As Passed by the House

128th General Assembly Regular Session 2009-2010

Sub. S. B. No. 3

Senator Faber 

Cosponsors: Senators Carey, Wagoner, Buehrer, Cafaro, Cates, Coughlin, Fedor, Gibbs, Gillmor, Goodman, Hughes, Niehaus, Patton, Schaffer, Wilson, Stewart 

Representatives Gerberry, Lundy, Mallory, Sayre, Belcher, Williams, B., Daniels, Adams, J., Jordan, Stebelton, Adams, R., Bacon, Baker, Balderson, Beck, Blair, Bolon, Boose, Boyd, Brown, Carney, Chandler, Coley, Combs, DeBose, Derickson, Dodd, Domenick, Driehaus, Dyer, Evans, Fende, Foley, Gardner, Garland, Garrison, Goodwin, Goyal, Hackett, Hagan, Hall, Harris, Harwood, Hite, Hottinger, Huffman, Lehner, Letson, Luckie, Martin, McClain, McGregor, Mecklenborg, Moran, Morgan, Murray, Newcomb, Oelslager, Patten, Phillips, Pillich, Pryor, Ruhl, Schneider, Skindell, Slesnick, Snitchler, Stautberg, Szollosi, Uecker, Wagner, Walter, Winburn, Yuko, Zehringer 

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A BILL

To amend sections 103.051, 103.0511, 121.24, 122.08,

1

122.081, and 127.18 and to enact sections 121.81,

2

121.811, 121.812, 121.813, 121.814, 121.815,

3

121.82, 122.084, and 3745.016 of the Revised Code

4

to enact the Common Sense Regulation Act to

5

improve state agency regulatory processes,

6

especially as they relate to small businesses, to

7

require state departments to develop customer

8

service training programs, and to require the

9

Director of Environmental Protection to provide

10

environmental regulatory compliance assistance to

11

small businesses.

12

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

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

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

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

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

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

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

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

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

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

61

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

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

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

69

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(D) The state agency shall transmit a copy of its report	361
electronically to the director of administrative services or the	362
director's designee. The director or the director's designee shall	363
publish a summary of the report on the web site of the centralized	364
electronic system for regulatory notification.	365

Sec. 121.813. The director of administrative services, not	366
later than July 1, 2010, shall establish, and thereafter shall	367
maintain and improve, a centralized electronic system for	368
regulatory notification that:	369

(A) Enables interested persons to register to receive notices	370
and other information from a state agency concerning a rule that	371
the state agency is developing and drafting;	372

(B) Enables the director to publish on the system summaries	373
of reports the director receives under section 121.812 of the	374
Revised Code; and	375

(C) Enables interested persons to register to receive notices	376
of semiannual meetings that are to be convened under section	377
121.814 of the Revised Code.	378

The director shall design the centralized electronic system	379
for regulatory notification so that it enables interested persons	380
to comment electronically on agency regulatory processes.	381

The centralized electronic system for regulatory notification	382
is complementary to the register of Ohio. The director of the	383
legislative service commission and the director of administrative	384
services shall consult with each other and link the centralized	385
electronic system for regulatory notification and the register of	386
Ohio.	387

Sec. 121.814. (A) The director of administrative services or	388
the director's designee shall convene semiannual meetings, at	389
convenient times and locations, at which interested persons may	390
comment on agency regulatory processes that are causing	391
unreasonable impediments to the efficient and successful operation	392
of small businesses. The small business advocate shall attend and	393
participate in each semiannual meeting. Comments at a semiannual	394
meeting may be recorded.	395

The director or the director's designee shall transmit notice	396
of a semiannual meeting, at least one month in advance of the	397
meeting, to interested persons who have registered to receive	398
notices of the meetings through the centralized electronic system	399
for regulatory notification.	400

(B) Based on comments made at each semiannual meeting, the	401
director or the director's designee shall prepare a priority	402
schedule identifying agency processes that are causing	403
unreasonable impediments to the efficient and successful operation	404
of small businesses, and identifying innovative management tools,	405
such as kaizen, value stream mapping, networking, and root cause	406
analysis, that a state agency might bring to bear to reduce or	407
eliminate these impediments. In identifying agency processes that	408
are causing unreasonable impediments, the director or the	409
director's designee particularly shall take account of state	410
agency processes that derogate the considerations listed in	411
section 121.812 of the Revised Code.	412

The director or the director's designee shall transmit a copy	413
of the priority schedule to each state agency that is identified	414
in the priority schedule, and shall monitor the efforts state	415
agencies are making to reduce or eliminate impediments identified	416
in the priority schedule. Each state agency identified in a	417
priority schedule shall make efforts to reduce or eliminate the	418
identified impediments and any other impediments it may discover.	419
At each semiannual meeting after the first, the director or the	420
director's designee shall report to those in attendance on the	421
progress state agencies are making at reducing or eliminating	422
previously identified impediments to the efficient and successful	423
operation of small businesses.	424

The director or the director's designee shall post the	425
priority schedule on the web site of the centralized electronic	426
system for regulatory notification.	427

Sec. 121.815. The directors of each of the following state	428
agencies shall appoint an ombudsperson: the departments of	429
administrative services, agriculture, commerce, development,	430
health, insurance, job and family services, natural resources,	431
taxation, and transportation, the environmental protection agency,	432
the industrial commission, and the bureau of workers'	433
compensation. The ombudsperson shall report to, and is entitled to	434
have regular direct access to and the attention of, the director	435
or other head of the state agency.	436

An ombudsperson shall serve as a problem-solving liaison	437
between the state agency and those who are affected by its rules	438
and regulatory processes when normal state agency processes do not	439
produce a satisfactory result. A small business also may request	440
the small business advocate to assist when normal state agency	441
processes do not produce a satisfactory result. The ombudsperson	442
or small business advocate may not, however, become involved with	443
resolving matters that are the subject of an on-going judicial or	444
administrative enforcement action.	445

If the ombudsperson, with or without the assistance of the	446
small business advocate, is unable to resolve a matter, the	447
ombudsperson may call upon the governor's designee to assist in	448
resolving the matter. The governor's designee shall assist in a	449
neutral way to resolve the matter. The governor's designee shall	450
identify options, and strategies and tactics, for resolving the	451
matter, but may not impose a resolution or make or reverse legal	452
decisions to resolve the matter.	453

A state agency named in this section shall publish on its web	454
site the name, address, telephone number, and e-mail address of	455
its ombudsperson, together with a brief explanation of the	456
ombudsperson's role in resolving matters.	457

An ombudsperson shall consult with the small business	458
advocate and negotiate arrangements to facilitate mutual	459
interaction and avoid duplication of effort.	460

Sec. 121.82.  (A) As used in this section, "department" means	461
the several departments of state administration enumerated in	462
section 121.02 of the Revised Code.	463

(B)(1) It is the policy of this state to improve the customer	464
service provided by departments. Each department shall emphasize	465
improved customer service, efficiency, and productivity in	466
employee orientation and employee training. In light of this	467
policy, not later than January 1, 2011, each department, with the	468
assistance of the department of administrative services, shall	469
adopt customer service principles identifying the best practices	470
to be used to provide improved customer service.	471

(2) Not later than January 1, 2011, each department, with the	472
assistance of the department of administrative services, shall	473
develop a customer service training program that employees	474
designated by the department can complete to improve customer	475
service, efficiency, and productivity. The customer service	476
training program shall emphasize the customer service principles	477
adopted by the department.	478

(C) Each employee who participates in a customer service	479
training program, upon completion of the program, shall sign a	480
written statement acknowledging that the employee understands the	481
customer service principles adopted by the department and will	482
follow them.	483

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

484

(1) In a frequently-asked-question format, post answers to	485
frequently asked questions about the department's regulatory	486
mission and processes; and	487

(2) Include a customer service survey that users may complete	488
online, or download, complete, and e-mail to the department.	489

A department shall review all customer service surveys that	490
are completed and returned to the department, and may send the	491
surveys to the governor or the governor's designee.	492

Sec. 122.08.  (A) There is hereby created within the	493
department of development an officea division to be known as the	494
office ofentrepreneurship and small business division. The office	495
division shall be under the supervision of a manager appointed by	496
the director of development. The manager shall be known as the	497
small business advocate.	498

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

499

(1) Act as liaison facilitating interactions between the	500
small business community and state governmental agencies;	501

(2) Furnish information and technical assistance to persons	502
and small businesses concerning the establishment and maintenance	503
of a small business, and concerning state laws and rules relevant	504
to the operation of a small business. In conjunction with these	505
duties, the officedivision shall keep a record of all state	506
agency rules affecting individuals, small businesses, or small	507
organizations, as defined in section 121.24 of the Revised Code,	508
and may testify before the joint committee on agency rule review	509
concerning any proposed rule affecting individuals, small	510
businesses, or small organizations.	511

(3) Prepare and publish the small business register under	512
section 122.081 of the Revised Code;	513

(4) Receive complaints from small businesses concerning	514
governmental activity, compile and analyze those complaints, and	515
periodically make recommendations to the governor and the general	516
assembly on changes in state laws or agency rules needed to	517
eliminate burdensome and unproductive governmental regulation to	518
improve the economic climate within which small businesses	519
operate;	520

(5) Receive complaints or questions from small businesses and	521
direct those businesses to the appropriate governmental agency.	522
If, within a reasonable period of time, a complaint is not	523
satisfactorily resolved or a question is not satisfactorily	524
answered, the officedivision shall, on behalf of the small	525
business, make every effort to secure a satisfactory result. For	526
this purpose, the officedivision may consult with any state	527
governmental agency and may make any suggestion or request that	528
seems appropriate.	529

(6) Utilize, to the maximum extent possible, the printed and	530
electronic media to disseminate information of current concern and	531
interest to the small business community and to make known to	532
small businesses the services available through the office	533
division. The officedivision shall publish such books, pamphlets,	534
and other printed materials, and shall participate in such trade	535
association meetings, conventions, fairs, and other meetings	536
involving the small business community, as the managersmall	537
business advocate considers appropriate.	538

(7) Prepare for inclusion in the department of development's	539
annual report to the governor and general assembly, a description	540
of the activities of the officedivision and a report of the	541
number of rules affecting individuals, small businesses, and small	542
organizations that were filed with the officedivision under	543
division (B)(2) of section 121.24 of the Revised Code, during the	544
preceding calendar year;	545

(8) Operate the Ohio first-stop business connection to assist	546
individuals in identifying and preparing applications for business	547
licenses, permits, and certificates and to serve as the central	548
public distributor for all forms, applications, and other	549
information related to business licensing. Each state agency,	550
board, and commission shall cooperate in providing assistance,	551
information, and materials to enable the connection to perform its	552
duties under this division.	553

(9) Establish and maintain a toll-free telephone number	554
persons may call during regular business hours, and an e-mail	555
address to which persons may transmit e-mail at any time, to	556
comment to the small business advocate concerning statutes and	557
rules and state agency processes affecting individuals, small	558
businesses, and small organizations. The telephone answering point	559
shall be equipped to record calls that are received after regular	560
business hours.	561

(10) Consult with each ombudsperson appointed under section	562
121.815 of the Revised Code and negotiate arrangements to	563
facilitate mutual interaction and avoid duplication of effort.	564

(C) The officedivision may, upon the request of a state	565
agency, assist the agency with the preparation of any rule that	566
will affect individuals, small businesses, or small organizations.	567

(D) The director of development shall assign employees and	568
furnish equipment and supplies to the officedivision as the	569
director considers necessary for the proper performance of the	570
duties assigned to the officedivision.	571

Sec. 122.081.  (A) The office ofentrepreneurship and small	572
business division in the department of development shall prepare	573
and publish a "small business register" or contract with any	574
person as provided in this section to prepare and publish the	575
register. The small business register shall contain the following	576
information regarding each proposed rule filed with the office of	577
entrepreneurship and small business division under division (B)(2)	578
of section 121.24 of the Revised Code:	579

(1) The title and administrative code rule number of the	580
proposed rule;	581

(2) A brief summary of the proposed rule;

582

(3) The date on which the proposed rule was filed with the	583
office ofentrepreneurship and small business division under	584
division (B)(2) of section 121.24 of the Revised Code; and	585

(4) The name, address, and telephone number of the individual	586
or office within the agency that proposed the rule who has been	587
designated as being responsible for complying with division (E) of	588
section 121.24 of the Revised Code with regard to the proposed	589
rule.	590

(B) The small business register shall be published on a	591
weekly basis. The information required under division (A) of this	592
section shall be published in the register no later than two weeks	593
after the proposed rule to which the information relates is filed	594
with the office ofentrepreneurship and small business division	595
under division (B)(2) of section 121.24 of the Revised Code. The	596
office ofentrepreneurship and small business division shall	597
furnish the small business register, on a single copy or	598
subscription basis, to any person who requests it and pays a	599
single copy price or subscription rate fixed by the office	600
division. The officedivision shall furnish the chairmen	601
chairpersons of the standing committees of the senate and house of	602
representatives having jurisdiction over individuals, small	603
businesses, and small organizations with free subscriptions to the	604
small business register.	605

(C) Upon the request of the office ofentrepreneurship and	606
small business division, the director of administrative services	607
shall, in accordance with the competitive selection procedure of	608
Chapter 125. of the Revised Code, let a contract for the	609
compilation, printing, and distribution of the small business	610
register.	611

(D) The office ofentrepreneurship and small business	612
division shall adopt, and may amend or rescind, in accordance with	613
Chapter 119. of the Revised Code, such rules as are necessary to	614
enable it to properly carry out this section.	615

Sec. 122.084. The entrepreneurship and small business	616
division shall establish the Ohio small business panel. The Ohio	617
small business panel shall meet semi-annually to discuss issues	618
relevant to small businesses, including matters such as the	619
special challenges involved in establishing and in efficiently and	620
successfully operating a small business and the statutes and rules	621
and state agency processes that are involved in or relate to the	622
operation of small businesses. As a result of its discussions, the	623
panel may make recommendations for changes in statutes and rules	624
and in state agency processes that are needed to reduce or	625
eliminate burdensome or unproductive governmental regulation to	626
improve the economic climate within which small businesses	627
operate.	628

The panel may report its recommendations, together with	629
supporting commentary, in a communique. The small business	630
advocate may transmit the communique electronically to the	631
governor, the general assembly, and each state agency to which the	632
recommendations apply.	633

The Ohio small business panel shall consist of the small	634
business advocate and four members appointed by the governor, two	635
members appointed by the president of the senate, and two members	636
appointed by the speaker of the house of representatives. Each	637
member shall be representative of the small business community.	638
Initial appointments to the panel shall be made on or before	639
January 1, 2010. Members of the panel shall serve without	640
compensation and without reimbursement for expenses.	641

The terms of office of all members of the panel, except the	642
small business advocate, shall be for three years, beginning on	643
the first day of January and ending at the close of business on	644
the thirty-first day of December. A vacancy on the panel shall be	645
filled in the same manner as the initial appointment. Any member	646
appointed to fill a vacancy occurring prior to the expiration of	647
the term for which the member's predecessor was appointed shall	648
hold office for the remainder of the term. The term of office for	649
the small business advocate shall be for the entirety of the	650
advocate's employment as the small business advocate.	651

The small business advocate shall be the chairperson of the	652
panel, and shall appoint a secretary from among the panel's	653
members.	654

Five members of the panel constitute a quorum, and the	655
affirmative vote of five members is necessary for any action taken	656
by the panel.	657

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

658

(1) "Rule-making agency" has the same meaning as in division	659
(I) of section 119.01 of the Revised Code.	660

(2) "Rule" includes the adoption, amendment, or rescission of	661
a rule.	662

(3) "Proposed rule" means the original version of a proposed	663
rule, and each revised version of the same proposed rule, that is	664
filed with the joint committee on agency rule review under	665
division (D) of section 111.15 or division (H) of section 119.03	666
of the Revised Code.	667

(B) A rule-making agency shall prepare, in the form	668
prescribed by the joint committee on agency rule review under	669
division (E) of this section, a complete and accurate rule summary	670
and fiscal analysis of each proposed rule that it files under	671
division (D) of section 111.15 or division (H) of section 119.03	672
of the Revised Code. A rule-making agency, when completing the	673
rule summary and fiscal analysis, is encouraged to identify and	674
estimate the number of businesses subject to the proposed rule.	675
The rule summary and fiscal analysis shall include all of the	676
following information:	677

(1) The name, address, and telephone number of the	678
rule-making agency, and the name and telephone number of an	679
individual or office within the agency designated by that agency	680
to be responsible for coordinating and making available	681
information in the possession of the agency regarding the proposed	682
rule;	683

(2) The Ohio Administrative Code rule number of the proposed	684
rule;	685

(3) A brief summary of, and the legal basis for, the proposed	686
rule, including citations identifying the statute that prescribes	687
the procedure in accordance with which the rule-making agency is	688
required to adopt the proposed rule, the statute that authorizes	689
the agency to adopt the proposed rule, and the statute that the	690
agency intends to amplify or implement by adopting the proposed	691
rule;	692

(4) An estimate, in dollars, of the amount by which the	693
proposed rule would increase or decrease revenues or expenditures	694
during the current biennium;	695

(5) A citation identifying the appropriation that authorizes	696
each expenditure that would be necessitated by the proposed rule;	697

(6) A summary of the estimated cost of compliance with the	698
rule to all directly affected persons;	699

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

700

(8) If the rule has a fiscal effect on school districts,	701
counties, townships, or municipal corporations, an estimate in	702
dollars of the cost of compliance with the rule, or, if dollar	703
amounts cannot be determined, a written explanation of why it was	704
not possible to ascertain dollar amounts;	705

(9) If the rule has a fiscal effect on school districts,	706
counties, townships, or municipal corporations and is the result	707
of a federal requirement, a clear explanation that the proposed	708
state rule does not exceed the scope and intent of the	709
requirement, or, if the state rule does exceed the minimum	710
necessary federal requirement, a justification of the excess cost,	711
and an estimate of the costs, including those costs for local	712
governments, exceeding the federal requirement;	713

(10) If the rule has a fiscal effect on school districts,	714
counties, townships, or municipal corporations, a comprehensive	715
cost estimate that includes the procedure and method of	716
calculating the costs of compliance and identifies major cost	717
categories including personnel costs, new equipment or other	718
capital costs, operating costs, and indirect central service costs	719
related to the rule. The fiscal analysis shall also include a	720
written explanation of the agency's and the affected local	721
government's ability to pay for the new requirements and a	722
statement of any impact the rule will have on economic	723
development.	724

(11) If the rule incorporates a text or other material by	725
reference, and the agency claims the incorporation by reference is	726
exempt from compliance with sections 121.71 to 121.74 of the	727
Revised Code because the text or other material is generally	728
available to persons who reasonably can be expected to be affected	729
by the rule, an explanation of how the text or other material is	730
generally available to those persons;	731

(12) If the rule incorporates a text or other material by	732
reference, and it was infeasible for the agency to file the text	733
or other material electronically, an explanation of why filing the	734
text or other material electronically was infeasible;	735

(13) If the rule is being rescinded and incorporates a text	736
or other material by reference, and it was infeasible for the	737
agency to file the text or other material, an explanation of why	738
filing the text or other material was infeasible;	739

(14) Any other information the joint committee on agency rule	740
review considers necessary to make the proposed rule or the fiscal	741
effect of the proposed rule fully understandable.	742

The rule summary and fiscal analysis also shall include a box	743
the rule-making agency can check to indicate that it has evaluated	744
the rule under section 121.812 of the Revised Code and that its	745
report of the evaluation was reviewed by the head of the state	746
agency or the state agency's chief legal officer. Failure to	747
evaluate a rule under that section and to check the box	748
constitutes only failure to prepare a complete and accurate rule	749
summary and fiscal analysis under division (I)(1)(d) of section	750
119.03 of the Revised Code.	751

(C) The rule-making agency shall file the rule summary and	752
fiscal analysis in electronic form along with the proposed rule	753
that it files under divisions (D) and (E) of section 111.15 or	754
divisions (B) and (H) of section 119.03 of the Revised Code. The	755
joint committee on agency rule review shall not accept any	756
proposed rule for filing unless a copy of the rule summary and	757
fiscal analysis of the proposed rule, completely and accurately	758
prepared, is filed along with the proposed rule.	759

(D) The joint committee on agency rule review shall review	760
the fiscal effect of each proposed rule that is filed under	761
division (D) of section 111.15 or division (H) of section 119.03	762
of the Revised Code.	763

(E) The joint committee on agency rule review shall prescribe	764
the form in which each rule-making agency shall prepare its rule	765
summary and fiscal analysis of a proposed rule.	766

(F) This section does not require the auditor of state or the	767
auditor of state's designee to prepare or attach a rule summary	768
and fiscal analysis to any copy of a rule proposed under section	769
117.12, 117.19, 117.38, or 117.43 of the Revised Code.	770

Sec. 3745.016. (A) As used in this section, "small business"	771
means:	772

(1) A "small business stationary source" as defined in	773
section 3704.01 of the Revised Code; or	774

(2) If the business does not have a source of an air	775
pollutant, an independently owned or operated business having one	776
hundred or fewer employees.	777

(B) The director of environmental protection shall establish,	778
as part of the environmental protection agency, a program for	779
providing environmental regulatory compliance assistance to small	780
businesses. The program shall:	781

(1) Provide environmental regulatory compliance assistance,	782
including on-site environmental regulatory compliance assistance,	783
upon the request of a small business, to assist the small business	784
in identifying relevant environmental regulations and compliance	785
requirements and in completing application and reporting forms	786
relating to environmental regulatory requirements;	787

(2) Develop educational materials for small businesses	788
regarding state and federal environmental regulatory compliance	789
requirements, and distribute the materials to them free of charge;	790

(3) Reach out to small businesses and provide them with	791
training on state and federal environmental regulatory compliance	792
requirements free of charge; and	793

(4) Provide other environmental regulatory compliance	794
assistance to small businesses that will help to improve their	795
compliance with environmental regulation and thereby help to	796
improve the overall cleanliness of Ohio's environment.	797

(C) Any information, regardless of its form or	798
characteristics, that is created or obtained by the environmental	799
protection agency in the course of administering the environmental	800
regulatory compliance assistance program that identifies or	801
describes an individual facility or operation at a small business	802
is confidential and not a public record open to public inspection	803
unless:	804

(1) The information reveals a clear and immediate danger to	805
the environment and the health, safety, or welfare of the public;	806

(2) The information is obtained independently by the director	807
of environmental protection or authorized employees or agents of	808
the environmental protection agency as part of a compliance	809
inspection or investigation or in a judicial or administrative	810
enforcement proceeding; or	811

(3) The information is emissions data or otherwise pertains	812
to a contaminant source, and treating the information as	813
confidential would be inconsistent with the requirements of law.	814

Information that is confidential under this division may not	815
be used in any manner for purposes of the enforcement of any	816
environmental compliance requirement or as evidence in any	817
judicial or administrative enforcement proceeding. This paragraph	818
does not confer immunity on a small business from judicial or	819
administrative enforcement that is based upon information obtained	820
by the director of environmental protection or employees or agents	821
of the environmental protection agency, insofar as they are not	822
engaged in administering the environmental regulatory compliance	823
assistance program.	824

Section 2. That existing sections 103.051, 103.0511, 121.24,	825
122.08, 122.081, and 127.18 of the Revised Code are hereby	826
repealed.	827

Section 3. This act includes amendments re-naming and	828
re-characterizing the Office of Small Business as the	829
Entrepreneurship and Small Business Division. These amendments do	830
not otherwise affect the organization or the organizational	831
position of the office-now-division as part of the Department of	832
Development. Other amendments pertaining to the	833
office-now-division affect its functions.	834