As Reported by the Senate Insurance, Commerce and Labor Committee

129th General Assembly
Regular Session
2011-2012
Sub. H. B. No. 123


Representative Hottinger 

Cosponsors: Representatives Amstutz, Sears, Anielski, Baker, Blair, Bubp, Combs, Garland, Goyal, Hackett, Johnson, Letson, McClain, Milkovich, Newbold, O'Brien, Peterson, Slaby, Uecker Speaker Batchelder 

Senators Bacon, Beagle, Schaffer 



A BILL
To amend sections 145.27, 145.56, 145.561, 145.82, 1
145.95, 742.41, 742.46, 742.47, 742.64, 2329.66, 2
2929.192, 3305.07, 3305.08, 3305.20, 3305.22, 3
3307.20, 3307.41, 3307.42, 3309.22, 3309.66, 4
3309.661, 3309.82, 3309.95, 4121.12, 4121.123, 5
4121.125, 4121.32, 4121.41, 4121.44, 4121.68, 6
4123.35, 4123.512, 4123.52, 5505.04, 5505.22, and 7
5505.34; to enact sections 145.573, 742.464, 8
2929.193, 3305.12, 3307.373, 3309.673, and 9
5505.263; and to repeal sections 4121.124 and 10
4121.99 of the Revised Code to allow the 11
Administrator of Workers' Compensation to waive 12
criteria certain public employers must satisfy to 13
become self-insuring employers; to require bills 14
for medical and vocational rehabilitation services 15
in claims that are ultimately denied to be paid 16
from the Surplus Fund Account under specified 17
circumstances; to make other changes to the 18
Workers' Compensation Law; to provide for 19
termination of the disability benefit of a state 20
retirement system member convicted of certain 21
felonies committed while serving in a position of 22
honor, trust, or profit; to make appropriations 23
for the Bureau of Workers' Compensation and for 24
the Workers' Compensation Council for the biennium 25
beginning July 1, 2011, and ending June 30, 2013; 26
and to provide authorization and conditions for 27
the operation of the Bureau's and the Council's 28
programs.29


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

       Section 101. That sections 145.27, 145.56, 145.561, 145.82, 30
145.95, 742.41, 742.46, 742.47, 742.64, 2329.66, 2929.192, 31
3305.07, 3305.08, 3305.20, 3305.22, 3307.20, 3307.41, 3307.42, 32
3309.22, 3309.66, 3309.661, 3309.82, 3309.95, 4121.12, 4121.123, 33
4121.125, 4121.32, 4121.41, 4121.44, 4121.68, 4123.35, 4123.512, 34
4123.52, 5505.04, 5505.22, and 5505.34 be amended and sections 35
145.573, 742.464, 2929.193, 3305.12, 3307.373, 3309.673, and 36
5505.263 of the Revised Code be enacted to read as follows:37

       Sec. 145.27.  (A)(1) As used in this division, "personal 38
history record" means information maintained by the public 39
employees retirement board on an individual who is a member, 40
former member, contributor, former contributor, retirant, or 41
beneficiary that includes the address, telephone number, social 42
security number, record of contributions, correspondence with the 43
public employees retirement system, or other information the board 44
determines to be confidential.45

       (2) The records of the board shall be open to public 46
inspection, except that the following shall be excluded, except 47
with the written authorization of the individual concerned:48

       (a) The individual's statement of previous service and other 49
information as provided for in section 145.16 of the Revised Code;50

       (b) The amount of a monthly allowance or benefit paid to the 51
individual;52

       (c) The individual's personal history record.53

       (B) All medical reports and recommendations required by this 54
chapter are privileged, except that copiesas follows:55

       (1) Copies of such medical reports or recommendations shall 56
be made available to the personal physician, attorney, or 57
authorized agent of the individual concerned upon written release 58
from the individual or the individual's agent, or when necessary 59
for the proper administration of the fund, to the board assigned 60
physician.61

       (2) Documentation required by section 2929.193 of the Revised 62
Code shall be provided to a court holding a hearing under that 63
section.64

       (C) Any person who is a member or contributor of the system 65
shall be furnished with a statement of the amount to the credit of 66
the individual's account upon written request. The board is not 67
required to answer more than one such request of a person in any 68
one year. The board may issue annual statements of accounts to 69
members and contributors.70

       (D) Notwithstanding the exceptions to public inspection in 71
division (A)(2) of this section, the board may furnish the 72
following information:73

       (1) If a member, former member, contributor, former 74
contributor, or retirant is subject to an order issued under 75
section 2907.15 of the Revised Code or an order issued under 76
division (A) or (B) of section 2929.192 of the Revised Code or is 77
convicted of or pleads guilty to a violation of section 2921.41 of 78
the Revised Code, on written request of a prosecutor as defined in 79
section 2935.01 of the Revised Code, the board shall furnish to 80
the prosecutor the information requested from the individual's 81
personal history record.82

       (2) Pursuant to a court or administrative order issued 83
pursuant to Chapter 3119., 3121., 3123., or 3125. of the Revised 84
Code, the board shall furnish to a court or child support 85
enforcement agency the information required under that section.86

       (3) At the written request of any person, the board shall 87
provide to the person a list of the names and addresses of 88
members, former members, contributors, former contributors, 89
retirants, or beneficiaries. The costs of compiling, copying, and 90
mailing the list shall be paid by such person.91

       (4) Within fourteen days after receiving from the director of 92
job and family services a list of the names and social security 93
numbers of recipients of public assistance pursuant to section 94
5101.181 of the Revised Code, the board shall inform the auditor 95
of state of the name, current or most recent employer address, and 96
social security number of each member whose name and social 97
security number are the same as that of a person whose name or 98
social security number was submitted by the director. The board 99
and its employees shall, except for purposes of furnishing the 100
auditor of state with information required by this section, 101
preserve the confidentiality of recipients of public assistance in 102
compliance with division (A) of section 5101.181 of the Revised 103
Code.104

       (5) The system shall comply with orders issued under section 105
3105.87 of the Revised Code.106

       On the written request of an alternate payee, as defined in 107
section 3105.80 of the Revised Code, the system shall furnish to 108
the alternate payee information on the amount and status of any 109
amounts payable to the alternate payee under an order issued under 110
section 3105.171 or 3105.65 of the Revised Code.111

       (6) At the request of any person, the board shall make 112
available to the person copies of all documents, including 113
resumes, in the board's possession regarding filling a vacancy of 114
an employee member or retirant member of the board. The person who 115
made the request shall pay the cost of compiling, copying, and 116
mailing the documents. The information described in division 117
(D)(6) of this section is a public record.118

       (7) The system shall provide the notice required by section 119
145.573 of the Revised Code to the prosecutor assigned to the 120
case.121

       (E) A statement that contains information obtained from the 122
system's records that is signed by the executive director or an 123
officer of the system and to which the system's official seal is 124
affixed, or copies of the system's records to which the signature 125
and seal are attached, shall be received as true copies of the 126
system's records in any court or before any officer of this state.127

       Sec. 145.56.  The right of an individual to a pension, an 128
annuity, or a retirement allowance itself, the right of an 129
individual to any optional benefit, any other right accrued or 130
accruing to any individual, under this chapter, or under any 131
municipal retirement system established subject to this chapter 132
under the laws of this state or any charter, the various funds 133
created by this chapter, or under such municipal retirement 134
system, and all moneys, investments, and income from moneys or 135
investments are exempt from any state tax, except the tax imposed 136
by section 5747.02 of the Revised Code and are exempt from any 137
county, municipal, or other local tax, except taxes imposed 138
pursuant to section 5748.02 or 5748.08 of the Revised Code and, 139
except as provided in sections 145.57, 145.572, 145.573, 3105.171, 140
3105.65, and 3115.32 and Chapters 3119., 3121., 3123., and 3125. 141
of the Revised Code, shall not be subject to execution, 142
garnishment, attachment, the operation of bankruptcy or insolvency 143
laws, or other process of law whatsoever, and shall be 144
unassignable except as specifically provided in this chapter and 145
sections 3105.171, 3105.65, and 3115.32 and Chapters 3119., 3121., 146
3123., and 3125. of the Revised Code.147

       Sec. 145.561. TheExcept as provided in section 145.573 of 148
the Revised Code, the granting of a retirement allowance, annuity, 149
pension, or other benefit to any person pursuant to action of the 150
public employees retirement board vests a right in such person, so 151
long as hethe person remains the recipient of any benefit of the 152
funds established by section 145.23 of the Revised Code, to 153
receive such retirement allowance, annuity, pension, or other 154
benefit at the rate fixed at the time of granting such retirement 155
allowance, annuity, pension, or other benefit. Such right shall 156
also be vested with equal effect in the recipient of a grant 157
heretofore made from any of the funds named in section 145.23 of 158
the Revised Code.159

       Sec. 145.573.  Notwithstanding any other provision of this 160
chapter, a disability benefit granted under this chapter is 161
subject to an order issued under section 2929.193 of the Revised 162
Code. The public employees retirement board shall comply with the 163
order.164

       On receipt of notice under section 2901.43 of the Revised 165
Code that a public employees retirement system member is charged 166
with an offense listed in division (D) of section 2929.192 of the 167
Revised Code under the circumstances specified in that division, 168
the system shall determine whether the member has been granted a 169
disability benefit. If so, the system shall send written notice to 170
the prosecutor assigned to the case that the member has been 171
granted a disability benefit under this chapter and may be subject 172
to section 2929.193 of the Revised Code.173

       Sec. 145.82.  (A) Except as provided in divisions (B) and (C) 174
of this section, sections 145.201 to 145.70 of the Revised Code do 175
not apply to a PERS defined contribution plan, except that a PERS 176
defined contribution plan may incorporate provisions of those 177
sections as specified in the plan document.178

       (B) The following sections of Chapter 145. of the Revised 179
Code apply to a PERS defined contribution plan: 145.22, 145.221, 180
145.23, 145.25, 145.26, 145.27, 145.296, 145.38, 145.382, 145.383, 181
145.384, 145.391, 145.47, 145.48, 145.483, 145.51, 145.52, 145.53, 182
145.54, 145.55, 145.56, 145.563, 145.57, 145.571, 145.572,183
145.573, 145.69, and 145.70 of the Revised Code.184

       (C) A PERS defined contribution plan that includes definitely 185
determinable benefits may incorporate by reference all or part of 186
sections 145.201 to 145.79 of the Revised Code to allow a member 187
participating in the plan to purchase service credit or to be 188
eligible for any of the following:189

       (1) Retirement, disability, survivor, or death benefits;190

       (2) Health or long-term care insurance or any other type of 191
health care benefit;192

       (3) Additional increases under section 145.323 of the Revised 193
Code;194

       (4) A refund of contributions made by or on behalf of a 195
member.196

       With respect to the benefits described in division (C)(1) of 197
this section, the public employees retirement board may establish 198
eligibility requirements and benefit formulas or amounts that 199
differ from those of members participating in the PERS defined 200
benefit plan. With respect to the purchase of service credit by a 201
member participating in a PERS defined contribution plan, the 202
board may reduce the cost of the service credit to reflect the 203
different benefit formula established for the member.204

       Sec. 145.95.  Subject to sections 145.38, 145.56, 145.57, 205
and 145.572, and 145.573 of the Revised Code, the right of a 206
member participating in a PERS defined contribution plan to any 207
payment or benefit accruing from contributions made by or on 208
behalf of the member under sections 145.85 and 145.86 of the 209
Revised Code shall vest in accordance with this section.210

       A member's right to any payment or benefit that is based on 211
the member's contributions is nonforfeitable.212

       A member's right to any payment or benefit that is based on 213
contributions by the member's employer is nonforfeitable as 214
specified by the plan selected by the member.215

       Sec. 742.41.  (A) As used in this section:216

       (1) "Other system retirant" has the same meaning as in 217
section 742.26 of the Revised Code.218

       (2) "Personal history record" includes a member's, former 219
member's, or other system retirant's name, address, telephone 220
number, social security number, record of contributions, 221
correspondence with the Ohio police and fire pension fund, status 222
of any application for benefits, and any other information deemed 223
confidential by the trustees of the fund.224

       (B) The treasurer of state shall furnish annually to the 225
board of trustees of the fund a sworn statement of the amount of 226
the funds in the treasurer of state's custody belonging to the 227
Ohio police and fire pension fund. The records of the fund shall 228
be open for public inspection except for the following, which 229
shall be excluded, except with the written authorization of the 230
individual concerned:231

       (1) The individual's personal history record;232

       (2) Any information identifying, by name and address, the 233
amount of a monthly allowance or benefit paid to the individual.234

       (C) All medical reports and recommendations required are 235
privileged, except that copiesas follows:236

       (1) Copies of such medical reports or recommendations shall 237
be made available to the personal physician, attorney, or 238
authorized agent of the individual concerned upon written release 239
received from the individual or the individual's agent or, when 240
necessary for the proper administration of the fund, to the 241
board-assigned physician.242

       (2) Documentation required by section 2929.193 of the Revised 243
Code shall be provided to a court holding a hearing under that 244
section.245

       (D) Any person who is a member of the fund or an other system 246
retirant shall be furnished with a statement of the amount to the 247
credit of the person's individual account upon the person's 248
written request. The fund need not answer more than one such 249
request of a person in any one year.250

       (E) Notwithstanding the exceptions to public inspection in 251
division (B) of this section, the fund may furnish the following 252
information:253

       (1) If a member, former member, or other system retirant is 254
subject to an order issued under section 2907.15 of the Revised 255
Code or an order issued under division (A) or (B) of section 256
2929.192 of the Revised Code or is convicted of or pleads guilty 257
to a violation of section 2921.41 of the Revised Code, on written 258
request of a prosecutor as defined in section 2935.01 of the 259
Revised Code, the fund shall furnish to the prosecutor the 260
information requested from the individual's personal history 261
record.262

       (2) Pursuant to a court order issued pursuant to Chapter 263
3119., 3121., 3123., or 3125. of the Revised Code, the fund shall 264
furnish to a court or child support enforcement agency the 265
information required under that section.266

       (3) At the request of any organization or association of 267
members of the fund, the fund shall provide a list of the names 268
and addresses of members of the fund and other system retirants. 269
The fund shall comply with the request of such organization or 270
association at least once a year and may impose a reasonable 271
charge for the list.272

       (4) Within fourteen days after receiving from the director of 273
job and family services a list of the names and social security 274
numbers of recipients of public assistance pursuant to section 275
5101.181 of the Revised Code, the fund shall inform the auditor of 276
state of the name, current or most recent employer address, and 277
social security number of each member or other system retirant 278
whose name and social security number are the same as that of a 279
person whose name or social security number was submitted by the 280
director. The fund and its employees shall, except for purposes of 281
furnishing the auditor of state with information required by this 282
section, preserve the confidentiality of recipients of public 283
assistance in compliance with division (A) of section 5101.181 of 284
the Revised Code.285

       (5) The fund shall comply with orders issued under section 286
3105.87 of the Revised Code.287

       On the written request of an alternate payee, as defined in 288
section 3105.80 of the Revised Code, the fund shall furnish to the 289
alternate payee information on the amount and status of any 290
amounts payable to the alternate payee under an order issued under 291
section 3105.171 or 3105.65 of the Revised Code.292

       (6) At the request of any person, the fund shall make 293
available to the person copies of all documents, including 294
resumes, in the fund's possession regarding filling a vacancy of a 295
police officer employee member, firefighter employee member, 296
police retirant member, or firefighter retirant member of the 297
board of trustees. The person who made the request shall pay the 298
cost of compiling, copying, and mailing the documents. The 299
information described in this division is a public record.300

       (7) The fund shall provide the notice required by section 301
742.464 of the Revised Code to the prosecutor assigned to the 302
case.303

       (F) A statement that contains information obtained from the 304
fund's records that is signed by the secretary of the board of 305
trustees of the Ohio police and fire pension fund and to which the 306
board's official seal is affixed, or copies of the fund's records 307
to which the signature and seal are attached, shall be received as 308
true copies of the fund's records in any court or before any 309
officer of this state.310

       Sec. 742.46. TheExcept as provided in section 742.464 of 311
the Revised Code, the granting of a benefit or pension to any 312
person under sections 742.01 to 742.61 of the Revised Code, other 313
than a person participating in the deferred retirement option plan 314
established under section 742.43 of the Revised Code, vests a 315
right in such person to obtain and receive the amount of such 316
benefit or pension granted to the person subject to sections 317
742.01 to 742.61 of the Revised Code. Subject to sectionsections318
742.444 and 742.464 of the Revised Code, a person participating in 319
the deferred retirement option plan vests in the right to obtain 320
and receive the amount accrued to the benefit of the person when 321
the person ceases participating in the plan.322

       Such right may be enforced by an action in mandamus 323
instituted in the court of common pleas in the county in which the 324
person granted such benefit or pension resides.325

       Sec. 742.464.  Notwithstanding any other provision of this 326
chapter, a disability benefit granted under this chapter is 327
subject to an order issued under section 2929.193 of the Revised 328
Code. The board of trustees of the Ohio police and fire pension 329
fund shall comply with the order.330

       On receipt of notice under section 2901.43 of the Revised 331
Code that an Ohio police and fire pension fund member is charged 332
with an offense listed in division (D) of section 2929.192 of the 333
Revised Code under the circumstances specified in that division, 334
the fund shall determine whether the member has been granted a 335
disability benefit. If so, the fund shall send written notice to 336
the prosecutor assigned to the case that the member has been 337
granted a disability benefit under this chapter and may be subject 338
to section 2929.193 of the Revised Code.339

       Sec. 742.47.  Except as provided in sections 742.461, 340
742.463, 742.464, 3105.171, 3105.65, and 3115.32 and Chapters 341
3119., 3121., 3123., and 3125. of the Revised Code, sums of money 342
due or to become due to any individual from the Ohio police and 343
fire pension fund are not liable to attachment, garnishment, levy, 344
or seizure under any legal or equitable process or any other 345
process of law whatsoever, whether those sums remain with the 346
treasurer of the fund or any officer or agent of the board of 347
trustees of the fund or are in the course of transmission to the 348
individual entitled to them, but shall inure wholly to the benefit 349
of that individual.350

       Sec. 742.64. As used in this section, "alternate payee," 351
"benefit," and "lump sum payment" have the same meanings as in 352
section 3105.80 of the Revised Code.353

       If a person who is a disability benefit recipient or an 354
alternate payee, as defined in section 3105.80 of the Revised 355
Code, is paid any amount from a benefit or lump sum payment under 356
an order issued under section 3105.171 or 3105.65 of the Revised 357
Code by the Ohio police and fire pension fund to which the person 358
is not entitled, the person shall repay the fund. If the person 359
fails to repay, the fund shall withhold the amount due from any 360
benefit or payment due the person under the order or may collect 361
the amount in any other manner provided by law.362

       Sec. 2329.66.  (A) Every person who is domiciled in this 363
state may hold property exempt from execution, garnishment, 364
attachment, or sale to satisfy a judgment or order, as follows:365

       (1)(a) In the case of a judgment or order regarding money 366
owed for health care services rendered or health care supplies 367
provided to the person or a dependent of the person, one parcel or 368
item of real or personal property that the person or a dependent 369
of the person uses as a residence. Division (A)(1)(a) of this 370
section does not preclude, affect, or invalidate the creation 371
under this chapter of a judgment lien upon the exempted property 372
but only delays the enforcement of the lien until the property is 373
sold or otherwise transferred by the owner or in accordance with 374
other applicable laws to a person or entity other than the 375
surviving spouse or surviving minor children of the judgment 376
debtor. Every person who is domiciled in this state may hold 377
exempt from a judgment lien created pursuant to division (A)(1)(a) 378
of this section the person's interest, not to exceed twenty 379
thousand two hundred dollars, in the exempted property.380

       (b) In the case of all other judgments and orders, the 381
person's interest, not to exceed twenty thousand two hundred 382
dollars, in one parcel or item of real or personal property that 383
the person or a dependent of the person uses as a residence.384

       (2) The person's interest, not to exceed three thousand two 385
hundred twenty-five dollars, in one motor vehicle;386

       (3) The person's interest, not to exceed four hundred 387
dollars, in cash on hand, money due and payable, money to become 388
due within ninety days, tax refunds, and money on deposit with a 389
bank, savings and loan association, credit union, public utility, 390
landlord, or other person, other than personal earnings.391

        (4)(a) The person's interest, not to exceed five hundred 392
twenty-five dollars in any particular item or ten thousand seven 393
hundred seventy-five dollars in aggregate value, in household 394
furnishings, household goods, wearing apparel, appliances, books, 395
animals, crops, musical instruments, firearms, and hunting and 396
fishing equipment that are held primarily for the personal, 397
family, or household use of the person;398

        (b) The person's aggregate interest in one or more items of 399
jewelry, not to exceed one thousand three hundred fifty dollars, 400
held primarily for the personal, family, or household use of the 401
person or any of the person's dependents.402

       (5) The person's interest, not to exceed an aggregate of two 403
thousand twenty-five dollars, in all implements, professional 404
books, or tools of the person's profession, trade, or business, 405
including agriculture;406

       (6)(a) The person's interest in a beneficiary fund set apart, 407
appropriated, or paid by a benevolent association or society, as 408
exempted by section 2329.63 of the Revised Code;409

       (b) The person's interest in contracts of life or endowment 410
insurance or annuities, as exempted by section 3911.10 of the 411
Revised Code;412

       (c) The person's interest in a policy of group insurance or 413
the proceeds of a policy of group insurance, as exempted by 414
section 3917.05 of the Revised Code;415

       (d) The person's interest in money, benefits, charity, 416
relief, or aid to be paid, provided, or rendered by a fraternal 417
benefit society, as exempted by section 3921.18 of the Revised 418
Code;419

       (e) The person's interest in the portion of benefits under 420
policies of sickness and accident insurance and in lump sum 421
payments for dismemberment and other losses insured under those 422
policies, as exempted by section 3923.19 of the Revised Code.423

       (7) The person's professionally prescribed or medically 424
necessary health aids;425

       (8) The person's interest in a burial lot, including, but not 426
limited to, exemptions under section 517.09 or 1721.07 of the 427
Revised Code;428

       (9) The person's interest in the following:429

       (a) Moneys paid or payable for living maintenance or rights, 430
as exempted by section 3304.19 of the Revised Code;431

       (b) Workers' compensation, as exempted by section 4123.67 of 432
the Revised Code;433

       (c) Unemployment compensation benefits, as exempted by 434
section 4141.32 of the Revised Code;435

       (d) Cash assistance payments under the Ohio works first 436
program, as exempted by section 5107.75 of the Revised Code;437

       (e) Benefits and services under the prevention, retention, 438
and contingency program, as exempted by section 5108.08 of the 439
Revised Code;440

       (f) Disability financial assistance payments, as exempted by 441
section 5115.06 of the Revised Code;442

       (g) Payments under section 24 or 32 of the "Internal Revenue 443
Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as amended.444

       (10)(a) Except in cases in which the person was convicted of 445
or pleaded guilty to a violation of section 2921.41 of the Revised 446
Code and in which an order for the withholding of restitution from 447
payments was issued under division (C)(2)(b) of that section, in 448
cases in which an order for withholding was issued under section 449
2907.15 of the Revised Code, and in cases in which an order for 450
forfeiture was issued under division (A) or (B) of section 451
2929.192 of the Revised Code, and in cases in which an order was 452
issued under 2929.193 of the Revised Code, and only to the extent 453
provided in the order, and except as provided in sections 454
3105.171, 3105.63, 3119.80, 3119.81, 3121.02, 3121.03, and 3123.06 455
of the Revised Code, the person's right to a pension, benefit, 456
annuity, retirement allowance, or accumulated contributions, the 457
person's right to a participant account in any deferred 458
compensation program offered by the Ohio public employees deferred 459
compensation board, a government unit, or a municipal corporation, 460
or the person's other accrued or accruing rights, as exempted by 461
section 145.56, 146.13, 148.09, 742.47, 3307.41, 3309.66, or 462
5505.22 of the Revised Code, and the person's right to benefits 463
from the Ohio public safety officers death benefit fund;464

       (b) Except as provided in sections 3119.80, 3119.81, 3121.02, 465
3121.03, and 3123.06 of the Revised Code, the person's right to 466
receive a payment under any pension, annuity, or similar plan or 467
contract, not including a payment from a stock bonus or 468
profit-sharing plan or a payment included in division (A)(6)(b) or 469
(10)(a) of this section, on account of illness, disability, death, 470
age, or length of service, to the extent reasonably necessary for 471
the support of the person and any of the person's dependents, 472
except if all the following apply:473

       (i) The plan or contract was established by or under the 474
auspices of an insider that employed the person at the time the 475
person's rights under the plan or contract arose.476

       (ii) The payment is on account of age or length of service.477

       (iii) The plan or contract is not qualified under the 478
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as 479
amended.480

       (c) Except for any portion of the assets that were deposited 481
for the purpose of evading the payment of any debt and except as 482
provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and 483
3123.06 of the Revised Code, the person's right in the assets held 484
in, or to receive any payment under, any individual retirement 485
account, individual retirement annuity, "Roth IRA," or education 486
individual retirement account that provides benefits by reason of 487
illness, disability, death, or age, to the extent that the assets, 488
payments, or benefits described in division (A)(10)(c) of this 489
section are attributable to any of the following:490

       (i) Contributions of the person that were less than or equal 491
to the applicable limits on deductible contributions to an 492
individual retirement account or individual retirement annuity in 493
the year that the contributions were made, whether or not the 494
person was eligible to deduct the contributions on the person's 495
federal tax return for the year in which the contributions were 496
made;497

       (ii) Contributions of the person that were less than or equal 498
to the applicable limits on contributions to a Roth IRA or 499
education individual retirement account in the year that the 500
contributions were made;501

       (iii) Contributions of the person that are within the 502
applicable limits on rollover contributions under subsections 219, 503
402(c), 403(a)(4), 403(b)(8), 408(b), 408(d)(3), 408A(c)(3)(B), 504
408A(d)(3), and 530(d)(5) of the "Internal Revenue Code of 1986," 505
100 Stat. 2085, 26 U.S.C.A. 1, as amended.506

       (d) Except for any portion of the assets that were deposited 507
for the purpose of evading the payment of any debt and except as 508
provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and 509
3123.06 of the Revised Code, the person's right in the assets held 510
in, or to receive any payment under, any Keogh or "H.R. 10" plan 511
that provides benefits by reason of illness, disability, death, or 512
age, to the extent reasonably necessary for the support of the 513
person and any of the person's dependents.514

       (11) The person's right to receive spousal support, child 515
support, an allowance, or other maintenance to the extent 516
reasonably necessary for the support of the person and any of the 517
person's dependents;518

       (12) The person's right to receive, or moneys received during 519
the preceding twelve calendar months from, any of the following:520

       (a) An award of reparations under sections 2743.51 to 2743.72 521
of the Revised Code, to the extent exempted by division (D) of 522
section 2743.66 of the Revised Code;523

       (b) A payment on account of the wrongful death of an 524
individual of whom the person was a dependent on the date of the 525
individual's death, to the extent reasonably necessary for the 526
support of the person and any of the person's dependents;527

       (c) Except in cases in which the person who receives the 528
payment is an inmate, as defined in section 2969.21 of the Revised 529
Code, and in which the payment resulted from a civil action or 530
appeal against a government entity or employee, as defined in 531
section 2969.21 of the Revised Code, a payment, not to exceed 532
twenty thousand two hundred dollars, on account of personal bodily 533
injury, not including pain and suffering or compensation for 534
actual pecuniary loss, of the person or an individual for whom the 535
person is a dependent;536

       (d) A payment in compensation for loss of future earnings of 537
the person or an individual of whom the person is or was a 538
dependent, to the extent reasonably necessary for the support of 539
the debtor and any of the debtor's dependents.540

       (13) Except as provided in sections 3119.80, 3119.81, 541
3121.02, 3121.03, and 3123.06 of the Revised Code, personal 542
earnings of the person owed to the person for services in an 543
amount equal to the greater of the following amounts:544

       (a) If paid weekly, thirty times the current federal minimum 545
hourly wage; if paid biweekly, sixty times the current federal 546
minimum hourly wage; if paid semimonthly, sixty-five times the 547
current federal minimum hourly wage; or if paid monthly, one 548
hundred thirty times the current federal minimum hourly wage that 549
is in effect at the time the earnings are payable, as prescribed 550
by the "Fair Labor Standards Act of 1938," 52 Stat. 1060, 29 551
U.S.C. 206(a)(1), as amended;552

       (b) Seventy-five per cent of the disposable earnings owed to 553
the person.554

       (14) The person's right in specific partnership property, as 555
exempted by division (B)(3) of section 1775.24 of the Revised Code 556
or the person's rights in a partnership pursuant to section 557
1776.50 of the Revised Code, except as otherwise set forth in 558
section 1776.50 of the Revised Code;559

       (15) A seal and official register of a notary public, as 560
exempted by section 147.04 of the Revised Code;561

       (16) The person's interest in a tuition unit or a payment 562
under section 3334.09 of the Revised Code pursuant to a tuition 563
payment contract, as exempted by section 3334.15 of the Revised 564
Code;565

       (17) Any other property that is specifically exempted from 566
execution, attachment, garnishment, or sale by federal statutes 567
other than the "Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11 568
U.S.C.A. 101, as amended;569

       (18) The person's aggregate interest in any property, not to 570
exceed one thousand seventy-five dollars, except that division 571
(A)(18) of this section applies only in bankruptcy proceedings.572

       (B) On April 1, 2010, and on the first day of April in each 573
third calendar year after 2010, each dollar amount set forth in 574
this section shall be adjusted, when determining the amount that 575
is exempt from execution, garnishment, attachment, or sale 576
pursuant to this section, to reflect the change in the consumer 577
price index for all urban consumers, as published by the United 578
States department of labor, or, if that index is no longer 579
published, a generally available comparable index, for the 580
three-year period ending on the thirty-first day of December of 581
the preceding year. Any adjustments required by this division 582
shall be rounded to the nearest twenty-five dollars.583

       (C) As used in this section:584

       (1) "Disposable earnings" means net earnings after the 585
garnishee has made deductions required by law, excluding the 586
deductions ordered pursuant to section 3119.80, 3119.81, 3121.02, 587
3121.03, or 3123.06 of the Revised Code.588

       (2) "Insider" means:589

       (a) If the person who claims an exemption is an individual, a 590
relative of the individual, a relative of a general partner of the 591
individual, a partnership in which the individual is a general 592
partner, a general partner of the individual, or a corporation of 593
which the individual is a director, officer, or in control;594

       (b) If the person who claims an exemption is a corporation, a 595
director or officer of the corporation; a person in control of the 596
corporation; a partnership in which the corporation is a general 597
partner; a general partner of the corporation; or a relative of a 598
general partner, director, officer, or person in control of the 599
corporation;600

       (c) If the person who claims an exemption is a partnership, a 601
general partner in the partnership; a general partner of the 602
partnership; a person in control of the partnership; a partnership 603
in which the partnership is a general partner; or a relative in, a 604
general partner of, or a person in control of the partnership;605

       (d) An entity or person to which or whom any of the following 606
applies:607

       (i) The entity directly or indirectly owns, controls, or 608
holds with power to vote, twenty per cent or more of the 609
outstanding voting securities of the person who claims an 610
exemption, unless the entity holds the securities in a fiduciary 611
or agency capacity without sole discretionary power to vote the 612
securities or holds the securities solely to secure to debt and 613
the entity has not in fact exercised the power to vote.614

       (ii) The entity is a corporation, twenty per cent or more of 615
whose outstanding voting securities are directly or indirectly 616
owned, controlled, or held with power to vote, by the person who 617
claims an exemption or by an entity to which division (C)(2)(d)(i) 618
of this section applies.619

       (iii) A person whose business is operated under a lease or 620
operating agreement by the person who claims an exemption, or a 621
person substantially all of whose business is operated under an 622
operating agreement with the person who claims an exemption.623

       (iv) The entity operates the business or all or substantially 624
all of the property of the person who claims an exemption under a 625
lease or operating agreement.626

       (e) An insider, as otherwise defined in this section, of a 627
person or entity to which division (C)(2)(d)(i), (ii), (iii), or 628
(iv) of this section applies, as if the person or entity were a 629
person who claims an exemption;630

       (f) A managing agent of the person who claims an exemption.631

       (3) "Participant account" has the same meaning as in section 632
148.01 of the Revised Code.633

       (4) "Government unit" has the same meaning as in section 634
148.06 of the Revised Code.635

       (D) For purposes of this section, "interest" shall be 636
determined as follows:637

       (1) In bankruptcy proceedings, as of the date a petition is 638
filed with the bankruptcy court commencing a case under Title 11 639
of the United States Code;640

       (2) In all cases other than bankruptcy proceedings, as of the 641
date of an appraisal, if necessary under section 2329.68 of the 642
Revised Code, or the issuance of a writ of execution.643

       An interest, as determined under division (D)(1) or (2) of 644
this section, shall not include the amount of any lien otherwise 645
valid pursuant to section 2329.661 of the Revised Code.646

       Sec. 2929.192. (A) If an offender is being sentenced for any 647
felony offense listed in division (D) of this section that was 648
committed on or after the effective date of this sectionMay 13, 649
2008, if the offender committed the offense while serving in a 650
position of honor, trust, or profit, and if the offender, at the 651
time of the commission of the offense, was a member of any public 652
retirement system or a participant in an alternative retirement 653
plan, in addition to any other sanction it imposes under section 654
2929.14, 2929.15, 2929.16, 2929.17, or 2929.18 of the Revised Code 655
but subject to division (B) of this section, the court shall order 656
the forfeiture to the public retirement system or alternative 657
retirement plan in which the offender was a member or participant 658
of the offender's right to a retirement allowance, pension, 659
disability benefit, or other right or benefit, other than payment 660
of the offender's accumulated contributions, earned by reason of 661
the offender's being a member of the public retirement system or 662
alternative retirement plan. A forfeiture ordered under this 663
division is part of, and shall be included in, the sentence of the 664
offender. The court shall send a copy of the journal entry 665
imposing sentence on the offender to the appropriate public 666
retirement system or alternative retirement plan in which the 667
offender was a member or participant.668

       (B) In any case in which a sentencing court is required to 669
order forfeiture of an offender's right to a retirement allowance, 670
pension, disability benefit, or other right or benefit under 671
division (A) of this section, the offender may request a hearing 672
regarding the forfeiture by delivering to the court prior to 673
sentencing a written request for a hearing. If a request for a 674
hearing is made by the offender prior to sentencing, the court 675
shall conduct the hearing before sentencing. The court shall 676
notify the offender, the prosecutor who handled the case in which 677
the offender was convicted of or pleaded guilty to the offense for 678
which the forfeiture order was imposed, and the appropriate public 679
retirement system, or alternative retirement plan provider, 680
whichever is applicable, or, if more than one is specified in the 681
motion, the applicable combination of these, of the hearing. A 682
hearing scheduled under this division shall be limited to a 683
consideration of whether there is good cause based on evidence 684
presented by the offender for the forfeiture order not to be 685
issued. If the court determines based on evidence presented by the 686
offender that there is good cause for the forfeiture order not to 687
be issued, the court shall not issue the forfeiture order. If the 688
offender does not request a hearing prior to sentencing or if the 689
court conducts a hearing but does not determine based on evidence 690
presented by the offender that there is good cause for the 691
forfeiture order not to be issued, the court shall order the 692
forfeiture described in division (A) of this section in accordance 693
with that division and shall send a copy of the journal entry 694
imposing sentence on the offender to the appropriate public 695
retirement system or alternative retirement plan in which the 696
offender was a member or participant.697

       (C) Upon receipt of a copy of the journal entry imposing 698
sentence on an offender under division (A) or (B) of this section 699
that contains an order of forfeiture of a type described in that 700
division, the public retirement system or alternative retirement 701
plan in which the offender was a member or participant shall 702
comply with the forfeiture order on application for a refund of 703
the accumulated contributions of the member or participant.704

       (D) Division (A) of this section applies regarding an 705
offender who is convicted of or pleads guilty to any of the 706
following offenses committed on or after the effective date of 707
this sectionMay 13, 2008, that is a felony and who committed the 708
offense while serving in a position of honor, trust, or profit:709

       (1) A violation of section 2921.02 or 2923.32 of the Revised 710
Code or a violation of section 2921.41 of the Revised Code that is 711
a felony of the third degree;712

       (2) A violation of an existing or former municipal ordinance 713
or law of this or any other state or the United States that is 714
substantially equivalent to any violation listed in division 715
(D)(1) of this section;716

       (3) A conspiracy to commit, attempt to commit, or complicity 717
in committing any violation listed in division (D)(1) or described 718
in division (D)(2) of this section.719

       (E) For purposes of divisions (A) and (D) of this section, a 720
violation of section 2923.32 of the Revised Code or any other 721
violation or offense that includes as an element a course of 722
conduct or the occurrence of multiple acts is "committed on or 723
after the effective date of this sectionMay 13, 2008," if the 724
course of conduct continues, one or more of the multiple acts 725
occurs, or the subject person's accountability for the course of 726
conduct or for one or more of the multiple acts continues, on or 727
after the effective date of this sectionMay 13, 2008.728

       (F) As used in this section:729

       (1) "Position(a) For the period beginning May 13, 2008, and 730
ending the day before the effective date of this amendment, 731
"position of honor, trust, or profit" means any of the following:732

       (a)(i) An elective office of the state or any political 733
subdivision of the state;734

       (b)(ii) A position on any board or commission of the state 735
that is appointed by the governor or the attorney general;736

       (c)(iii) A position as a public official or employee, as 737
defined in section 102.01 of the Revised Code, who is required to 738
file a disclosure statement under section 102.02 of the Revised 739
Code;740

       (d)(iv) A position as a prosecutor, as defined in section 741
2935.01 of the Revised Code;742

       (e)(v) A position as a peace officer, as defined in section 743
2935.01 of the Revised Code, or as the superintendent or a trooper 744
of the state highway patrol.745

       (b) On and after the effective date of this amendment, 746
"position of honor, trust, or profit" has the same meaning as in 747
division (F)(1)(a) of this section, except that it also includes a 748
position in which, in the course of public employment, an employee 749
has control over the expenditure of public funds of one hundred 750
thousand dollars or more annually.751

       (2) "Public retirement system" and "alternative retirement 752
plan" have the same meanings as in section 2907.15 of the Revised 753
Code.754

       (3) "Accumulated contributions" means whichever of the 755
following is applicable:756

       (a) Regarding an offender who is a member of the public 757
employees retirement system, except as otherwise provided in 758
division (F)(3)(a) of this section, "accumulated contributions" 759
has the same meaning as in section 145.01 of the Revised Code. For 760
a member participating in a PERS defined contribution plan, 761
"accumulated contributions" means the contributions made under 762
section 145.85 of the Revised Code and any earnings on those 763
contributions. For a member participating in a PERS defined 764
contribution plan that includes definitely determinable benefits, 765
"accumulated contributions" means the contributions made under 766
section 145.85 of the Revised Code, any earnings on those 767
contributions, and additionally any amounts paid by the member to 768
purchase service credits.769

       (b) Regarding an offender who is or was a member of the Ohio 770
police and fire pension fund, "accumulated contributions" means 771
the amount payable to a member under division (G) of section 772
742.37 of the Revised Code.773

       (c) Regarding an offender who is a member of the state 774
teachers retirement system, except as otherwise provided in 775
division (F)(3)(c) of this section, "accumulated contributions" 776
has the same meaning as in section 3307.50 of the Revised Code. 777
For a member participating in an STRS defined contribution plan, 778
"accumulated contributions" means the contributions made under 779
section 3307.26 of the Revised Code to participate in a plan 780
established under section 3307.81 of the Revised Code and any 781
earnings on those contributions. For a member participating in a 782
STRS defined contribution plan that includes definitely 783
determinable benefits, "accumulated contributions" means the 784
contributions made under section 3307.26 of the Revised Code to 785
participate in a plan established under section 3307.81 of the 786
Revised Code, any earnings on those contributions, and 787
additionally any amounts paid by the member to purchase service 788
credits.789

       (d) Regarding an offender who is or was a member of the 790
school employees retirement system, "accumulated contributions" 791
has the same meaning as in section 3309.01 of the Revised Code and 792
also includes employee contributions made under section 3309.85 of 793
the Revised Code and any earnings on those contributions.794

       (e) Regarding an offender who is or was a member of the state 795
highway patrol retirement system, "accumulated contributions" has 796
the same meaning as in section 5505.01 of the Revised Code.797

       (f) Regarding an offender who is or was participating in an 798
alternative retirement plan, "accumulated contributions" means the 799
amounts contributed to an alternative retirement plan 800
participant's account by the plan participant pursuant to section 801
3305.06 of the Revised Code and any earnings on those 802
contributions.803

       Sec. 2929.193.  (A) As used in this section:804

       (1) "Position of honor, trust, or profit" has the same 805
meaning as in division (F)(1)(b) of section 2929.192 of the 806
Revised Code.807

       (2) "Public retirement system," "alternative retirement 808
plan," and "prosecutor" have the same meanings as in section 809
2907.15 of the Revised Code.810

       (B) This section applies to an offender to whom all of the 811
following apply:812

       (1) The offender is being sentenced for an offense listed in 813
division (D) of section 2929.192 of the Revised Code that is a 814
felony and was committed on or after the effective date of this 815
section.816

       (2) The offense was committed while the offender was serving 817
in a position of honor, trust, or profit.818

       (3) At the time of the offense, the offender was one of the 819
following:820

       (a) A member of a public retirement system;821

       (b) A contributor to a public retirement system receiving or 822
eligible to receive a benefit under section 145.384, 742.26, 823
3307.352, or 3309.344 of the Revised Code;824

       (c) A participant in an alternative retirement plan.825

       (4) Prior to the final disposition of the case, the offender 826
was granted a disability benefit by a public retirement system or 827
an alternative retirement plan provider.828

       (C)(1) Prior to sentencing an offender subject to this 829
section, the court shall hold a hearing regarding the condition 830
for which the offender was granted a disability benefit. Not later 831
than ten days prior to the scheduled date of the hearing, the 832
court shall give written notice of the hearing to the offender, 833
the prosecutor who handled the case, and the appropriate public 834
retirement system, alternative retirement plan provider, or, if 835
more than one is providing a disability benefit, the applicable 836
combination of these. The hearing shall be limited to a 837
consideration of whether the offender's disabling condition arose 838
out of the commission of the offense the offender was convicted of 839
or pleaded guilty to.840

       The system or provider shall submit to the court the 841
offender's medical reports and recommendations, and the offender's 842
disability application. If the court determines based on those 843
documents that the disabling condition arose out of the commission 844
of the offense the offender was convicted of or pleaded guilty to, 845
the court shall order the system or provider to terminate the 846
disability benefit.847

       (2) Any disability benefit paid the offender prior to its 848
termination may be recovered in accordance with section 145.563, 849
742.64, 3305.22, 3307.47, 3309.70, or 5505.34 of the Revised Code.850

       (D) For purposes of this section, a violation of section 851
2923.32 of the Revised Code or any other violation or offense that 852
includes as an element a course of conduct or the occurrence of 853
multiple acts is "committed on or after the effective date of this 854
section" if the course of conduct continues, one or more of the 855
multiple acts occurs, or the offender's accountability for the 856
course of conduct or for one or more of the multiple acts 857
continues on or after the effective date of this section.858

       Sec. 3305.07.  (A) Neither the state nor a public institution 859
of higher education shall be a party to any contract purchased in 860
whole or in part with contributions to an alternative retirement 861
plan made under section 3305.06 of the Revised Code. No 862
retirement, death, or other benefits shall be payable by the state 863
or by any public institution of higher education under any 864
alternative retirement plan elected pursuant to this chapter.865

       (B)(1) Except as provided under division (B)(2) of this 866
section and sections 3305.08, 3305.09, and 3305.11, and 3305.12 of 867
the Revised Code, benefits shall be paid to an electing employee 868
or the employee's beneficiaries in accordance with the alternative 869
retirement plan adopted by the public institution of higher 870
education at which the employee is employed.871

       (2) A benefit or payment shall not be paid under an 872
investment option prior to the time an electing employee dies, 873
terminates employment with the public institution of higher 874
education, or, if provided under the alternative retirement plan 875
or investment option, becomes disabled, except that the provider 876
of the investment option shall transfer the employee's account 877
balance to another provider as provided under section 3305.053 of 878
the Revised Code.879

       Sec. 3305.08.  Any payment, benefit, or other right accruing 880
to any electing employee under a contract entered into for 881
purposes of an alternative retirement plan and all moneys, 882
investments, and income of those contracts are exempt from any 883
state tax, except the tax imposed by section 5747.02 of the 884
Revised Code, are exempt from any county, municipal, or other 885
local tax, except taxes imposed pursuant to section 5748.02 or 886
5748.08 of the Revised Code, and except as provided in sections 887
3105.171, 3105.65, 3115.32, 3119.80, 3119.81, 3121.02, 3121.03, 888
3123.06, and 3305.09, and 3305.12 of the Revised Code, shall not 889
be subject to execution, garnishment, attachment, the operation of 890
bankruptcy or the insolvency law, or other process of law, and 891
shall be unassignable except as specifically provided in this 892
section and sections 3105.171, 3105.65, 3119.80, 3119.81, 3121.02, 893
3121.03, 3115.32, and 3123.06 of the Revised Code or in any 894
contract the electing employee has entered into for purposes of an 895
alternative retirement plan.896

       Sec. 3305.12.  Notwithstanding any other provision of an 897
alternative retirement plan provided under this chapter, a 898
disability benefit granted under the alternative retirement plan 899
is subject to an order issued under section 2929.193 of the 900
Revised Code. The entity providing the alternative retirement plan 901
shall comply with the order.902

       On receipt of notice under section 2901.43 of the Revised 903
Code that an alternative retirement plan participant is charged 904
with an offense listed in division (D) of section 2929.192 of the 905
Revised Code under the circumstances specified in that division, 906
the entity shall determine whether the participant has been 907
granted a disability benefit. If so, the entity shall send written 908
notice to the prosecutor assigned to the case that the participant 909
has been granted a disability benefit under an alternative 910
retirement plan and may be subject to section 2929.193 of the 911
Revised Code.912

       Sec. 3305.20.  As used in this section, "personal history 913
record" means information maintained by the entity providing an 914
alternative retirement plan on an individual who participates in 915
the plan that includes the address, telephone number, social 916
security number, record of contributions, correspondence with the 917
plan, or other information the entity providing the plan 918
determines to be confidential.919

       The entity shall comply with orders issued under section 920
3105.87 of the Revised Code requiring it to provide information 921
from a participant's personal history record.922

       OnThe entity shall furnish information as follows:923

       (A) On the written request of an alternate payee, as defined 924
in section 3105.80 of the Revised Code, the entity providing the 925
alternative retirement plan shall furnish to the alternate payee 926
information on the amount and status of any amounts payable to the 927
alternate payee under an order issued under section 3105.171 or 928
3105.65 of the Revised Code.929

       (B) Documentation required by section 2929.193 of the Revised 930
Code shall be provided to a court holding a hearing under that 931
section.932

        (C) The notice required by section 3305.12 of the Revised 933
Code shall be provided to the prosecutor assigned to the case.934

       Sec. 3305.22. As used in this section, "alternate payee" has 935
the same meaning as in section 3105.80 of the Revised Code.936

       If a person who is a disability benefit recipient or an 937
alternate payee, as defined in section 3105.80 of the Revised 938
Code, is paid any amount under an order issued under section 939
3105.171 or 3105.65 of the Revised Code to which the person is not 940
entitled by an entity providing an alternative retirement plan, 941
the person shall repay the entity. If the person fails to repay, 942
the entity shall withhold the amount from any benefit or payment 943
due the person under the order or may collect the amount in any 944
other manner provided by law.945

       Sec. 3307.20.  (A) As used in this section:946

       (1) "Personal history record" means information maintained by 947
the state teachers retirement board on an individual who is a 948
member, former member, contributor, former contributor, retirant, 949
or beneficiary that includes the address, telephone number, social 950
security number, record of contributions, correspondence with the 951
state teachers retirement system, or other information the board 952
determines to be confidential.953

       (2) "Retirant" has the same meaning as in section 3307.50 of 954
the Revised Code.955

       (B) The records of the board shall be open to public 956
inspection, except for the following, which shall be excluded, 957
except with the written authorization of the individual concerned:958

       (1) The individual's personal records provided for in section 959
3307.23 of the Revised Code;960

       (2) The individual's personal history record;961

       (3) Any information identifying, by name and address, the 962
amount of a monthly allowance or benefit paid to the individual.963

       (C) All medical reports and recommendations under sections 964
3307.62, 3307.64, and 3307.66 of the Revised Code are privileged, 965
except that copiesas follows:966

       (1) Copies of such medical reports or recommendations shall 967
be made available to the personal physician, attorney, or 968
authorized agent of the individual concerned upon written release 969
received from the individual or the individual's agent, or, when 970
necessary for the proper administration of the fund, to the board 971
assigned physician.972

       (2) Documentation required by section 2929.193 of the Revised 973
Code shall be provided to a court holding a hearing under that 974
section.975

       (D) Any person who is a member or contributor of the system 976
shall be furnished, on written request, with a statement of the 977
amount to the credit of the person's account. The board need not 978
answer more than one request of a person in any one year.979

       (E) Notwithstanding the exceptions to public inspection in 980
division (B) of this section, the board may furnish the following 981
information:982

       (1) If a member, former member, retirant, contributor, or 983
former contributor is subject to an order issued under section 984
2907.15 of the Revised Code or an order issued under division (A) 985
or (B) of section 2929.192 of the Revised Code or is convicted of 986
or pleads guilty to a violation of section 2921.41 of the Revised 987
Code, on written request of a prosecutor as defined in section 988
2935.01 of the Revised Code, the board shall furnish to the 989
prosecutor the information requested from the individual's 990
personal history record.991

       (2) Pursuant to a court or administrative order issued under 992
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the 993
Revised Code, the board shall furnish to a court or child support 994
enforcement agency the information required under that section.995

       (3) At the written request of any person, the board shall 996
provide to the person a list of the names and addresses of 997
members, former members, retirants, contributors, former 998
contributors, or beneficiaries. The costs of compiling, copying, 999
and mailing the list shall be paid by such person.1000

       (4) Within fourteen days after receiving from the director of 1001
job and family services a list of the names and social security 1002
numbers of recipients of public assistance pursuant to section 1003
5101.181 of the Revised Code, the board shall inform the auditor 1004
of state of the name, current or most recent employer address, and 1005
social security number of each member whose name and social 1006
security number are the same as that of a person whose name or 1007
social security number was submitted by the director. The board 1008
and its employees shall, except for purposes of furnishing the 1009
auditor of state with information required by this section, 1010
preserve the confidentiality of recipients of public assistance in 1011
compliance with division (A) of section 5101.181 of the Revised 1012
Code.1013

       (5) The system shall comply with orders issued under section 1014
3105.87 of the Revised Code.1015

       On the written request of an alternate payee, as defined in 1016
section 3105.80 of the Revised Code, the system shall furnish to 1017
the alternate payee information on the amount and status of any 1018
amounts payable to the alternate payee under an order issued under 1019
section 3105.171 or 3105.65 of the Revised Code.1020

       (6) At the request of any person, the board shall make 1021
available to the person copies of all documents, including 1022
resumes, in the board's possession regarding filling a vacancy of 1023
a contributing member or retired teacher member of the board. The 1024
person who made the request shall pay the cost of compiling, 1025
copying, and mailing the documents. The information described in 1026
this division is a public record.1027

       (7) The system shall provide the notice required by section 1028
3307.373 of the Revised Code to the prosecutor assigned to the 1029
case.1030

       (F) A statement that contains information obtained from the 1031
system's records that is signed by an officer of the retirement 1032
system and to which the system's official seal is affixed, or 1033
copies of the system's records to which the signature and seal are 1034
attached, shall be received as true copies of the system's records 1035
in any court or before any officer of this state.1036

       Sec. 3307.373.  Notwithstanding any other provision of this 1037
chapter, a disability benefit granted under this chapter is 1038
subject to an order issued under section 2929.193 of the Revised 1039
Code. The state teachers retirement board shall comply with the 1040
order.1041

       On receipt of notice under section 2901.43 of the Revised 1042
Code that a state teachers retirement system member is charged 1043
with an offense listed in division (D) of section 2929.192 of the 1044
Revised Code under the circumstances specified in that division, 1045
the system shall determine whether the member has been granted a 1046
disability benefit. If so, the system shall send written notice to 1047
the prosecutor assigned to the case that the member has been 1048
granted a disability benefit under this chapter and may be subject 1049
to section 2929.193 of the Revised Code.1050

       Sec. 3307.41.  The right of an individual to a pension, an 1051
annuity, or a retirement allowance itself, the right of an 1052
individual to any optional benefit, or any other right or benefit 1053
accrued or accruing to any individual under this chapter, the 1054
various funds created by section 3307.14 of the Revised Code, and 1055
all moneys, investments, and income from moneys or investments are 1056
exempt from any state tax, except the tax imposed by section 1057
5747.02 of the Revised Code, and are exempt from any county, 1058
municipal, or other local tax, except taxes imposed pursuant to 1059
section 5748.02 or 5748.08 of the Revised Code, and, except as 1060
provided in sections 3105.171, 3105.65, 3115.32, 3119.80, 3119.81, 1061
3121.02, 3121.03, 3123.06, 3307.37, and 3307.372, and 3307.373 of 1062
the Revised Code, shall not be subject to execution, garnishment, 1063
attachment, the operation of bankruptcy or insolvency laws, or any 1064
other process of law whatsoever, and shall be unassignable except 1065
as specifically provided in this chapter or sections 3105.171, 1066
3105.65, 3115.32, 3119.80, 3119.81, 3121.02, 3121.03, and 3123.06 1067
of the Revised Code.1068

       Sec. 3307.42. TheExcept as provided in section 3307.373 of 1069
the Revised Code, the granting to any person of an allowance, 1070
annuity, or pension, as defined in sectionor other benefit under 1071
the plan described in sections 3307.50 to 3307.79 of the Revised 1072
Code, or the granting of a benefit under a plan established under 1073
section 3307.81 of the Revised Code, pursuant to an action of the 1074
state teachers' retirement board vests a right in such person, so 1075
long as the person remains the beneficiary of any of the funds 1076
established by section 3307.14 of the Revised Code, to receive the 1077
allowance, annuity, pension, or benefit at the rate fixed at the 1078
time of granting the allowance, annuity, pension, or benefit. Such 1079
right shall also be vested with equal effect in the beneficiary of 1080
a grant heretofore made from any of the funds named in section 1081
3307.14 of the Revised Code.1082

       Sec. 3309.22.  (A)(1) As used in this division, "personal 1083
history record" means information maintained by the board on an 1084
individual who is a member, former member, contributor, former 1085
contributor, retirant, or beneficiary that includes the address, 1086
telephone number, social security number, record of contributions, 1087
correspondence with the system, and other information the board 1088
determines to be confidential.1089

       (2) The records of the board shall be open to public 1090
inspection, except for the following, which shall be excluded, 1091
except with the written authorization of the individual concerned:1092

       (a) The individual's statement of previous service and other 1093
information as provided for in section 3309.28 of the Revised 1094
Code;1095

       (b) Any information identifying by name and address the 1096
amount of a monthly allowance or benefit paid to the individual;1097

       (c) The individual's personal history record.1098

       (B) All medical reports and recommendations required by the 1099
system are privileged except that copiesas follows:1100

       (1) Copies of such medical reports or recommendations shall 1101
be made available to the personal physician, attorney, or 1102
authorized agent of the individual concerned upon written release 1103
received from the individual or the individual's agent, or when 1104
necessary for the proper administration of the fund, to the board 1105
assigned physician.1106

       (2) Documentation required by section 2929.193 of the Revised 1107
Code shall be provided to a court holding a hearing under that 1108
section.1109

       (C) Any person who is a contributor of the system shall be 1110
furnished, on written request, with a statement of the amount to 1111
the credit of the person's account. The board need not answer more 1112
than one such request of a person in any one year.1113

       (D) Notwithstanding the exceptions to public inspection in 1114
division (A)(2) of this section, the board may furnish the 1115
following information:1116

       (1) If a member, former member, contributor, former 1117
contributor, or retirant is subject to an order issued under 1118
section 2907.15 of the Revised Code or an order issued under 1119
division (A) or (B) of section 2929.192 of the Revised Code or is 1120
convicted of or pleads guilty to a violation of section 2921.41 of 1121
the Revised Code, on written request of a prosecutor as defined in 1122
section 2935.01 of the Revised Code, the board shall furnish to 1123
the prosecutor the information requested from the individual's 1124
personal history record.1125

       (2) Pursuant to a court or administrative order issued under 1126
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the 1127
Revised Code, the board shall furnish to a court or child support 1128
enforcement agency the information required under that section.1129

       (3) At the written request of any person, the board shall 1130
provide to the person a list of the names and addresses of 1131
members, former members, retirants, contributors, former 1132
contributors, or beneficiaries. The costs of compiling, copying, 1133
and mailing the list shall be paid by such person.1134

       (4) Within fourteen days after receiving from the director of 1135
job and family services a list of the names and social security 1136
numbers of recipients of public assistance pursuant to section 1137
5101.181 of the Revised Code, the board shall inform the auditor 1138
of state of the name, current or most recent employer address, and 1139
social security number of each contributor whose name and social 1140
security number are the same as that of a person whose name or 1141
social security number was submitted by the director. The board 1142
and its employees shall, except for purposes of furnishing the 1143
auditor of state with information required by this section, 1144
preserve the confidentiality of recipients of public assistance in 1145
compliance with division (A) of section 5101.181 of the Revised 1146
Code.1147

       (5) The system shall comply with orders issued under section 1148
3105.87 of the Revised Code.1149

       On the written request of an alternate payee, as defined in 1150
section 3105.80 of the Revised Code, the system shall furnish to 1151
the alternate payee information on the amount and status of any 1152
amounts payable to the alternate payee under an order issued under 1153
section 3105.171 or 3105.65 of the Revised Code.1154

       (6) At the request of any person, the board shall make 1155
available to the person copies of all documents, including 1156
resumes, in the board's possession regarding filling a vacancy of 1157
an employee member or retirant member of the board. The person who 1158
made the request shall pay the cost of compiling, copying, and 1159
mailing the documents. The information described in this division 1160
is a public record.1161

       (7) The system shall provide the notice required by section 1162
3309.673 of the Revised Code to the prosecutor assigned to the 1163
case.1164

       (E) A statement that contains information obtained from the 1165
system's records that is signed by an officer of the retirement 1166
system and to which the system's official seal is affixed, or 1167
copies of the system's records to which the signature and seal are 1168
attached, shall be received as true copies of the system's records 1169
in any court or before any officer of this state.1170

       Sec. 3309.66.  The right of an individual to a pension, an 1171
annuity, or a retirement allowance itself, the right of an 1172
individual to any optional benefit, any other right accrued or 1173
accruing to any individual under this chapter, the various funds 1174
created by section 3309.60 of the Revised Code, and all moneys, 1175
investments, and income from moneys and investments are exempt 1176
from any state tax, except the tax imposed by section 5747.02 of 1177
the Revised Code, and are exempt from any county, municipal, or 1178
other local tax, except taxes imposed pursuant to section 5748.02 1179
or 5748.08 of the Revised Code, and, except as provided in 1180
sections 3105.171, 3105.65, 3115.32, 3119.80, 3119.81, 3121.02, 1181
3121.03, 3123.06, 3309.67, and 3309.672, and 3309.673 of the 1182
Revised Code, shall not be subject to execution, garnishment, 1183
attachment, the operation of bankruptcy or insolvency laws, or any 1184
other process of law whatsoever, and shall be unassignable except 1185
as specifically provided in this chapter and in sections 3105.171, 1186
3105.65, 3115.32, 3119.80, 3119.81, 3121.02, 3121.03, and 3123.06 1187
of the Revised Code.1188

       Sec. 3309.661. TheExcept as provided in section 3309.673 of 1189
the Revised Code, the granting of a retirement allowance, annuity, 1190
pension, or other benefit to any person pursuant to action of the 1191
school employees retirement board vests a right in such person, so 1192
long as hethe person remains the recipient of any of the funds 1193
established by section 3309.60 of the Revised Code, to receive 1194
such retirement allowance, annuity, pension, or benefit. Such 1195
right shall also be vested with equal effect in the recipient of a 1196
grant heretofore made from any of the funds named in section 1197
3309.60 of the Revised Code.1198

       Sec. 3309.673.  Notwithstanding any other provision of this 1199
chapter, a disability benefit granted under this chapter is 1200
subject to an order issued under section 2929.193 of the Revised 1201
Code. The school employees retirement board shall comply with the 1202
order.1203

       On receipt of notice under section 2901.43 of the Revised 1204
Code that a school employees retirement system member is charged 1205
with an offense listed in division (D) of section 2929.192 of the 1206
Revised Code under the circumstances specified in that division, 1207
the system shall determine whether the member has been granted a 1208
disability benefit. If so, the system shall send written notice to 1209
the prosecutor assigned to the case that the member has been 1210
granted a disability benefit under this chapter and may be subject 1211
to section 2929.193 of the Revised Code.1212

       Sec. 3309.82.  (A) Except as provided in division (B) of this 1213
section, sections 3309.02, 3309.021, and 3309.022 and sections 1214
3309.18 to 3309.70 of the Revised Code do not apply to a plan 1215
established under section 3309.81 of the Revised Code, except that 1216
a plan may incorporate provisions of those sections as specified 1217
in the plan document.1218

       (B) The following sections of Chapter 3309. of the Revised 1219
Code apply to a plan established under section 3309.81 of the 1220
Revised Code: sections 3309.19, 3309.21, 3309.22, 3309.23, 1221
3309.24, 3309.25, 3309.251, 3309.252, 3309.253, 3309.28, 3309.29, 1222
3309.341, 3309.3712, 3309.47, 3309.471, 3309.49, 3309.51, 3309.53, 1223
3309.54, 3309.55, 3309.56, 3309.57, 3309.571, 3309.58, 3309.59, 1224
3309.60, 3309.61, 3309.62, 3309.66, 3309.661, 3309.67, 3309.672, 1225
3309.673, 3309.68, and 3309.70 of the Revised Code.1226

       Sec. 3309.95.  Subject to sections 3309.341, 3309.66, 1227
3309.67, and 3309.672, and 3309.673 of the Revised Code, the right 1228
of a member participating in a plan established under section 1229
3309.81 of the Revised Code to any payment or benefit accruing 1230
from contributions made by or on behalf of the member under 1231
sections 3309.85 and 3309.86 of the Revised Code shall vest in 1232
accordance with this section.1233

       A member's right to any payment or benefit that is based on 1234
the member's contributions is nonforfeitable.1235

       A member's right to any payment or benefit that is based on 1236
contributions by the member's employer is nonforfeitable as 1237
specified by the plan selected by the member.1238

       Sec. 4121.12.  (A) There is hereby created the bureau of 1239
workers' compensation board of directors consisting of eleven 1240
members to be appointed by the governor with the advice and 1241
consent of the senate. One member shall be an individual who, on 1242
account of the individual's previous vocation, employment, or 1243
affiliations, can be classed as a representative of employees; two 1244
members shall be individuals who, on account of their previous 1245
vocation, employment, or affiliations, can be classed as 1246
representatives of employee organizations and at least one of 1247
these two individuals shall be a member of the executive committee 1248
of the largest statewide labor federation; three members shall be 1249
individuals who, on account of their previous vocation, 1250
employment, or affiliations, can be classed as representatives of 1251
employers, one of whom represents self-insuring employers, one of 1252
whom is a state fund employer who employs one hundred or more 1253
employees, and one of whom is a state fund employer who employs 1254
less than one hundred employees; two members shall be individuals 1255
who, on account of their vocation, employment, or affiliations, 1256
can be classed as investment and securities experts who have 1257
direct experience in the management, analysis, supervision, or 1258
investment of assets and are residents of this state; one member 1259
who shall be a certified public accountant; one member who shall 1260
be an actuary who is a member in good standing with the American 1261
academy of actuaries or who is an associate or fellow with the 1262
casualty actuarial society of actuaries; and one member shall 1263
represent the public and also be an individual who, on account of 1264
the individual's previous vocation, employment, or affiliations, 1265
cannot be classed as either predominantly representative of 1266
employees or of employers. The governor shall select the 1267
chairperson of the board who shall serve as chairperson at the 1268
pleasure of the governor.1269

        None of the members of the board, within one year immediately 1270
preceding the member's appointment, shall have been employed by 1271
the bureau of workers' compensation or by any person, partnership, 1272
or corporation that has provided to the bureau services of a 1273
financial or investment nature, including the management, 1274
analysis, supervision, or investment of assets.1275

       (B) Of the initial appointments made to the board, the 1276
governor shall appoint the member who represents employees, one 1277
member who represents employers, and the member who represents the 1278
public to a term ending one year after June 11, 2007; one member 1279
who represents employers, one member who represents employee 1280
organizations, one member who is an investment and securities 1281
expert, and the member who is a certified public accountant to a 1282
term ending two years after June 11, 2007; and one member who 1283
represents employers, one member who represents employee 1284
organizations, one member who is an investment and securities 1285
expert, and the member who is an actuary to a term ending three 1286
years after June 11, 2007. Thereafter, terms of office shall be 1287
for three years, with each term ending on the same day of the same 1288
month as did the term that it succeeds. Each member shall hold 1289
office from the date of the member's appointment until the end of 1290
the term for which the member was appointed.1291

        Members may be reappointed. Any member appointed to fill a 1292
vacancy occurring prior to the expiration date of the term for 1293
which the member's predecessor was appointed shall hold office as 1294
a member for the remainder of that term. A member shall continue 1295
in office subsequent to the expiration date of the member's term 1296
until a successor takes office or until a period of sixty days has 1297
elapsed, whichever occurs first.1298

       (C) In making appointments to the board, the governor shall 1299
select the members from the list of names submitted by the 1300
workers' compensation board of directors nominating committee 1301
pursuant to this division. The nominating committee shall submit 1302
to the governor a list containing four separate names for each of 1303
the members on the board. Within fourteen days after the 1304
submission of the list, the governor shall appoint individuals 1305
from the list.1306

        At least thirty days prior to a vacancy occurring as a result 1307
of the expiration of a term and within thirty days after other 1308
vacancies occurring on the board, the nominating committee shall 1309
submit an initial list containing four names for each vacancy. 1310
Within fourteen days after the submission of the initial list, the 1311
governor either shall appoint individuals from that list or 1312
request the nominating committee to submit another list of four 1313
names for each member the governor has not appointed from the 1314
initial list, which list the nominating committee shall submit to 1315
the governor within fourteen days after the governor's request. 1316
The governor then shall appoint, within seven days after the 1317
submission of the second list, one of the individuals from either 1318
list to fill the vacancy for which the governor has not made an 1319
appointment from the initial list. If the governor appoints an 1320
individual to fill a vacancy occurring as a result of the 1321
expiration of a term, the individual appointed shall begin serving 1322
as a member of the board when the term for which the individual's 1323
predecessor was appointed expires or immediately upon appointment 1324
by the governor, whichever occurs later. With respect to the 1325
filling of vacancies, the nominating committee shall provide the 1326
governor with a list of four individuals who are, in the judgment 1327
of the nominating committee, the most fully qualified to accede to 1328
membership on the board.1329

       In order for the name of an individual to be submitted to the 1330
governor under this division, the nominating committee shall 1331
approve the individual by an affirmative vote of a majority of its 1332
members.1333

       (D) All members of the board shall receive their reasonable 1334
and necessary expenses pursuant to section 126.31 of the Revised 1335
Code while engaged in the performance of their duties as members 1336
and also shall receive an annual salary not to exceed sixty 1337
thousand dollars in total, payable on the following basis:1338

       (1) Except as provided in division (D)(2) of this section, a 1339
member shall receive two thousand five hundred dollars during a 1340
month in which the member attends one or more meetings of the 1341
board and shall receive no payment during a month in which the 1342
member attends no meeting of the board.1343

       (2) A member may receive no more than thirty thousand dollars 1344
per year to compensate the member for attending meetings of the 1345
board, regardless of the number of meetings held by the board 1346
during a year or the number of meetings in excess of twelve within 1347
a year that the member attends.1348

       (3) Except as provided in division (D)(4) of this section, if 1349
a member serves on the workers' compensation audit committee, 1350
workers' compensation actuarial committee, or the workers' 1351
compensation investment committee, the member shall receive two 1352
thousand five hundred dollars during a month in which the member 1353
attends one or more meetings of the committee on which the member 1354
serves and shall receive no payment during any month in which the 1355
member attends no meeting of that committee.1356

        (4) A member may receive no more than thirty thousand dollars 1357
per year to compensate the member for attending meetings of any of 1358
the committees specified in division (D)(3) of this section, 1359
regardless of the number of meetings held by a committee during a 1360
year or the number of committees on which a member serves.1361

       The chairperson of the board shall set the meeting dates of 1362
the board as necessary to perform the duties of the board under 1363
this chapter and Chapters 4123., 4125., 4127., 4131., and 4167. of 1364
the Revised Code. The board shall meet at least twelve times a 1365
year. The administrator of workers' compensation shall provide 1366
professional and clerical assistance to the board, as the board 1367
considers appropriate.1368

       (E) Before entering upon the duties of office, each appointed 1369
member of the board shall take an oath of office as required by 1370
sections 3.22 and 3.23 of the Revised Code and file in the office 1371
of the secretary of state the bond required under section 4121.127 1372
of the Revised Code.1373

       (F) The board shall:1374

       (1) Establish the overall administrative policy for the 1375
bureau for the purposes of this chapter and Chapters 4123., 4125., 1376
4127., 4131., and 4167. of the Revised Code;1377

       (2) Review progress of the bureau in meeting its cost and 1378
quality objectives and in complying with this chapter and Chapters 1379
4123., 4125., 4127., 4131., and 4167. of the Revised Code;1380

        (3) Submit an annual report to the president of the senate, 1381
the speaker of the house of representatives, the governor, and the 1382
workers' compensation council and include all of the following in 1383
that report:1384

       (a) An evaluation of the cost and quality objectives of the 1385
bureau;1386

       (b) A statement of the net assets available for the provision 1387
of compensation and benefits under this chapter and Chapters 1388
4123., 4127., and 4131. of the Revised Code as of the last day of 1389
the fiscal year;1390

       (c) A statement of any changes that occurred in the net 1391
assets available, including employer premiums and net investment 1392
income, for the provision of compensation and benefits and payment 1393
of administrative expenses, between the first and last day of the 1394
fiscal year immediately preceding the date of the report;1395

       (d) The following information for each of the six consecutive 1396
fiscal years occurring previous to the report:1397

       (i) A schedule of the net assets available for compensation 1398
and benefits;1399

       (ii) The annual cost of the payment of compensation and 1400
benefits;1401

       (iii) Annual administrative expenses incurred;1402

       (iv) Annual employer premiums allocated for the provision of 1403
compensation and benefits.1404

       (e) A description of any significant changes that occurred 1405
during the six years for which the board provided the information 1406
required under division (F)(3)(d) of this section that affect the 1407
ability of the board to compare that information from year to 1408
year.1409

       (4) Review all independent financial audits of the bureau. 1410
The administrator shall provide access to records of the bureau to 1411
facilitate the review required under this division.1412

       (5) Study issues as requested by the administrator or the 1413
governor;1414

       (6) Contract with all of the following:1415

       (a) An independent actuarial firm to assist the board in 1416
making recommendations to the administrator regarding premium 1417
rates;1418

       (b) An outside investment counsel to assist the workers' 1419
compensation investment committee in fulfilling its duties;1420

       (c) An independent fiduciary counsel to assist the board in 1421
the performance of its duties.1422

        (7) Approve the investment policy developed by the workers' 1423
compensation investment committee pursuant to section 4121.129 of 1424
the Revised Code if the policy satisfies the requirements 1425
specified in section 4123.442 of the Revised Code.1426

       (8) Review and publish the investment policy no less than 1427
annually and make copies available to interested parties.1428

       (9) Prohibit, on a prospective basis, any specific investment 1429
it finds to be contrary to the investment policy approved by the 1430
board.1431

        (10) Vote to open each investment class and allow the 1432
administrator to invest in an investment class only if the board, 1433
by a majority vote, opens that class;1434

       (11) After opening a class but prior to the administrator 1435
investing in that class, adopt rules establishing due diligence 1436
standards for employees of the bureau to follow when investing in 1437
that class and establish policies and procedures to review and 1438
monitor the performance and value of each investment class;1439

       (12) Submit a report annually on the performance and value of 1440
each investment class to the governor, the president and minority 1441
leader of the senate, the speaker and minority leader of the house 1442
of representatives, and the workers' compensation council.1443

       (13) Advise and consent on all of the following:1444

       (a) Administrative rules the administrator submits to it 1445
pursuant to division (B)(5) of section 4121.121 of the Revised 1446
Code for the classification of occupations or industries, for 1447
premium rates and contributions, for the amount to be credited to 1448
the surplus fund, for rules and systems of rating, rate revisions, 1449
and merit rating;1450

       (b) The duties and authority conferred upon the administrator 1451
pursuant to section 4121.37 of the Revised Code;1452

       (c) Rules the administrator adopts for the health partnership 1453
program and the qualified health plan system, as provided in 1454
sections 4121.44, 4121.441, and 4121.442 of the Revised Code;1455

       (d) Rules the administrator submits to it pursuant to Chapter 1456
4167. of the Revised Code regarding the public employment risk 1457
reduction program and the protection of public health care workers 1458
from exposure incidents.1459

        As used in this division, "public health care worker" and 1460
"exposure incident" have the same meanings as in section 4167.25 1461
of the Revised Code.1462

       (14) Perform all duties required under this chapter and 1463
Chapters 4123., 4125., 4127., 4131., and 4167. of the Revised 1464
Code;1465

       (15) Meet with the governor on an annual basis to discuss the 1466
administrator's performance of the duties specified in this 1467
chapter and Chapters 4123., 4125., 4127., 4131., and 4167. of the 1468
Revised Code;1469

       (16) Develop and participate in a bureau of workers' 1470
compensation board of directors education program that consists of 1471
all of the following:1472

       (a) An orientation component for newly appointed members;1473

       (b) A continuing education component for board members who 1474
have served for at least one year;1475

       (c) A curriculum that includes education about each of the 1476
following topics:1477

       (i) Board member duties and responsibilities;1478

       (ii) Compensation and benefits paid pursuant to this chapter 1479
and Chapters 4123., 4127., and 4131. of the Revised Code;1480

       (iii) Ethics;1481

       (iv) Governance processes and procedures;1482

       (v) Actuarial soundness;1483

       (vi) Investments;1484

       (vii) Any other subject matter the board believes is 1485
reasonably related to the duties of a board member.1486

       (17) Submit the program developed pursuant to division 1487
(F)(16) of this section to the workers' compensation council for 1488
approval;1489

       (18) Hold all sessions, classes, and other events for the 1490
program developed pursuant to division (F)(16) of this section in 1491
this state.1492

       (G) The board may do both of the following:1493

       (1) Vote to close any investment class;1494

       (2) Create any committees in addition to the workers' 1495
compensation audit committee, the workers' compensation actuarial 1496
committee, and the workers' compensation investment committee that 1497
the board determines are necessary to assist the board in 1498
performing its duties.1499

       (H) The office of a member of the board who is convicted of 1500
or pleads guilty to a felony, a theft offense as defined in 1501
section 2913.01 of the Revised Code, or a violation of section 1502
102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, 1503
2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be 1504
deemed vacant. The vacancy shall be filled in the same manner as 1505
the original appointment. A person who has pleaded guilty to or 1506
been convicted of an offense of that nature is ineligible to be a 1507
member of the board. A member who receives a bill of indictment 1508
for any of the offenses specified in this section shall be 1509
automatically suspended from the board pending resolution of the 1510
criminal matter.1511

       (I) For the purposes of division (G)(1) of section 121.22 of 1512
the Revised Code, the meeting between the governor and the board 1513
to review the administrator's performance as required under 1514
division (F)(15) of this section shall be considered a meeting 1515
regarding the employment of the administrator.1516

       Sec. 4121.123.  (A) There is hereby created the workers' 1517
compensation board of directors nominating committee consisting of 1518
the following:1519

       (1) Three individuals who are members of affiliated employee 1520
organizations of the Ohio chapter of the American federation of 1521
labor-congress of industrial organizations, who are selected by 1522
the Ohio chapter of the American federation of labor-congress of 1523
industrial organizations and who, on account of their previous 1524
vocation, employment, or affiliations, can be classed as 1525
representative of employees who are members of an employee 1526
organization. Terms of office shall be for one year, with each 1527
term ending on the same day of the same month as did the term that 1528
it succeeds.1529

       (2) Two individuals who, on account of their previous 1530
vocation, employment, or affiliations, can be classed as 1531
representative of employees, one of whom shall be an injured 1532
worker with a valid, open, and active workers' compensation claim 1533
and at least one of these two representatives also shall represent 1534
employees who are not members of an employee organization. The 1535
president of the senate and the speaker of the house of 1536
representatives each shall appoint annually one of these members. 1537
The member who is an injured worker shall serve for a full term 1538
even if the member's workers' compensation claim is invalidated, 1539
closed, or inactivated during the member's term.1540

       (3) The chief executive officer, or the equivalent of the 1541
chief executive officer, of the Ohio chamber of commerce, the Ohio 1542
manufacturers' association, the Ohio self-insurers' association, 1543
the Ohio council of retail merchants, and of either the national 1544
federation of independent business or, and the Ohio farm bureau as 1545
jointly selected by the national federation of independent 1546
business and the Ohio farm bureau;1547

       (4) The director of development;1548

       (5) The president of the Ohio municipal league, the Ohio 1549
township association, and the president of the Ohio county 1550
commissioners association, or, in the event of a vacancy in the 1551
presidency, a designee appointed by the governing body authorized 1552
to appoint the president. A designee so appointed shall serve on 1553
the nominating committee only until the vacancy in the presidency 1554
is filled.1555

       (B) Each member appointed under divisions (A)(1) and (2) of 1556
this section shall hold office from the date of the member's 1557
appointment until the end of the term for which the member was 1558
appointed. Such members may be reappointed. Vacancies shall be 1559
filled in the manner provided for original appointments. Any such 1560
member appointed to fill a vacancy occurring prior to the 1561
expiration date of the term for which the member's predecessor was 1562
appointed shall hold office as a member for the remainder of that 1563
term. Such a member shall continue in office subsequent to the 1564
expiration date of the member's term until the member's successor 1565
takes office or until a period of sixty days has elapsed, 1566
whichever occurs first.1567

       (C) The nominating committee shall meet at the request of the 1568
governor or as the nominating committee determines appropriate in 1569
order to make recommendations to the governor for the appointment 1570
of members of the bureau of workers' compensation board of 1571
directors under section 4121.12 of the Revised Code.1572

       (D) The director of development shall serve as chairperson of 1573
the nominating committee and have no voting rights on matters 1574
coming before the nominating committee, except that the director 1575
may vote in the event of a tie vote of the nominating committee. 1576
Annually, the nominating committee shall select a secretary from 1577
among its members. The nominating committee may adopt by-laws 1578
governing its proceedings.1579

       (E) Members of the nominating committee shall be paid their 1580
reasonable and necessary expenses pursuant to section 126.31 of 1581
the Revised Code while engaged in the performance of their duties 1582
as members of the nominating committee.1583

       (F) The nominating committee shall:1584

       (1) Review and evaluate possible appointees for the board. In 1585
reviewing and evaluating possible appointees for the board, the 1586
nominating committee may accept comments from, cooperate with, and 1587
request information from any person.1588

       (2) Make recommendations to the governor for the appointment 1589
of members to the board as provided in division (C) of section 1590
4121.12 of the Revised Code.1591

       (G) The nominating committee may make recommendations to the 1592
general assembly concerning changes in legislation that will 1593
assist the nominating committee in the performance of its duties.1594

       Sec. 4121.125.  (A) The bureau of workers' compensation board 1595
of directors, based upon recommendations of the workers' 1596
compensation actuarial committee, may contract with one or more 1597
outside actuarial firms and other professional persons, as the 1598
board determines necessary, to assist the board in measuring the 1599
performance of Ohio's workers' compensation system and in 1600
comparing Ohio's workers' compensation system to other state and 1601
private workers' compensation systems. The board, actuarial firm 1602
or firms, and professional persons shall make such measurements 1603
and comparisons using accepted insurance industry standards, 1604
including, but not limited to, standards promulgated by the 1605
National Council on Compensation Insurance.1606

       (B) The board may contract with one or more outside firms to 1607
conduct management and financial audits of the workers' 1608
compensation system, including audits of the reserve fund 1609
belonging to the state insurance fund, and to establish objective 1610
quality management principles and methods by which to review the 1611
performance of the workers' compensation system.1612

       (C) The board shall do all of the following:1613

       (1) Contract to have prepared annually by or under the 1614
supervision of an actuary a report that meets the requirements 1615
specified under division (E) of this section and that consists of 1616
an actuarial valuation of the assets, liabilities, and funding 1617
requirements of the state insurance fund and all other funds 1618
specified in this chapter and Chapters 4123., 4127., and 4131. of 1619
the Revised Code;1620

       (2) Require that the actuary or person supervised by an 1621
actuary referred to in division (C)(1) of this section complete 1622
the valuation in accordance with the actuarial standards of 1623
practice promulgated by the actuarial standards board of the 1624
American academy of actuaries;1625

       (3) Submit the report referred to in division (C)(1) of this 1626
section to the workers' compensation council and the standing 1627
committees of the house of representatives and the senate with 1628
primary responsibility for workers' compensation legislation on or 1629
before the first day of November following the year for which the 1630
valuation was made;1631

       (4) Have an actuary or a person who provides actuarial 1632
services under the supervision of an actuary, at such time as the 1633
board determines, and at least once during the five-year period 1634
that commences on September 10, 2007, and once within each 1635
five-year period thereafter, conduct an actuarial investigation of 1636
the experience of employers, the mortality, service, and injury 1637
rate of employees, and the payment of temporary total disability, 1638
permanent partial disability, and permanent total disability under 1639
sections 4123.56 to 4123.58 of the Revised Code to update the 1640
actuarial assumptions used in the report required by division 1641
(C)(1) of this section;1642

       (5) Submit the report required under division (F) of this 1643
section to the council and the standing committees of the house of 1644
representatives and the senate with primary responsibility for 1645
workers' compensation legislation not later than the first day of 1646
November following the fifth year of the period that the report 1647
covers;1648

       (6) Have prepared by or under the supervision of an actuary 1649
an actuarial analysis of any introduced legislation expected to 1650
have a measurable financial impact on the workers' compensation 1651
system;1652

       (7) Submit the report required under division (G) of this 1653
section to the legislative service commission, the standing 1654
committees of the house of representatives and the senate with 1655
primary responsibility for workers' compensation legislation, and 1656
the council not later than sixty days after the date of 1657
introduction of the legislation.1658

       (D) The administrator of workers' compensation and the 1659
industrial commission shall compile information and provide access 1660
to records of the bureau and the industrial commission to the 1661
board to the extent necessary for fulfillment of both of the 1662
following requirements:1663

       (1) Conduct of the measurements and comparisons described in 1664
division (A) of this section;1665

       (2) Conduct of the management and financial audits and 1666
establishment of the principles and methods described in division 1667
(B) of this section.1668

       (E) The firm or person with whom the board contracts pursuant 1669
to division (C)(1) of this section shall prepare a report of the 1670
valuation and submit the report to the board. The firm or person 1671
shall include all of the following information in the report that 1672
is required under division (C)(1) of this section:1673

       (1) A summary of the compensation and benefit provisions 1674
evaluated;1675

       (2) A summary of the census data and financial information 1676
used in the valuation;1677

       (3) A description of the actuarial assumptions,and actuarial 1678
cost method, and asset valuation method used in the valuation;1679

       (4) A summary of findings that includes a statement of the 1680
actuarial accrued compensation and benefit liabilities and 1681
unfunded actuarial accrued compensation and benefit liabilities;1682

       (5)(3) A schedule showing the effect of any changes in the 1683
compensation and benefit provisions, actuarial assumptions, or 1684
cost methods since the previous annual actuarial valuation report 1685
was submitted to the board.1686

       (F) The actuary or person whom the board designates to 1687
conduct an actuarial investigation under division (C)(4) of this 1688
section shall prepare a report of the actuarial investigation and 1689
shall submit the report to the board. The actuary or person shall 1690
prepare the report and make any recommended changes in actuarial 1691
assumptions in accordance with the actuarial standards of practice 1692
promulgated by the actuarial standards board of the American 1693
academy of actuaries. The actuary or person shall include all of 1694
the following information in the report:1695

       (1) A summary of relevant decrement and economic assumption 1696
experience;1697

       (2) Recommended changes in actuarial assumptions to be used 1698
in subsequent actuarial valuations required by division (C)(1) of 1699
this section;1700

       (3) A measurement of the financial effect of the recommended 1701
changes in actuarial assumptions.1702

       (G) The actuary or person whom the board designates to 1703
conduct the actuarial analysis under division (C)(6) of this 1704
section shall prepare a report of the actuarial analysis and shall 1705
submit that report to the board. The actuary or person shall 1706
complete the analysis in accordance with the actuarial standards 1707
of practice promulgated by the actuarial standards board of the 1708
American academy of actuaries. The actuary or person shall include 1709
all of the following information in the report:1710

       (1) A summary of the statutory changes being evaluated;1711

       (2) A description of or reference to the actuarial 1712
assumptions and actuarial cost method used in the report;1713

       (3) A description of the participant group or groups included 1714
in the report;1715

       (4) A statement of the financial impact of the legislation, 1716
including the resulting increase, if any, in employer premiums, in 1717
actuarial accrued liabilities, and, if an increase in actuarial 1718
accrued liabilities is predicted, the per cent of premium increase 1719
that would be required to amortize the increase in those 1720
liabilities as a level per cent of employer premiums over a period 1721
not to exceed thirty years.1722

       (5) A statement of whether the employer premiums paid to the 1723
bureau of workers' compensation after the proposed change is 1724
enacted are expected to be sufficient to satisfy the funding 1725
objectives established by the board.1726

       (H) The board may, at any time, request an actuary to make 1727
any studies or actuarial valuations to determine the adequacy of 1728
the premium rates established by the administrator in accordance 1729
with sections 4123.29 and 4123.34 of the Revised Code, and may 1730
adjust those rates as recommended by the actuary.1731

       (I) The board shall have an independent auditor, at least 1732
once every ten years, conduct a fiduciary performance audit of the 1733
investment program of the bureau of workers' compensation. That 1734
audit shall include an audit of the investment policies approved 1735
by the board and investment procedures of the bureau. The board 1736
shall submit a copy of that audit to the auditor of state.1737

       (J) The administrator, with the advice and consent of the 1738
board, shall employ an internal auditor who shall report findings 1739
directly to the board, workers' compensation audit committee, and 1740
administrator, except that the internal auditor shall not report 1741
findings directly to the administrator when those findings involve 1742
malfeasance, misfeasance, or nonfeasance on the part of the 1743
administrator. The board and the workers' compensation audit 1744
committee may request and review internal audits conducted by the 1745
internal auditor.1746

       (K) The administrator shall pay the expenses incurred by the 1747
board to effectively fulfill its duties and exercise its powers 1748
under this section as the administrator pays other operating 1749
expenses of the bureau.1750

       Sec. 4121.32.  (A) The rules covering operating procedure and 1751
criteria for decision-making that the administrator of workers' 1752
compensation and the industrial commission are required to adopt 1753
pursuant to section 4121.31 of the Revised Code shall be 1754
supplemented with operating manuals setting forth the procedural 1755
steps in detail for performing each of the assigned tasks of each 1756
section of the bureau of workers' compensation and commission. The 1757
administrator and commission jointly shall adopt such manuals. No 1758
employee may deviate from manual procedures without authorization 1759
of the section chief.1760

       (B) Manuals shall set forth the procedure for the assignment 1761
and transfer of claims within sections and be designed to provide 1762
performance objectives and may require employees to record 1763
sufficient data to reasonably measure the efficiency of functions 1764
in all sections. The bureau's division of research and statistics1765
bureau shall perform periodic cost-effectiveness analyses which1766
that shall be made available to the general assembly, the 1767
governor, and to the public during normal working hours.1768

       (C) The bureau and commission jointly shall develop, adopt, 1769
and use a policy manual setting forth the guidelines and bases for 1770
decision-making for any decision which is the responsibility of 1771
the bureau, district hearing officers, staff hearing officers, or 1772
the commission. Guidelines shall be set forth in the policy manual 1773
by the bureau and commission to the extent of their respective 1774
jurisdictions for deciding at least the following specific 1775
matters:1776

       (1) Reasonable ambulance services;1777

       (2) Relationship of drugs to injury;1778

       (3) Awarding lump-sum advances for creditors;1779

       (4) Awarding lump-sum advances for attorney's fees;1780

       (5) Placing a claimant into rehabilitation;1781

       (6) Transferring costs of a claim from employer costs to the 1782
statutory surplus fund pursuant to section 4123.343 of the Revised 1783
Code;1784

       (7) Utilization of physician specialist reports;1785

       (8) Determining the percentage of permanent partial 1786
disability, temporary partial disability, temporary total 1787
disability, violations of specific safety requirements, an award 1788
under division (B) of section 4123.57 of the Revised Code, and 1789
permanent total disability.1790

       (D) The bureau shall establish, adopt, and implement policy 1791
guidelines and bases for decisions involving reimbursement issues 1792
including, but not limited to, the adjustment of invoices, the 1793
reduction of payments for future services when an internal audit 1794
concludes that a health care provider was overpaid or improperly 1795
paid for past services, reimbursement fees, or other adjustments 1796
to payments. These policy guidelines and bases for decisions, and 1797
any changes to the guidelines and bases, shall be set forth in a 1798
reimbursement manual and provider bulletins.1799

       Neither the policy guidelines nor the bases set forth in the 1800
reimbursement manual or provider bulletins referred to in this 1801
division is a rule as defined in section 119.01 of the Revised 1802
Code.1803

       (E) With respect to any determination of disability under 1804
Chapter 4123. of the Revised Code, when the physician makes a 1805
determination based upon statements or information furnished by 1806
the claimant or upon subjective evidence, hethe physician shall 1807
clearly indicate this fact in histhe physician's report.1808

       (F) The administrator shall publish the manuals and make 1809
copies of all manuals available to interested parties at cost.1810

       Sec. 4121.41.  (A) The administrator of workers' compensation 1811
shall operate a program designed to inform employees and employers 1812
of their rights and responsibilities under Chapter 4123. of the 1813
Revised Code and as part of that program prepare and distribute 1814
pamphlets, which clearly and simply explain at least all of the 1815
following:1816

       (1) The rights and responsibilities of claimants and 1817
employers;1818

       (2) The procedures for processing claims;1819

       (3) The procedure for fulfilling employer responsibility;1820

       (4) All applicable statutes of limitation;1821

       (5) The availability of services and benefits;1822

       (6) The claimant's right to representation in the processing 1823
of a claim or to elect no representation.1824

       The administrator shall ensure that the provisions of this 1825
section are faithfully and speedily implemented.1826

       (B) The bureau of workers' compensation shall maintain an 1827
ongoing program to identify employers subject to Chapter 4123. of 1828
the Revised Code and to audit employers to ensure an optimum level 1829
of premium payment. The bureau shall coordinate such efforts with 1830
other governmental agencies which have information as to employers 1831
who are subject to Chapter 4123. of the Revised Code.1832

       (C) The administrator of the bureau shall handle complaints 1833
through the service offices, the claims section, and the ombudsman1834
ombudsperson program. The administrator shall provide toll free 1835
telephone lines for employers and claimants in order to expedite 1836
the handling of complaints. The bureau shall monitor complaint 1837
traffic to ensure an adequacy of telephone service to bureau 1838
offices. The division of research and statistics in the bureau1839
shall compile statistics on complaint subjects. Based upon those 1840
compilations, the bureau shall revise procedures and rules to 1841
correct major problem areas and submit data and recommendations 1842
annually to the appropriate committees of the general assembly.1843

       Sec. 4121.44.  (A) The administrator of workers' compensation 1844
shall oversee the implementation of the Ohio workers' compensation 1845
qualified health plan system as established under section 4121.442 1846
of the Revised Code.1847

       (B) The administrator shall direct the implementation of the 1848
health partnership program administered by the bureau as set forth 1849
in section 4121.441 of the Revised Code. To implement the health 1850
partnership program, the bureau:1851

       (1) Shall certify one or more external vendors, which shall 1852
be known as "managed care organizations," to provide medical 1853
management and cost containment services in the health partnership 1854
program for a period of two years beginning on the date of 1855
certification, consistent with the standards established under 1856
this section;1857

       (2) May recertify external vendors for additional periods of 1858
two years; and1859

       (3) May integrate the certified vendors with bureau staff and 1860
existing bureau services for purposes of operation and training to 1861
allow the bureau to assume operation of the health partnership 1862
program at the conclusion of the certification periods set forth 1863
in division (B)(1) or (2) of this section.1864

       (C) Any vendor selected shall demonstrate all of the 1865
following:1866

       (1) Arrangements and reimbursement agreements with a 1867
substantial number of the medical, professional and pharmacy 1868
providers currently being utilized by claimants.1869

       (2) Ability to accept a common format of medical bill data in 1870
an electronic fashion from any provider who wishes to submit 1871
medical bill data in that form.1872

       (3) A computer system able to handle the volume of medical 1873
bills and willingness to customize that system to the bureau's 1874
needs and to be operated by the vendor's staff, bureau staff, or 1875
some combination of both staffs.1876

       (4) A prescription drug system where pharmacies on a 1877
statewide basis have access to the eligibility and pricing, at a 1878
discounted rate, of all prescription drugs.1879

       (5) A tracking system to record all telephone calls from 1880
claimants and providers regarding the status of submitted medical 1881
bills so as to be able to track each inquiry.1882

       (6) Data processing capacity to absorb all of the bureau's 1883
medical bill processing or at least that part of the processing 1884
which the bureau arranges to delegate.1885

       (7) Capacity to store, retrieve, array, simulate, and model 1886
in a relational mode all of the detailed medical bill data so that 1887
analysis can be performed in a variety of ways and so that the 1888
bureau and its governing authority can make informed decisions.1889

       (8) Wide variety of software programs which translate medical 1890
terminology into standard codes, and which reveal if a provider is 1891
manipulating the procedures codes, commonly called "unbundling."1892

       (9) Necessary professional staff to conduct, at a minimum, 1893
authorizations for treatment, medical necessity, utilization 1894
review, concurrent review, post-utilization review, and have the 1895
attendant computer system which supports such activity and 1896
measures the outcomes and the savings.1897

       (10) Management experience and flexibility to be able to 1898
react quickly to the needs of the bureau in the case of required 1899
change in federal or state requirements.1900

       (D)(1) Information contained in a vendor's application for 1901
certification in the health partnership program, and other 1902
information furnished to the bureau by a vendor for purposes of 1903
obtaining certification or to comply with performance and 1904
financial auditing requirements established by the administrator, 1905
is for the exclusive use and information of the bureau in the 1906
discharge of its official duties, and shall not be open to the 1907
public or be used in any court in any proceeding pending therein, 1908
unless the bureau is a party to the action or proceeding, but the 1909
information may be tabulated and published by the bureau in 1910
statistical form for the use and information of other state 1911
departments and the public. No employee of the bureau, except as 1912
otherwise authorized by the administrator, shall divulge any 1913
information secured by the employee while in the employ of the 1914
bureau in respect to a vendor's application for certification or 1915
in respect to the business or other trade processes of any vendor 1916
to any person other than the administrator or to the employee's 1917
superior.1918

       (2) Notwithstanding the restrictions imposed by division 1919
(D)(1) of this section, the governor, members of select or 1920
standing committees of the senate or house of representatives, the 1921
auditor of state, the attorney general, or their designees, 1922
pursuant to the authority granted in this chapter and Chapter 1923
4123. of the Revised Code, may examine any vendor application or 1924
other information furnished to the bureau by the vendor. None of 1925
those individuals shall divulge any information secured in the 1926
exercise of that authority in respect to a vendor's application 1927
for certification or in respect to the business or other trade 1928
processes of any vendor to any person.1929

       (E) On and after January 1, 2001, a vendor shall not be any 1930
insurance company holding a certificate of authority issued 1931
pursuant to Title XXXIX of the Revised Code or any health insuring 1932
corporation holding a certificate of authority under Chapter 1751. 1933
of the Revised Code.1934

       (F) The administrator may limit freedom of choice of health 1935
care provider or supplier by requiring, beginning with the period 1936
set forth in division (B)(1) or (2) of this section, that 1937
claimants shall pay an appropriate out-of-plan copayment for 1938
selecting a medical provider not within the health partnership 1939
program as provided for in this section.1940

       (G) The administrator, six months prior to the expiration of 1941
the bureau's certification or recertification of the vendor or 1942
vendors as set forth in division (B)(1) or (2) of this section, 1943
may certify and provide evidence to the governor, the speaker of 1944
the house of representatives, and the president of the senate that 1945
the existing bureau staff is able to match or exceed the 1946
performance and outcomes of the external vendor or vendors and 1947
that the bureau should be permitted to internally administer the 1948
health partnership program upon the expiration of the 1949
certification or recertification as set forth in division (B)(1) 1950
or (2) of this section.1951

       (H) The administrator shall establish and operate a bureau of 1952
workers' compensation health care data program. The administrator 1953
shall develop reporting requirements from all employees, employers 1954
and medical providers, medical vendors, and plans that participate 1955
in the workers' compensation system. The administrator shall do 1956
all of the following:1957

       (1) Utilize the collected data to measure and perform 1958
comparison analyses of costs, quality, appropriateness of medical 1959
care, and effectiveness of medical care delivered by all 1960
components of the workers' compensation system.1961

       (2) Compile data to support activities of the selected vendor 1962
or vendors and to measure the outcomes and savings of the health 1963
partnership program.1964

       (3) Publish and report compiled data to the governor, the 1965
speaker of the house of representatives, and the president of the 1966
senate on the first day of each January and July,on the measures 1967
of outcomes and savings of the health partnership program and 1968
submit the report to the president of the senate, the speaker of 1969
the house of representatives, the governor, and the workers' 1970
compensation council with the annual report prepared under 1971
division (F)(3) of section 4121.12 of the Revised Code. The 1972
administrator shall protect the confidentiality of all proprietary 1973
pricing data.1974

       (I) Any rehabilitation facility the bureau operates is 1975
eligible for inclusion in the Ohio workers' compensation qualified 1976
health plan system or the health partnership program under the 1977
same terms as other providers within health care plans or the 1978
program.1979

       (J) In areas outside the state or within the state where no 1980
qualified health plan or an inadequate number of providers within 1981
the health partnership program exist, the administrator shall 1982
permit employees to use a nonplan or nonprogram health care 1983
provider and shall pay the provider for the services or supplies 1984
provided to or on behalf of an employee for an injury or 1985
occupational disease that is compensable under this chapter or 1986
Chapter 4123., 4127., or 4131. of the Revised Code on a fee 1987
schedule the administrator adopts.1988

       (K) No health care provider, whether certified or not, shall 1989
charge, assess, or otherwise attempt to collect from an employee, 1990
employer, a managed care organization, or the bureau any amount 1991
for covered services or supplies that is in excess of the allowed 1992
amount paid by a managed care organization, the bureau, or a 1993
qualified health plan.1994

       (L) The administrator shall permit any employer or group of 1995
employers who agree to abide by the rules adopted under this 1996
section and sections 4121.441 and 4121.442 of the Revised Code to 1997
provide services or supplies to or on behalf of an employee for an 1998
injury or occupational disease that is compensable under this 1999
chapter or Chapter 4123., 4127., or 4131. of the Revised Code 2000
through qualified health plans of the Ohio workers' compensation 2001
qualified health plan system pursuant to section 4121.442 of the 2002
Revised Code or through the health partnership program pursuant to 2003
section 4121.441 of the Revised Code. No amount paid under the 2004
qualified health plan system pursuant to section 4121.442 of the 2005
Revised Code by an employer who is a state fund employer shall be 2006
charged to the employer's experience or otherwise be used in 2007
merit-rating or determining the risk of that employer for the 2008
purpose of the payment of premiums under this chapter, and if the 2009
employer is a self-insuring employer, the employer shall not 2010
include that amount in the paid compensation the employer reports 2011
under section 4123.35 of the Revised Code.2012

       Sec. 4121.68.  In the event a claimant sustains an injury or 2013
occupational disease or dies as a result of any injury or disease 2014
received in the course of and arising out of histhe claimant's2015
participation in a rehabilitation program, the claimant or, in the 2016
case of death, a dependent of the claimant, may file a claim for 2017
compensation and benefits as if the claimant's employer were the 2018
bureau of workers' compensation. All compensation and benefit 2019
awards made as a result of the injury, disease, or death shall be 2020
charged to the surplus fund account, created pursuant to section 2021
4123.34 of the Revised Code, and not charged through the state 2022
insurance fund to the employer against which the claim was allowed 2023
so long as the employer pays assessments into the surplus fund 2024
account for the payment of such compensation and benefits.2025

       Sec. 4123.35.  (A) Except as provided in this section, every 2026
employer mentioned in division (B)(2) of section 4123.01 of the 2027
Revised Code, and every publicly owned utility shall pay 2028
semiannually in the months of January and July into the state 2029
insurance fund the amount of annual premium the administrator of 2030
workers' compensation fixes for the employment or occupation of 2031
the employer, the amount of which premium to be paid by each 2032
employer to be determined by the classifications, rules, and rates 2033
made and published by the administrator. The employer shall pay 2034
semiannually a further sum of money into the state insurance fund 2035
as may be ascertained to be due from the employer by applying the 2036
rules of the administrator, and a receipt or certificate 2037
certifying that payment has been made, along with a written notice 2038
as is required in section 4123.54 of the Revised Code, shall be 2039
mailed immediately to the employer by the bureau of workers' 2040
compensation. The receipt or certificate is prima-facie evidence 2041
of the payment of the premium, and the proper posting of the 2042
notice constitutes the employer's compliance with the notice 2043
requirement mandated in section 4123.54 of the Revised Code.2044

       The bureau of workers' compensation shall verify with the 2045
secretary of state the existence of all corporations and 2046
organizations making application for workers' compensation 2047
coverage and shall require every such application to include the 2048
employer's federal identification number.2049

       An employer as defined in division (B)(2) of section 4123.01 2050
of the Revised Code who has contracted with a subcontractor is 2051
liable for the unpaid premium due from any subcontractor with 2052
respect to that part of the payroll of the subcontractor that is 2053
for work performed pursuant to the contract with the employer.2054

       Division (A) of this section providing for the payment of 2055
premiums semiannually does not apply to any employer who was a 2056
subscriber to the state insurance fund prior to January 1, 1914, 2057
or who may first become a subscriber to the fund in any month 2058
other than January or July. Instead, the semiannual premiums shall 2059
be paid by those employers from time to time upon the expiration 2060
of the respective periods for which payments into the fund have 2061
been made by them.2062

       The administrator shall adopt rules to permit employers to 2063
make periodic payments of the semiannual premium due under this 2064
division. The rules shall include provisions for the assessment of 2065
interest charges, where appropriate, and for the assessment of 2066
penalties when an employer fails to make timely premium payments. 2067
An employer who timely pays the amounts due under this division is 2068
entitled to all of the benefits and protections of this chapter. 2069
Upon receipt of payment, the bureau immediately shall mail a 2070
receipt or certificate to the employer certifying that payment has 2071
been made, which receipt is prima-facie evidence of payment. 2072
Workers' compensation coverage under this chapter continues 2073
uninterrupted upon timely receipt of payment under this division.2074

       Every public employer, except public employers that are 2075
self-insuring employers under this section, shall comply with 2076
sections 4123.38 to 4123.41, and 4123.48 of the Revised Code in 2077
regard to the contribution of moneys to the public insurance fund.2078

       (B) Employers who will abide by the rules of the 2079
administrator and who may be of sufficient financial ability to 2080
render certain the payment of compensation to injured employees or 2081
the dependents of killed employees, and the furnishing of medical, 2082
surgical, nursing, and hospital attention and services and 2083
medicines, and funeral expenses, equal to or greater than is 2084
provided for in sections 4123.52, 4123.55 to 4123.62, and 4123.64 2085
to 4123.67 of the Revised Code, and who do not desire to insure 2086
the payment thereof or indemnify themselves against loss sustained 2087
by the direct payment thereof, upon a finding of such facts by the 2088
administrator, may be granted the privilege to pay individually 2089
compensation, and furnish medical, surgical, nursing, and hospital 2090
services and attention and funeral expenses directly to injured 2091
employees or the dependents of killed employees, thereby being 2092
granted status as a self-insuring employer. The administrator may 2093
charge employers who apply for the status as a self-insuring 2094
employer a reasonable application fee to cover the bureau's costs 2095
in connection with processing and making a determination with 2096
respect to an application.2097

       All employers granted status as self-insuring employers shall 2098
demonstrate sufficient financial and administrative ability to 2099
assure that all obligations under this section are promptly met. 2100
The administrator shall deny the privilege where the employer is 2101
unable to demonstrate the employer's ability to promptly meet all 2102
the obligations imposed on the employer by this section.2103

       (1) The administrator shall consider, but is not limited to, 2104
the following factors, where applicable, in determining the 2105
employer's ability to meet all of the obligations imposed on the 2106
employer by this section:2107

       (a) The employer employs a minimum of five hundred employees 2108
in this state;2109

       (b) The employer has operated in this state for a minimum of 2110
two years, provided that an employer who has purchased, acquired, 2111
or otherwise succeeded to the operation of a business, or any part 2112
thereof, situated in this state that has operated for at least two 2113
years in this state, also shall qualify;2114

       (c) Where the employer previously contributed to the state 2115
insurance fund or is a successor employer as defined by bureau 2116
rules, the amount of the buyout, as defined by bureau rules;2117

       (d) The sufficiency of the employer's assets located in this 2118
state to insure the employer's solvency in paying compensation 2119
directly;2120

       (e) The financial records, documents, and data, certified by 2121
a certified public accountant, necessary to provide the employer's 2122
full financial disclosure. The records, documents, and data 2123
include, but are not limited to, balance sheets and profit and 2124
loss history for the current year and previous four years.2125

       (f) The employer's organizational plan for the administration 2126
of the workers' compensation law;2127

       (g) The employer's proposed plan to inform employees of the 2128
change from a state fund insurer to a self-insuring employer, the 2129
procedures the employer will follow as a self-insuring employer, 2130
and the employees' rights to compensation and benefits; and2131

       (h) The employer has either an account in a financial 2132
institution in this state, or if the employer maintains an account 2133
with a financial institution outside this state, ensures that 2134
workers' compensation checks are drawn from the same account as 2135
payroll checks or the employer clearly indicates that payment will 2136
be honored by a financial institution in this state.2137

       The administrator may waive the requirements of divisions 2138
(B)(1)(a) and (b) of this section and the requirement of division 2139
(B)(1)(e) of this section that the financial records, documents, 2140
and data be certified by a certified public accountant. The 2141
administrator shall adopt rules establishing the criteria that an 2142
employer shall meet in order for the administrator to waive the 2143
requirement of division (B)(1)(e) of this section. Such rules may 2144
require additional security of that employer pursuant to division 2145
(E) of section 4123.351 of the Revised Code.2146

       The administrator shall not grant the status of self-insuring 2147
employer to the state, except that the administrator may grant the 2148
status of self-insuring employer to a state institution of higher 2149
education, excluding its hospitals, that meets the requirements of 2150
division (B)(2) of this section.2151

       (2) When considering the application of a public employer, 2152
except for a board of county commissioners described in division 2153
(G) of section 4123.01 of the Revised Code, a board of a county 2154
hospital, or a publicly owned utility, the administrator shall 2155
verify that the public employer satisfies all of the following 2156
requirements as the requirements apply to that public employer:2157

       (a) For the two-year period preceding application under this 2158
section, the public employer has maintained an unvoted debt 2159
capacity equal to at least two times the amount of the current 2160
annual premium established by the administrator under this chapter 2161
for that public employer for the year immediately preceding the 2162
year in which the public employer makes application under this 2163
section.2164

       (b) For each of the two fiscal years preceding application 2165
under this section, the unreserved and undesignated year-end fund 2166
balance in the public employer's general fund is equal to at least 2167
five per cent of the public employer's general fund revenues for 2168
the fiscal year computed in accordance with generally accepted 2169
accounting principles.2170

       (c) For the five-year period preceding application under this 2171
section, the public employer, to the extent applicable, has 2172
complied fully with the continuing disclosure requirements 2173
established in rules adopted by the United States securities and 2174
exchange commission under 17 C.F.R. 240.15c 2-12.2175

       (d) For the five-year period preceding application under this 2176
section, the public employer has not had its local government fund 2177
distribution withheld on account of the public employer being 2178
indebted or otherwise obligated to the state.2179

       (e) For the five-year period preceding application under this 2180
section, the public employer has not been under a fiscal watch or 2181
fiscal emergency pursuant to section 118.023, 118.04, or 3316.03 2182
of the Revised Code.2183

       (f) For the public employer's fiscal year preceding 2184
application under this section, the public employer has obtained 2185
an annual financial audit as required under section 117.10 of the 2186
Revised Code, which has been released by the auditor of state 2187
within seven months after the end of the public employer's fiscal 2188
year.2189

       (g) On the date of application, the public employer holds a 2190
debt rating of Aa3 or higher according to Moody's investors 2191
service, inc., or a comparable rating by an independent rating 2192
agency similar to Moody's investors service, inc.2193

       (h) The public employer agrees to generate an annual 2194
accumulating book reserve in its financial statements reflecting 2195
an actuarially generated reserve adequate to pay projected claims 2196
under this chapter for the applicable period of time, as 2197
determined by the administrator.2198

       (i) For a public employer that is a hospital, the public 2199
employer shall submit audited financial statements showing the 2200
hospital's overall liquidity characteristics, and the 2201
administrator shall determine, on an individual basis, whether the 2202
public employer satisfies liquidity standards equivalent to the 2203
liquidity standards of other public employers.2204

       (j) Any additional criteria that the administrator adopts by 2205
rule pursuant to division (E) of this section.2206

       The administrator shall not approve the application of a 2207
public employer, except for a board of county commissioners 2208
described in division (G) of section 4123.01 of the Revised Code, 2209
a board of a county hospital, or publicly owned utility, who does 2210
not satisfy all of the requirements listed in division (B)(2) of 2211
this section.The administrator may adopt rules establishing the 2212
criteria that a public employer shall satisfy in order for the 2213
administrator to waive any of the requirements listed in divisions 2214
(B)(2)(a) to (j) of this section. The rules may require additional 2215
security from that employer pursuant to division (E) of section 2216
4123.351 of the Revised Code. The administrator shall not waive 2217
any of the requirements listed in divisions (B)(2)(a) to (j) of 2218
this section for a public employer who does not satisfy the 2219
criteria established in the rules the administrator adopts.2220

       (C) A board of county commissioners described in division (G) 2221
of section 4123.01 of the Revised Code, as an employer, that will 2222
abide by the rules of the administrator and that may be of 2223
sufficient financial ability to render certain the payment of 2224
compensation to injured employees or the dependents of killed 2225
employees, and the furnishing of medical, surgical, nursing, and 2226
hospital attention and services and medicines, and funeral 2227
expenses, equal to or greater than is provided for in sections 2228
4123.52, 4123.55 to 4123.62, and 4123.64 to 4123.67 of the Revised 2229
Code, and that does not desire to insure the payment thereof or 2230
indemnify itself against loss sustained by the direct payment 2231
thereof, upon a finding of such facts by the administrator, may be 2232
granted the privilege to pay individually compensation, and 2233
furnish medical, surgical, nursing, and hospital services and 2234
attention and funeral expenses directly to injured employees or 2235
the dependents of killed employees, thereby being granted status 2236
as a self-insuring employer. The administrator may charge a board 2237
of county commissioners described in division (G) of section 2238
4123.01 of the Revised Code that applies for the status as a 2239
self-insuring employer a reasonable application fee to cover the 2240
bureau's costs in connection with processing and making a 2241
determination with respect to an application. All employers 2242
granted such status shall demonstrate sufficient financial and 2243
administrative ability to assure that all obligations under this 2244
section are promptly met. The administrator shall deny the 2245
privilege where the employer is unable to demonstrate the 2246
employer's ability to promptly meet all the obligations imposed on 2247
the employer by this section. The administrator shall consider, 2248
but is not limited to, the following factors, where applicable, in 2249
determining the employer's ability to meet all of the obligations 2250
imposed on the board as an employer by this section:2251

       (1) The board as an employer employs a minimum of five 2252
hundred employees in this state;2253

       (2) The board has operated in this state for a minimum of two 2254
years;2255

       (3) Where the board previously contributed to the state 2256
insurance fund or is a successor employer as defined by bureau 2257
rules, the amount of the buyout, as defined by bureau rules;2258

       (4) The sufficiency of the board's assets located in this 2259
state to insure the board's solvency in paying compensation 2260
directly;2261

       (5) The financial records, documents, and data, certified by 2262
a certified public accountant, necessary to provide the board's 2263
full financial disclosure. The records, documents, and data 2264
include, but are not limited to, balance sheets and profit and 2265
loss history for the current year and previous four years.2266

       (6) The board's organizational plan for the administration of 2267
the workers' compensation law;2268

       (7) The board's proposed plan to inform employees of the 2269
proposed self-insurance, the procedures the board will follow as a 2270
self-insuring employer, and the employees' rights to compensation 2271
and benefits;2272

       (8) The board has either an account in a financial 2273
institution in this state, or if the board maintains an account 2274
with a financial institution outside this state, ensures that 2275
workers' compensation checks are drawn from the same account as 2276
payroll checks or the board clearly indicates that payment will be 2277
honored by a financial institution in this state;2278

       (9) The board shall provide the administrator a surety bond 2279
in an amount equal to one hundred twenty-five per cent of the 2280
projected losses as determined by the administrator.2281

       (D) The administrator shall require a surety bond from all 2282
self-insuring employers, issued pursuant to section 4123.351 of 2283
the Revised Code, that is sufficient to compel, or secure to 2284
injured employees, or to the dependents of employees killed, the 2285
payment of compensation and expenses, which shall in no event be 2286
less than that paid or furnished out of the state insurance fund 2287
in similar cases to injured employees or to dependents of killed 2288
employees whose employers contribute to the fund, except when an 2289
employee of the employer, who has suffered the loss of a hand, 2290
arm, foot, leg, or eye prior to the injury for which compensation 2291
is to be paid, and thereafter suffers the loss of any other of the 2292
members as the result of any injury sustained in the course of and 2293
arising out of the employee's employment, the compensation to be 2294
paid by the self-insuring employer is limited to the disability 2295
suffered in the subsequent injury, additional compensation, if 2296
any, to be paid by the bureau out of the surplus created by 2297
section 4123.34 of the Revised Code.2298

       (E) In addition to the requirements of this section, the 2299
administrator shall make and publish rules governing the manner of 2300
making application and the nature and extent of the proof required 2301
to justify a finding of fact by the administrator as to granting 2302
the status of a self-insuring employer, which rules shall be 2303
general in their application, one of which rules shall provide 2304
that all self-insuring employers shall pay into the state 2305
insurance fund such amounts as are required to be credited to the 2306
surplus fund in division (B) of section 4123.34 of the Revised 2307
Code. The administrator may adopt rules establishing requirements 2308
in addition to the requirements described in division (B)(2) of 2309
this section that a public employer shall meet in order to qualify 2310
for self-insuring status.2311

       Employers shall secure directly from the bureau central 2312
offices application forms upon which the bureau shall stamp a 2313
designating number. Prior to submission of an application, an 2314
employer shall make available to the bureau, and the bureau shall 2315
review, the information described in division (B)(1) of this 2316
section, and public employers shall make available, and the bureau 2317
shall review, the information necessary to verify whether the 2318
public employer meets the requirements listed in division (B)(2) 2319
of this section. An employer shall file the completed application 2320
forms with an application fee, which shall cover the costs of 2321
processing the application, as established by the administrator, 2322
by rule, with the bureau at least ninety days prior to the 2323
effective date of the employer's new status as a self-insuring 2324
employer. The application form is not deemed complete until all 2325
the required information is attached thereto. The bureau shall 2326
only accept applications that contain the required information.2327

       (F) The bureau shall review completed applications within a 2328
reasonable time. If the bureau determines to grant an employer the 2329
status as a self-insuring employer, the bureau shall issue a 2330
statement, containing its findings of fact, that is prepared by 2331
the bureau and signed by the administrator. If the bureau 2332
determines not to grant the status as a self-insuring employer, 2333
the bureau shall notify the employer of the determination and 2334
require the employer to continue to pay its full premium into the 2335
state insurance fund. The administrator also shall adopt rules 2336
establishing a minimum level of performance as a criterion for 2337
granting and maintaining the status as a self-insuring employer 2338
and fixing time limits beyond which failure of the self-insuring 2339
employer to provide for the necessary medical examinations and 2340
evaluations may not delay a decision on a claim.2341

       (G) The administrator shall adopt rules setting forth 2342
procedures for auditing the program of self-insuring employers. 2343
The bureau shall conduct the audit upon a random basis or whenever 2344
the bureau has grounds for believing that a self-insuring employer 2345
is not in full compliance with bureau rules or this chapter.2346

       The administrator shall monitor the programs conducted by 2347
self-insuring employers, to ensure compliance with bureau 2348
requirements and for that purpose, shall develop and issue to 2349
self-insuring employers standardized forms for use by the 2350
self-insuring employer in all aspects of the self-insuring 2351
employers' direct compensation program and for reporting of 2352
information to the bureau.2353

       The bureau shall receive and transmit to the self-insuring 2354
employer all complaints concerning any self-insuring employer. In 2355
the case of a complaint against a self-insuring employer, the 2356
administrator shall handle the complaint through the 2357
self-insurance division of the bureau. The bureau shall maintain a 2358
file by employer of all complaints received that relate to the 2359
employer. The bureau shall evaluate each complaint and take 2360
appropriate action.2361

       The administrator shall adopt as a rule a prohibition against 2362
any self-insuring employer from harassing, dismissing, or 2363
otherwise disciplining any employee making a complaint, which rule 2364
shall provide for a financial penalty to be levied by the 2365
administrator payable by the offending self-insuring employer.2366

       (H) For the purpose of making determinations as to whether to 2367
grant status as a self-insuring employer, the administrator may 2368
subscribe to and pay for a credit reporting service that offers 2369
financial and other business information about individual 2370
employers. The costs in connection with the bureau's subscription 2371
or individual reports from the service about an applicant may be 2372
included in the application fee charged employers under this 2373
section.2374

       (I) The administrator, notwithstanding other provisions of 2375
this chapter, may permit a self-insuring employer to resume 2376
payment of premiums to the state insurance fund with appropriate 2377
credit modifications to the employer's basic premium rate as such 2378
rate is determined pursuant to section 4123.29 of the Revised 2379
Code.2380

       (J) On the first day of July of each year, the administrator 2381
shall calculate separately each self-insuring employer's 2382
assessments for the safety and hygiene fund, administrative costs 2383
pursuant to section 4123.342 of the Revised Code, and for the 2384
portion of the surplus fund under division (B) of section 4123.34 2385
of the Revised Code that is not used for handicapped 2386
reimbursement, on the basis of the paid compensation attributable 2387
to the individual self-insuring employer according to the 2388
following calculation:2389

       (1) The total assessment against all self-insuring employers 2390
as a class for each fund and for the administrative costs for the 2391
year that the assessment is being made, as determined by the 2392
administrator, divided by the total amount of paid compensation 2393
for the previous calendar year attributable to all amenable 2394
self-insuring employers;2395

       (2) Multiply the quotient in division (J)(1) of this section 2396
by the total amount of paid compensation for the previous calendar 2397
year that is attributable to the individual self-insuring employer 2398
for whom the assessment is being determined. Each self-insuring 2399
employer shall pay the assessment that results from this 2400
calculation, unless the assessment resulting from this calculation 2401
falls below a minimum assessment, which minimum assessment the 2402
administrator shall determine on the first day of July of each 2403
year with the advice and consent of the bureau of workers' 2404
compensation board of directors, in which event, the self-insuring 2405
employer shall pay the minimum assessment.2406

       In determining the total amount due for the total assessment 2407
against all self-insuring employers as a class for each fund and 2408
the administrative assessment, the administrator shall reduce 2409
proportionately the total for each fund and assessment by the 2410
amount of money in the self-insurance assessment fund as of the 2411
date of the computation of the assessment.2412

       The administrator shall calculate the assessment for the 2413
portion of the surplus fund under division (B) of section 4123.34 2414
of the Revised Code that is used for handicapped reimbursement in 2415
the same manner as set forth in divisions (J)(1) and (2) of this 2416
section except that the administrator shall calculate the total 2417
assessment for this portion of the surplus fund only on the basis 2418
of those self-insuring employers that retain participation in the 2419
handicapped reimbursement program and the individual self-insuring 2420
employer's proportion of paid compensation shall be calculated 2421
only for those self-insuring employers who retain participation in 2422
the handicapped reimbursement program. The administrator, as the 2423
administrator determines appropriate, may determine the total 2424
assessment for the handicapped portion of the surplus fund in 2425
accordance with sound actuarial principles.2426

       The administrator shall calculate the assessment for the 2427
portion of the surplus fund under division (B) of section 4123.34 2428
of the Revised Code that under division (D) of section 4121.66 of 2429
the Revised Code is used for rehabilitation costs in the same 2430
manner as set forth in divisions (J)(1) and (2) of this section, 2431
except that the administrator shall calculate the total assessment 2432
for this portion of the surplus fund only on the basis of those 2433
self-insuring employers who have not made the election to make 2434
payments directly under division (D) of section 4121.66 of the 2435
Revised Code and an individual self-insuring employer's proportion 2436
of paid compensation only for those self-insuring employers who 2437
have not made that election.2438

       The administrator shall calculate the assessment for the 2439
portion of the surplus fund under division (B) of section 4123.34 2440
of the Revised Code that is used for reimbursement to a 2441
self-insuring employer under division (H) of section 4123.512 of 2442
the Revised Code in the same manner as set forth in divisions 2443
(J)(1) and (2) of this section except that the administrator shall 2444
calculate the total assessment for this portion of the surplus 2445
fund only on the basis of those self-insuring employers that 2446
retain participation in reimbursement to the self-insuring 2447
employer under division (H) of section 4123.512 of the Revised 2448
Code and the individual self-insuring employer's proportion of 2449
paid compensation shall be calculated only for those self-insuring 2450
employers who retain participation in reimbursement to the 2451
self-insuring employer under division (H) of section 4123.512 of 2452
the Revised Code.2453

       An employer who no longer is a self-insuring employer in this 2454
state or who no longer is operating in this state, shall continue 2455
to pay assessments for administrative costs and for the portion of 2456
the surplus fund under division (B) of section 4123.34 of the 2457
Revised Code that is not used for handicapped reimbursement, based 2458
upon paid compensation attributable to claims that occurred while 2459
the employer was a self-insuring employer within this state.2460

       (K) The administrator shall deposit any moneys received from 2461
a self-insuring employer for the self-insuring employer's 2462
assessment to pay the costs solely attributable to the workers' 2463
compensation council into the administrative assessment account 2464
described in division (B) of section 4123.342 of the Revised Code 2465
for the administrative cost assessment collected by the 2466
administrator for the council. There is hereby created in the 2467
state treasury the self-insurance assessment fund. All investment 2468
earnings of the fund shall be deposited in the fund. The 2469
administrator shall use the money in the self-insurance assessment 2470
fund only for administrative costs as specified in section 2471
4123.341 of the Revised Code.2472

       (L) Every self-insuring employer shall certify, in affidavit 2473
form subject to the penalty for perjury, to the bureau the amount 2474
of the self-insuring employer's paid compensation for the previous 2475
calendar year. In reporting paid compensation paid for the 2476
previous year, a self-insuring employer shall exclude from the 2477
total amount of paid compensation any reimbursement the 2478
self-insuring employer receives in the previous calendar year from 2479
the surplus fund pursuant to section 4123.512 of the Revised Code 2480
for any paid compensation. The self-insuring employer also shall 2481
exclude from the paid compensation reported any amount recovered 2482
under section 4123.931 of the Revised Code and any amount that is 2483
determined not to have been payable to or on behalf of a claimant 2484
in any final administrative or judicial proceeding. The 2485
self-insuring employer shall exclude such amounts from the paid 2486
compensation reported in the reporting period subsequent to the 2487
date the determination is made. The administrator shall adopt 2488
rules, in accordance with Chapter 119. of the Revised Code, that 2489
provide for all of the following:2490

       (1) Establishing the date by which self-insuring employers 2491
must submit such information and the amount of the assessments 2492
provided for in division (J) of this section for employers who 2493
have been granted self-insuring status within the last calendar 2494
year;2495

       (2) If an employer fails to pay the assessment when due, the 2496
administrator may add a late fee penalty of not more than five 2497
hundred dollars to the assessment plus an additional penalty 2498
amount as follows:2499

       (a) For an assessment from sixty-one to ninety days past due, 2500
the prime interest rate, multiplied by the assessment due;2501

       (b) For an assessment from ninety-one to one hundred twenty 2502
days past due, the prime interest rate plus two per cent, 2503
multiplied by the assessment due;2504

       (c) For an assessment from one hundred twenty-one to one 2505
hundred fifty days past due, the prime interest rate plus four per 2506
cent, multiplied by the assessment due;2507

       (d) For an assessment from one hundred fifty-one to one 2508
hundred eighty days past due, the prime interest rate plus six per 2509
cent, multiplied by the assessment due;2510

       (e) For an assessment from one hundred eighty-one to two 2511
hundred ten days past due, the prime interest rate plus eight per 2512
cent, multiplied by the assessment due;2513

       (f) For each additional thirty-day period or portion thereof 2514
that an assessment remains past due after it has remained past due 2515
for more than two hundred ten days, the prime interest rate plus 2516
eight per cent, multiplied by the assessment due.2517

        (3) An employer may appeal a late fee penalty and penalty 2518
assessment to the administrator.2519

        For purposes of division (L)(2) of this section, "prime 2520
interest rate" means the average bank prime rate, and the 2521
administrator shall determine the prime interest rate in the same 2522
manner as a county auditor determines the average bank prime rate 2523
under section 929.02 of the Revised Code.2524

       The administrator shall include any assessment and penalties 2525
that remain unpaid for previous assessment periods in the 2526
calculation and collection of any assessments due under this 2527
division or division (J) of this section.2528

       (M) As used in this section, "paid compensation" means all 2529
amounts paid by a self-insuring employer for living maintenance 2530
benefits, all amounts for compensation paid pursuant to sections 2531
4121.63, 4121.67, 4123.56, 4123.57, 4123.58, 4123.59, 4123.60, and 2532
4123.64 of the Revised Code, all amounts paid as wages in lieu of 2533
such compensation, all amounts paid in lieu of such compensation 2534
under a nonoccupational accident and sickness program fully funded 2535
by the self-insuring employer, and all amounts paid by a 2536
self-insuring employer for a violation of a specific safety 2537
standard pursuant to Section 35 of Article II, Ohio Constitution 2538
and section 4121.47 of the Revised Code.2539

       (N) Should any section of this chapter or Chapter 4121. of 2540
the Revised Code providing for self-insuring employers' 2541
assessments based upon compensation paid be declared 2542
unconstitutional by a final decision of any court, then that 2543
section of the Revised Code declared unconstitutional shall revert 2544
back to the section in existence prior to November 3, 1989, 2545
providing for assessments based upon payroll.2546

       (O) The administrator may grant a self-insuring employer the 2547
privilege to self-insure a construction project entered into by 2548
the self-insuring employer that is scheduled for completion within 2549
six years after the date the project begins, and the total cost of 2550
which is estimated to exceed one hundred million dollars or, for 2551
employers described in division (R) of this section, if the 2552
construction project is estimated to exceed twenty-five million 2553
dollars. The administrator may waive such cost and time criteria 2554
and grant a self-insuring employer the privilege to self-insure a 2555
construction project regardless of the time needed to complete the 2556
construction project and provided that the cost of the 2557
construction project is estimated to exceed fifty million dollars. 2558
A self-insuring employer who desires to self-insure a construction 2559
project shall submit to the administrator an application listing 2560
the dates the construction project is scheduled to begin and end, 2561
the estimated cost of the construction project, the contractors 2562
and subcontractors whose employees are to be self-insured by the 2563
self-insuring employer, the provisions of a safety program that is 2564
specifically designed for the construction project, and a 2565
statement as to whether a collective bargaining agreement 2566
governing the rights, duties, and obligations of each of the 2567
parties to the agreement with respect to the construction project 2568
exists between the self-insuring employer and a labor 2569
organization.2570

       A self-insuring employer may apply to self-insure the 2571
employees of either of the following:2572

       (1) All contractors and subcontractors who perform labor or 2573
work or provide materials for the construction project;2574

       (2) All contractors and, at the administrator's discretion, a 2575
substantial number of all the subcontractors who perform labor or 2576
work or provide materials for the construction project.2577

       Upon approval of the application, the administrator shall 2578
mail a certificate granting the privilege to self-insure the 2579
construction project to the self-insuring employer. The 2580
certificate shall contain the name of the self-insuring employer 2581
and the name, address, and telephone number of the self-insuring 2582
employer's representatives who are responsible for administering 2583
workers' compensation claims for the construction project. The 2584
self-insuring employer shall post the certificate in a conspicuous 2585
place at the site of the construction project.2586

       The administrator shall maintain a record of the contractors 2587
and subcontractors whose employees are covered under the 2588
certificate issued to the self-insured employer. A self-insuring 2589
employer immediately shall notify the administrator when any 2590
contractor or subcontractor is added or eliminated from inclusion 2591
under the certificate.2592

       Upon approval of the application, the self-insuring employer 2593
is responsible for the administration and payment of all claims 2594
under this chapter and Chapter 4121. of the Revised Code for the 2595
employees of the contractor and subcontractors covered under the 2596
certificate who receive injuries or are killed in the course of 2597
and arising out of employment on the construction project, or who 2598
contract an occupational disease in the course of employment on 2599
the construction project. For purposes of this chapter and Chapter 2600
4121. of the Revised Code, a claim that is administered and paid 2601
in accordance with this division is considered a claim against the 2602
self-insuring employer listed in the certificate. A contractor or 2603
subcontractor included under the certificate shall report to the 2604
self-insuring employer listed in the certificate, all claims that 2605
arise under this chapter and Chapter 4121. of the Revised Code in 2606
connection with the construction project for which the certificate 2607
is issued.2608

       A self-insuring employer who complies with this division is 2609
entitled to the protections provided under this chapter and 2610
Chapter 4121. of the Revised Code with respect to the employees of 2611
the contractors and subcontractors covered under a certificate 2612
issued under this division for death or injuries that arise out 2613
of, or death, injuries, or occupational diseases that arise in the 2614
course of, those employees' employment on that construction 2615
project, as if the employees were employees of the self-insuring 2616
employer, provided that the self-insuring employer also complies 2617
with this section. No employee of the contractors and 2618
subcontractors covered under a certificate issued under this 2619
division shall be considered the employee of the self-insuring 2620
employer listed in that certificate for any purposes other than 2621
this chapter and Chapter 4121. of the Revised Code. Nothing in 2622
this division gives a self-insuring employer authority to control 2623
the means, manner, or method of employment of the employees of the 2624
contractors and subcontractors covered under a certificate issued 2625
under this division.2626

       The contractors and subcontractors included under a 2627
certificate issued under this division are entitled to the 2628
protections provided under this chapter and Chapter 4121. of the 2629
Revised Code with respect to the contractor's or subcontractor's 2630
employees who are employed on the construction project which is 2631
the subject of the certificate, for death or injuries that arise 2632
out of, or death, injuries, or occupational diseases that arise in 2633
the course of, those employees' employment on that construction 2634
project.2635

       The contractors and subcontractors included under a 2636
certificate issued under this division shall identify in their 2637
payroll records the employees who are considered the employees of 2638
the self-insuring employer listed in that certificate for purposes 2639
of this chapter and Chapter 4121. of the Revised Code, and the 2640
amount that those employees earned for employment on the 2641
construction project that is the subject of that certificate. 2642
Notwithstanding any provision to the contrary under this chapter 2643
and Chapter 4121. of the Revised Code, the administrator shall 2644
exclude the payroll that is reported for employees who are 2645
considered the employees of the self-insuring employer listed in 2646
that certificate, and that the employees earned for employment on 2647
the construction project that is the subject of that certificate, 2648
when determining those contractors' or subcontractors' premiums or 2649
assessments required under this chapter and Chapter 4121. of the 2650
Revised Code. A self-insuring employer issued a certificate under 2651
this division shall include in the amount of paid compensation it 2652
reports pursuant to division (L) of this section, the amount of 2653
paid compensation the self-insuring employer paid pursuant to this 2654
division for the previous calendar year.2655

       Nothing in this division shall be construed as altering the 2656
rights of employees under this chapter and Chapter 4121. of the 2657
Revised Code as those rights existed prior to September 17, 1996. 2658
Nothing in this division shall be construed as altering the rights 2659
devolved under sections 2305.31 and 4123.82 of the Revised Code as 2660
those rights existed prior to September 17, 1996.2661

       As used in this division, "privilege to self-insure a 2662
construction project" means privilege to pay individually 2663
compensation, and to furnish medical, surgical, nursing, and 2664
hospital services and attention and funeral expenses directly to 2665
injured employees or the dependents of killed employees.2666

       (P) A self-insuring employer whose application is granted 2667
under division (O) of this section shall designate a safety 2668
professional to be responsible for the administration and 2669
enforcement of the safety program that is specifically designed 2670
for the construction project that is the subject of the 2671
application.2672

       A self-insuring employer whose application is granted under 2673
division (O) of this section shall employ an ombudsperson for the 2674
construction project that is the subject of the application. The 2675
ombudsperson shall have experience in workers' compensation or the 2676
construction industry, or both. The ombudsperson shall perform all 2677
of the following duties:2678

       (1) Communicate with and provide information to employees who 2679
are injured in the course of, or whose injury arises out of 2680
employment on the construction project, or who contract an 2681
occupational disease in the course of employment on the 2682
construction project;2683

       (2) Investigate the status of a claim upon the request of an 2684
employee to do so;2685

       (3) Provide information to claimants, third party 2686
administrators, employers, and other persons to assist those 2687
persons in protecting their rights under this chapter and Chapter 2688
4121. of the Revised Code.2689

       A self-insuring employer whose application is granted under 2690
division (O) of this section shall post the name of the safety 2691
professional and the ombudsperson and instructions for contacting 2692
the safety professional and the ombudsperson in a conspicuous 2693
place at the site of the construction project.2694

       (Q) The administrator may consider all of the following when 2695
deciding whether to grant a self-insuring employer the privilege 2696
to self-insure a construction project as provided under division 2697
(O) of this section:2698

       (1) Whether the self-insuring employer has an organizational 2699
plan for the administration of the workers' compensation law;2700

       (2) Whether the safety program that is specifically designed 2701
for the construction project provides for the safety of employees 2702
employed on the construction project, is applicable to all 2703
contractors and subcontractors who perform labor or work or 2704
provide materials for the construction project, and has as a 2705
component, a safety training program that complies with standards 2706
adopted pursuant to the "Occupational Safety and Health Act of 2707
1970," 84 Stat. 1590, 29 U.S.C.A. 651, and provides for continuing 2708
management and employee involvement;2709

       (3) Whether granting the privilege to self-insure the 2710
construction project will reduce the costs of the construction 2711
project;2712

       (4) Whether the self-insuring employer has employed an 2713
ombudsperson as required under division (P) of this section;2714

       (5) Whether the self-insuring employer has sufficient surety 2715
to secure the payment of claims for which the self-insuring 2716
employer would be responsible pursuant to the granting of the 2717
privilege to self-insure a construction project under division (O) 2718
of this section.2719

       (R) As used in divisions (O), (P), and (Q), "self-insuring 2720
employer" includes the following employers, whether or not they 2721
have been granted the status of being a self-insuring employer 2722
under division (B) of this section:2723

        (1) A state institution of higher education;2724

        (2) A school district;2725

        (3) A county school financing district;2726

        (4) An educational service center;2727

        (5) A community school established under Chapter 3314. of the 2728
Revised Code;2729

       (6) A municipal power agency as defined in section 3734.058 2730
of the Revised Code.2731

        (S) As used in this section:2732

       (1) "Unvoted debt capacity" means the amount of money that a 2733
public employer may borrow without voter approval of a tax levy;2734

       (2) "State institution of higher education" means the state 2735
universities listed in section 3345.011 of the Revised Code, 2736
community colleges created pursuant to Chapter 3354. of the 2737
Revised Code, university branches created pursuant to Chapter 2738
3355. of the Revised Code, technical colleges created pursuant to 2739
Chapter 3357. of the Revised Code, and state community colleges 2740
created pursuant to Chapter 3358. of the Revised Code.2741

       Sec. 4123.512.  (A) The claimant or the employer may appeal 2742
an order of the industrial commission made under division (E) of 2743
section 4123.511 of the Revised Code in any injury or occupational 2744
disease case, other than a decision as to the extent of disability 2745
to the court of common pleas of the county in which the injury was 2746
inflicted or in which the contract of employment was made if the 2747
injury occurred outside the state, or in which the contract of 2748
employment was made if the exposure occurred outside the state. If 2749
no common pleas court has jurisdiction for the purposes of an 2750
appeal by the use of the jurisdictional requirements described in 2751
this division, the appellant may use the venue provisions in the 2752
Rules of Civil Procedure to vest jurisdiction in a court. If the 2753
claim is for an occupational disease, the appeal shall be to the 2754
court of common pleas of the county in which the exposure which 2755
caused the disease occurred. Like appeal may be taken from an 2756
order of a staff hearing officer made under division (D) of 2757
section 4123.511 of the Revised Code from which the commission has 2758
refused to hear an appeal. The appellant shall file the notice of 2759
appeal with a court of common pleas within sixty days after the 2760
date of the receipt of the order appealed from or the date of 2761
receipt of the order of the commission refusing to hear an appeal 2762
of a staff hearing officer's decision under division (D) of 2763
section 4123.511 of the Revised Code. The filing of the notice of 2764
the appeal with the court is the only act required to perfect the 2765
appeal.2766

       If an action has been commenced in a court of a county other 2767
than a court of a county having jurisdiction over the action, the 2768
court, upon notice by any party or upon its own motion, shall 2769
transfer the action to a court of a county having jurisdiction.2770

       Notwithstanding anything to the contrary in this section, if 2771
the commission determines under section 4123.522 of the Revised 2772
Code that an employee, employer, or their respective 2773
representatives have not received written notice of an order or 2774
decision which is appealable to a court under this section and 2775
which grants relief pursuant to section 4123.522 of the Revised 2776
Code, the party granted the relief has sixty days from receipt of 2777
the order under section 4123.522 of the Revised Code to file a 2778
notice of appeal under this section.2779

       (B) The notice of appeal shall state the names of the 2780
claimant and the employer, the number of the claim, the date of 2781
the order appealed from, and the fact that the appellant appeals 2782
therefrom.2783

       The administrator of workers' compensation, the claimant, and 2784
the employer shall be parties to the appeal and the court, upon 2785
the application of the commission, shall make the commission a 2786
party. The party filing the appeal shall serve a copy of the 2787
notice of appeal on the administrator at the central office of the 2788
bureau of workers' compensation in Columbus. The administrator 2789
shall notify the employer that if the employer fails to become an 2790
active party to the appeal, then the administrator may act on 2791
behalf of the employer and the results of the appeal could have an 2792
adverse effect upon the employer's premium rates.2793

       (C) The attorney general or one or more of the attorney 2794
general's assistants or special counsel designated by the attorney 2795
general shall represent the administrator and the commission. In 2796
the event the attorney general or the attorney general's 2797
designated assistants or special counsel are absent, the 2798
administrator or the commission shall select one or more of the 2799
attorneys in the employ of the administrator or the commission as 2800
the administrator's attorney or the commission's attorney in the 2801
appeal. Any attorney so employed shall continue the representation 2802
during the entire period of the appeal and in all hearings thereof 2803
except where the continued representation becomes impractical.2804

       (D) Upon receipt of notice of appeal, the clerk of courts 2805
shall provide notice to all parties who are appellees and to the 2806
commission.2807

       The claimant shall, within thirty days after the filing of 2808
the notice of appeal, file a petition containing a statement of 2809
facts in ordinary and concise language showing a cause of action 2810
to participate or to continue to participate in the fund and 2811
setting forth the basis for the jurisdiction of the court over the 2812
action. Further pleadings shall be had in accordance with the 2813
Rules of Civil Procedure, provided that service of summons on such 2814
petition shall not be required and provided that the claimant may 2815
not dismiss the complaint without the employer's consent if the 2816
employer is the party that filed the notice of appeal to court 2817
pursuant to this section. The clerk of the court shall, upon 2818
receipt thereof, transmit by certified mail a copy thereof to each 2819
party named in the notice of appeal other than the claimant. Any 2820
party may file with the clerk prior to the trial of the action a 2821
deposition of any physician taken in accordance with the 2822
provisions of the Revised Code, which deposition may be read in 2823
the trial of the action even though the physician is a resident of 2824
or subject to service in the county in which the trial is had. The 2825
bureau of workers' compensation shall pay the cost of the 2826
stenographic deposition filed in court and of copies of the 2827
stenographic deposition for each party from the surplus fund and 2828
charge the costs thereof against the unsuccessful party if the 2829
claimant's right to participate or continue to participate is 2830
finally sustained or established in the appeal. In the event the 2831
deposition is taken and filed, the physician whose deposition is 2832
taken is not required to respond to any subpoena issued in the 2833
trial of the action. The court, or the jury under the instructions 2834
of the court, if a jury is demanded, shall determine the right of 2835
the claimant to participate or to continue to participate in the 2836
fund upon the evidence adduced at the hearing of the action.2837

       (E) The court shall certify its decision to the commission 2838
and the certificate shall be entered in the records of the court. 2839
Appeals from the judgment are governed by the law applicable to 2840
the appeal of civil actions.2841

       (F) The cost of any legal proceedings authorized by this 2842
section, including an attorney's fee to the claimant's attorney to 2843
be fixed by the trial judge, based upon the effort expended, in 2844
the event the claimant's right to participate or to continue to 2845
participate in the fund is established upon the final 2846
determination of an appeal, shall be taxed against the employer or 2847
the commission if the commission or the administrator rather than 2848
the employer contested the right of the claimant to participate in 2849
the fund. The attorney's fee shall not exceed forty-two hundred 2850
dollars.2851

       (G) If the finding of the court or the verdict of the jury is 2852
in favor of the claimant's right to participate in the fund, the 2853
commission and the administrator shall thereafter proceed in the 2854
matter of the claim as if the judgment were the decision of the 2855
commission, subject to the power of modification provided by 2856
section 4123.52 of the Revised Code.2857

       (H)(1) An appeal from an order issued under division (E) of 2858
section 4123.511 of the Revised Code or any action filed in court 2859
in a case in which an award of compensation or medical benefits 2860
has been made shall not stay the payment of compensation or 2861
medical benefits under the award, or payment for subsequent 2862
periods of total disability or medical benefits during the 2863
pendency of the appeal. If, in a final administrative or judicial 2864
action, it is determined that payments of compensation or 2865
benefits, or both, made to or on behalf of a claimant should not 2866
have been made, the amount thereof shall be charged to the surplus 2867
fund account under division (A)(B) of section 4123.34 of the 2868
Revised Code. In the event the employer is a state risk, the 2869
amount shall not be charged to the employer's experience, and the 2870
administrator shall adjust the employer's account accordingly. In 2871
the event the employer is a self-insuring employer, the 2872
self-insuring employer shall deduct the amount from the paid 2873
compensation the self-insuring employer reports to the 2874
administrator under division (L) of section 4123.35 of the Revised 2875
Code.2876

       (2)(a) Notwithstanding a final determination that payments of 2877
benefits made to or on behalf of a claimant should not have been 2878
made, the administrator or self-insuring employer shall award 2879
payment of medical or vocational rehabilitation services submitted 2880
for payment after the date of the final determination if all of 2881
the following apply:2882

       (i) The services were approved and were rendered by the 2883
provider in good faith prior to the date of the final 2884
determination.2885

       (ii) The services were payable under division (I) of section 2886
4123.511 of the Revised Code prior to the date of the final 2887
determination.2888

       (iii) The request for payment is submitted within the time 2889
limit set forth in section 4123.52 of the Revised Code.2890

       (b) Payments made under division (H)(1) of this section shall 2891
be charged to the surplus fund account under division (B) of 2892
section 4123.34 of the Revised Code. If the employer of the 2893
employee who is the subject of a claim described in division 2894
(H)(2)(a) of this section is a state fund employer, the payments 2895
made under that division shall not be charged to the employer's 2896
experience. If that employer is a self-insuring employer, the 2897
self-insuring employer shall deduct the amount from the paid 2898
compensation the self-insuring employer reports to the 2899
administrator under division (L) of section 4123.35 of the Revised 2900
Code.2901

       (c) Division (H)(2) of this section shall apply only to a 2902
claim under this chapter or Chapter 4121., 4127., or 4131. of the 2903
Revised Code arising on or after the effective date of this 2904
amendment.2905

       (3) A self-insuring employer may elect to pay compensation 2906
and benefits under this section directly to an employee or an 2907
employee's dependents by filing an application with the bureau of 2908
workers' compensation not more than one hundred eighty days and 2909
not less than ninety days before the first day of the employer's 2910
next six-month coverage period. If the self-insuring employer 2911
timely files the application, the application is effective on the 2912
first day of the employer's next six-month coverage period, 2913
provided that the administrator shall compute the employer's 2914
assessment for the surplus fund account due with respect to the 2915
period during which that application was filed without regard to 2916
the filing of the application. On and after the effective date of 2917
the employer's election, the self-insuring employer shall pay 2918
directly to an employee or to an employee's dependents 2919
compensation and benefits under this section regardless of the 2920
date of the injury or occupational disease, and the employer shall 2921
receive no money or credits from the surplus fund account on 2922
account of those payments and shall not be required to pay any 2923
amounts into the surplus fund account on account of this section. 2924
The election made under this division is irrevocable.2925

       (I) All actions and proceedings under this section which are 2926
the subject of an appeal to the court of common pleas or the court 2927
of appeals shall be preferred over all other civil actions except 2928
election causes, irrespective of position on the calendar.2929

       This section applies to all decisions of the commission or 2930
the administrator on November 2, 1959, and all claims filed 2931
thereafter are governed by sections 4123.511 and 4123.512 of the 2932
Revised Code.2933

       Any action pending in common pleas court or any other court 2934
on January 1, 1986, under this section is governed by former 2935
sections 4123.514, 4123.515, 4123.516, and 4123.519 and section 2936
4123.522 of the Revised Code.2937

       Sec. 4123.52. (A) The jurisdiction of the industrial 2938
commission and the authority of the administrator of workers' 2939
compensation over each case is continuing, and the commission may 2940
make such modification or change with respect to former findings 2941
or orders with respect thereto, as, in its opinion is justified. 2942
No modification or change nor any finding or award in respect of 2943
any claim shall be made with respect to disability, compensation, 2944
dependency, or benefits, after five years from the date of injury 2945
in the absence of the payment of medical benefits under this 2946
chapter or in the absence of payment of compensation under section 2947
4123.57, 4123.58, or division (A) or (B) of section 4123.56 of the 2948
Revised Code or wages in lieu of compensation in a manner so as to 2949
satisfy the requirements of section 4123.84 of the Revised Code, 2950
in which event the modification, change, finding, or award shall 2951
be made within five years from the date of the last payment of 2952
compensation or from the date of death, nor unless written notice 2953
of claim for the specific part or parts of the body injured or 2954
disabled has been given as provided in section 4123.84 or 4123.85 2955
of the Revised Code. The commission shall not make any 2956
modification, change, finding, or award which shall award 2957
compensation for a back period in excess of two years prior to the 2958
date of filing application therefor. This2959

       (B) Notwithstanding division (A) of this section, and except 2960
as otherwise provided in a rule that shall be adopted by the 2961
administrator, with the advice and consent of the bureau of 2962
workers' compensation board of directors, neither the 2963
administrator nor the commission shall make any finding or award 2964
for payment of medical or vocational rehabilitation services 2965
submitted for payment more than one year after the date the 2966
services were rendered or more than one year after the date the 2967
services became payable under division (I) of section 4123.511 of 2968
the Revised Code, whichever is later. No medical or vocational 2969
rehabilitation provider shall bill a claimant for services 2970
rendered if the administrator or commission is prohibited from 2971
making that payment under this division.2972

       (C) Division (B) of this section does not apply to requests 2973
made by the centers for medicare and medicaid services in the 2974
United States department of health and human services for 2975
reimbursement of conditional payments made pursuant to section 2976
1395y(b)(2) of title 42, United States Code (commonly known as the 2977
"Medicare Secondary Payer Act"). 2978

       (D) This section does not affect the right of a claimant to 2979
compensation accruing subsequent to the filing of any such 2980
application, provided the application is filed within the time 2981
limit provided in this section.2982

       (E) This section does not deprive the commission of its 2983
continuing jurisdiction to determine the questions raised by any 2984
application for modification of award which has been filed with 2985
the commission after June 1, 1932, and prior to the expiration of 2986
the applicable period but in respect to which no award has been 2987
granted or denied during the applicable period.2988

       (F) The commission may, by general rules, provide for the 2989
destruction of files of cases in which no further action may be 2990
taken.2991

       (G) The commission and administrator of workers' compensation 2992
each may, by general rules, provide for the retention and 2993
destruction of all other records in their possession or under 2994
their control pursuant to section 121.211 and sections 149.34 to 2995
149.36 of the Revised Code. The bureau of workers' compensation 2996
may purchase or rent required equipment for the document retention 2997
media, as determined necessary to preserve the records. 2998
Photographs, microphotographs, microfilm, films, or other direct 2999
document retention media, when properly identified, have the same 3000
effect as the original record and may be offered in like manner 3001
and may be received as evidence in proceedings before the 3002
industrial commission, staff hearing officers, and district 3003
hearing officers, and in any court where the original record could 3004
have been introduced.3005

       Sec. 5505.04.  (A)(1) The general administration and 3006
management of the state highway patrol retirement system and the 3007
making effective of this chapter are hereby vested in the state 3008
highway patrol retirement board. The board may sue and be sued, 3009
plead and be impleaded, contract and be contracted with, and do 3010
all things necessary to carry out this chapter.3011

       The board shall consist of the following members:3012

       (a) The superintendent of the state highway patrol;3013

       (b) Two retirant members who reside in this state;3014

       (c) Five employee-members;3015

       (d) One member, known as the treasurer of state's investment 3016
designee, who shall be appointed by the treasurer of state for a 3017
term of four years and who shall have the following 3018
qualifications:3019

       (i) The member is a resident of this state.3020

       (ii) Within the three years immediately preceding the 3021
appointment, the member has not been employed by the public 3022
employees retirement system, police and fire pension fund, state 3023
teachers retirement system, school employees retirement system, or 3024
state highway patrol retirement system or by any person, 3025
partnership, or corporation that has provided to one of those 3026
retirement systems services of a financial or investment nature, 3027
including the management, analysis, supervision, or investment of 3028
assets.3029

       (iii) The member has direct experience in the management, 3030
analysis, supervision, or investment of assets.3031

       (iv) The member is not currently employed by the state or a 3032
political subdivision of the state.3033

        (e) Two investment expert members, who shall be appointed to 3034
four-year terms. One investment expert member shall be appointed 3035
by the governor, and one investment expert member shall be jointly 3036
appointed by the speaker of the house of representatives and the 3037
president of the senate. Each investment expert member shall have 3038
the following qualifications:3039

       (i) Each investment expert member shall be a resident of this 3040
state.3041

       (ii) Within the three years immediately preceding the 3042
appointment, each investment expert member shall not have been 3043
employed by the public employees retirement system, police and 3044
fire pension fund, state teachers retirement system, school 3045
employees retirement system, or state highway patrol retirement 3046
system or by any person, partnership, or corporation that has 3047
provided to one of those retirement systems services of a 3048
financial or investment nature, including the management, 3049
analysis, supervision, or investment of assets.3050

       (iii) Each investment expert member shall have direct 3051
experience in the management, analysis, supervision, or investment 3052
of assets.3053

       (2) The board shall annually elect a chairperson and 3054
vice-chairperson from among its members. The vice-chairperson 3055
shall act as chairperson in the absence of the chairperson. A 3056
majority of the members of the board shall constitute a quorum and 3057
any action taken shall be approved by a majority of the members of 3058
the board. The board shall meet not less than once each year, upon 3059
sufficient notice to the members. All meetings of the board shall 3060
be open to the public except executive sessions as set forth in 3061
division (G) of section 121.22 of the Revised Code, and any 3062
portions of any sessions discussing medical records or the degree 3063
of disability of a member excluded from public inspection by this 3064
section.3065

       (3) Any investment expert member appointed to fill a vacancy 3066
occurring prior to the expiration of the term for which the 3067
member's predecessor was appointed holds office until the end of 3068
such term. The member continues in office subsequent to the 3069
expiration date of the member's term until the member's successor 3070
takes office, or until a period of sixty days has elapsed, 3071
whichever occurs first.3072

       (B) The attorney general shall prescribe procedures for the 3073
adoption of rules authorized under this chapter, consistent with 3074
the provision of section 111.15 of the Revised Code under which 3075
all rules shall be filed in order to be effective. Such procedures 3076
shall establish methods by which notice of proposed rules are 3077
given to interested parties and rules adopted by the board 3078
published and otherwise made available. When it files a rule with 3079
the joint committee on agency rule review pursuant to section 3080
111.15 of the Revised Code, the board shall submit to the Ohio 3081
retirement study council a copy of the full text of the rule, and 3082
if applicable, a copy of the rule summary and fiscal analysis 3083
required by division (B) of section 127.18 of the Revised Code.3084

       (C)(1) As used in this division, "personal history record" 3085
means information maintained by the board on an individual who is 3086
a member, former member, retirant, or beneficiary that includes 3087
the address, telephone number, social security number, record of 3088
contributions, correspondence with the system, and other 3089
information the board determines to be confidential.3090

       (2) The records of the board shall be open to public 3091
inspection, except for the following which shall be excluded: the 3092
member's, former member's, retirant's, or beneficiary's personal 3093
history record and the amount of a monthly allowance or benefit 3094
paid to a retirant, beneficiary, or survivor, except with the 3095
written authorization of the individual concerned. All3096

       (D) All medical reports and recommendations are privileged 3097
except that copiesas follows:3098

       (1) Copies of such medical reports or recommendations shall 3099
be made available to the individual's personal physician, 3100
attorney, or authorized agent upon written release received from 3101
such individual or such individual's agent, or when necessary for 3102
the proper administration of the fund to the board-assigned 3103
physician.3104

       (D)(2) Documentation required by section 2929.193 of the 3105
Revised Code shall be provided to a court holding a hearing under 3106
that section.3107

       (E) Notwithstanding the exceptions to public inspection in 3108
division (C)(2) of this section, the board may furnish the 3109
following information:3110

       (1) If a member, former member, or retirant is subject to an 3111
order issued under section 2907.15 of the Revised Code or an order 3112
issued under division (A) or (B) of section 2929.192 of the 3113
Revised Code or is convicted of or pleads guilty to a violation of 3114
section 2921.41 of the Revised Code, on written request of a 3115
prosecutor as defined in section 2935.01 of the Revised Code, the 3116
board shall furnish to the prosecutor the information requested 3117
from the individual's personal history record.3118

       (2) Pursuant to a court order issued under Chapters 3119., 3119
3121., and 3123. of the Revised Code, the board shall furnish to a 3120
court or child support enforcement agency the information required 3121
under those chapters.3122

       (3) At the written request of any nonprofit organization or 3123
association providing services to retirement system members, 3124
retirants, or beneficiaries, the board shall provide to the 3125
organization or association a list of the names and addresses of 3126
members, former members, retirants, or beneficiaries if the 3127
organization or association agrees to use such information solely 3128
in accordance with its stated purpose of providing services to 3129
such individuals and not for the benefit of other persons, 3130
organizations, or associations. The costs of compiling, copying, 3131
and mailing the list shall be paid by such entity.3132

       (4) Within fourteen days after receiving from the director of 3133
job and family services a list of the names and social security 3134
numbers of recipients of public assistance pursuant to section 3135
5101.181 of the Revised Code, the board shall inform the auditor 3136
of state of the name, current or most recent employer address, and 3137
social security number of each member whose name and social 3138
security number are the same as those of a person whose name or 3139
social security number was submitted by the director. The board 3140
and its employees, except for purposes of furnishing the auditor 3141
of state with information required by this section, shall preserve 3142
the confidentiality of recipients of public assistance in 3143
compliance with division (A) of section 5101.181 of the Revised 3144
Code.3145

       (5) The system shall comply with orders issued under section 3146
3105.87 of the Revised Code.3147

       On the written request of an alternate payee, as defined in 3148
section 3105.80 of the Revised Code, the system shall furnish to 3149
the alternate payee information on the amount and status of any 3150
amounts payable to the alternate payee under an order issued under 3151
section 3105.171 or 3105.65 of the Revised Code.3152

       (6) At the request of any person, the board shall make 3153
available to the person copies of all documents, including 3154
resumes, in the board's possession regarding filling a vacancy of 3155
an employee member or retirant member of the board. The person who 3156
made the request shall pay the cost of compiling, copying, and 3157
mailing the documents. The information described in this division 3158
is a public record.3159

       (7) The system shall provide the notice required by section 3160
5505.263 of the Revised Code to the prosecutor assigned to the 3161
case.3162

       (E)(F) A statement that contains information obtained from 3163
the system's records that is certified and signed by an officer of 3164
the retirement system and to which the system's official seal is 3165
affixed, or copies of the system's records to which the signature 3166
and seal are attached, shall be received as true copies of the 3167
system's records in any court or before any officer of this state.3168

       Sec. 5505.22.  The right of any individual to a pension, or 3169
to the return of accumulated contributions, payable as provided 3170
under this chapter, and all moneys and investments of the state 3171
highway patrol retirement system and income from moneys or 3172
investments are exempt from any state tax, except the tax imposed 3173
by section 5747.02 of the Revised Code, and are exempt from any 3174
county, municipal, or other local tax, except taxes imposed 3175
pursuant to section 5748.02 or 5748.08 of the Revised Code, and, 3176
except as provided in sections 3105.171, 3105.65, 3115.32, 3177
3119.80, 3119.81, 3121.02, 3121.03, 3123.06, 5505.26, and3178
5505.262, and 5505.263 of the Revised Code, shall not be subject 3179
to execution, garnishment, attachment, the operation of bankruptcy 3180
or insolvency laws, or any other process of law whatsoever, and 3181
shall be unassignable except as specifically provided in this 3182
chapter.3183

       Sec. 5505.263.  Notwithstanding any other provision of this 3184
chapter, a disability benefit granted under this chapter is 3185
subject to an order issued under section 2929.193 of the Revised 3186
Code. The state highway patrol retirement board shall comply with 3187
the order.3188

       On receipt of notice under section 2901.43 of the Revised 3189
Code that a state highway patrol retirement system member is 3190
charged with an offense listed in division (D) of section 2929.192 3191
of the Revised Code under the circumstances specified in that 3192
division, the system shall determine whether the member has been 3193
granted a disability benefit. If so, the system shall send written 3194
notice to the prosecutor assigned to the case that the member has 3195
been granted a disability benefit under this chapter and may be 3196
subject to section 2929.193 of the Revised Code.3197

       Sec. 5505.34. As used in this section, "alternate payee," 3198
"benefit," and "lump sum payment" have the same meanings as in 3199
section 3105.80 of the Revised Code.3200

       If a person who is a disability benefit recipient or an 3201
alternate payee, as defined in section 3105.80 of the Revised 3202
Code, is paid any amount from a benefit or lump sum payment under 3203
an order issued under section 3105.171 or 3105.65 of the Revised 3204
Code by the state highway patrol retirement system to which the 3205
person is not entitled, the person shall repay the retirement 3206
system. If the person fails to repay, the retirement system shall 3207
withhold the amount due from any benefit or payment due the person 3208
under the order or may collect the amount in any other manner 3209
provided by law.3210

       Section 102. That existing sections 145.27, 145.56, 145.561, 3211
145.82, 145.95, 742.41, 742.46, 742.47, 742.64, 2329.66, 2929.192, 3212
3305.07, 3305.08, 3305.20, 3305.22, 3307.20, 3307.41, 3307.42, 3213
3309.22, 3309.66, 3309.661, 3309.82, 3309.95, 4121.12, 4121.123, 3214
4121.125, 4121.32, 4121.41, 4121.44, 4121.68, 4123.35, 4123.512, 3215
4123.52, 5505.04, 5505.22, and 5505.34 and sections 4121.124 and 3216
4121.99 of the Revised Code are hereby repealed.3217

       Section 201.  All items in Sections 201 and 203 of this act 3218
are hereby appropriated out of any moneys in the state treasury to 3219
the credit of the designated fund. For all appropriations made in 3220
this act, those in the first column are for fiscal year 2012, and 3221
those in the second column are for fiscal year 2013. 3222

FND AI AI TITLE Appropriations 3223

BWC BUREAU OF WORKERS' COMPENSATION
3224

Workers' Compensation Fund Group 3225

7023 855401 William Green Lease Payments to OBA $ 18,291,365 $ 17,533,370 3226
7023 855407 Claims, Risk and Medical Management $ 125,427,732 $ 124,192,959 3227
7023 855408 Fraud Prevention $ 11,331,154 $ 11,164,226 3228
7023 855409 Administrative Services $ 101,724,950 $ 104,136,037 3229
7023 855410 Attorney General Payments $ 4,621,850 $ 4,621,850 3230
8220 855606 Coal Workers' Fund $ 150,586 $ 147,666 3231
8230 855608 Marine Industry $ 76,532 $ 75,527 3232
8250 855605 Disabled Workers Relief Fund $ 322,266 $ 319,718 3233
8260 855609 Safety and Hygiene Operating $ 20,382,567 $ 20,161,132 3234
8260 855610 Gear Program $ 4,000,000 $ 4,000,000 3235
8290 855604 Long Term Care Loan Program $ 1,000,000 $ 1,000,000 3236
TOTAL WCF Workers' Compensation 3237
Fund Group $ 287,329,002 $ 287,352,485 3238

Federal Special Revenue Fund Group 3239

3490 855601 OSHA Enforcement $ 1,670,998 $ 1,647,515 3240
TOTAL FED Federal Special Revenue Fund Group $ 1,670,998 $ 1,647,515 3241
TOTAL ALL BUDGET FUND GROUPS $ 289,000,000 $ 289,000,000 3242

       WILLIAM GREEN LEASE PAYMENTS 3243

       The foregoing appropriation item 855401, William Green Lease 3244
Payments to OBA, shall be used for lease payments to the Ohio 3245
Building Authority, and these appropriations shall be used to meet 3246
all payments at the times they are required to be made during the 3247
period from July 1, 2011, to June 30, 2013, by the Bureau of 3248
Workers' Compensation to the Ohio Building Authority pursuant to 3249
leases and agreements made under Chapter 152. of the Revised Code 3250
and Section 6 of Am. Sub. H.B. 743 of the 118th General Assembly. 3251
Of the amounts received in Fund 7023, appropriation item 855401, 3252
William Green Lease Payments to OBA, up to $35,824,735 shall be 3253
restricted for lease rental payments to the Ohio Building 3254
Authority. If it is determined that additional appropriations are 3255
necessary for such purpose, such amounts are hereby appropriated. 3256

       Notwithstanding any provision of law to the contrary, all 3257
tenants of the William Green Building not funded by the Workers' 3258
Compensation Fund (Fund 7023) shall pay their fair share of the 3259
costs of lease payments to the Workers' Compensation Fund (Fund 3260
7023) by intrastate transfer voucher. 3261

       WORKERS' COMPENSATION FRAUD UNIT 3262

       The Workers' Compensation Section Fund (Fund 1950) 3263
administered by the Attorney General shall receive payments from 3264
the Bureau of Workers' Compensation at the beginning of each 3265
quarter of each fiscal year to fund expenses of the Workers' 3266
Compensation Fraud Unit within the Attorney General's Office. Of 3267
the foregoing appropriation item 855410, Attorney General 3268
Payments, $828,200 in fiscal year 2012 and $828,200 in fiscal year 3269
2013 shall be used to provide these payments. 3270

       SAFETY AND HYGIENE 3271

       Notwithstanding section 4121.37 of the Revised Code, the 3272
Treasurer of State shall transfer $20,382,567 cash in fiscal year 3273
2012 and $20,161,132 cash in fiscal year 2013 from the State 3274
Insurance Fund to the Safety and Hygiene Fund (Fund 8260).3275

       OSHA ON-SITE CONSULTATION PROGRAM 3276

        The Bureau of Workers' Compensation may designate a portion 3277
of appropriation item 855609, Safety and Hygiene Operating, to be 3278
used to match federal funding for the federal Occupational Safety 3279
and Health Administration's (OSHA) on-site consultation program. 3280

       VOCATIONAL REHABILITATION 3281

       The Bureau of Workers' Compensation and the Rehabilitation 3282
Services Commission shall enter into an interagency agreement for 3283
the provision of vocational rehabilitation services and staff to 3284
mutually eligible clients. The bureau shall provide $605,407 in 3285
fiscal year 2012 and $605,407 in fiscal year 2013 from the State 3286
Insurance Fund to fund vocational rehabilitation services and 3287
staff in accordance with the interagency agreement. 3288

       FUND BALANCE 3289

       Any unencumbered cash balance in excess of $45,000,000 in the 3290
Workers' Compensation Fund (Fund 7023) on the thirtieth day of 3291
June of each fiscal year shall be used to reduce the 3292
administrative cost rate charged to employers to cover 3293
appropriations for Bureau of Workers' Compensation operations. 3294

       Section 211. WCC WORKERS' COMPENSATION COUNCIL3295

5FV0 321600 Remuneration Expenses $ 471,200 $ 471,200 3296
TOTAL 5FV0 Workers' Compensation Council Remuneration Fund $ 471,200 $ 471,200 3297
TOTAL ALL BUDGET FUND GROUPS $ 471,200 $ 471,200 3298

       WORKERS' COMPENSATION COUNCIL3299

       The foregoing appropriation item 321600, Remuneration 3300
Expenses, shall be used to pay the payroll and fringe benefit 3301
costs for employees of the Workers' Compensation Council.3302

       Section 221. DEPUTY INSPECTOR GENERAL FOR BWC AND OIC FUNDING3303

       To pay for the FY 2012 costs related to the Deputy Inspector 3304
General for the Bureau of Workers' Compensation and Industrial 3305
Commission, on July 1, 2011, and on January 1, 2012, or as soon as 3306
possible after each date, the Director of Budget and Management 3307
shall transfer $212,500 in cash from the Workers' Compensation 3308
Fund (Fund 7023) to the Deputy Inspector General for the Bureau of 3309
Workers' Compensation and Industrial Commission Fund (Fund 5FT0).3310

       To pay for the FY 2013 costs related to the Deputy Inspector 3311
General for the Bureau of Workers' Compensation and Industrial 3312
Commission, on July 1, 2012, and on January 1, 2013, or as soon as 3313
possible after each date, the Director of Budget and Management 3314
shall transfer $212,500 in cash from the Workers' Compensation 3315
Fund (Fund 7023) to the Deputy Inspector General for the Bureau of 3316
Workers' Compensation and Industrial Commission Fund (Fund 5FT0).3317

       If additional amounts are needed, the Inspector General may 3318
seek Controlling Board approval for additional transfers of cash 3319
and to increase the amount appropriated in appropriation item 3320
965604, Deputy Inspector General for the Bureau of Workers' 3321
Compensation and Industrial Commission.3322

       Section 301. Law contained in the Main Operating 3323
Appropriations Act of the 129th General Assembly that applies 3324
generally to the appropriations made in that act also applies 3325
generally to the appropriations made in this act. 3326

       Section 311. The provisions of law contained in this act, and 3327
their applications, are severable. If any provision of law 3328
contained in this act, or if any application of any provision of 3329
law contained in this act, is held invalid, the invalidity does 3330
not affect other provisions of law contained in this act and their 3331
applications that can be given effect without the invalid 3332
provision or application. 3333

       Section 321.  Except as otherwise provided in this act, the 3334
amendment, enactment, or repeal by this act of a section of law is 3335
exempt from the referendum under Ohio Constitution, Article II, 3336
Section 1d and section 1.471 of the Revised Code and therefore 3337
takes effect immediately when this act becomes law. 3338

       Section 322. The amendment, enactment, or repeal by this act 3339
of the divisions and sections of law listed below are subject to 3340
the referendum under Ohio Constitution, Article II, Section 1c and 3341
therefore take effect on the ninety-first day after this act is 3342
filed with the Secretary of State. 3343

       All Revised Code sections in Section 101 of this act.3344

       The repeal of sections 4121.124 and 4121.99 of the Revised 3345
Code.3346

       Section 323.  Section 2329.66 of the Revised Code is 3347
presented in this act as a composite of the section as amended by 3348
Sub. H.B. 332, Sub. S.B. 3, and Sub. S.B. 281 of the 127th General 3349
Assembly. The General Assembly, applying the principle stated in 3350
division (B) of section 1.52 of the Revised Code that amendments 3351
are to be harmonized if reasonably capable of simultaneous 3352
operation, finds that the composite is the resulting version of 3353
the section in effect prior to the effective date of the section 3354
as presented in this act.3355