943		$	1,260,542		3616
GRF	200426		Ohio Educational Computer Network		$	20,156,602		$	20,425,556		3617
GRF	200427		Academic Standards		$	5,300,074		$	5,300,074		3618
GRF	200431		School Improvement Initiatives		$	7,294,175		$	7,391,503		3619
GRF	200437		Student Assessment		$	55,954,648		$	56,703,265		3620
GRF	200439		Accountability/Report Cards		$	3,804,673		$	3,804,673		3621
GRF	200442		Child Care Licensing		$	865,590		$	877,140		3622
GRF	200446		Education Management Information System		$	13,199,152		$	11,934,284		3623
GRF	200447		GED Testing		$	975,536		$	988,553		3624
GRF	200448		Educator Preparation		$	1,310,750		$	1,328,240		3625
GRF	200455		Community Schools		$	1,000,000		$	1,000,000		3626
GRF	200457		STEM Initiatives		$	5,000,000		$	5,000,000		3627
GRF	200458		School Employees Health Care Board		$	800,000		$	800,000		3628
GRF	200502		Pupil Transportation		$	448,022,619		$	462,822,619		3629
GRF	200505		School Lunch Match		$	9,100,000		$	9,100,000		3630
GRF	200511		Auxiliary Services		$	111,979,388		$	111,979,388		3631
GRF	200532		Nonpublic Administrative Cost Reimbursement		$	50,838,939		$	50,838,939		3632
GRF	200540		Special Education Enhancements		$	134,150,233		$	135,820,668		3633
GRF	200545		Career-Technical Education Enhancements		$	7,752,662		$	7,802,699		3634
GRF	200550		Foundation Funding		$	5,415,906,323		$	5,312,560,800		3635
GRF	200551		Foundation Funding – Federal Stimulus		$	387,583,913		$	457,449,362		3636
GRF	200578		Violence Prevention and School Safety		$	200,000		$	200,000		3637
GRF	200901		Property Tax Allocation - Education		$	1,053,262,363		$	1,020,655,157		3638
TOTAL GRF General Revenue Fund					$	7,789,806,161		$	7,741,805,021		3639

General Services Fund Group	3640

1380	200606		Computer Services-Operational Support		$	7,600,091		$	7,600,091		3641
4520	200638		Miscellaneous Educational Services		$	275,000		$	275,000		3642
4L20	200681		Teacher Certification and Licensure		$	8,013,206		$	8,147,756		3643
5960	200656		Ohio Career Information System		$	529,761		$	529,761		3644
5H30	200687		School District Solvency Assistance		$	18,000,000		$	18,000,000		3645
TOTAL GSF General Services											3646
Fund Group					$	34,418,058		$	34,552,608		3647

Federal Special Revenue Fund Group	3648

3090	200601		Educationally Disadvantaged Programs		$	8,405,512		$	8,405,512		3649
3670	200607		School Food Services		$	6,324,707		$	6,577,695		3650
3680	200614		Veterans' Training		$	778,349		$	793,846		3651
3690	200616		Career-Technical Education Federal Enhancement		$	5,000,000		$	5,000,000		3652
3700	200624		Education of Exceptional Children		$	2,664,000		$	2,755,000		3653
3740	200647		Troops to Teachers		$	100,000		$	100,000		3654
3780	200660		Learn and Serve		$	619,211		$	619,211		3655
3AF0	200603		Schools Medicaid Administrative Claims		$	639,000		$	639,000		3656
3AN0	200671		School Improvement Grants		$	17,909,676		$	17,936,675		3657
3AX0	200698		Improving Health and Educational Outcomes of Young People		$	630,954		$	630,954		3658
3BK0	200628		Longitudinal Data Systems		$	100,000		$	0		3659
3BV0	200636		Character Education		$	700,000		$	0		3660
3C50	200661		Early Childhood Education		$	14,189,711		$	14,554,749		3661
3CF0	200644		Foreign Language Assistance		$	25,000		$	0		3662
3CG0	200646		Teacher Incentive Fund		$	3,007,975		$	1,157,834		3663
3D10	200664		Drug Free Schools		$	13,347,966		$	13,347,966		3664
3D20	200667		Honors Scholarship Program		$	6,990,000		$	6,985,000		3665
3DJ0	200699		IDEA Part B - Federal Stimulus		$	218,868,026		$	218,868,026		3666
3DK0	200642		Title 1A - Federal Stimulus		$	186,336,737		$	186,336,737		3667
3DL0	200650		IDEA Preschool - Federal Stimulus		$	6,679,679		$	6,679,679		3668
3DM0	200651		Title IID Technology - Federal Stimulus		$	11,951,000		$	11,951,000		3669
3DP0	200652		Title I School Improvement - Federal Stimulus		$	54,221,000		$	54,221,000		3670
3H90	200605		Head Start Collaboration Project		$	225,000		$	225,000		3671
3L60	200617		Federal School Lunch		$	295,421,000		$	310,150,675		3672
3L70	200618		Federal School Breakfast		$	80,850,000		$	84,892,500		3673
3L80	200619		Child/Adult Food Programs		$	89,250,000		$	93,712,500		3674
3L90	200621		Career-Technical Education Basic Grant		$	48,029,701		$	48,029,701		3675
3M00	200623		ESEA Title 1A		$	530,000,000		$	530,010,000		3676
3M10	200678		Innovative Education		$	1,000,000		$	0		3677
3M20	200680		Individuals with Disabilities Education Act		$	413,391,594		$	421,241,163		3678
3S20	200641		Education Technology		$	9,487,397		$	9,487,397		3679
3T40	200613		Public Charter Schools		$	14,275,618		$	14,291,353		3680
3Y20	200688		21st Century Community Learning Centers		$	36,000,000		$	36,000,000		3681
3Y40	200632		Reading First		$	27,366,373		$	24,455,172		3682
3Y60	200635		Improving Teacher Quality		$	101,778,397		$	101,778,400		3683
3Y70	200689		English Language Acquisition		$	8,142,299		$	8,142,299		3684
3Y80	200639		Rural and Low Income Technical Assistance		$	1,500,000		$	1,500,000		3685
3Z20	200690		State Assessments		$	12,923,799		$	12,923,799		3686
3Z30	200645		Consolidated Federal Grant Administration		$	8,499,279		$	8,499,280		3687
3Z70	200697		General Supervisory Enhancement Grant		$	887,319		$	0		3688
TOTAL FED Federal Special											3689
Revenue Fund Group					$	2,238,516,279		$	2,262,899,123		3690

State Special Revenue Fund Group	3691

4540	200610		Guidance and Testing		$	450,000		$	450,000		3692
4550	200608		Commodity Foods		$	24,000,000		$	24,000,000		3693
4R70	200695		Indirect Operational Support		$	6,050,000		$	6,250,000		3694
4V70	200633		Interagency Operational Support		$	1,111,838		$	1,117,725		3695
5980	200659		Auxiliary Services Reimbursement		$	1,328,910		$	1,328,910		3696
5BB0	200696		State Action for Education Leadership		$	1,250,000		$	600,000		3697
5BJ0	200626		Half-Mill Maintenance Equalization		$	16,100,000		$	16,600,000		3698
5JA0	200611		ARRA Compliance		$	25,000,000		$	0		3699
5U20	200685		National Education Statistics		$	300,000		$	300,000		3700
5W20	200663		Early Learning Initiative		$	2,200,000		$	2,200,000		3701
5X90	200911		NGA STEM		$	100,000		$	0		3702
6200	200615		Educational Improvement Grants		$	3,000,000		$	3,000,000		3703
TOTAL SSR State Special Revenue											3704
Fund Group					$	55,890,748 80,890,748		$	55,846,635		3705

Lottery Profits Education Fund Group	3706

7017	200612		Foundation Funding		$	705,000,000 745,000,000		$	711,000,000		3707
TOTAL LPE Lottery Profits											3708
Education Fund Group					$	705,000,000 745,000,000		$	711,000,000		3709

Revenue Distribution Fund Group	3710

7047	200909		School District Property Tax Replacement-Business		$	1,150,207,366		$	1,150,207,366		3711
7053	200900		School District Property Tax Replacement-Utility		$	91,123,523		$	91,123,523		3712
TOTAL RDF Revenue Distribution											3713
Fund Group					$	1,241,330,889		$	1,241,330,889		3714
TOTAL ALL BUDGET FUND GROUPS					$	12,064,962,135 12,129,962,135		$	12,047,434,276		3715

Section 15. That existing Section 265.10 of Am. Sub. H.B. 1	3717
of the 128th General Assembly, as subsequently amended by Sub.	3718
H.B. 318 of the 128th General Assembly, is hereby repealed.	3719

Section 16. That Sections 6 and 7 of Sub. H.B. 318 of the	3720
128th General Assembly are hereby repealed.	3721

Section 17. Except as otherwise provided in this act, all	3722
appropriation items in this act are appropriated out of moneys in	3723
the state treasury to the credit of the designated fund that are	3724
not otherwise appropriated. For all appropriations in the	3725
following sections of this act, the amounts in the first column	3726
are for fiscal year 2010 and the amounts in the second column are	3727
for fiscal year 2011.	3728

Section 18. CAC CASINO CONTROL COMMISSION

3729

State Special Revenue	3730

5HS0	955321		Casino Control – Operating		$	0		$	5,500,000		3731
TOTAL SSR State Special Revenue Fund Group					$	0		$	5,500,000		3732

Section 19. IGO OFFICE OF THE INSPECTOR GENERAL

3734

State Special Revenue	3735

5HS0	965609		Casino Investigations		$	0		$	250,000		3736
TOTAL SSR State Special Revenue Fund Group					$	0		$	250,000		3737

The foregoing appropriation shall be used only for the	3738
performance of casino-related duties.	3739

Section 20. ETH ETHICS COMMISSION

3740

State Special Revenue	3741

5HS0	146602		Casino Investigations		$	0		$	250,000		3742
TOTAL SSR Special Revenue Fund Group					$	0		$	250,000		3743

The foregoing appropriation shall be used only for the	3744
performance of casino-related duties.	3745

Section 21. BOR BOARD OF REGENTS

3746

State Special Revenue	3747

5JC0	235628		Co-Op/Internship Program		$	0		$	100,000,000		3748
TOTAL SSR State Special Revenue Fund Group					$	0		$	100,000,000		3749
TOTAL ALL BUDGET FUND GROUPS					$	0		$	106,000,000		3750

Of the foregoing appropriation item, 235628, Co-Op/Internship	3751
Program, $50,000,000 shall be used by the Chancellor of the Board	3752
of Regents to operate the Co-Op/Internship Program under sections	3753
3333.71 to 3333.80 of the Revised Code. Funding for eligible	3754
institutions shall be disbursed in accordance with the terms of	3755
the agreements entered into under section 3333.75 of the Revised	3756
Code. The Chancellor of the Board of Regents shall develop a work	3757
force development pilot program, for areas of the state with high	3758
unemployment, with funding of $50,000,000. Of this funding,	3759
$25,000,000 shall be for urban areas and $25,000,000 shall be for	3760
rural areas. Of the funding for rural areas, $12,500,000 shall be	3761
for areas in Appalachia and $12,500,000 shall be for areas	3762
elsewhere in the state. All public institutions of higher	3763
education, career technical schools, and joint vocational schools	3764
shall be eligible to participate in this program. The Chancellor	3765
of the Board of Regents shall propose the pilot program to the	3766
Controlling Board. Approval of the pilot program by the	3767
Controlling Board shall require at least five votes in favor of	3768
the program, including those of at least two Senators and at least	3769
two Representatives.	3770

Section 22. Section 11 of this act, and the amendment by this	3771
act of Sections 265.30.40 and 265.40.60 of Am. Sub. H.B. 1 of the	3772
128th General Assembly and Section 265.10 of Am. Sub. H.B. 1 of	3773
the 128th General Assembly, as subsequently amended by Sub. H.B.	3774
318 of the 128th General Assembly, are exempt from the referendum	3775
under Ohio Constitution, Article II, Section 1d and section 1.471	3776
of the Revised Code and therefore take effect immediately when	3777
this act becomes law.	3778