As Introduced

128th General Assembly Regular Session 2009-2010

S. B. No. 3

Senator Faber 

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A BILL

To amend sections 103.0511, 111.15, 117.20, 119.03,

1

119.031, 121.39, 122.08, 122.081, 122.94, 124.04,

2

and 1710.02, to enact sections 121.021, 121.25,

3

121.251 to 121.255, and 124.95, and to repeal

4

section 121.24 of the Revised Code to require a

5

rule-making agency to prepare a cost-benefit

6

report for, and regulatory flexibility analysis

7

of, rules that may have any adverse impact on

8

small businesses and submit them to the new Ohio

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Small Business Ombudsperson in the Office of

10

Small Business, to create the Small Business

11

Regulatory Review Board to review objections to

12

those rules and make recommendations to the

13

Joint Committee on Agency Rule Review regarding

14

the rules, to require the Ombudsperson annually

15

to submit a rule impact report to the Governor

16

and General Assembly, to promote improved

17

customer service in state agencies, and to require

18

the Director of Administrative Services to

19

establish customer service performance standards

20

for nonelected officers and employees of state

21

agencies.

22

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

Section 1. That sections 119.03, 122.08, and 124.04 be	23
amended and sections 121.021, 121.25, 121.251, 121.252, 121.253,	24
121.254, 121.255, and 124.95 of the Revised Code be enacted to	25
read as follows:	26

Sec. 119.03.  In the adoption, amendment, or rescission of	27
any rule, an agency shall comply with the following procedure:	28

(A) Reasonable public notice shall be given in the register	29
of Ohio at least thirty days prior to the date set for a hearing,	30
in the form the agency determines. The agency shall file copies of	31
the public notice under division (B) of this section. (The agency	32
gives public notice in the register of Ohio when the public notice	33
is published in the register under that division.)	34

The public notice shall include:

35

(1) A statement of the agency's intention to consider	36
adopting, amending, or rescinding a rule;	37

(2) A synopsis of the proposed rule, amendment, or rule to be	38
rescinded or a general statement of the subject matter to which	39
the proposed rule, amendment, or rescission relates;	40

(3) A statement of the reason or purpose for adopting,	41
amending, or rescinding the rule;	42

(4) The date, time, and place of a hearing on the proposed	43
action, which shall be not earlier than the thirty-first nor later	44
than the fortieth day after the proposed rule, amendment, or	45
rescission is filed under division (B) of this section.	46

In addition to public notice given in the register of Ohio,	47
the agency may give whatever other notice it reasonably considers	48
necessary to ensure notice constructively is given to all persons	49
who are subject to or affected by the proposed rule, amendment, or	50
rescission.	51

The agency shall provide a copy of the public notice required	52
under division (A) of this section to any person who requests it	53
and pays a reasonable fee, not to exceed the cost of copying and	54
mailing.	55

(B) The full text of the proposed rule, amendment, or rule to	56
be rescinded, accompanied by the public notice required under	57
division (A) of this section, shall be filed in electronic form	58
with the secretary of state and with the director of the	59
legislative service commission. (If in compliance with this	60
division an agency files more than one proposed rule, amendment,	61
or rescission at the same time, and has prepared a public notice	62
under division (A) of this section that applies to more than one	63
of the proposed rules, amendments, or rescissions, the agency	64
shall file only one notice with the secretary of state and with	65
the director for all of the proposed rules, amendments, or	66
rescissions to which the notice applies.) The proposed rule,	67
amendment, or rescission and public notice shall be filed as	68
required by this division at least sixty-five days prior to the	69
date on which the agency, in accordance with division (D) of this	70
section, issues an order adopting the proposed rule, amendment, or	71
rescission.	72

If the proposed rule, amendment, or rescission incorporates a	73
text or other material by reference, the agency shall comply with	74
sections 121.71 to 121.76 of the Revised Code.	75

The proposed rule, amendment, or rescission shall be	76
available for at least thirty days prior to the date of the	77
hearing at the office of the agency in printed or other legible	78
form without charge to any person affected by the proposal.	79
Failure to furnish such text to any person requesting it shall not	80
invalidate any action of the agency in connection therewith.	81

If the agency files a substantive revision in the text of the	82
proposed rule, amendment, or rescission under division (H) of this	83
section, it shall also promptly file the full text of the proposed	84
rule, amendment, or rescission in its revised form in electronic	85
form with the secretary of state and with the director of the	86
legislative service commission.	87

The agency shall file the rule summary and fiscal analysis	88
prepared under section 121.24 or 127.18 of the Revised Code, or	89
both, in electronic form along with a proposed rule, amendment, or	90
rescission or proposed rule, amendment, or rescission in revised	91
form that is filed with the secretary of state or the director of	92
the legislative service commission.	93

The director of the legislative service commission shall	94
publish in the register of Ohio the full text of the original and	95
each revised version of a proposed rule, amendment, or rescission;	96
the full text of a public notice; and the full text of a rule	97
summary and fiscal analysis that is filed with the director under	98
this division.	99

(C) On the date and at the time and place designated in the	100
notice, the agency shall conduct a public hearing at which any	101
person affected by the proposed action of the agency may appear	102
and be heard in person, by the person's attorney, or both, may	103
present the person's position, arguments, or contentions, orally	104
or in writing, offer and examine witnesses, and present evidence	105
tending to show that the proposed rule, amendment, or rescission,	106
if adopted or effectuated, will be unreasonable or unlawful. An	107
agency may permit persons affected by the proposed rule,	108
amendment, or rescission to present their positions, arguments, or	109
contentions in writing, not only at the hearing, but also for a	110
reasonable period before, after, or both before and after the	111
hearing. A person who presents a position or arguments or	112
contentions in writing before or after the hearing is not required	113
to appear at the hearing.	114

At the hearing, the testimony shall be recorded. Such record	115
shall be made at the expense of the agency. The agency is	116
required to transcribe a record that is not sight readable only if	117
a person requests transcription of all or part of the record and	118
agrees to reimburse the agency for the costs of the transcription.	119
An agency may require the person to pay in advance all or part of	120
the cost of the transcription.	121

In any hearing under this section the agency may administer	122
oaths or affirmations.	123

(D) After complying with divisions (A), (B), (C), and (H) of	124
this section, and when the time for legislative review and	125
invalidation under division (I) of this section has expired, the	126
agency may issue an order adopting the proposed rule or the	127
proposed amendment or rescission of the rule, consistent with the	128
synopsis or general statement included in the public notice. At	129
that time the agency shall designate the effective date of the	130
rule, amendment, or rescission, which shall not be earlier than	131
the tenth day after the rule, amendment, or rescission has been	132
filed in its final form as provided in section 119.04 of the	133
Revised Code.	134

(E) Prior to the effective date of a rule, amendment, or	135
rescission, the agency shall make a reasonable effort to inform	136
those affected by the rule, amendment, or rescission and to have	137
available for distribution to those requesting it the full text of	138
the rule as adopted or as amended.	139

(F) If the governor, upon the request of an agency,	140
determines that an emergency requires the immediate adoption,	141
amendment, or rescission of a rule, the governor shall issue an	142
order, the text of which shall be filed in electronic form with	143
the agency, the secretary of state, the director of the	144
legislative service commission, and the joint committee on agency	145
rule review, that the procedure prescribed by this section with	146
respect to the adoption, amendment, or rescission of a specified	147
rule is suspended. The agency may then adopt immediately the	148
emergency rule, amendment, or rescission and it becomes effective	149
on the date the rule, amendment, or rescission, in final form and	150
in compliance with division (A)(2) of section 119.04 of the	151
Revised Code, areis filed in electronic form with the secretary	152
of state, the director of the legislative service commission, and	153
the joint committee on agency rule review. If all filings are not	154
completed on the same day, the emergency rule, amendment, or	155
rescission shall be effective on the day on which the latest	156
filing is completed. The director shall publish the full text of	157
the emergency rule, amendment, or rescission in the register of	158
Ohio.	159

The emergency rule, amendment, or rescission shall become	160
invalid at the end of the ninetieth day it is in effect. Prior to	161
that date the agency may adopt the emergency rule, amendment, or	162
rescission as a nonemergency rule, amendment, or rescission by	163
complying with the procedure prescribed by this section for the	164
adoption, amendment, and rescission of nonemergency rules. The	165
agency shall not use the procedure of this division to readopt the	166
emergency rule, amendment, or rescission so that, upon the	167
emergency rule, amendment, or rescission becoming invalid under	168
this division, the emergency rule, amendment, or rescission will	169
continue in effect without interruption for another ninety-day	170
period, except when division (I)(2)(a) of this section prevents	171
the agency from adopting the emergency rule, amendment, or	172
rescission as a nonemergency rule, amendment, or rescission within	173
the ninety-day period.	174

This division does not apply to the adoption of any emergency	175
rule, amendment, or rescission by the tax commissioner under	176
division (C)(2) of section 5117.02 of the Revised Code.	177

(G) Rules adopted by an authority within the department of	178
job and family services for the administration or enforcement of	179
Chapter 4141. of the Revised Code or of the department of taxation	180
shall be effective without a hearing as provided by this section	181
if the statutes pertaining to such agency specifically give a	182
right of appeal to the board of tax appeals or to a higher	183
authority within the agency or to a court, and also give the	184
appellant a right to a hearing on such appeal. This division does	185
not apply to the adoption of any rule, amendment, or rescission by	186
the tax commissioner under division (C)(1) or (2) of section	187
5117.02 of the Revised Code, or deny the right to file an action	188
for declaratory judgment as provided in Chapter 2721. of the	189
Revised Code from the decision of the board of tax appeals or of	190
the higher authority within such agency.	191

(H) When any agency files a proposed rule, amendment, or	192
rescission under division (B) of this section, it shall also file	193
in electronic form with the joint committee on agency rule review	194
the full text of the proposed rule, amendment, or rule to be	195
rescinded in the same form and the public notice required under	196
division (A) of this section. (If in compliance with this division	197
an agency files more than one proposed rule, amendment, or	198
rescission at the same time, and has given a public notice under	199
division (A) of this section that applies to more than one of the	200
proposed rules, amendments, or rescissions, the agency shall file	201
only one notice with the joint committee for all of the proposed	202
rules, amendments, or rescissions to which the notice applies.) If	203
the agency makes a substantive revision in a proposed rule,	204
amendment, or rescission after it is filed with the joint	205
committee, the agency shall promptly file the full text of the	206
proposed rule, amendment, or rescission in its revised form in	207
electronic form with the joint committee. The latest version of a	208
proposed rule, amendment, or rescission as filed with the joint	209
committee supersedes each earlier version of the text of the same	210
proposed rule, amendment, or rescission. An agency shall file the	211
rule summary and fiscal analysis prepared under section 121.24 or	212
127.18 of the Revised Code, or both, in electronic form along with	213
a proposed rule, amendment, or rescission, and along with a	214
proposed rule, amendment, or rescission in revised form, that is	215
filed under this division.	216

This division does not apply to:

217

(1) An emergency rule, amendment, or rescission;

218

(2) Any proposed rule, amendment, or rescission that must be	219
adopted verbatim by an agency pursuant to federal law or rule, to	220
become effective within sixty days of adoption, in order to	221
continue the operation of a federally reimbursed program in this	222
state, so long as the proposed rule contains both of the	223
following:	224

(a) A statement that it is proposed for the purpose of	225
complying with a federal law or rule;	226

(b) A citation to the federal law or rule that requires	227
verbatim compliance.	228

If a rule or amendment is exempt from legislative review	229
under division (H)(2) of this section, and if the federal law or	230
rule pursuant to which the rule or amendment was adopted expires,	231
is repealed or rescinded, or otherwise terminates, the rule or	232
amendment, or its rescission, is thereafter subject to legislative	233
review under division (H) of this section.	234

(I)(1) The joint committee on agency rule review may	235
recommend the adoption of a concurrent resolution invalidating a	236
proposed rule, amendment, rescission, or part thereof if it finds	237
any of the following:	238

(a) That the rule-making agency has exceeded the scope of its	239
statutory authority in proposing the rule, amendment, or	240
rescission;	241

(b) That the proposed rule, amendment, or rescission	242
conflicts with another rule, amendment, or rescission adopted by	243
the same or a different rule-making agency;	244

(c) That the proposed rule, amendment, or rescission	245
conflicts with the legislative intent in enacting the statute	246
under which the rule-making agency proposed the rule, amendment,	247
or rescission;	248

(d) That the rule-making agency has failed to prepare a	249
complete and accurate rule summary and fiscal analysis of the	250
proposed rule, amendment, or rescission as required by section	251
121.24 or 127.18 of the Revised Code, or both, or that;	252

(e) That the proposed rule, amendment, or rescission	253
incorporates a text or other material by reference and either the	254
rule-making agency has failed to file the text or other material	255
incorporated by reference as required by section 121.73 of the	256
Revised Code or, in the case of a proposed rule or amendment, the	257
incorporation by reference fails to meet the standards stated in	258
section 121.72, 121.75, or 121.76 of the Revised Code; or	259

(f) That the rule-making agency has failed to comply with	260
section 121.251 or 121.252 of the Revised Code.	261

The joint committee shall not hold its public hearing on a	262
proposed rule, amendment, or rescission earlier than the	263
forty-first day after the original version of the proposed rule,	264
amendment, or rescission was filed with the joint committee.	265

The house of representatives and senate may adopt a	266
concurrent resolution invalidating a proposed rule, amendment,	267
rescission, or part thereof. The concurrent resolution shall state	268
which of the specific rules, amendments, rescissions, or parts	269
thereof are invalidated. A concurrent resolution invalidating a	270
proposed rule, amendment, or rescission shall be adopted not later	271
than the sixty-fifth day after the original version of the text of	272
the proposed rule, amendment, or rescission is filed with the	273
joint committee, except that if more than thirty-five days after	274
the original version is filed the rule-making agency either files	275
a revised version of the text of the proposed rule, amendment, or	276
rescission, or revises the rule summary and fiscal analysis in	277
accordance with division (I)(4) of this section, a concurrent	278
resolution invalidating the proposed rule, amendment, or	279
rescission shall be adopted not later than the thirtieth day after	280
the revised version of the proposed rule or rule summary and	281
fiscal analysis is filed. If, after the joint committee on agency	282
rule review recommends the adoption of a concurrent resolution	283
invalidating a proposed rule, amendment, rescission, or part	284
thereof, the house of representatives or senate does not, within	285
the time remaining for adoption of the concurrent resolution, hold	286
five floor sessions at which its journal records a roll call vote	287
disclosing a sufficient number of members in attendance to pass a	288
bill, the time within which that house may adopt the concurrent	289
resolution is extended until it has held five such floor sessions.	290

Within five days after the adoption of a concurrent	291
resolution invalidating a proposed rule, amendment, rescission, or	292
part thereof, the clerk of the senate shall send the rule-making	293
agency, the secretary of state, and the director of the	294
legislative service commission in electronic form a certified text	295
of the resolution together with a certification stating the date	296
on which the resolution takes effect. The secretary of state and	297
the director of the legislative service commission shall each note	298
the invalidity of the proposed rule, amendment, rescission, or	299
part thereof, and shall each remove the invalid proposed rule,	300
amendment, rescission, or part thereof from the file of proposed	301
rules. The rule-making agency shall not proceed to adopt in	302
accordance with division (D) of this section, or to file in	303
accordance with division (B)(1) of section 111.15 of the Revised	304
Code, any version of a proposed rule, amendment, rescission, or	305
part thereof that has been invalidated by concurrent resolution.	306

Unless the house of representatives and senate adopt a	307
concurrent resolution invalidating a proposed rule, amendment,	308
rescission, or part thereof within the time specified by this	309
division, the rule-making agency may proceed to adopt in	310
accordance with division (D) of this section, or to file in	311
accordance with division (B)(1) of section 111.15 of the Revised	312
Code, the latest version of the proposed rule, amendment, or	313
rescission as filed with the joint committee. If by concurrent	314
resolution certain of the rules, amendments, rescissions, or parts	315
thereof are specifically invalidated, the rule-making agency may	316
proceed to adopt, in accordance with division (D) of this section,	317
or to file in accordance with division (B)(1) of section 111.15 of	318
the Revised Code, the latest version of the proposed rules,	319
amendments, rescissions, or parts thereof as filed with the joint	320
committee that are not specifically invalidated. The rule-making	321
agency may not revise or amend any proposed rule, amendment,	322
rescission, or part thereof that has not been invalidated except	323
as provided in this chapter or in section 111.15 of the Revised	324
Code.	325

(2)(a) A proposed rule, amendment, or rescission that is	326
filed with the joint committee under division (H) of this section	327
or division (D) of section 111.15 of the Revised Code shall be	328
carried over for legislative review to the next succeeding regular	329
session of the general assembly if the original or any revised	330
version of the proposed rule, amendment, or rescission is filed	331
with the joint committee on or after the first day of December of	332
any year.	333

(b) The latest version of any proposed rule, amendment, or	334
rescission that is subject to division (I)(2)(a) of this section,	335
as filed with the joint committee, is subject to legislative	336
review and invalidation in the next succeeding regular session of	337
the general assembly in the same manner as if it were the original	338
version of a proposed rule, amendment, or rescission that had been	339
filed with the joint committee for the first time on the first day	340
of the session. A rule-making agency shall not adopt in accordance	341
with division (D) of this section, or file in accordance with	342
division (B)(1) of section 111.15 of the Revised Code, any version	343
of a proposed rule, amendment, or rescission that is subject to	344
division (I)(2)(a) of this section until the time for legislative	345
review and invalidation, as contemplated by division (I)(2)(b) of	346
this section, has expired.	347

(3) Invalidation of any version of a proposed rule,	348
amendment, rescission, or part thereof by concurrent resolution	349
shall prevent the rule-making agency from instituting or	350
continuing proceedings to adopt any version of the same proposed	351
rule, amendment, rescission, or part thereof for the duration of	352
the general assembly that invalidated the proposed rule,	353
amendment, rescission, or part thereof unless the same general	354
assembly adopts a concurrent resolution permitting the rule-making	355
agency to institute or continue such proceedings.	356

The failure of the general assembly to invalidate a proposed	357
rule, amendment, rescission, or part thereof under this section	358
shall not be construed as a ratification of the lawfulness or	359
reasonableness of the proposed rule, amendment, rescission, or any	360
part thereof or of the validity of the procedure by which the	361
proposed rule, amendment, rescission, or any part thereof was	362
proposed or adopted.	363

(4) In lieu of recommending a concurrent resolution to	364
invalidate a proposed rule, amendment, rescission, or part thereof	365
because the rule-making agency has failed to prepare a complete	366
and accurate fiscal analysis, the joint committee on agency rule	367
review may issue, on a one-time basis, for rules, amendments,	368
rescissions, or parts thereof that have a fiscal effect on school	369
districts, counties, townships, or municipal corporations, a	370
finding that the rule summary and fiscal analysis is incomplete or	371
inaccurate and order the rule-making agency to revise the rule	372
summary and fiscal analysis and refile it with the proposed rule,	373
amendment, rescission, or part thereof. If an emergency rule is	374
filed as a nonemergency rule before the end of the ninetieth day	375
of the emergency rule's effectiveness, and the joint committee	376
issues a finding and orders the rule-making agency to refile under	377
division (I)(4) of this section, the governor may also issue an	378
order stating that the emergency rule shall remain in effect for	379
an additional sixty days after the ninetieth day of the emergency	380
rule's effectiveness. The governor's orders shall be filed in	381
accordance with division (F) of this section. The joint committee	382
shall send in electronic form to the rule-making agency, the	383
secretary of state, and the director of the legislative service	384
commission a certified text of the finding and order to revise the	385
rule summary and fiscal analysis, which shall take immediate	386
effect.	387

An order issued under division (I)(4) of this section shall	388
prevent the rule-making agency from instituting or continuing	389
proceedings to adopt any version of the proposed rule, amendment,	390
rescission, or part thereof until the rule-making agency revises	391
the rule summary and fiscal analysis and refiles it in electronic	392
form with the joint committee along with the proposed rule,	393
amendment, rescission, or part thereof. If the joint committee	394
finds the rule summary and fiscal analysis to be complete and	395
accurate, the joint committee shall issue a new order noting that	396
the rule-making agency has revised and refiled a complete and	397
accurate rule summary and fiscal analysis. The joint committee	398
shall send in electronic form to the rule-making agency, the	399
secretary of state, and the director of the legislative service	400
commission a certified text of this new order. The secretary of	401
state and the director of the legislative service commission shall	402
each link this order to the proposed rule, amendment, rescission,	403
or part thereof. The rule-making agency may then proceed to adopt	404
in accordance with division (D) of this section, or to file in	405
accordance with division (B)(1) of section 111.15 of the Revised	406
Code, the proposed rule, amendment, rescission, or part thereof	407
that was subject to the finding and order under division (I)(4) of	408
this section. If the joint committee determines that the revised	409
rule summary and fiscal analysis is still inaccurate or	410
incomplete, the joint committee shall recommend the adoption of a	411
concurrent resolution in accordance with division (I)(1) of this	412
section.	413

Sec. 121.021. It is the policy of the state to improve	414
customer service in state agencies. Each state agency shall	415
emphasize improved customer service, efficiency, and productivity	416
in employee orientation, personnel training, and employee	417
performance reviews.	418

Sec. 121.25. As used in this section and in sections 121.251,	419
121.252, 121.253, 121.254, and 121.255 of the Revised Code:	420

(A) "Proposed rule" means the original version of a proposed	421
rule and each revised version of the same proposed rule.	422

(B) "Rule" means the enactment of a new rule or the amendment	423
or rescission of an existing rule.	424

(C) "Rule-making agency" has the same meaning as in division	425
(I) of section 119.01 of the Revised Code.	426

(D) "Small business" means an independently owned and	427
operated business entity, including its affiliates, having fewer	428
than five hundred employees.	429

Sec. 121.251. If a rule-making agency intends to adopt a rule	430
that, if adopted, may have any adverse impact on small businesses,	431
the rule-making agency shall do both of the following before	432
filing the proposed rule under division (D) of section 111.15 or	433
division (H) of section 119.03 of the Revised Code:	434

(A) Conduct a cost-benefit analysis to determine whether the	435
effect of the proposed rule on small businesses outweighs the	436
benefits of the proposed rule, and prepare a cost-benefit report	437
regarding the results of that analysis. The cost-benefit report	438
shall include all of the following:	439

(1) An identification and estimate of the number of small	440
businesses subject to the proposed rule;	441

(2) The projected reporting, recordkeeping, and other	442
administrative costs required for compliance with the proposed	443
rule, including the type of technical or professional skills	444
necessary for preparation of any report or record required by the	445
proposed rule;	446

(3) A statement of the probable effect of the proposed rule	447
on the impacted small businesses identified under division (A)(1)	448
of this section;	449

(4) A description of any less intrusive or less costly	450
alternative methods of achieving the purpose of the proposed rule;	451
and	452

(5) Any other information the rule-making agency considers	453
necessary to fully explain its cost-benefit analysis regarding the	454
proposed rule.	455

(B) Prepare an analysis of how each of the following methods	456
might reduce any adverse impact the proposed rule may have on	457
small businesses and incorporate into the proposed rule any of	458
the methods that the rule-making agency finds to be feasible,	459
unless doing so would be contrary to the statutory objectives	460
that are the basis for the proposed rule:	461

(1) The establishment of less stringent compliance or	462
reporting requirements for small businesses;	463

(2) The establishment of less stringent schedules or	464
deadlines for compliance or reporting requirements for small	465
businesses;	466

(3) The consolidation or simplification of compliance or	467
reporting requirements for small businesses;	468

(4) The establishment of performance standards for small	469
businesses to replace design or operational standards required in	470
the proposed rule; and	471

(5) The exemption of small businesses from any or all of the	472
proposed rule's requirements.	473

Sec. 121.252. At the same time a rule-making agency, under	474
division (D) of section 111.15 or division (H) of section 119.03	475
of the Revised Code, files a proposed rule that may have any	476
adverse impact on small businesses, the rule-making agency also	477
shall file all of the following in electronic form with the Ohio	478
small business ombudsperson:	479

(A) The full text of the proposed rule;

480

(B) The cost-benefit report regarding the proposed rule;

481

(C) The analysis and any documentation that the rule-making	482
agency conducted or used in support of its determination of any	483
adverse impact the proposed rule may have on small businesses;	484
and	485

(D) A description of the actions the rule-making agency has	486
taken to comply with division (B) of section 121.251 of the	487
Revised Code.	488

Sec. 121.253. (A) The Ohio small business ombudsperson shall	489
publish all of the following in the register of Ohio:	490

(1) The full text of a proposed rule;

491

(2) The cost-benefit report, the analysis and any supporting	492
documentation, and the description of actions taken; and	493

(3) A notice informing persons that they may comment to the	494
ombudsperson concerning any adverse impact the proposed rule, if	495
adopted, may have on small businesses. The notice shall explain	496
how persons may communicate comments to the ombudsperson.	497

(B) Any person may comment to the ombudsperson concerning any	498
adverse impact a proposed rule, if adopted, may have on small	499
businesses. The ombudsperson shall establish and maintain, or	500
participate in, a web site having features that enable persons to	501
comment electronically. And the ombudsperson shall establish a	502
toll-free telephone number persons may call to make comments. The	503
telephone answering point shall be equipped to record comments	504
that are called in.	505

(C)(1) The ombudsperson shall collate and review comments	506
that are received with regard to a proposed rule, and shall	507
compile them in a report that describes in detail the substance	508
of the comments and, in particular, any objections to the	509
proposed rule.	510

(2) The ombudsperson shall publish the report in the register	511
of Ohio and shall file the report in electronic form with the	512
rule-making agency that proposed the rule and with the small	513
business regulatory review board. At the same time, the	514
ombudsperson shall file in electronic form with the board the	515
full text of the proposed rule and the cost-benefit report, the	516
analysis and any supporting documentation, and the description of	517
actions taken.	518

Sec. 121.254. (A)(1) Within one week after receiving a report	519
from the Ohio small business ombudsperson, the small business	520
regulatory review board shall hold a meeting at which it shall	521
review the report, the proposed rule that is the subject of the	522
report, and the cost-benefit report, the analysis and any	523
supporting documentation, and the description of actions taken,	524
and shall determine whether the rule-making agency proposing the	525
rule has complied with sections 121.251 and 121.252 of the	526
Revised Code.	527

(2) The board may conduct a public hearing on the proposed	528
rule at which any person having an interest in the proposed rule	529
may appear and offer comments on, or objections to, the proposed	530
rule insofar as it may, if adopted, have any adverse impact on	531
small businesses. The board shall give notice of such a public	532
hearing in the register of Ohio at least ten days before the date	533
set for the hearing. In the notice, the board shall state the date	534
and time when, and the place where, the public hearing will be	535
held.	536

(B) If the board finds that a rule-making agency, in	537
proposing a rule, has failed to comply with section 121.251 or	538
121.252 of the Revised Code, the board shall issue in writing a	539
determination of noncompliance that states the determination and	540
explains why the proposed rule fails to comply with those	541
sections. The board may include in the determination of	542
noncompliance suggested changes in the proposed rule that will	543
bring the proposed rule into compliance with section 121.251 of	544
the Revised Code. The board shall file in electronic form with the	545
rule-making agency and with the joint committee on agency rule	546
review the determination of noncompliance, the full text of the	547
proposed rule, and the cost-benefit report, the analysis and any	548
supporting documentation, and the description of actions taken.	549
The board shall publish the determination of noncompliance in the	550
register of Ohio.	551

Sec. 121.255. There is hereby created the small business	552
regulatory review board, consisting of five members appointed by	553
the governor, two members appointed by the president of the	554
senate, and two members appointed by the speaker of the house of	555
representatives. Each member shall represent small business.	556

The terms of office of all members of the board shall be for	557
three years, beginning on the first day of January and ending at	558
the close of business on the thirty-first day of December. A	559
vacancy on the board shall be filled in the same manner as the	560
initial appointment. Any member appointed to fill a vacancy	561
occurring prior to the expiration of the term for which the	562
member's predecessor was appointed shall hold office for the	563
remainder of the term.	564

The governor shall designate the chairperson of the board	565
from among the members appointed by the governor. The chairperson	566
shall appoint a secretary from among the board's members.	567

Five members of the board constitute a quorum, and the	568
affirmative vote of five members is necessary for any action taken	569
by the board.	570

Members of the board shall serve without compensation, but	571
shall be reimbursed for their necessary and actual expenses	572
incurred in the performance of their board duties.	573

Sec. 122.08.  (A) There is hereby created within the	574
department of development an office to be known as the office of	575
small business. The office shall be under the supervision of a	576
manager appointed by the director of development. The manager	577
shall be known as the Ohio small business ombudsperson.	578

(B) The office and ombudsperson shall do all of the	579
following:	580

(1) Act as liaison between the small business community and	581
state governmental agencies;	582

(2) Furnish information and technical assistance to persons	583
and small businesses concerning the establishment and maintenance	584
of a small business, and concerning state laws and rules relevant	585
to the operation of a small business. In conjunction with these	586
duties, the office shall keep a record of all state agency rules	587
affecting individuals, small businesses, or small organizations,	588
as defined in section 121.24121.25 of the Revised Code, and the	589
ombudsperson may testify before the joint committee on agency	590
rule review concerning any proposed rule affecting individuals,	591
small businesses, or small organizations.	592

(3) Prepare and publish the small business register under	593
section 122.081 of the Revised Code;	594

(4) Receive complaints from small businesses concerning	595
governmental activity, compile and analyze those complaints, and	596
periodically make recommendations to the governor and the general	597
assembly on changes in state laws or agency rules needed to	598
eliminate burdensome and unproductive governmental regulation to	599
improve the economic climate within which small businesses	600
operate;	601

(5) Receive complaints or questions from small businesses and	602
direct those businesses to the appropriate governmental agency.	603
If, within a reasonable period of time, a complaint is not	604
satisfactorily resolved or a question is not satisfactorily	605
answered, the office shall, on behalf of the small business, make	606
every effort to secure a satisfactory result. For this purpose,	607
the office may consult with any state governmental agency and may	608
make any suggestion or request that seems appropriate.	609

(6) Utilize, to the maximum extent possible, the printed and	610
electronic media to disseminate information of current concern and	611
interest to the small business community and to make known to	612
small businesses the services available through the office. The	613
office shall publish such books, pamphlets, and other printed	614
materials, and shall participate in such trade association	615
meetings, conventions, fairs, and other meetings involving the	616
small business community, as the managerombudsperson considers	617
appropriate.	618

(7) Prepare for inclusion in the department of development's	619
annual report to the governor and general assembly, a description	620
of the activities of the office and a report of the number of	621
rules affecting individuals, small businesses, and small	622
organizations that were filed with the officeombudsperson under	623
division (B)(2) of section 121.24121.252 of the Revised Code,	624
during the preceding calendar year;	625

(8) Operate the Ohio first-stop business connection to assist	626
individuals in identifying and preparing applications for business	627
licenses, permits, and certificates and to serve as the central	628
public distributor for all forms, applications, and other	629
information related to business licensing. Each state agency,	630
board, and commission shall cooperate in providing assistance,	631
information, and materials to enable the connection to perform its	632
duties under this division.	633

(9) Comply with section 121.253 of the Revised Code;

634

(10) Maintain and publicize a toll-free telephone number Ohio	635
small businesses may call to reach the ombudsperson, who shall	636
assist those small businesses in complying with state regulatory	637
requirements;	638

(11) Interface with other agencies to facilitate the	639
resolution of small business regulatory issues;	640

(12) Provide all necessary staff and support for the small	641
business regulatory review board;	642

(13) Interface with small businesses in an effort to create	643
and retain jobs in this state;	644

(14) Conduct an annual regulatory compliance audit to	645
determine which, if any, rules pertaining to small businesses	646
require duplicative reporting or recordkeeping of the same or	647
substantially similar information for multiple regulatory	648
entities;	649

(15) Conduct an annual assessment that identifies which rules	650
have any adverse impact on small businesses; and	651

(16) Prepare an annual report and submit it to the governor	652
and the general assembly on or before the first day of January	653
each year.	654

The report shall contain the results of the audit conducted	655
under division (B)(14) of this section, and shall make	656
recommendations on how to minimize any adverse impact of rules	657
identified under division (B)(15) of this section.	658

(C) The office mayshall, upon the request of a state agency,	659
assist the agency with the preparation of any rule that will	660
affect individuals, small businesses, or small organizations. The	661
office shall train rule-making agency personnel on methods to be	662
used under section 121.251 of the Revised Code to conduct a	663
cost-benefit analysis, to prepare a cost-benefit report, and to	664
prepare an analysis of how the adverse impact of a proposed rule	665
on small businesses may be reduced.	666

(D) The director of development shall assign employees and	667
furnish equipment and supplies to the office as the director	668
considers necessary for the proper performance of the duties	669
assigned to the office.	670

Sec. 124.04.  In addition to those powers enumerated in	671
Chapters 123. and 125. of the Revised Code and as provided	672
elsewhere by law, the powers, duties, and functions of the	673
department of administrative services not specifically vested in	674
and assigned to, or to be performed by, the state personnel board	675
of review are hereby vested in and assigned to, and shall be	676
performed by, the director of administrative services. These	677
powers, duties, and functions shall include, but shall not be	678
limited to, the following powers, duties, and functions:	679

(A) To prepare, conduct, and grade all competitive	680
examinations for positions in the classified state service;	681

(B) To prepare, conduct, and grade all noncompetitive	682
examinations for positions in the classified state service;	683

(C) To prepare eligible lists containing the names of persons	684
qualified for appointment to positions in the classified state	685
service;	686

(D) To prepare or amend, in accordance with section 124.14 of	687
the Revised Code, specifications descriptive of duties,	688
responsibilities, requirements, and desirable qualifications of	689
the various classifications of positions in the state service;	690

(E) To allocate and reallocate, upon the motion of the	691
director or upon request of an appointing authority and in	692
accordance with section 124.14 of the Revised Code, any position,	693
office, or employment in the state service to the appropriate	694
classification on the basis of the duties, responsibilities,	695
requirements, and qualifications of that position, office, or	696
employment;	697

(F) To develop and conduct personnel recruitment services for	698
positions in the state service;	699

(G) To conduct research on specifications, classifications,	700
and salaries of positions in the state service;	701

(H) To develop and conduct personnel training programs,	702
including supervisory training programs and best practices plans,	703
and to develop merit hiring processes, in cooperation with	704
appointing authorities;	705

(I) To include periodically in communications sent to state	706
employees both of the following:	707

(1) Information developed under section 2108.15 of the	708
Revised Code promoting the donation of anatomical gifts under	709
Chapter 2108. of the Revised Code;	710

(2) Information about the liver or kidney donor and bone	711
marrow donor leave granted under section 124.139 of the Revised	712
Code.	713

(J) To enter into agreements with universities and colleges	714
for in-service training of officers and employees in the civil	715
service and to assist appointing authorities in recruiting	716
qualified applicants;	717

(K) To appoint examiners, inspectors, clerks, and other	718
assistants necessary in the exercise of the powers and performance	719
of the duties and functions which the director is by law	720
authorized and required to exercise and perform, and to prescribe	721
the duties of all of those employees;	722

(L) To maintain a journal, which shall be open to public	723
inspection, in which the director shall keep a record of the	724
director's final decision pertaining to the classification or	725
reclassification of positions in the classified civil service of	726
the state and assignment or reassignment of employees in the	727
classified civil service of the state to specific position	728
classifications;	729

(M) To develop customer service performance standards for	730
officers and employees of state agencies under section 124.95 of	731
the Revised Code;	732

(N) To delegate any of the powers, functions, or duties	733
granted or assigned to the director under this chapter to any	734
other state agency of this state as the director considers	735
necessary;	736

(N)(O) To delegate any of the powers, functions, or duties	737
granted or assigned to the director under this chapter to any	738
political subdivision with the concurrence of the legislative	739
authority of the political subdivision.	740

Sec. 124.95. (A) As used in this section, "state agency" has	741
the meaning defined in section 1.60 of the Revised Code, but does	742
not include any court or judicial agency, the general assembly or	743
any legislative agency, or the controlling board.	744

(B) On or before January 1, 2010, the director of	745
administrative services, under division (A) of section 124.09 of	746
the Revised Code, shall develop and adopt rules, and thereafter	747
may amend or rescind rules, that establish customer service	748
performance standards for officers and employees of state	749
agencies, but not for officers who are elected. The performance	750
standards shall be specific to the various positions in each state	751
agency and shall be based on the duties, responsibilities,	752
requirements, and qualifications of the positions. The performance	753
standards shall be applied to and used in conducting each	754
employee's annual performance review.	755

The director shall solicit recommendations concerning	756
improving customer service from human resource professionals, and,	757
before adopting rules under this section, shall consider the	758
recommendations that are submitted.	759

Section 2. That sections 103.0511, 111.15, 117.20, 119.031,	760
121.39, 122.081, 122.94, and 1710.02 of the Revised Code be	761
amended to read as follows:	762

Sec. 103.0511.  The director of the legislative service	763
commission shall establish and maintain, and enhance and improve,	764
an electronic rule-filing system connecting:	765

(A) The legislative service commission, the joint committee	766
on agency rule review, the secretary of state, and the office of	767
small business;	768

(B) The governor, the senate and house of representatives,	769
and the clerks of the senate and house of representatives;	770

(C) Each agency that files rules and other rule-making and	771
rule-related documents with the legislative service commission,	772
the joint committee on agency rule review, the governor, the	773
secretary of state, the office of small businessOhio small	774
business ombudsperson, the general assembly, or a committee of	775
the senate or house of representatives under section 111.15,	776
117.20, 119.03, 119.031, 119.032, 119.0311, 119.04, 121.24,	777
121.252, 121.39, 127.18, 4141.14, 5117.02, or 5703.14 of the	778
Revised Code or any other statute;	779

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

780

(E) Any other person or governmental officer or entity whose	781
inclusion in the system is required for the system to be a	782
complete electronic rule-filing system.	783

The electronic rule-filing system is to enable rules and	784
rule-making and rule-related documents to be filed, and official	785
responses to these filings to be made, exclusively by electronic	786
means.	787

Sec. 111.15.  (A) As used in this section:

788

(1) "Rule" includes any rule, regulation, bylaw, or standard	789
having a general and uniform operation adopted by an agency under	790
the authority of the laws governing the agency; any appendix to a	791
rule; and any internal management rule. "Rule" does not include	792
any guideline adopted pursuant to section 3301.0714 of the Revised	793
Code, any order respecting the duties of employees, any finding,	794
any determination of a question of law or fact in a matter	795
presented to an agency, or any rule promulgated pursuant to	796
Chapter 119., section 4141.14, division (C)(1) or (2) of section	797
5117.02, or section 5703.14 of the Revised Code. "Rule" includes	798
any amendment or rescission of a rule.	799

(2) "Agency" means any governmental entity of the state and	800
includes, but is not limited to, any board, department, division,	801
commission, bureau, society, council, institution, state college	802
or university, community college district, technical college	803
district, or state community college. "Agency" does not include	804
the general assembly, the controlling board, the adjutant	805
general's department, or any court.	806

(3) "Internal management rule" means any rule, regulation,	807
bylaw, or standard governing the day-to-day staff procedures and	808
operations within an agency.	809

(4) "Substantive revision" has the same meaning as in	810
division (J) of section 119.01 of the Revised Code.	811

(B)(1) Any rule, other than a rule of an emergency nature,	812
adopted by any agency pursuant to this section shall be effective	813
on the tenth day after the day on which the rule in final form and	814
in compliance with division (B)(3) of this section is filed as	815
follows:	816

(a) The rule shall be filed in electronic form with both the	817
secretary of state and the director of the legislative service	818
commission;	819

(b) The rule shall be filed in electronic form with the joint	820
committee on agency rule review. Division (B)(1)(b) of this	821
section does not apply to any rule to which division (D) of this	822
section does not apply.	823

An agency that adopts or amends a rule that is subject to	824
division (D) of this section shall assign a review date to the	825
rule that is not later than five years after its effective date.	826
If no review date is assigned to a rule, or if a review date	827
assigned to a rule exceeds the five-year maximum, the review date	828
for the rule is five years after its effective date. A rule with a	829
review date is subject to review under section 119.032 of the	830
Revised Code. This paragraph does not apply to a rule of a state	831
college or university, community college district, technical	832
college district, or state community college.	833

If all filings are not completed on the same day, the rule	834
shall be effective on the tenth day after the day on which the	835
latest filing is completed. If an agency in adopting a rule	836
designates an effective date that is later than the effective date	837
provided for by division (B)(1) of this section, the rule if filed	838
as required by such division shall become effective on the later	839
date designated by the agency.	840

Any rule that is required to be filed under division (B)(1)	841
of this section is also subject to division (D) of this section if	842
not exempted by division (D)(1), (2), (3), (4), (5), (6), (7), or	843
(8) of this section.	844

If a rule incorporates a text or other material by reference,	845
the agency shall comply with sections 121.71 to 121.76 of the	846
Revised Code.	847

(2) A rule of an emergency nature necessary for the immediate	848
preservation of the public peace, health, or safety shall state	849
the reasons for the necessity. The emergency rule, in final form	850
and in compliance with division (B)(3) of this section, shall be	851
filed in electronic form with the secretary of state, the director	852
of the legislative service commission, and the joint committee on	853
agency rule review. The emergency rule is effective immediately	854
upon completion of the latest filing, except that if the agency in	855
adopting the emergency rule designates an effective date, or date	856
and time of day, that is later than the effective date and time	857
provided for by division (B)(2) of this section, the emergency	858
rule if filed as required by such division shall become effective	859
at the later date, or later date and time of day, designated by	860
the agency.	861

An emergency rule becomes invalid at the end of the ninetieth	862
day it is in effect. Prior to that date, the agency may file the	863
emergency rule as a nonemergency rule in compliance with division	864
(B)(1) of this section. The agency may not refile the emergency	865
rule in compliance with division (B)(2) of this section so that,	866
upon the emergency rule becoming invalid under such division, the	867
emergency rule will continue in effect without interruption for	868
another ninety-day period.	869

(3) An agency shall file a rule under division (B)(1) or (2)	870
of this section in compliance with the following standards and	871
procedures:	872

(a) The rule shall be numbered in accordance with the	873
numbering system devised by the director for the Ohio	874
administrative code.	875

(b) The rule shall be prepared and submitted in compliance	876
with the rules of the legislative service commission.	877

(c) The rule shall clearly state the date on which it is to	878
be effective and the date on which it will expire, if known.	879

(d) Each rule that amends or rescinds another rule shall	880
clearly refer to the rule that is amended or rescinded. Each	881
amendment shall fully restate the rule as amended.	882

If the director of the legislative service commission or the	883
director's designee gives an agency notice pursuant to section	884
103.05 of the Revised Code that a rule filed by the agency is not	885
in compliance with the rules of the legislative service	886
commission, the agency shall within thirty days after receipt of	887
the notice conform the rule to the rules of the commission as	888
directed in the notice.	889

(C) All rules filed pursuant to divisions (B)(1)(a) and (2)	890
of this section shall be recorded by the secretary of state and	891
the director under the title of the agency adopting the rule and	892
shall be numbered according to the numbering system devised by the	893
director. The secretary of state and the director shall preserve	894
the rules in an accessible manner. Each such rule shall be a	895
public record open to public inspection and may be transmitted to	896
any law publishing company that wishes to reproduce it.	897

(D) At least sixty-five days before a board, commission,	898
department, division, or bureau of the government of the state	899
files a rule under division (B)(1) of this section, it shall file	900
the full text of the proposed rule in electronic form with the	901
joint committee on agency rule review, and the proposed rule is	902
subject to legislative review and invalidation under division (I)	903
of section 119.03 of the Revised Code. If a state board,	904
commission, department, division, or bureau makes a substantive	905
revision in a proposed rule after it is filed with the joint	906
committee, the state board, commission, department, division, or	907
bureau shall promptly file the full text of the proposed rule in	908
its revised form in electronic form with the joint committee. The	909
latest version of a proposed rule as filed with the joint	910
committee supersedes each earlier version of the text of the same	911
proposed rule. Except as provided in division (F) of this section,	912
a state board, commission, department, division, or bureau shall	913
also file the rule summary and fiscal analysis prepared under	914
section 121.24 or 127.18 of the Revised Code, or both, in	915
electronic form along with a proposed rule, and along with a	916
proposed rule in revised form, that is filed under this division.	917

As used in this division, "commission" includes the public	918
utilities commission when adopting rules under a federal or state	919
statute.	920

This division does not apply to any of the following:

921

(1) A proposed rule of an emergency nature;

922

(2) A rule proposed under section 1121.05, 1121.06, 1155.18,	923
1163.22, 1349.33, 1707.201, 1733.412, 4123.29, 4123.34, 4123.341,	924
4123.342, 4123.40, 4123.411, 4123.44, or 4123.442 of the Revised	925
Code;	926

(3) A rule proposed by an agency other than a board,	927
commission, department, division, or bureau of the government of	928
the state;	929

(4) A proposed internal management rule of a board,	930
commission, department, division, or bureau of the government of	931
the state;	932

(5) Any proposed rule that must be adopted verbatim by an	933
agency pursuant to federal law or rule, to become effective within	934
sixty days of adoption, in order to continue the operation of a	935
federally reimbursed program in this state, so long as the	936
proposed rule contains both of the following:	937

(a) A statement that it is proposed for the purpose of	938
complying with a federal law or rule;	939

(b) A citation to the federal law or rule that requires	940
verbatim compliance.	941

(6) An initial rule proposed by the director of health to	942
impose safety standards and quality-of-care standards with respect	943
to a health service specified in section 3702.11 of the Revised	944
Code, or an initial rule proposed by the director to impose	945
quality standards on a facility listed in division (A)(4) of	946
section 3702.30 of the Revised Code, if section 3702.12 of the	947
Revised Code requires that the rule be adopted under this section;	948

(7) A rule of the state lottery commission pertaining to	949
instant game rules.	950

If a rule is exempt from legislative review under division	951
(D)(5) of this section, and if the federal law or rule pursuant to	952
which the rule was adopted expires, is repealed or rescinded, or	953
otherwise terminates, the rule is thereafter subject to	954
legislative review under division (D) of this section.	955

(E) Whenever a state board, commission, department, division,	956
or bureau files a proposed rule or a proposed rule in revised form	957
under division (D) of this section, it shall also file the full	958
text of the same proposed rule or proposed rule in revised form in	959
electronic form with the secretary of state and the director of	960
the legislative service commission. Except as provided in division	961
(F) of this section, a state board, commission, department,	962
division, or bureau shall file the rule summary and fiscal	963
analysis prepared under section 121.24 or 127.18 of the Revised	964
Code, or both, in electronic form along with a proposed rule or	965
proposed rule in revised form that is filed with the secretary of	966
state or the director of the legislative service commission.	967

(F) Except as otherwise provided in this division, the	968
auditor of state or the auditor of state's designee is not	969
required to file a rule summary and fiscal analysis along with a	970
proposed rule, or proposed rule in revised form, that the auditor	971
of state proposes under section 117.12, 117.19, 117.38, or 117.43	972
of the Revised Code and files under division (D) or (E) of this	973
section. If, however, the auditor of state or the designee	974
prepares a rule summary and fiscal analysis of the original	975
version of such a proposed rule for purposes of complying with	976
section 121.24 of the Revised Code, the auditor of state or	977
designee shall file the rule summary and fiscal analysis in	978
electronic form along with the original version of the proposed	979
rule filed under division (D) or (E) of this section.	980

Sec. 117.20.  (A) In adopting rules pursuant to Chapter 117.	981
of the Revised Code, the auditor of state or the auditor of	982
state's designee shall do both of the following:	983

(1) Before adopting any such rule, except a rule of an	984
emergency nature, do each of the following:	985

(a) At least thirty-five days before any public hearing on	986
the proposed rule-making action, mail notice of the hearing to	987
each public office and to each statewide organization that the	988
auditor of state or designee determines will be affected or	989
represents persons who will be affected by the proposed	990
rule-making action;	991

(b) Mail a copy of the proposed rule to any person or	992
organization that requests a copy within five days after receipt	993
of the request;	994

(c) Consult with appropriate state and local government	995
agencies, or with persons representative of their interests,	996
including statewide organizations of local government officials,	997
and consult with accounting professionals and other interested	998
persons;	999

(d) Conduct, on the date and at the time and place designated	1000
in the notice, a public hearing at which any person affected by	1001
the proposed rule, including statewide organizations of local	1002
government officials, may appear and be heard in person, by	1003
attorney, or both, and may present the person's or organization's	1004
position or contentions orally or in writing.	1005

(2) Except as otherwise provided in division (A)(2) of this	1006
section, comply with divisions (B) to (E) of section 111.15 of the	1007
Revised Code. The auditor of state is not required to file a rule	1008
summary and fiscal analysis along with any copy of a proposed	1009
rule, or proposed rule in revised form, that is filed with the	1010
joint committee on agency rule review, the secretary of state, or	1011
the director of the legislative service commission under division	1012
(D) or (E) of section 111.15 of the Revised Code; however, if the	1013
auditor of state or the auditor of state's designee prepares a	1014
rule summary and fiscal analysis of the original version of a	1015
proposed rule for purposes of complying with section 121.24 of the	1016
Revised Code, the auditor of state or designee shall file a copy	1017
of the rule summary and fiscal analysis in electronic form along	1018
with the original version of the proposed rule filed under	1019
division (D) or (E) of section 111.15 of the Revised Code.	1020

(B) The auditor of state shall diligently discharge the	1021
duties imposed by divisions (A)(1)(a), (b), and (c) of this	1022
section, but failure to mail any notice or copy of a proposed	1023
rule, or to consult with any person or organization, shall not	1024
invalidate any rule.	1025

(C) Notwithstanding any contrary provision of the Revised	1026
Code, the auditor of state may prepare and disseminate, to public	1027
offices and other interested persons and organizations, advisory	1028
bulletins, directives, and instructions relating to accounting and	1029
financial reporting systems, budgeting procedures, fiscal	1030
controls, and the constructions by the auditor of state of	1031
constitutional and statutory provisions, court decisions, and	1032
opinions of the attorney general. The bulletins, directives, and	1033
instructions shall be of an advisory nature only.	1034

(D) As used in this section, "rule" includes the adoption,	1035
amendment, or rescission of a rule.	1036

Sec. 119.031.  (A) The chairperson of the joint committee on	1037
agency rule review shall compare each rule, amendment, or	1038
rescission as filed in final form with the latest version of the	1039
same rule, amendment, or rescission as filed in proposed form.	1040

(B) If, upon making the comparison required by division (A)	1041
of this section, the chairperson of the joint committee on agency	1042
rule review finds that the rule-making agency has made a	1043
substantive revision in the rule, amendment, or rescission between	1044
the time it filed the latest version of the rule, amendment, or	1045
rescission in proposed form and the time it filed the rule,	1046
amendment, or rescission in final form, the chairperson shall	1047
promptly notify the rule-making agency, the secretary of state,	1048
and the director of the legislative service commission in	1049
electronic form of that finding.	1050

(C) The joint committee on agency rule review shall review	1051
any rule, amendment, or rescission as filed in final form if,	1052
under division (B) of this section, it is found to contain a	1053
substantive revision. The joint committee may do either or both of	1054
the following:	1055

(1) If the joint committee makes any of the findings stated	1056
in division (I)(1)(a), (b), or (c), or (f) of section 119.03 of	1057
the Revised Code, it may suspend the rule, amendment, rescission,	1058
or any part thereof. The suspension shall remain in effect until	1059
the time for legislative review and invalidation has expired under	1060
division (D) of this section, or until the general assembly adopts	1061
a concurrent resolution invalidating the rule, amendment,	1062
rescission, or any part thereof, whichever occurs first. The	1063
chairperson of the joint committee shall promptly notify the	1064
rule-making agency, the secretary of state, and the director of	1065
the legislative service commission in electronic form of the	1066
suspension.	1067

(2) The joint committee may recommend the adoption of a	1068
concurrent resolution invalidating the rule, amendment,	1069
rescission, or any part thereof if it makes any of the findings	1070
stated in division (I)(1)(a), (b), or (c), or (f) of section	1071
119.03 of the Revised Code.	1072

(D) A rule, amendment, or rescission that, under division (B)	1073
of this section, is found to contain a substantive revision shall	1074
nevertheless become effective pursuant to division (B)(1) of	1075
section 111.15, division (A)(1) of section 119.04, division (B)(1)	1076
of section 4141.14, or division (A) of section 5703.14 of the	1077
Revised Code and remain in effect as filed in final form unless:	1078

(1) Under division (C)(1) of this section, the joint	1079
committee suspends the rule, amendment, rescission, or any part	1080
thereof; or	1081

(2) Prior to the sixtieth day after the rule, amendment, or	1082
rescission was filed in final form, the house of representatives	1083
and senate adopt a concurrent resolution invalidating the rule,	1084
amendment, rescission, or any part thereof. If, after the joint	1085
committee on agency rule review recommends the adoption of a	1086
concurrent resolution invalidating the rule, amendment,	1087
rescission, or part thereof, the house of representatives or	1088
senate does not, within the time remaining for adoption of the	1089
concurrent resolution, hold five floor sessions at which its	1090
journal records a roll call vote disclosing a sufficient number of	1091
members in attendance to pass a bill, the time within which that	1092
house may adopt the concurrent resolution is extended until it has	1093
held five such floor sessions.	1094

Upon the adoption of such a concurrent resolution, the clerk	1095
of the senate shall, within five days thereafter, send the	1096
rule-making agency, the secretary of state, and the director of	1097
the legislative service commission, in electronic form, a	1098
certified copy of the resolution together with a certification	1099
stating the date on which the resolution takes effect. The	1100
secretary of state and the director shall each note the invalidity	1101
of the rule, amendment, rescission, or part thereof, and shall	1102
remove the invalid rule, amendment, rescission, or part thereof	1103
from the file of current rules. The director shall also indicate	1104
in the Ohio administrative code that the rule, amendment,	1105
rescission, or part thereof is invalid and the date of	1106
invalidation. The rule-making agency shall make appropriate	1107
adjustments to reflect the invalidity of the rule, amendment,	1108
rescission, or part thereof.	1109

(E) Invalidation of a rule, amendment, rescission, or part	1110
thereof under this section shall prevent the rule-making agency	1111
from instituting proceedings to readopt any version of the same	1112
rule, amendment, rescission, or part thereof for the duration of	1113
the general assembly that invalidated the rule, amendment,	1114
rescission, or part thereof unless the same general assembly	1115
adopts a concurrent resolution permitting the rule-making agency	1116
to institute such proceedings.	1117

(F) The failure of the general assembly to invalidate a rule,	1118
amendment, rescission, or part thereof under this section shall	1119
not be construed as a ratification of the lawfulness or	1120
reasonableness of the rule, amendment, rescission, or any part	1121
thereof or of the validity of the procedure by which the rule,	1122
amendment, rescission, or any part thereof was adopted.	1123

(G) As used in this section, a rule, amendment, or rescission	1124
is filed:	1125

(1) "In proposed form" when it is filed in such form with the	1126
joint committee under division (D) of section 111.15 or division	1127
(H) of section 119.03 of the Revised Code;	1128

(2) "In final form" when it is filed in such form with the	1129
joint committee under division (B)(1)(b) of section 111.15,	1130
division (A)(1)(b) of section 119.04, division (B)(1)(b) of	1131
section 4141.14, or division (A)(2) of section 5703.14 of the	1132
Revised Code.	1133

Sec. 121.39.  (A) As used in this section, "environmental	1134
protection" means any of the following:	1135

(1) Protection of human health or safety, biological	1136
resources, or natural resources by preventing, reducing, or	1137
remediating the pollution or degradation of air, land, or water	1138
resources or by preventing or limiting the exposure of humans,	1139
animals, or plants to pollution;	1140

(2) Appropriation or regulation of privately owned property	1141
to preserve air, land, or water resources in a natural state or to	1142
wholly or partially restore them to a natural state;	1143

(3) Regulation of the collection, management, treatment,	1144
reduction, storage, or disposal of solid, hazardous, radioactive,	1145
or other wastes;	1146

(4) Plans or programs to promote or regulate the	1147
conservation, recycling, or reuse of energy, materials, or wastes.	1148

(B) Except as otherwise provided in division (E) of this	1149
section, when proposed legislation dealing with environmental	1150
protection or containing a component dealing with environmental	1151
protection is referred to a committee of the general assembly,	1152
other than a committee on rules or reference, the sponsor of the	1153
legislation, at the time of the first hearing of the legislation	1154
before the committee, shall submit to the members of the committee	1155
a written statement identifying either the documentation that is	1156
the basis of the legislation or the federal requirement or	1157
requirements with which the legislation is intended to comply. If	1158
the legislation is not based on documentation or has not been	1159
introduced to comply with a federal requirement or requirements,	1160
the written statement from the sponsor shall so indicate.	1161

Also at the time of the first hearing of the legislation	1162
before the committee, a statewide organization that represents	1163
businesses in this state and that elects its board of directors	1164
may submit to the members of the committee a written estimate of	1165
the costs to the regulated community in this state of complying	1166
with the legislation if it is enacted.	1167

At any hearing of the legislation before the committee, a	1168
representative of any state agency, environmental advocacy	1169
organization, or consumer advocacy organization or any private	1170
citizen may present documentation containing an estimate of the	1171
monetary and other costs to public health and safety and the	1172
environment and to consumers and residential utility customers,	1173
and the effects on property values, if the legislation is not	1174
enacted.	1175

(C) Until such time as the statement required under division	1176
(B) of this section is submitted to the committee to which	1177
proposed legislation dealing with environmental protection or	1178
containing a component dealing with environmental protection was	1179
referred, the legislation shall not be reported by that committee.	1180
This requirement does not apply if the component dealing with	1181
environmental protection is removed from the legislation or if	1182
two-thirds of the members of the committee vote in favor of a	1183
motion to report the proposed legislation.	1184

(D) Except as otherwise provided in division (E) of this	1185
section, prior to adopting a rule or an amendment proposed to a	1186
rule dealing with environmental protection or containing a	1187
component dealing with environmental protection, a state agency	1188
shall do all of the following:	1189

(1) Consult with organizations that represent political	1190
subdivisions, environmental interests, business interests, and	1191
other persons affected by the proposed rule or amendment;	1192

(2) Consider documentation relevant to the need for, the	1193
environmental benefits or consequences of, other benefits of, and	1194
the technological feasibility of the proposed rule or amendment;	1195

(3) Specifically identify whether the proposed rule or	1196
amendment is being adopted or amended to enable the state to	1197
obtain or maintain approval to administer and enforce a federal	1198
environmental law or to participate in a federal environmental	1199
program, whether the proposed rule or amendment is more stringent	1200
than its federal counterpart, and, if the proposed rule or	1201
amendment is more stringent, the rationale for not incorporating	1202
its federal counterpart;	1203

(4) Include with the proposed rule or amendment and the rule	1204
summary and fiscal analysis required under sections 121.24 and	1205
section 127.18 of the Revised Code, when they are filed with the	1206
joint committee on agency rule review in accordance with division	1207
(D) of section 111.15 or division (H) of section 119.03 of the	1208
Revised Code, one of the following in electronic form, as	1209
applicable:	1210

(a) The information identified under division (D)(3) of this	1211
section and, if the proposed rule or amendment is more stringent	1212
than its federal counterpart, as identified in that division, the	1213
documentation considered under division (D)(2) of this section;	1214

(b) If an amendment proposed to a rule is being adopted or	1215
amended under a state statute that establishes standards with	1216
which the amendment shall comply, and the proposed amendment is	1217
more stringent than the rule that it is proposing to amend, the	1218
documentation considered under division (D)(2) of this section;	1219

(c) If division (D)(4)(a) or (b) of this section is not	1220
applicable, the documentation considered under division (D)(2) of	1221
this section.	1222

If the agency subsequently files a revision of such a	1223
proposed rule or amendment in accordance with division (D) of	1224
section 111.15 or division (H) of section 119.03 of the Revised	1225
Code, the revision shall be accompanied in electronic form by the	1226
applicable information or documentation.	1227

Division (D) of this section does not apply to any emergency	1228
rule adopted under division (B)(2) of section 111.15 or division	1229
(F) of section 119.03 of the Revised Code, but does apply to any	1230
such rule that subsequently is adopted as a nonemergency rule	1231
under either of those divisions.	1232

The information or documentation submitted under division	1233
(D)(4) of this section may be in the form of a summary or index of	1234
available knowledge or information and shall consist of or be	1235
based upon the best available generally accepted knowledge or	1236
information in the appropriate fields, as determined by the agency	1237
that prepared the documentation.	1238

(E) The statement required under division (B) and the	1239
information or documentation required under division (D) of this	1240
section need not be prepared or submitted with regard to a	1241
proposed statute or rule, or an amendment to a rule, if the	1242
statute, rule, or amendment is procedural or budgetary in nature,	1243
or governs the organization or operation of a state agency, and	1244
will not affect the substantive rights or obligations of any	1245
person other than a state agency or an employee or contractor of a	1246
state agency.	1247

(F) The insufficiency, incompleteness, or inadequacy of a	1248
statement, information, documentation, or a summary of information	1249
or documentation provided in accordance with division (B) or (D)	1250
of this section shall not be grounds for invalidation of any	1251
statute, rule, or amendment to a rule.	1252

(G) This section applies only to the following:

1253

(1) Legislation and components of legislation dealing with	1254
environmental protection that are introduced in the general	1255
assembly after March 5, 1996;	1256

(2) Rules and rule amendments dealing with environmental	1257
protection that are filed with the joint committee on agency rule	1258
review in accordance with division (D) of section 111.15 or	1259
division (H) of section 119.03 of the Revised Code after March 5,	1260
1996.	1261

Sec. 122.081.  (A) The office of small business in the	1262
department of development shall prepare and publish a "small	1263
business register" or contract with any person as provided in this	1264
section to prepare and publish the register. The small business	1265
register shall contain the following information regarding each	1266
proposed rule filed with the office of small businessOhio small	1267
business ombudsperson under division (B)(2) of section 121.24	1268
121.252 of the Revised Code:	1269

(1) The title and administrative code rule number of the	1270
proposed rule;	1271

(2) A brief summary of the proposed rule;

1272

(3) The date on which the proposed rule was filed with the	1273
office of small business under division (B)(2) of section 121.24	1274
of the Revised Code; and	1275

(4) The name, address, and telephone number of the individual	1276
or office within the agency that proposed the rule who has been	1277
designated as being responsible for complying with division (E) of	1278
section 121.24 of the Revised Code with regard to the proposed	1279
rule.	1280

(B) The small business register shall be published on a	1281
weekly basis. The information required under division (A) of this	1282
section shall be published in the register no later than two weeks	1283
after the proposed rule to which the information relates is filed	1284
with the office of small businessombudsperson under division	1285
(B)(2) of section 121.24121.252 of the Revised Code. The office	1286
of small business shall furnish the small business register, on a	1287
single copy or subscription basis, to any person who requests it	1288
and pays a single copy price or subscription rate fixed by the	1289
office. The office shall furnish the chairmen of the standing	1290
committees of the senate and house of representatives having	1291
jurisdiction over individuals, small businesses, and small	1292
organizations with free subscriptions to the small business	1293
register.	1294

(C) Upon the request of the office of small business, the	1295
director of administrative services shall, in accordance with the	1296
competitive selection procedure of Chapter 125. of the Revised	1297
Code, let a contract for the compilation, printing, and	1298
distribution of the small business register.	1299

(D) The office of small business shall adopt, and may amend	1300
or rescind, in accordance with Chapter 119. of the Revised Code,	1301
such rules as are necessary to enable it to properly carry out	1302
this section.	1303

Sec. 122.94.  The director of the department of development	1304
shall:	1305

(A) Promulgate rules in accordance with Chapter 119. of the	1306
Revised Code for the conduct of the minority business development	1307
division's business and for carrying out the purposes of sections	1308
122.92 to 122.94 of the Revised Code;	1309

(B) Prepare an annual report to the governor and the general	1310
assembly on or before the first day of February of its activities	1311
for the preceding calendar year. In addition to the submissions	1312
required by section 101.68 of the Revised Code, the director shall	1313
submit copies of the annual report to the chairmen of the standing	1314
committees of the senate and house of representatives having	1315
jurisdiction over individuals, small businesses, and small	1316
organizations, as those terms are defined in section 121.24 of the	1317
Revised Code.	1318

Sec. 1710.02.  (A) A special improvement district may be	1319
created within the boundaries of any one municipal corporation,	1320
any one township, or any combination of contiguous municipal	1321
corporations and townships by a petition of the property owners	1322
within the proposed district, for the purpose of developing and	1323
implementing plans for public improvements and public services	1324
that benefit the district. All territory in a district shall be	1325
contiguous.	1326

The district shall be governed by the board of trustees of a	1327
nonprofit corporation. This board shall be known as the board of	1328
directors of the special improvement district. No special	1329
improvement district shall include any church property, or	1330
property of the federal or state government or a county, township,	1331
or municipal corporation, unless the church or the county,	1332
township, or municipal corporation specifically requests in	1333
writing that the property be included within the district. More	1334
than one district may be created within a participating political	1335
subdivision, but no real property may be included within more than	1336
one district unless the owner of the property files a written	1337
consent with the clerk of the legislative authority, the township	1338
fiscal officer, or the village clerk, as appropriate. The area of	1339
each district shall be contiguous.	1340

(B) Except as provided in division (C) of this section, a	1341
district created under this chapter is not a political	1342
subdivision. A district created under this chapter shall be	1343
considered a public agency under section 102.01 and a public	1344
authority under section 4115.03 of the Revised Code. Each member	1345
of the board of directors of a district, each member's designee or	1346
proxy, and each officer and employee of a district shall be	1347
considered a public official or employee under section 102.01 of	1348
the Revised Code and a public official and public servant under	1349
section 2921.42 of the Revised Code. Districts created under this	1350
chapter are not subject to section 121.24121.251 or 121.252 of	1351
the Revised Code. Districts created under this chapter are subject	1352
to sections 121.22 and 121.23 of the Revised Code.	1353

(C) Each district created under this chapter shall be	1354
considered a political subdivision for purposes of section 4905.34	1355
of the Revised Code.	1356

Membership on the board of directors of the district shall	1357
not be considered as holding a public office. Directors and their	1358
designees shall be entitled to the immunities provided by Chapter	1359
1702. and to the same immunity as an employee under division	1360
(A)(6) of section 2744.03 of the Revised Code, except that	1361
directors and their designees shall not be entitled to the	1362
indemnification provided in section 2744.07 of the Revised Code	1363
unless the director or designee is an employee or official of a	1364
participating political subdivision of the district and is acting	1365
within the scope of the director's or designee's employment or	1366
official responsibilities.	1367

District officers and district members and directors and	1368
their designees or proxies shall not be required to file a	1369
statement with the Ohio ethics commission under section 102.02 of	1370
the Revised Code. All records of the district shall be treated as	1371
public records under section 149.43 of the Revised Code, except	1372
that records of organizations contracting with a district shall	1373
not be considered to be public records under section 149.43 or	1374
section 149.431 of the Revised Code solely by reason of any	1375
contract with a district.	1376

(D) Except as otherwise provided in this section, the	1377
nonprofit corporation that governs a district shall be organized	1378
in the manner described in Chapter 1702. of the Revised Code. The	1379
corporation's articles of incorporation are required to be	1380
approved, as provided in division (E) of this section, by	1381
resolution of the legislative authority of each participating	1382
political subdivision of the district. A copy of that resolution	1383
shall be filed along with the articles of incorporation in the	1384
secretary of state's office.	1385

In addition to meeting the requirements for articles of	1386
incorporation set forth in Chapter 1702. of the Revised Code, the	1387
articles of incorporation for the nonprofit corporation governing	1388
a district formed under this chapter shall provide all the	1389
following:	1390

(1) The name for the district, which shall include the name	1391
of each participating political subdivision of the district;	1392

(2) A description of the territory within the district, which	1393
may be all or part of each participating political subdivision.	1394
The description shall be specific enough to enable real property	1395
owners to determine if their property is located within the	1396
district.	1397

(3) A description of the procedure by which the articles of	1398
incorporation may be amended. The procedure shall include	1399
receiving approval of the amendment, by resolution, from the	1400
legislative authority of each participating political subdivision	1401
and filing the approved amendment and resolution with the	1402
secretary of state.	1403

(4) The reasons for creating the district, plus an	1404
explanation of how the district will be conducive to the public	1405
health, safety, peace, convenience, and welfare of the district.	1406

(E) The articles of incorporation for a nonprofit corporation	1407
governing a district created under this chapter and amendments to	1408
them shall be submitted to the municipal executive, if any, and	1409
the legislative authority of each municipal corporation or	1410
township in which the proposed district is to be located,	1411
accompanied by a petition signed either by the owners of at least	1412
sixty per cent of the front footage of all real property located	1413
in the proposed district that abuts upon any street, alley, public	1414
road, place, boulevard, parkway, park entrance, easement, or other	1415
existing public improvement within the proposed district,	1416
excluding church property or property owned by the state, county,	1417
township, municipal, or federal government, unless a church,	1418
county, township, or municipal corporation has specifically	1419
requested in writing that the property be included in the	1420
district, or by the owners of at least seventy-five per cent of	1421
the area of all real property located within the proposed	1422
district, excluding church property or property owned by the	1423
state, county, township, municipal, or federal government, unless	1424
a church, county, township, or municipal corporation has	1425
specifically requested in writing that the property be included in	1426
the district. For purposes of determining compliance with these	1427
requirements, the area of the district, or the front footage and	1428
ownership of property, shall be as shown in the most current	1429
records available at the county recorder's office and the county	1430
engineer's office sixty days prior to the date on which the	1431
petition is filed.	1432

Each municipal corporation or township with which the	1433
petition is filed has sixty days to approve or disapprove, by	1434
resolution, the petition, including the articles of incorporation.	1435
This chapter does not prohibit or restrict the rights of municipal	1436
corporations under Article XVIII of the Ohio Constitution or the	1437
right of the municipal legislative authority to impose reasonable	1438
conditions in a resolution of approval.	1439

(F) Persons proposing creation and operation of the district	1440
may propose an initial plan for public services or public	1441
improvements that benefit all or any part of the district. Any	1442
initial plan shall be submitted as part of the petition proposing	1443
creation of the district.	1444

An initial plan may include provisions for the following:

1445

(1) Creation and operation of the district and of the	1446
nonprofit corporation to govern the district under this chapter;	1447

(2) Hiring employees and professional services;

1448

(3) Contracting for insurance;

1449

(4) Purchasing or leasing office space and office equipment;

1450

(5) Other actions necessary initially to form, operate, or	1451
organize the district and the nonprofit corporation to govern the	1452
district;	1453

(6) A plan for public improvements or public services that	1454
benefit all or part of the district, which plan shall comply with	1455
the requirements of division (A) of section 1710.06 of the Revised	1456
Code and may include, but is not limited to, any of the permissive	1457
provisions described in the fourth sentence of that division or	1458
listed in divisions (A)(1) to (5) of that section.	1459

After the initial plan is approved by all municipal	1460
corporations and townships to which it is submitted for approval	1461
and the district is created, each participating subdivision shall	1462
levy a special assessment within its boundaries to pay for the	1463
costs of the initial plan. The levy shall be for no more than ten	1464
years from the date of the approval of the initial plan. For	1465
purposes of levying an assessment for this initial plan, the	1466
services or improvements included in the initial plan shall be	1467
deemed a special benefit to property owners within the district.	1468

(G) Each nonprofit corporation governing a district under	1469
this chapter may do the following:	1470

(1) Exercise all powers of nonprofit corporations granted	1471
under Chapter 1702. of the Revised Code that do not conflict with	1472
this chapter;	1473

(2) Develop, adopt, revise, implement, and repeal plans for	1474
public improvements and public services for all or any part of the	1475
district;	1476

(3) Contract with any person, political subdivision as	1477
defined in section 2744.01 of the Revised Code, or state agency as	1478
defined in section 1.60 of the Revised Code to develop and	1479
implement plans for public improvements or public services within	1480
the district;	1481

(4) Contract and pay for insurance for the district and for	1482
directors, officers, agents, contractors, employees, or members of	1483
the district for any consequences of the implementation of any	1484
plan adopted by the district or any actions of the district.	1485

Section 3. That existing sections 103.0511, 111.15, 117.20,	1486
119.03, 119.031, 121.39, 122.08, 122.081, 122.94, 124.04, and	1487
1710.02 of the Revised Code are hereby repealed.	1488

Section 4. That section 121.24 of the Revised Code is hereby	1489
repealed, effective January 1, 2010.	1490

Section 5. The amendment and enactment by this act of	1491
sections 103.0511, 111.15, 117.20, 119.03, 119.031, 121.25,	1492
121.251, 121.252, 121.253, 121.254, 121.255, 121.39, 122.08,	1493
122.081, 122.94, and 1710.02 of the Revised Code apply only to a	1494
proposed rule the original version of which is required to be	1495
filed under division (D) of section 111.15 or division (H) of	1496
section 119.03 of the Revised Code on or after January 1, 2010.	1497

Section 6. The several appointing authorities shall make	1498
initial appointments to the Small Business Regulatory Review	1499
Board for terms commencing on January 1, 2010.	1500