As Passed by the Senate

129th General Assembly Regular Session 2011-2012

Am. Sub. H. B. No. 472

Representative Beck 

Cosponsors: Representatives Letson, Antonio, Barnes, Boose, Combs, Gardner, Garland, Hackett, Newbold, O'Brien, Sears, Sprague, Thompson, Wachtmann, Winburn, Young Speaker Batchelder 

Senators Peterson, Beagle, Kearney, Obhof, Oelslager, Smith, Tavares, Turner, Wagoner 

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A BILL

To amend sections 5701.11 and 5751.01 of the Revised

1

Code, to contingently amend sections 5502.011,

2

5507.01, 5507.02, 5507.18, 5507.34, 5507.40,

3

5507.42, 5507.44, 5507.46, 5507.53, 5507.55,

4

5507.57, 5507.63, 5507.65, 5507.66, and 5733.55,

5

to contingently enact section 5507.54, and to

6

contingently repeal section 5507.51 of the Revised

7

Code, and to terminate certain provisions of this

8

act on January 1, 2014, by contingently repealing

9

sections 5507.40 and 5507.53 of the Revised Code

10

on that date, to contingently revise the 9-1-1

11

law, to expressly incorporate changes in the

12

Internal Revenue Code since March 7, 2011, into

13

Ohio law, to extend the existing commercial

14

activity tax exemption for "qualified distribution

15

centers" to include precious metal refineries in

16

the Appalachian region, thereby exempting

17

suppliers of unrefined metals to such a refinery

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from the tax to the extent that the refinery ships

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the refined metals outside Ohio, to permit, for a

20

limited time, the abatement of unpaid property

21

taxes, penalties, and interest owed on property

22

owned by a municipal corporation that would have

23

been tax exempt except for a failure to comply

24

with certain tax-exemption procedures, to

25

contingently make an appropriation, and to declare

26

an emergency.

27

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

Section 1. That sections 5701.11 and 5751.01 be amended and	28
that sections 5502.011, 5507.01, 5507.02, 5507.18, 5507.34,	29
5507.40, 5507.42, 5507.44, 5507.46, 5507.53, 5507.55, 5507.57,	30
5507.63, 5507.65, 5507.66, and 5733.55 be contingently amended and	31
section 5507.54 of the Revised Code be contingently enacted to	32
read as follows:	33

Sec. 5502.011. (A) As used in this section, "department of	34
public safety" and "department" include all divisions within the	35
department of public safety.	36

(B) The director of public safety is the chief executive and	37
administrative officer of the department. The director may	38
establish policies governing the department, the performance of	39
its employees and officers, the conduct of its business, and the	40
custody, use, and preservation of departmental records, papers,	41
books, documents, and property. The director also may authorize	42
and approve investigations to be conducted by any of the	43
department's divisions. Whenever the Revised Code imposes a duty	44
upon or requires an action of the department, the director may	45
perform the action or duty in the name of the department or direct	46
such performance to be performed by the director's designee.	47

(C) In addition to any other duties enumerated in the Revised	48
Code, the director or the director's designee shall do all of the	49
following:	50

(1) Administer and direct the performance of the duties of	51
the department;	52

(2) Pursuant to Chapter 119. of the Revised Code, approve,	53
adopt, and prescribe such forms and rules as are necessary to	54
carry out the duties of the department;	55

(3) On behalf of the department and in addition to any	56
authority the Revised Code otherwise grants to the department,	57
have the authority and responsibility for approving and entering	58
into contracts, agreements, and other business arrangements;	59

(4) Make appointments for the department as needed to comply	60
with requirements of the Revised Code;	61

(5) Approve employment actions of the department, including	62
appointments, promotions, discipline, investigations, and	63
terminations;	64

(6) Accept, hold, and use, for the benefit of the department,	65
any gift, donation, bequest, or devise, and may agree to and	66
perform all conditions of the gift, donation, bequest, or devise,	67
that are not contrary to law;	68

(7) Apply for, allocate, disburse, and account for grants	69
made available under federal law or from other federal, state, or	70
private sources;	71

(8) Develop a list of disqualifying offenses for licensure as	72
a private investigator or a security guard provider pursuant to	73
sections 4749.03, 4749.04, 4749.10, and 4776.10 of the Revised	74
Code;	75

(9) Do all other acts necessary or desirable to carry out	76
this chapter.	77

(D)(1) The director of public safety may assess a reasonable	78
fee, plus the amount of any charge or fee passed on from a	79
financial institution, on a drawer or indorser for each of the	80
following:	81

(a) A check, draft, or money order that is returned or	82
dishonored;	83

(b) An automatic bank transfer that is declined, due to	84
insufficient funds or for any other reason;	85

(c) Any financial transaction device that is returned or	86
dishonored for any reason.	87

(2) The director shall deposit any fee collected under this	88
division in an appropriate fund as determined by the director	89
based on the tax, fee, or fine being paid.	90

(3) As used in this division, "financial transaction device"	91
has the same meaning as in section 113.40 of the Revised Code.	92

(E) The director shall establish a homeland security advisory	93
council to advise the director on homeland security, including	94
homeland security funding efforts. The advisory council shall	95
include, but not be limited to, state and local government	96
officials who have homeland security or emergency management	97
responsibilities and who represent first responders. The director	98
shall appoint the members of the council, who shall serve without	99
compensation.	100

(F)(1) The director or the director's designee shall carry	101
out the duties required of the director under Chapter 5507. of the	102
Revised Code. The director may, at the director's discretion,	103
assign employees of the department to provide assistance in	104
carrying out those duties as the director considers necessary.	105

(2) The director may adopt rules under Chapter 111. of the	106
Revised Code to approve, adopt, and prescribe such forms and	107
processes as are necessary to carry out the duties required of the	108
director under Chapter 5507. of the Revised Code.	109

Sec.  5507.01.  As used in this chapter:

110

(A) "9-1-1 system" means a system through which individuals	111
can request emergency service using the telephone number 9-1-1.	112

(B) "Basic 9-1-1" means a 9-1-1 system in which a caller	113
provides information on the nature of and the location of an	114
emergency, and the personnel receiving the call must determine the	115
appropriate emergency service provider to respond at that	116
location.	117

(C) "Enhanced 9-1-1" means a 9-1-1 system capable of	118
providing both enhanced wireline 9-1-1 and wireless enhanced	119
9-1-1.	120

(D) "Enhanced wireline 9-1-1" means a 9-1-1 system in which	121
the wireline telephone network, in providing wireline 9-1-1,	122
automatically routes the call to emergency service providers that	123
serve the location from which the call is made and immediately	124
provides to personnel answering the 9-1-1 call information on the	125
location and the telephone number from which the call is being	126
made.	127

(E) "Wireless enhanced 9-1-1" means a 9-1-1 system that, in	128
providing wireless 9-1-1, has the capabilities of phase I and, to	129
the extent available, phase II enhanced 9-1-1 services as	130
described in 47 C.F.R. 20.18 (d) to (h).	131

(F)(1) "Wireless service" means federally licensed commercial	132
mobile service as defined in 47 U.S.C. 332(d) and further defined	133
as commercial mobile radio service in 47 C.F.R. 20.3, and includes	134
service provided by any wireless, two-way communications device,	135
including a radio-telephone communications line used in cellular	136
telephone service or personal communications service, a network	137
radio access line, or any functional or competitive equivalent of	138
such a radio-telephone communications or network radio access	139
line.	140

(2) Nothing in this chapter applies to paging or any service	141
that cannot be used to call 9-1-1.	142

(G) "Wireless service provider" means a facilities-based	143
provider of wireless service to one or more end users in this	144
state.	145

(H) "Wireless 9-1-1" means the emergency calling service	146
provided by a 9-1-1 system pursuant to a call originating in the	147
network of a wireless service provider.	148

(I) "Wireline 9-1-1" means the emergency calling service	149
provided by a 9-1-1 system pursuant to a call originating in the	150
network of a wireline service provider.	151

(J) "Wireline service provider" means a facilities-based	152
provider of wireline service to one or more end-users in this	153
state.	154

(K) "Wireline service" means basic local exchange service, as	155
defined in section 4927.01 of the Revised Code, that is	156
transmitted by means of interconnected wires or cables by a	157
wireline service provider authorized by the public utilities	158
commission.	159

(L) "Wireline telephone network" means the selective router	160
and data base processing systems, trunking and data wiring cross	161
connection points at the public safety answering point, and all	162
other voice and data components of the 9-1-1 system.	163

(M) "Subdivision" means a county, municipal corporation,	164
township, township fire district, joint fire district, township	165
police district, joint police district, joint ambulance district,	166
or joint emergency medical services district that provides	167
emergency service within its territory, or that contracts with	168
another municipal corporation, township, or district or with a	169
private entity to provide such service; and a state college or	170
university, port authority, or park district of any kind that	171
employs law enforcement officers that act as the primary police	172
force on the grounds of the college or university or port	173
authority or in the parks operated by the district.	174

(N) "Emergency service" means emergency law enforcement,	175
firefighting, ambulance, rescue, and medical service.	176

(O) "Emergency service provider" means the state highway	177
patrol and an emergency service department or unit of a	178
subdivision or that provides emergency service to a subdivision	179
under contract with the subdivision.	180

(P) "Public safety answering point" means a facility to which	181
9-1-1 system calls for a specific territory are initially routed	182
for response and where personnel respond to specific requests for	183
emergency service by directly dispatching the appropriate	184
emergency service provider, relaying a message to the appropriate	185
provider, or transferring the call to the appropriate provider.	186

(Q) "Customer premises equipment" means telecommunications	187
equipment, including telephone instruments, on the premises of a	188
public safety answering point that is used in answering and	189
responding to 9-1-1 system calls.	190

(R) "Municipal corporation in the county" includes any	191
municipal corporation that is wholly contained in the county and	192
each municipal corporation located in more than one county that	193
has a greater proportion of its territory in the county to which	194
the term refers than in any other county.	195

(S) "Board of county commissioners" includes the legislative	196
authority of a county established under Section 3 of Article X,	197
Ohio Constitution, or Chapter 302. of the Revised Code.	198

(T) "Final plan" means a final plan adopted under division	199
(B) of section 5507.08 of the Revised Code and, except as	200
otherwise expressly provided, an amended final plan adopted under	201
section 5507.12 of the Revised Code.	202

(U) "Subdivision served by a public safety answering point"	203
means a subdivision that provides emergency service for any part	204
of its territory that is located within the territory of a public	205
safety answering point whether the subdivision provides the	206
emergency service with its own employees or pursuant to a	207
contract.	208

(V) A township's population includes only population of the	209
unincorporated portion of the township.	210

(W) "Telephone company" means a company engaged in the	211
business of providing local exchange telephone service by making	212
available or furnishing access and a dial tone to persons within a	213
local calling area for use in originating and receiving voice	214
grade communications over a switched network operated by the	215
provider of the service within the area and gaining access to	216
other telecommunications services. "Telephone company" includes a	217
wireline service provider and a wireless service provider unless	218
otherwise expressly specified. For purposes of sections 5507.25	219
and 5507.26 of the Revised Code, "telephone company" means a	220
wireline service provider.	221

(X) "Prepaid wireless calling service" has the same meaning	222
as in division (AA)(5) of section 5739.01 of the Revised Code.	223

(Y) "Provider of a prepaid wireless calling service" means a	224
wireless service provider that provides a prepaid wireless calling	225
service.	226

(Z) "Retail sale" has the same meaning as in section 5739.01	227
of the Revised Code.	228

(AA) "Seller" means a person that sells a prepaid wireless	229
calling service to another person by retail sale.	230

(BB) "Consumer" means the person for whom the prepaid	231
wireless calling service is provided, to whom the transfer	232
effected or license given by a sale is or is to be made or given,	233
to whom the prepaid wireless calling service is charged, or to	234
whom the admission is granted.	235

(CC) "Reseller" means a nonfacilities-based provider of	236
wireless service that provides wireless service under its own name	237
to one or more end users in this state using the network of a	238
wireless service provider.	239

Sec.  5507.02.  (A)(1) There is hereby created the statewide	240
emergency services internet protocol network steering committee,	241
consisting of the following ten members:	242

(a) The state chief information officer or the officer's	243
designee;	244

(b) Two members of the house of representatives appointed by	245
the speaker, one from the majority party and one from the minority	246
party;	247

(c) Two members of the senate appointed by the president, one	248
from the majority party and one from the minority party;	249

(d) Five members appointed by the governor.

250

(2) In appointing the five members under division (A)(1)(d)	251
of this section, the governor shall appoint two representatives of	252
the county commissioners' association of Ohio or a successor	253
organization, two representatives of the Ohio municipal league or	254
a successor organization, and one representative of the Ohio	255
township association or a successor organization. For each of	256
these appointments, the governor shall consider a nominee proposed	257
by the association or successor organization. The governor may	258
reject any of the nominees and may request that a nominating	259
entity submit alternative nominees.	260

(3) Initial appointments shall be made not later than ten	261
days after September 28, 2012.	262

(B)(1) The state chief information officer or the officer's	263
designee shall serve as the chairperson of the steering committee	264
and shall be a nonvoting member. All other members shall be voting	265
members.	266

(2) A member of the steering committee appointed from the	267
membership of the senate or the house of representatives shall	268
serve during the member's term as a member of the general assembly	269
and until a successor is appointed and qualified, notwithstanding	270
adjournment of the general assembly or the expiration of the	271
member's term as a member of the general assembly.	272

(3) The initial terms of one of the representatives of the	273
county commissioners' association of Ohio, one of the	274
representatives of the Ohio municipal league, and the	275
representative of the Ohio township association shall all expire	276
on December 31, 2016. The initial terms of the other	277
representatives of the county commissioners' association of Ohio	278
and the Ohio municipal league shall expire on December 31, 2014.	279
Thereafter, terms of the members appointed by the governor shall	280
be for four years, with each term ending on the same day of the	281
same month as the term it succeeds. Each member appointed by the	282
governor shall hold office from the date of the member's	283
appointment until the end of the term for which the member was	284
appointed, and may be reappointed. A member appointed by the	285
governor shall continue in office after the expiration date of the	286
member's term until the member's successor takes office or until a	287
period of sixty days has elapsed, whichever occurs first. Members	288
appointed by the governor shall serve without compensation and	289
shall not be reimbursed for expenses.	290

(4) A vacancy in the position of any member of the steering	291
committee shall be filled for the unexpired term in the same	292
manner as the original appointment.	293

(C) The steering committee shall generally advise the state	294
on the implementation, operation, and maintenance of a statewide	295
emergency services internet protocol network that would support	296
state and local government next-generation 9-1-1 and the dispatch	297
of emergency service providers. The steering committee shall do	298
all of the following:	299

(1) On or before May 15, 2013, deliver an initial report to	300
the speaker of the house of representatives, the president of the	301
senate, and the governor providing recommendations for the state	302
to address the development of a statewide emergency services	303
internet protocol network, which recommendations shall include a	304
review of the current funding model for this state's 9-1-1 systems	305
and may include a recommendation for a reduction in wireless 9-1-1	306
charges;	307

(2) Examine the readiness of the state's current technology	308
infrastructure for a statewide emergency services internet	309
protocol network;	310

(3) Research legislative authority with regard to governance	311
and funding of a statewide emergency services internet protocol	312
network, and provide recommendations on best practices to limit	313
duplicative efforts to ensure an effective transition to	314
next-generation 9-1-1;	315

(4) Make recommendations for consolidation of	316
public-safety-answering-point operations in this state, including	317
recommendations for accelerating the consolidation schedule	318
established in section 5507.571 of the Revised Code, to	319
accommodate next-generation 9-1-1 technology and to facilitate a	320
more efficient and effective emergency services system;	321

(5) Recommend policies, procedures, and statutory or	322
regulatory authority to effectively govern a statewide emergency	323
services internet protocol network;	324

(6) Designate a next-generation 9-1-1 statewide coordinator	325
to serve as the primary point of contact for federal initiatives;	326

(7) Coordinate with statewide initiatives and associations	327
such as the state interoperable executive committee, the Ohio	328
geographically referenced information program council, the Ohio	329
multi-agency radio communications system steering committee, and	330
other interested parties.	331

(D)(1) Not later than February 15, 2013, each chairperson of	332
a countywide 9-1-1 planning committee or the chairperson's	333
designee shall report the following information to the steering	334
committee:	335

(a) The geographic location and population of the area for	336
which the planning committee is responsible;	337

(b) Statistics detailing the number of 9-1-1 calls received;

338

(c) A report of expenditures made from disbursements from the	339
wireless 9-1-1 government assistance fund;	340

(d) An inventory of and the technical specifications for the	341
current 9-1-1 network and equipment;	342

(e) Any other information requested by the steering	343
committee.	344

(2)(a) If, by February 15, 2013, a countywide 9-1-1 planning	345
committee fails to provide to the steering committee the	346
information required under division (D)(1) of this section, the	347
steering committee shall notify the tax commissionerOhio 9-1-1	348
coordinator of the failure and the tax commissionercoordinator	349
shall suspend disbursements from the wireless 9-1-1 government	350
assistance fund to that county. Disbursements to the county shall	351
resume after the steering committee receives the required	352
information and notifies the tax commissionercoordinator that the	353
requirement has been met.	354

(b) Beginning January 1, 2014, the notification that the	355
steering committee has received the required information shall be	356
sent to the tax commissioner, and the disbursements to the county	357
shall resume after the tax commissioner receives that notice.	358

(E) The steering committee shall hold its inaugural meeting	359
not later than thirty days after September 28, 2012. Thereafter,	360
the steering committee shall meet at least once a month, either in	361
person or utilizing telecommunication-conferencing technology. A	362
majority of the voting members shall constitute a quorum.	363

(F)(1) The steering committee shall have a permanent	364
technical-standards subcommittee and a permanent	365
public-safety-answering-point-operations subcommittee, and may,	366
from time to time, establish additional subcommittees, to advise	367
and assist the steering committee based upon the subcommittees'	368
areas of expertise.	369

(2) The membership of subcommittees shall be determined by	370
the steering committee.	371

(a) The technical-standards subcommittee shall include one	372
member representing a wireline or wireless service provider that	373
participates in the state's 9-1-1 system, one representative of	374
the Ohio academic resources network, one representative of the	375
Ohio multi-agency radio communications system steering committee,	376
one representative of the Ohio geographically referenced	377
information program, and one member representing each of the	378
following associations selected by the steering committee from	379
nominations received from that association:	380

(i) The Ohio telephone association;

381

(ii) The Ohio chapter of the association of public-safety	382
communications officials;	383

(iii) The Ohio chapter of the national emergency number	384
association.	385

(b) The public-safety-answering-point-operations subcommittee	386
shall include one member representing the division of emergency	387
management of the department of public safety, one member	388
representing the state highway patrol, two members recommended by	389
the county commissioners' association of Ohio who are managers of	390
public safety answering points, two members recommended by the	391
Ohio municipal league who are managers of public safety answering	392
points, and one member from each of the following associations	393
selected by the steering committee from nominations received from	394
that association:	395

(i) The buckeye state sheriffs' association;

396

(ii) The Ohio association of chiefs of police;

397

(iii) The Ohio association of fire chiefs;

398

(iv) The Ohio chapter of the association of public-safety	399
communications officials;	400

(v) The Ohio chapter of the national emergency number	401
association.	402

(G) The committee is not an agency, as defined in section	403
101.82 of the Revised Code, for purposes of sections 101.82 to	404
101.87 of the Revised Code.	405

(H) As used in this section, "9-1-1 system," "wireless	406
service provider," "wireline service provider," "emergency service	407
provider," and "public safety answering point" have the same	408
meanings as in section 5507.01 of the Revised Code.	409

Sec.  5507.18.  (A) In accordance with this chapter and	410
Chapters 4901., 4903., 4905., and 4909. of the Revised Code, the	411
tax commissionerpublic utilities commission shall determine the	412
just, reasonable, and compensatory rates, tolls, classifications,	413
charges, or rentals to be observed and charged for the wireline	414
telephone network portion of a basic or enhanced 9-1-1 system, and	415
each telephone company that is a wireline service provider	416
participating in the system shall be subject to this chapterthose	417
chapters, to the extent it appliesthey apply, as to the service	418
provided by its portion of the wireline telephone network for the	419
system as described in the final plan or to be installed pursuant	420
to agreements under section 5507.09 of the Revised Code, and as to	421
the rates, tolls, classifications, charges, or rentals to be	422
observed and charged for that service.	423

(B) Only the customers of a participating telephone company	424
described in division (A) of this section that are served within	425
the area covered by a 9-1-1 system shall pay the recurring rates	426
for the maintenance and operation of the company's portion of the	427
wireline telephone network of the system. Such rates shall be	428
computed by dividing the total monthly recurring rates set forth	429
in the company's schedule as filed in accordance with section	430
4905.30 of the Revised Code, by the total number of residential	431
and business customer access lines, or their equivalent, within	432
the area served. Each residential and business customer within the	433
area served shall pay the recurring rates based on the number of	434
its residential and business customer access lines or their	435
equivalent. No company shall include such amount on any customer's	436
bill until the company has completed its portion of the wireline	437
telephone network in accordance with the terms, conditions,	438
requirements, and specifications of the final plan or an agreement	439
made under section 5507.09 of the Revised Code.	440

(C)(1) Except as otherwise provided in division (C)(2) of	441
this section, a participating telephone company described in	442
division (A) of this section may receive through the credit	443
authorized by section 5733.55 of the Revised Code the total	444
nonrecurring charges for its portion of the wireline telephone	445
network of the system and the total nonrecurring charges for any	446
updating or modernization of that wireline telephone network in	447
accordance with the terms, conditions, requirements, and	448
specifications of the final plan or pursuant to agreements under	449
section 5507.09 of the Revised Code, as such charges are set forth	450
in the schedule filed by the telephone company in accordance with	451
section 4905.30 of the Revised Code. However, that portion,	452
updating, or modernization shall not be for or include the	453
provision of wireless 9-1-1. As applicable, the receipt of	454
permissible charges shall occur only upon the completion of the	455
installation of the network or the completion of the updating or	456
modernization.	457

(2) The credit shall not be allowed under division (C)(1) of	458
this section for the upgrading of a system from basic to enhanced	459
wireline 9-1-1 if both of the following apply:	460

(a) The telephone company received the credit for the	461
wireline telephone network portion of the basic 9-1-1 system now	462
proposed to be upgraded.	463

(b) At the time the final plan or agreement pursuant to	464
section 5507.09 of the Revised Code calling for the basic 9-1-1	465
system was agreed to, the telephone company was capable of	466
reasonably meeting the technical and economic requirements of	467
providing the wireline telephone network portion of an enhanced	468
9-1-1 system within the territory proposed to be upgraded, as	469
determined by the department of public safety under division (A)	470
or (H) of section 5507.03 or division (C) of section 5507.09 of	471
the Revised Code.	472

(3) If the credit is not allowed under division (C)(2) of	473
this section, the total nonrecurring charges for the wireline	474
telephone network used in providing 9-1-1 service, as set forth in	475
the schedule filed by a telephone company in accordance with	476
section 4905.30 of the Revised Code, on completion of the	477
installation of the network in accordance with the terms,	478
conditions, requirements, and specifications of the final plan or	479
pursuant to section 5507.09 of the Revised Code, shall be paid by	480
the municipal corporations and townships with any territory in the	481
area in which such upgrade from basic to enhanced 9-1-1 is made.	482

(D) If customer premises equipment for a public safety	483
answering point is supplied by a telephone company that is	484
required to file a schedule under section 4905.30 of the Revised	485
Code pertaining to customer premises equipment, the recurring and	486
nonrecurring rates and charges for the installation and	487
maintenance of the equipment specified in the schedule shall	488
apply.	489

Sec.  5507.34. (A) The attorney general, upon request of the	490
department of public safety or the tax commissioner, or on the	491
attorney general's own initiative, shall begin proceedings against	492
a telephone company that is a wireline service provider to enforce	493
compliance with this chapter or with the terms, conditions,	494
requirements, or specifications of a final plan or of an agreement	495
under section 5507.09 of the Revised Code as to wireline or	496
wireless 9-1-1.	497

(B) The attorney general, upon the attorney general's own	498
initiative, or any prosecutor, upon the prosecutor's initiative,	499
shall begin proceedings against a subdivision or a regional	500
council of governments as to wireline or wireless 9-1-1 to enforce	501
compliance with this chapter or with the terms, conditions,	502
requirements, or specifications of a final plan or of an agreement	503
under section 5507.09 of the Revised Code as to wireline or	504
wireless 9-1-1.	505

Sec.  5507.40. (A) There is hereby created within the	506
department of public safetyutilities commission the 9-1-1 service	507
program, headed by the director of public safety in consultation	508
with an Ohio 9-1-1 coordinator in the unclassified civil service	509
pursuant to division (A)(9) of section 124.11 of the Revised Code.	510
The coordinator shall be appointed by and serve at the pleasure of	511
the director of public safetycommission chairperson and shall	512
report directly to the directorchairperson. On the effective date	513
of this sectionMay 6, 2005, the directorchairperson shall	514
appoint an interim coordinator and, upon submission of a list of	515
nominees by the Ohio 9-1-1 council pursuant to section 5507.66	516
5507.65 of the Revised Code, shall consider those nominees in	517
making the final appointment and in appointing any subsequent	518
coordinator. The directorchairperson may request the council to	519
submit additional nominees and may reject any of the nominees. The	520
directorchairperson shall fix the compensation of the	521
coordinator. The directorchairperson shall evaluate the	522
performance of the coordinator after considering the evaluation	523
and recommendations of the council under section 5507.65 of the	524
Revised Code.	525

The tax commissionerOhio 9-1-1 coordinator shall administer	526
the wireless 9-1-1 government assistance fund as specified in	527
sections 5507.53 and 5507.55 of the Revised Code. The coordinator	528
shall carry out the coordinator's duties under this chapter. The	529
directorchairperson may establish additional duties of the	530
coordinator based on a list of recommended duties submitted by the	531
Ohio 9-1-1 council pursuant to section 5507.65 of the Revised	532
Code. The directorchairperson may assign one or more department	533
commission employees to assist the coordinator in carrying out the	534
coordinator's duties.	535

Sec.  5507.42. (A) There is hereby imposed, ona wireless	536
9-1-1 charge of twenty-five cents per month as follows:	537

(1) On each wireless telephone number of a wireless service	538
subscriber who has a billing address in this state, except prepaid	539
wireless telephone numbers, a wireless 9-1-1 charge of twenty-five	540
cents per month. The subscriber shall pay the wireless 9-1-1	541
charge for each such wireless telephone number assigned to the	542
subscriber. Each wireless service provider and each reseller of	543
wireless service shall collect the wireless 9-1-1 charge as a	544
specific line item on each subscriber's monthly bill. The line	545
item shall be expressly designated "State/Local Wireless-E911	546
Costs ($0.25/billed number)." If a provider bills a subscriber for	547
any wireless enhanced 9-1-1 costs that the provider may incur, the	548
charge or amount is not to appear in the same line item as the	549
state/local line item. If the charge or amount is to appear in its	550
own, separate line item on the bill, the charge or amount shall be	551
expressly designated "[Name of Provider] Federal Wireless-E911	552
Costs."	553

(2)(a) Prior to January 1, 2014, on each subscriber of	554
prepaid wireless service. A wireless service provider or reseller	555
shall collect the wireless 9-1-1 charge in either of the following	556
manners:	557

(i) If the subscriber has a positive account balance on the	558
last day of the month and has used the service during that month,	559
by reducing that balance not later than the end of the first week	560
of the following month by twenty-five cents or an equivalent	561
number of airtime minutes;	562

(ii) By dividing the total earned prepaid wireless telephone	563
revenue from sales within this state received by the wireless	564
service provider or reseller during the month by fifty,	565
multiplying the quotient by twenty-five cents.	566

(b) Amounts collected under division (A)(2) of this section	567
shall be remitted pursuant to division (A)(1) of section 5507.46	568
of the Revised Code.	569

The wireless 9-1-1 chargecharges authorized under this	570
section shall not be imposed on a subscriber of wireless lifeline	571
service or a provider of that service.	572

(B)(1) Beginning JulyJanuary 1, 2013, there2014:

573

(1) There is hereby imposed, on each retail sale of a prepaid	574
wireless calling service occurring in this state, a wireless 9-1-1	575
charge of fifty hundredthsfive tenths of aone per cent of the	576
sale price.	577

(2) For purposes of division (B)(1) of this section, a retail	578
sale occurs in this state if it is effected by the consumer	579
appearing in person at a seller's business location in this state,	580
or if the sale is sourced to this state under division (E)(3) of	581
section 5739.034 of the Revised Code, except that under that	582
division, in lieu of sourcing a sale under division (C)(5) of	583
section 5739.033 of the Revised Code, the seller, rather than the	584
service provider, may elect to source the sale to the location	585
associated with the mobile telephone number.	586

(3)(a) Except as provided in division (B)(4)(c) of this	587
section, the seller of the prepaid wireless calling service shall	588
collect the charge from the consumer at the time of each retail	589
sale and disclose the amount of the charge to the consumer at the	590
time of the sale by itemizing the charge on the receipt, invoice,	591
or similar form of written documentation provided to the consumer.	592

(b) The seller shall comply with the reporting and remittance	593
requirements under section 5507.46 of the Revised Code.	594

(4) When a prepaid wireless calling service is sold with one	595
or more other products or services for a single, nonitemized	596
price, the wireless 9-1-1 charge imposed under division (B)(1) of	597
this section shall apply to the entire nonitemized price, except	598
as provided in divisions (B)(4)(a) to (c) of this section.	599

(a) If the amount of the prepaid wireless calling service is	600
disclosed to the consumer as a dollar amount, the seller may elect	601
to apply the charge only to that dollar amount.	602

(b) If the seller can identify the portion of the nonitemized	603
price that is attributable to the prepaid wireless calling	604
service, by reasonable and verifiable standards from the seller's	605
books and records that are kept in the regular course of business	606
for other purposes, including nontax purposes, the seller may	607
elect to apply the charge only to that portion.	608

(c) If a minimal amount of a prepaid wireless calling service	609
is sold with a prepaid wireless calling device for the single,	610
nonitemized price, the seller may elect not to collect the charge.	611
As used in this division, "minimal" means either ten minutes or	612
less or five dollars or less.	613

(C) The wireless 9-1-1 charges shall be exempt from state or	614
local taxation.	615

Sec. 5507.44.  Beginning JulyJanuary 1, 20132014, the tax	616
commissioner shall provide notice to all known wireless service	617
providers, resellers of wireless service, and sellers of prepaid	618
wireless calling services of any increase or decrease in either of	619
the wireless 9-1-1 charges imposed under section 5507.42 of the	620
Revised Code. Each notice shall be provided not less than thirty	621
days before the effective date of the increase or decrease.	622

Sec.  5507.46. (A) Prior to January 1, 2014:

623

(1) Beginning with the second month following the month in	624
which the wireless 9-1-1 charge is first imposed under division	625
(A) of section 5507.42 of the Revised Code, aA wireless service	626
provider or reseller of wireless service, not later than the last	627
day of each month, shall remit the full amount of all such	628
wireless 9-1-1 charges it collected under division (A) of section	629
5507.42 of the Revised Code for the second preceding calendar	630
month to the tax commissionerOhio 9-1-1 coordinator, with the	631
exception of charges equivalent to the amount authorized as a	632
billing and collection fee under division (A)(2) of this section.	633
In doing so, the provider or reseller may remit the requisite	634
amount in any reasonable manner consistent with its existing	635
operating or technological capabilities, such as by customer	636
address, location associated with the wireless telephone number,	637
or another allocation method based on comparable, relevant data.	638
If the wireless service provider or reseller receives a partial	639
payment for a bill from a wireless service subscriber, the	640
wireless service provider or reseller shall apply the payment	641
first against the amount the subscriber owes the wireless service	642
provider or reseller and shall remit to the tax commissioner	643
coordinator such lesser amount, if any, as results from that	644
invoice.	645

(2) A wireless service provider or reseller of wireless	646
service may retain as a billing and collection fee two per cent of	647
the total wireless 9-1-1 charges it collects in anya month and	648
shall account to the tax commissionercoordinator for the amount	649
retained.	650

(3) The tax commissionercoordinator shall return to, or	651
credit against the next month's remittance of, a wireless service	652
provider or service reseller the amount of any remittances the	653
tax commissionercoordinator determines were erroneously submitted	654
by the provider or reseller.	655

(B) Beginning January 1, 2014:

656

(1) Subject to division (B)(2) of this section, eachEach	657
seller of a prepaid wireless calling service required to collect	658
prepaid wireless 9-1-1 charges under division (B) of section	659
5507.42 of the Revised Code, wireless service provider, and	660
reseller shall, on or before the twenty-third day of each month,	661
except as provided in divisions (B)(2)(a), (b), and (c)(3) of this	662
section, do both of the following:	663

(a) Make and file a return for the preceding month, in the	664
form prescribed by the tax commissioner, showing the amount of the	665
wireless 9-1-1 charges collected duringdue under section 5507.42	666
of the Revised Code for that month;	667

(b) Remit the full amount due, as shown on the return, with	668
the exception of charges equivalent to the amount authorized as a	669
collection fee under division (B)(4) of this section.	670

(2)(a) The commissioner may extend the timegrant one or more	671
thirty-day extensions for making and filing returns and paying	672
remitting amounts due.	673

(b) The commissioner may require that the return for the last	674
month of any annual or semiannual period, as determined by the	675
commissioner, be a reconciliation return detailing the prepaid	676
wireless 9-1-1 charges collected during the preceding annual or	677
semiannual period. A reconciliation return shall be filed on or	678
before the last day of the month following the last month of the	679
annual or semiannual period.	680

(c)(3) If a seller is required to collect prepaid wireless	681
9-1-1 charges in amounts that do not merit monthly returns, the	682
commissioner may authorize the seller to make and file returns	683
less frequently. The commissioner shall ascertain whether this	684
authorization is warranted upon the basis of administrative costs	685
to the state.	686

(d)(4) A wireless service provider, reseller, and seller may	687
each retain as a collection fee three per cent of the total	688
wireless 9-1-1 charges described in division (B)(1) of this	689
required to be collected under section 5507.42 of the Revised	690
Code, and shall account to the tax commissioner for the amount	691
retained.	692

(C)(5) The return required under division (B)(1)(a) of this	693
section shall be filed electronically using the Ohio business	694
gateway, as defined in section 718.051 of the Revised Code, the	695
Ohio telefile system, or any other electronic means prescribed by	696
the tax commissioner. PaymentRemittance of the amount due shall	697
be made electronically in a manner approved by the commissioner. A	698
wireless service provider, reseller, or seller may apply to the	699
commissioner on a form prescribed by the commissioner to be	700
excused from either electronic requirement of this division. For	701
good cause shown, the commissioner may excuse the provider,	702
reseller, or seller from either or both of the requirements and	703
may permit the provider, reseller, or seller to file returns or	704
make paymentsremittances by nonelectronic means.	705

(D)(C)(1) Prior to January 1, 2014, each subscriber on which	706
a wireless 9-1-1 charge is imposed under division (A) of section	707
5507.42 of the Revised Code is liable to the state for the amount	708
of the charge. If a wireless service provider or reseller fails to	709
collect the charge under that division from a subscriber of	710
prepaid wireless service, or fails to bill any other subscriber	711
for the charge, the wireless service provider or reseller is	712
liable to the state for the amount not collected or billed. If a	713
wireless service provider or reseller collects charges under that	714
division and fails to remit the money to the coordinator, the	715
wireless service provider or reseller is liable to the state for	716
any amount collected and not remitted.	717

(2) Beginning January 1, 2014:

718

(a) Each subscriber or consumer on which a wireless 9-1-1	719
charge is imposed under section 5507.42 of the Revised Code is	720
liable to the state for the amount of the charge. If a wireless	721
service provider or reseller fails to bill any subscriber foror	722
collect the charge imposed under division (A) of section 5507.42	723
of the Revised Code, or if a seller fails to collect the charge,	724
the wireless service provider or, reseller, or seller is liable	725
to the state for the amount not billed or collected. If a wireless	726
service provider or, reseller collects charges under that	727
division and, or seller fails to remit the money to the tax	728
commissioner as required under this section, the wireless service	729
provider or, reseller, or seller is liable to the state for any	730
the amount collected and not remitted, regardless of whether the	731
amount was collected.	732

(2)(b) No provider of a prepaid wireless calling service	733
shall be liable to the state for any wireless 9-1-1 charge imposed	734
under division (B)(1) of section 5507.42 of the Revised Code that	735
was not collected or remitted.	736

(E)(D)Prior to January 1, 2014:

737

(1) If the tax commissionerpublic utilities commission has	738
reason to believe that a wireless service provider or reseller has	739
failed to bill, collect, or remit the wireless 9-1-1 charge as	740
required by divisions (A)(1) and (D)(C)(1) of this section or has	741
retained more than the amount authorized under division (A)(2)(d)	742
of this section, and after written notice to the provider or	743
reseller, the tax commissionercommission may audit the provider	744
or reseller for the sole purpose of making such a determination.	745
The audit may include, but is not limited to, a sample of the	746
provider's or reseller's billings, collections, remittances, or	747
retentions for a representative period, and the tax commissioner	748
commission shall make a good faith effort to reach agreement with	749
the provider or reseller in selecting that sample.	750

(2) Upon written notice to the wireless service provider or	751
reseller, the tax commissionercommission, by order after	752
completion of the audit, may make an assessment against the	753
provider or reseller if, pursuant to the audit, the tax	754
commissionercommission determines that the provider or reseller	755
has failed to bill, collect, or remit the wireless 9-1-1 charge as	756
required by divisions (A)(1) and (D)(C)(1) of this section or has	757
retained more than the amount authorized under division (A)(2) of	758
this section. The assessment shall be in the amount of any	759
remittance that was due and unpaid on the date notice of the audit	760
was sent by the tax commissionercommission to the provider or	761
reseller or, as applicable, in the amount of the excess amount	762
under division (A)(2) of this section retained by the provider or	763
reseller as of that date.	764

(3) The portion of any assessment not paid within sixty days	765
after the date of service by the tax commissionercommission of	766
the assessment notice under division (E)(D)(2) of this section	767
shall bear interest from that date until paid at the rate per	768
annum prescribed by section 5703.47 of the Revised Code. That	769
interest may be collected by making an assessment under division	770
(E)(D)(2) of this section. An assessment under this division and	771
any interest due shall be remitted in the same manner as the	772
wireless 9-1-1 charge imposed under division (A) of section	773
5507.42 of the Revised Code.	774

(4) An assessment is final and due and payable and shall be	775
remitted to the tax commissionercommission unless the assessed	776
party petitions for rehearing under section 4903.10 of the Revised	777
Code. The proceedings of the tax commissionercommission specified	778
in division (E)(D)(4) of this section are subject to and governed	779
by Chapter 4903. of the Revised Code, except that the court of	780
appeals of Franklin county has exclusive, original jurisdiction to	781
review, modify, or vacate an order of the tax commissioner	782
commission under division (E)(D)(2) of this section. The court	783
shall hear and determine such appeal in the same manner and under	784
the same standards as the Ohio supreme court hears and determines	785
appeals under Chapter 4903. of the Revised Code.	786

The judgment of the court of appeals is final and conclusive	787
unless reversed, vacated, or modified on appeal. Such an appeal	788
may be made by the tax commissionercommission or the person to	789
whom the order under division (E)(D)(2) of this section was issued	790
and shall proceed as in the case of appeals in civil actions as	791
provided in Chapter 2505. of the Revised Code.	792

(5) After an assessment becomes final, if any portion of the	793
assessment remains unpaid, including accrued interest, a certified	794
copy of the finalcommission's entry making the assessment final	795
may be filed in the office of the clerk of the court of common	796
pleas in the county in which the place of business of the assessed	797
party is located. If the party maintains no place of business in	798
this state, the certified copy of the entry may be filed in the	799
office of the clerk of the court of common pleas of Franklin	800
county. Immediately upon the filing, the clerk shall enter a	801
judgment for the state against the assessed party in the amount	802
shown on the entry. The judgment may be filed by the clerk in a	803
loose-leaf book entitled "special judgments for wireless 9-1-1	804
charges" and shall have the same effect as other judgments. The	805
judgment shall be executed upon the request of the tax	806
commissionercommission.	807

(6) An assessment under this division does not discharge a	808
subscriber's liability to reimburse the provider or reseller for	809
the wireless 9-1-1 charge imposed under division (A) of section	810
5507.42 of the Revised Code. If, after the date of service of the	811
audit notice under division (E)(D)(1) of this section, a	812
subscriber pays a wireless 9-1-1 charge for the period covered by	813
the assessment, the payment shall be credited against the	814
assessment.	815

(7) All money collected by the tax commissionercommission	816
under division (E)(D) of this section shall be paid to the	817
treasurer of state, for deposit to the credit of the wireless	818
9-1-1 government assistance fund.	819

(E) Beginning January 1, 2014:

820

(1) If the tax commissioner has reason to believe that a	821
wireless service provider, reseller, or seller has failed to bill,	822
collect, or remit the wireless 9-1-1 charge as required by this	823
section and section 5507.42 of the Revised Code or has retained	824
more than the amount authorized under division (B)(4) of this	825
section, and after written notice to the provider, reseller, or	826
seller, the tax commissioner may audit the provider, reseller, or	827
seller for the sole purpose of making such a determination. The	828
audit may include, but is not limited to, a sample of the	829
provider's, reseller's, or seller's billings, collections,	830
remittances, or retentions for a representative period, and the	831
tax commissioner shall make a good faith effort to reach agreement	832
with the provider, reseller, or seller in selecting that sample.	833

(2) Upon written notice to the wireless service provider,	834
reseller, or seller, the tax commissioner, after completion of the	835
audit, may make an assessment against the provider, reseller, or	836
seller if, pursuant to the audit, the tax commissioner determines	837
that the provider, reseller, or seller has failed to bill,	838
collect, or remit the wireless 9-1-1 charge as required by this	839
section and section 5507.42 of the Revised Code or has retained	840
more than the amount authorized under division (B)(4) of this	841
section. The assessment shall be in the amount of any remittance	842
that was due and unpaid on the date notice of the audit was sent	843
by the tax commissioner to the provider, reseller, or seller or,	844
as applicable, in the amount of the excess amount under division	845
(B)(4) of this section retained by the provider, reseller, or	846
seller as of that date.	847

(3) The portion of any assessment not paid within sixty days	848
after the date of service by the tax commissioner of the	849
assessment notice under division (E)(2) of this section shall bear	850
interest from that date until paid at the rate per annum	851
prescribed by section 5703.47 of the Revised Code. That interest	852
may be collected by making an assessment under division (E)(2) of	853
this section. An assessment under this division and any interest	854
due shall be remitted in the same manner as the wireless 9-1-1	855
charges imposed under section 5507.42 of the Revised Code.	856

(4) The portion of the assessment not paid within sixty days	857
after the day the assessment was issued shall bear interest at the	858
rate per annum prescribed by section 5703.47 of the Revised Code	859
from the day the commissioner issues the assessment until it is	860
paid. Interest shall be remitted in the same manner as the 9-1-1	861
charges and may be collected by the issuance of an assessment	862
under division (E) of this section.	863

(5) Unless the provider, reseller, or seller assessed files	864
with the tax commissioner within sixty days after service of the	865
notice of assessment, either personally or by certified mail, a	866
written petition for reassessment, signed by the party assessed or	867
that party's authorized agent having knowledge of the facts, the	868
assessment shall become final and the amount of the assessment	869
shall be due and payable from the party assessed to the treasurer	870
of state, for deposit to the next generation 9-1-1 fund, which is	871
created under section 5507.54 of the Revised Code. The petition	872
shall indicate the objections of the party assessed, but	873
additional objections may be raised in writing if received by the	874
commissioner prior to the date shown on the final determination.	875
If the petition has been properly filed, the commissioner shall	876
proceed under section 5703.60 of the Revised Code.	877

(6) After an assessment becomes final, if any portion of the	878
assessment remains unpaid, including accrued interest, a certified	879
copy of the final assessment may be filed in the office of the	880
clerk of the court of common pleas in the county in which the	881
business of the assessed party is conducted. If the party assessed	882
maintains no place of business in this state, the certified copy	883
of the final assessment may be filed in the office of the clerk of	884
the court of common pleas of Franklin county. Immediately upon the	885
filing, the clerk shall enter a judgment for the state against the	886
assessed party in the amount shown on the final assessment. The	887
judgment may be filed by the clerk in a loose-leaf book entitled	888
"special judgments for wireless 9-1-1 charges" and shall have the	889
same effect as other judgments. The judgment shall be executed	890
upon the request of the tax commissioner.	891

(7) If the commissioner determines that the commissioner	892
erroneously has refunded a wireless 9-1-1 charge to any person,	893
the commissioner may make an assessment against that person for	894
recovery of the erroneously refunded charge.	895

(8) An assessment under division (E) of this section does not	896
discharge a subscriber's or consumer's liability to reimburse the	897
provider, reseller, or seller for a wireless 9-1-1 charge. If,	898
after the date of service of the audit notice under division	899
(E)(1) of this section, a subscriber or consumer pays a wireless	900
9-1-1 charge for the period covered by the assessment, the payment	901
shall be credited against the assessment.	902

Sec.  5507.53.  (A) There is hereby created the wireless 9-1-1	903
administrative fund in the state treasury. PeriodicA sufficient	904
percentage, determined by the chairperson of the public utilities	905
commission but not to exceed two per cent, of the periodic	906
remittances of the wireless 9-1-1 charges under section 5507.46 of	907
the Revised Code shall be deposited to the credit of the fund and	908
used as follows:	909

(1) One per cent of the remittances shall, to be used by the	910
director of public safetycommission to cover such nonpayroll	911
costs and, at the discretion of the directorcommission such	912
payroll costs, of the department of public safetycommission as	913
are incurred in assisting the directorcoordinator in carrying	914
out sections 5507.40 to 5507.66 of the Revised Code and in	915
conducting audits under division (E)(D) of section 5507.46 of the	916
Revised Code. In addition, the compensation of the Ohio 9-1-1	917
coordinator, and any expenses of the coordinator in carrying out	918
those sections, shall be paid from the fund.	919

(2) One per cent of the remittances shall be used by the	920
department of taxation to defray the costs in carrying out	921
sections 5507.40 to 5507.66 of the Revised Code.	922

(3) Annually, the tax commissioner and the director of public	923
safety, after paying administrative costs incurred in carrying out	924
sections 5507.40 to 5507.66 of the Revised Code, shall transfer	925
any excess remaining in the wireless 9-1-1 administrative fund to	926
the wireless 9-1-1 government assistance fund.	927

(B) There is hereby created the wireless 9-1-1 government	928
assistance fund, which shall be in the custody of the treasurer of	929
state but shall not be part of the state treasury. The periodic	930
remittances of the wireless 9-1-1 charges under section 5507.46 of	931
the Revised Code, remaining after the depositsdeposit required by	932
division (A) of this section, shall be deposited to the credit of	933
the wireless 9-1-1 government assistance fund. The treasurer of	934
state shall deposit or invest the moneys in this fund in	935
accordance with Chapter 135. of the Revised Code and any other	936
provision of law governing public moneys of the state as defined	937
in section 135.01 of the Revised Code. The treasurer of state	938
shall credit the interest earned to the fund. The treasurer of	939
state shall disburse money from the fund solely upon order of the	940
tax commissionercoordinator as authorized under division (A) of	941
section 5507.55 of the Revised Code. Annually, untilunless the	942
fund is depleted, the treasurer of state shall certify to the	943
director of public safety and the tax commissionercoordinator the	944
amount of moneys in the treasurer of state's custody belonging to	945
the fund.	946

(C) There is hereby created the next generation 9-1-1 fund,	947
which shall be in the custody of the treasurer but shall not be a	948
part of the state treasury. The commission shall transfer the	949
funds remaining in the wireless 9-1-1 government assistance fund	950
after the disbursements made under division (A) of section 5507.55	951
of the Revised Code, shall be deposited to the credit of the next	952
generation 9-1-1 fund, created in section 5507.54 of the Revised	953
Code. The treasurer of state shall deposit or invest the moneys in	954
this fund in accordance with Chapter 135. of the Revised Code and	955
any other provision of law governing public moneys of the state as	956
defined in section 135.01 of the Revised Code. The treasurer of	957
state shall credit the interest earned to the fund. The treasurer	958
of state shall disburse money from the fund solely upon order of	959
the tax commissioner according to policies established by the	960
statewide emergency services internet protocol network steering	961
committee as authorized under section 5507.021 of the Revised	962
Code. Annually, until the fund is depleted, the treasurer of state	963
shall certify to the commissioner the amount of moneys in the	964
treasurer of state's custody belonging to the fund.	965

Sec.  5507.54. (A) Beginning January 1, 2014:

966

(1) The periodic remittances of the wireless 9-1-1 charges	967
under section 5507.46 of the Revised Code shall be paid to the	968
treasurer of state for deposit as follows:	969

(a) Ninety-eight per cent to the wireless 9-1-1 government	970
assistance fund, which is hereby created in the custody of the	971
treasurer of state but which shall not be a part of the state	972
treasury. The treasurer of state shall deposit or invest the	973
moneys in this fund in accordance with Chapter 135. of the Revised	974
Code and any other provision of law governing public moneys of the	975
state as defined in section 135.01 of the Revised Code. The	976
treasurer of state shall credit the interest earned to the fund.	977
The treasurer of state shall disburse money from the fund solely	978
upon order of the tax commissioner according to policies	979
established by the statewide emergency services internet protocol	980
network steering committee as authorized under section 5507.021 of	981
the Revised Code. Annually, until the fund is depleted, the	982
treasurer of state shall certify to the commissioner the amount of	983
moneys in the treasurer of state's custody belonging to the fund.	984

(b) One per cent to the wireless 9-1-1 administrative fund,	985
which is hereby created in the state treasury. The treasurer of	986
state shall credit the interest earned to the fund.	987

(c) One per cent to the wireless 9-1-1 public safety	988
administrative fund, which is hereby created in the state	989
treasury. The treasurer of state shall credit the interest earned	990
to the fund.	991

(2) The tax commissioner shall use the remittances in the	992
wireless 9-1-1 administrative fund to defray the costs in carrying	993
out this chapter.	994

(3) The director of public safety shall use the remittances	995
in the wireless 9-1-1 public safety administrative fund to defray	996
the costs incurred by the department in carrying out this chapter.	997

(4) Annually, the tax commissioner and the director of public	998
safety, after paying administrative costs under division (B) of	999
this section, shall transfer any excess remaining in the	1000
administrative funds to the next generation 9-1-1 fund, created	1001
under this section.	1002

(B)(1) There is hereby created the next generation 9-1-1	1003
fund, which shall be in the custody of the treasurer but shall not	1004
be a part of the state treasury.	1005

(2) Beginning on January 1, 2014, the tax commissioner shall	1006
transfer the funds remaining in the wireless 9-1-1 government	1007
assistance fund after the disbursements made under division (B)(1)	1008
of section 5507.55 of the Revised Code to the credit of the next	1009
generation 9-1-1 fund.	1010

(3) The treasurer of state shall deposit or invest the moneys	1011
in the next generation 9-1-1 fund in accordance with Chapter 135.	1012
of the Revised Code and any other provision of law governing	1013
public moneys of the state as defined in section 135.01 of the	1014
Revised Code. The treasurer of state shall credit the interest	1015
earned to the fund. The treasurer of state shall disburse money	1016
from the fund solely upon order of the tax commissioner according	1017
to policies established by the statewide emergency services	1018
internet protocol network steering committee as authorized under	1019
section 5507.021 of the Revised Code. Annually, until the fund is	1020
depleted, the treasurer of state shall certify to the commissioner	1021
the amount of moneys in the treasurer of state's custody belonging	1022
to the fund.	1023

Sec.  5507.55. (A) Prior to the first disbursement under this	1024
section and annually thereafter not later than the twenty-fifth	1025
day of January, until the wireless 9-1-1 government assistance	1026
fund is depleted, the tax commissioner shall do both of the	1027
following for the purposes of division (B) of this section:	1028

(1) Determine, for a county that has adopted a final plan	1029
under this chapter for the provision of wireless enhanced 9-1-1	1030
within the territory covered by the countywide 9-1-1 system	1031
established under the plan, the number of wireless telephone	1032
numbers assigned to wireless service subscribers that have billing	1033
addresses within the county. That number shall be adjusted between	1034
any two counties so that the number of wireless telephone numbers	1035
assigned to wireless service subscribers who have billing	1036
addresses within any portion of a municipal corporation that	1037
territorially lies primarily in one of the two counties but	1038
extends into the other county is added to the number already	1039
determined for that primary county and subtracted for the other	1040
county.	1041

(2) Determine each county's proportionate share of the	1042
wireless 9-1-1 government assistance fund for the ensuing calendar	1043
year on the basis set forth in division (B) of this section;	1044
estimate the ensuing calendar year's fund balance; compute each	1045
such county's estimated proceeds for the ensuing calendar year	1046
based on its proportionate share and the estimated fund balance;	1047
and certify such amount of proceeds to the county auditor of each	1048
such countyJanuary 1, 2014, the public utilities commission shall	1049
disburse moneys from the wireless 9-1-1 government assistance fund	1050
to each county in the same manner as the 2012 disbursements, in	1051
accordance with divisions (A) and (B) of section 4931.64 of the	1052
Revised Code as those divisions existed prior to the effective	1053
date of H.B. 360 of the 129th general assembly.	1054

(B) Except as provided in division (F) of this section, the	1055
Beginning January 1, 2014:	1056

(1) The tax commissioner, in accordance with this division	1057
and not later than the last day of each month, shall disburse the	1058
amount credited as remittances tomoneys from the wireless 9-1-1	1059
government assistance fund during the second preceding month, plus	1060
any accrued interest on the fund. Such a disbursement shall be	1061
paid to each county treasurer. The amount to be so disbursed	1062
monthly to a particular county shall be a proportionate share of	1063
the wireless 9-1-1 government assistance fund balance based on the	1064
ratio between the following:	1065

(1) The number of wireless telephone numbers determined for	1066
the county by the tax commissioner pursuant to division (A) of	1067
this section;	1068

(2) The total number of wireless telephone numbers assigned	1069
to subscribers who have billing addresses within this state. To	1070
the extent that the fund balance permits, the disbursements to	1071
each county shall total at least ninety thousand dollars annually.	1072

(C)(1) Each county that has not adopted a final plan for the	1073
provision of wireless enhanced 9-1-1 under this chapter shall be	1074
deemed as having done so for the purposes of making the	1075
determinations under divisions (A)(1) and (2) of this section.	1076

(2) For each county described in division (C)(1) of this	1077
section, the tax commissioner shall retain in the wireless 9-1-1	1078
government assistance fund an amount equal to what would otherwise	1079
be paid as the county's disbursements under division (B) of this	1080
section if it had adopted such a final plan, plus any related	1081
accrued interest, to be set aside for that county. If the board of	1082
county commissioners notifies the tax commissioner prior to	1083
January 1, 2010, that a final plan for the provision of wireless	1084
enhanced 9-1-1 has been adopted, the tax commissioner shall	1085
disburse and pay to the county treasurer, not later than the last	1086
day of the month following the month the notification is made, the	1087
total amount so set aside for the county plus any related accrued	1088
interest. As of January 1, 2010, any money and interest so	1089
retained and not disbursed as authorized under this division shall	1090
be available for disbursement only as provided in division (B) of	1091
this sectionin the same manner as the 2012 disbursements, in	1092
accordance with divisions (A) and (B) of section 4931.64 of the	1093
Revised Code as those divisions existed prior to the effective	1094
date of H.B. 360 of the 129th general assembly.	1095

(2) The tax commissioner shall disburse moneys from the next	1096
generation 9-1-1 fund in accordance with the guidelines	1097
established under section 5507.022 of the Revised Code.	1098

(D)(C) Immediately upon receipt by a county treasurer of a	1099
disbursement under division (A) or (B) or (C)(1) of this section,	1100
the county shall disburse, in accordance with the allocation	1101
formula set forth in the final plan, the amount the county so	1102
received to any other subdivisions in the county and any regional	1103
councils of governments in the county that pay the costs of a	1104
public safety answering point providing wireless enhanced 9-1-1	1105
under the plan.	1106

(E)(D) Nothing in this chapter affects the authority of a	1107
subdivision operating or served by a public safety answering point	1108
of a 9-1-1 system or a regional council of governments operating a	1109
public safety answering point of a 9-1-1 system to use, as	1110
provided in the final plan for the system or in an agreement under	1111
section 5507.09 of the Revised Code, any other authorized revenue	1112
of the subdivision or the regional council of governments for the	1113
purposes of providing basic or enhanced 9-1-1.	1114

(F) On and after July 1, 2013, disbursements made by the tax	1115
commissioner under this section shall remain at the level	1116
disbursed in 2012. After the disbursements are made, the balances	1117
of the remittances in the wireless 9-1-1 government assistance	1118
fund shall be deposited in the next generation 9-1-1 fund.	1119

Sec.  5507.57.  Except as otherwise provided in section	1120
5507.571 of the Revised Code:	1121

(A) A countywide 9-1-1 system receiving a disbursement under	1122
section 5507.55 of the Revised Code shall provide countywide	1123
wireless enhanced 9-1-1 in accordance with this chapter beginning	1124
as soon as reasonably possible after receipt of the first	1125
disbursement or, if that service is already implemented, shall	1126
continue to provide such service. Except as provided in divisions	1127
(B), (C), and (E) of this section, a disbursement shall be used	1128
solely for the purpose of paying either or both of the following:	1129

(1) Any costs of designing, upgrading, purchasing, leasing,	1130
programming, installing, testing, or maintaining the necessary	1131
data, hardware, software, and trunking required for the public	1132
safety answering point or points of the 9-1-1 system to provide	1133
wireless enhanced 9-1-1, which costs are incurred before or on or	1134
after May 6, 2005, and consist of such additional costs of the	1135
9-1-1 system over and above any costs incurred to provide wireline	1136
9-1-1 or to otherwise provide wireless enhanced 9-1-1. Annually,	1137
up to twenty-five thousand dollars of the disbursements received	1138
on or after January 1, 2009, may be applied to data, hardware, and	1139
software that automatically alerts personnel receiving a 9-1-1	1140
call that a person at the subscriber's address or telephone number	1141
may have a mental or physical disability, of which that personnel	1142
shall inform the appropriate emergency service provider. On or	1143
after the provision of technical and operational standards	1144
pursuant to division (D)(1) of section 5507.65 of the Revised	1145
Code, a regional council of governments operating a public safety	1146
answering point or a subdivision shall consider the standards	1147
before incurring any costs described in this division.	1148

(2) Any costs of training the staff of the public safety	1149
answering point or points to provide wireless enhanced 9-1-1,	1150
which costs are incurred before or on or after May 6, 2005.	1151

(B) A subdivision or a regional council of governments that	1152
certifies to the tax commissionerdepartment of public safety that	1153
it has paid the costs described in divisions (A)(1) and (2) of	1154
this section and is providing countywide wireless enhanced 9-1-1	1155
may use disbursements received under section 5507.55 of the	1156
Revised Code to pay any of its personnel costs of one or more	1157
public safety answering points providing countywide wireless	1158
enhanced 9-1-1.	1159

(C) After receiving its July 2013 disbursement under division	1160
(A) of section 5507.55 of the Revised Code, a regional council of	1161
governments operating a public safety answering point or a	1162
subdivision may use any remaining balance of disbursements it	1163
received under that sectiondivision to pay any of its costs of	1164
providing countywide wireless 9-1-1, including the personnel costs	1165
of one or more public safety answering points providing that	1166
service.	1167

(D) The costs described in divisions (A), (B), (C), and (E)	1168
of this section may include any such costs payable pursuant to an	1169
agreement under division (J) of section 5507.03 of the Revised	1170
Code.	1171

(E)(1) No disbursement to a countywide 9-1-1 system for costs	1172
of a public safety answering point shall be made from the wireless	1173
9-1-1 government assistance fund or the next generation 9-1-1 fund	1174
unless the public safety answering point meets the standards set	1175
by rule of the statewide emergency services internet protocol	1176
network steering committee under section 5507.025507.021 of the	1177
Revised Code.	1178

(2) The department of public safety shall monitor compliance	1179
with the standards set by the steering committee. The department	1180
shall notify the tax commissioner to suspend disbursements to a	1181
countywide 9-1-1 system that fails to meet the standards. Upon	1182
receipt of this notification, the commissioner shall suspend	1183
disbursements until the commissioner is notified of compliance	1184
with the standards.	1185

(F) The auditor of state may audit and review each county's	1186
expenditures of funds received from the wireless 9-1-1 government	1187
assistance fund to verify that the funds were used in accordance	1188
with the requirements of this chapter.	1189

Sec.  5507.63. (A) The tax commissioner and the director of	1190
public safety, after consultation with each other, shallmay adopt	1191
rules in accordance with Chapter 119. of the Revised Code to carry	1192
out sections 5507.40 to 5507.55 of the Revised Codethis chapter,	1193
including rules prescribing the necessary accounting for the	1194
billing and collection fee under division (A)(2)(B)(4) of section	1195
5507.46 of the Revised Code. The	1196

(B) The amounts of the wireless 9-1-1 charges shall be	1197
prescribed only by act of the general assembly.	1198

Sec.  5507.65.  (A) There is hereby created the Ohio 9-1-1	1199
council, consisting of eleven members as follows: the Ohio 9-1-1	1200
coordinator, until January 1, 2014; the director of public safety	1201
or a designee of the department of public safety, selected by the	1202
director of public safety, beginning January 1, 2014; and ten	1203
members appointed by the governor. In appointing the ten members,	1204
the governor shall select at least one representative of public	1205
safety communications officials in this state, one representative	1206
of administrators of 9-1-1 service in this state, one	1207
representative of countywide 9-1-1 systems in this state, three	1208
representatives of wireline service providers in this state, and	1209
three representatives of wireless service providers in this state.	1210
For each such appointment, the governor shall consider a nominee	1211
proposed, respectively, by the Ohio chapter of the association of	1212
public-safety communications officials, the Ohio chapter of the	1213
national emergency number association, the county commissioners	1214
association of Ohio; and nominees proposed, respectively, by the	1215
Ohio telecom association and the wireless operators of Ohio; or	1216
any successor organization of each such entity.	1217

Initial appointments shall be made not later than thirty days	1218
after May 6, 2005. Nothing in this section shall prevent the	1219
governor from rejecting any of the nominees or requesting that a	1220
nominating entity under this division submit the names of	1221
alternative nominees for consideration.	1222

(B) The term of the initial appointee to the council	1223
representing public safety communications officials and the terms	1224
of one of the initial appointees representing wireline service	1225
providers and one representing wireless service providers shall	1226
expire on January 31, 2007. The term of the initial appointee to	1227
the council representing administrators of 9-1-1 service and the	1228
terms of another one of the initial appointees representing	1229
wireline service providers and another representing wireless	1230
service providers shall expire on January 31, 2008. The term of	1231
the initial appointee to the council representing countywide 9-1-1	1232
systems and the terms of another one of the initial appointees	1233
representing wireline service providers and another representing	1234
wireless service providers shall expire on January 31, 2009.	1235
Thereafter, terms of appointed members shall be for three years,	1236
with each term ending on the same day of the same month as the	1237
term it succeeds.	1238

Each council member shall hold office from the date of the	1239
member's appointment until the end of the term for which the	1240
member was appointed. Members may be reappointed.	1241

Vacancies shall be filled in the manner provided for original	1242
appointments. Any member appointed to fill a vacancy occurring	1243
prior to the expiration date of the term for which the member's	1244
predecessor was appointed shall hold office as a member for the	1245
remainder of that term. A member shall continue in office after	1246
the expiration date of the member's term until the member's	1247
successor takes office or until a period of sixty days has	1248
elapsed, whichever occurs first.	1249

Appointed members shall serve without compensation and shall	1250
not be reimbursed for expenses.	1251

(C) The council shall select a chairperson from among the	1252
appointed members. Each member shall have one vote in all	1253
deliberations of the council. A majority of the voting members	1254
constitutes a quorum.	1255

(D) The duties of the council shall consist of both of the	1256
following:	1257

(1) Arbitrating or establishing relative to 9-1-1 systems in	1258
this state nondiscriminatory, competitively neutral, and uniform	1259
technical and operational standards consistent with recognized	1260
industry standards and federal law. This authority does not	1261
include authority to prescribe the technology that a telephone	1262
company or reseller uses to deliver 9-1-1 calls.	1263

(2) Including for the purpose of reporting to the general	1264
assembly, conducting research and making recommendations or	1265
reports regarding any wireline and wireless 9-1-1 issues, any	1266
improvements in the provision of service by 9-1-1 systems in this	1267
state, or any legislation or policies concerning such systems;	1268

(3) Regarding the position of Ohio 9-1-1 coordinator,	1269
submitting names of nominees and recommended duties as authorized	1270
under section 5507.40 of the Revised Code and, at least	1271
biennially, conducting and submitting with recommendations to the	1272
public utilities commission a performance evaluation of the	1273
coordinator.	1274

(E) The council is not an agency, as defined in section	1275
101.82 of the Revised Code, for purposes of sections 101.82 to	1276
101.87 of the Revised Code.	1277

Sec.  5507.66.  (A) There is hereby created the wireless 9-1-1	1278
advisory board, consisting of the Ohio 9-1-1 council appointee	1279
that represents public safety communications officials and five	1280
members appointed by the governor as follows: one of the council	1281
appointees that represents wireless service providers in this	1282
state, whose council term expires after the council term of the	1283
council appointee representing public safety communications	1284
officials, one noncouncil representative of wireless service	1285
providers in this state, one noncouncil representative of public	1286
safety communications officials in this state, and two noncouncil	1287
representatives of municipal and county governments in this state.	1288

(B) The terms of the advisory board members who are also	1289
council members shall be concurrent with their terms as members of	1290
the council, as prescribed under division (B) of section 5507.65	1291
of the Revised Code. The terms of the initial noncouncil appointee	1292
to the advisory board who represents wireless service providers	1293
and of one of the initial noncouncil appointees who represents	1294
municipal and county government shall expire on January 31, 2009.	1295
The terms of the initial noncouncil appointee to the advisory	1296
board representing public safety communications officials and of	1297
the other initial noncouncil appointee representing municipal and	1298
county government shall expire on January 31, 2010. Thereafter,	1299
terms of the noncouncil appointees shall be for three years, with	1300
each term ending on the same day of the same month as the term it	1301
succeeds. The conditions of holding office, manner of filling	1302
vacancies, and other matters concerning service by any member of	1303
the advisory board shall be the same as set forth for council	1304
members under division (B) of section 5507.65 of the Revised Code.	1305

(C) The director of public safety shall appoint the	1306
chairperson of the advisory board. Each member of the board shall	1307
be a voting member and shall have one vote in all deliberations of	1308
the board. A majority of the members constitutes a quorum.	1309

(D) The advisory board shall make recommendations to and	1310
consult with the director regarding any rules to be adopted under	1311
section 5507.63 of the Revised Code.	1312

(E) The advisory board is not an agency, as defined in	1313
section 101.82 of the Revised Code, for purposes of sections	1314
101.82 to 101.87 of the Revised Code.	1315

Sec. 5701.11.  The effective date to which this section	1316
refers is the effective date of this section as amended by H.B. 58	1317
472 of the 129th general assembly.	1318

(A)(1) Except as provided under division (A)(2) or (B) of	1319
this section, any reference in Title LVII of the Revised Code to	1320
the Internal Revenue Code, to the Internal Revenue Code "as	1321
amended," to other laws of the United States, or to other laws of	1322
the United States, "as amended," means the Internal Revenue Code	1323
or other laws of the United States as they exist on the effective	1324
date.	1325

(2) This section does not apply to any reference in Title	1326
LVII of the Revised Code to the Internal Revenue Code as of a date	1327
certain specifying the day, month, and year, or to other laws of	1328
the United States as of a date certain specifying the day, month,	1329
and year.	1330

(B)(1) For purposes of applying section 5733.04, 5745.01, or	1331
5747.01 of the Revised Code to a taxpayer's taxable year ending	1332
after December 15, 2010March 7, 2011, and before the effective	1333
date, a taxpayer may irrevocably elect to incorporate the	1334
provisions of the Internal Revenue Code or other laws of the	1335
United States that are in effect for federal income tax purposes	1336
for that taxable year if those provisions differ from the	1337
provisions that, under division (A) of this section, would	1338
otherwise apply. The filing by the taxpayer for that taxable year	1339
of a report or return that incorporates the provisions of the	1340
Internal Revenue Code or other laws of the United States	1341
applicable for federal income tax purposes for that taxable year,	1342
and that does not include any adjustments to reverse the effects	1343
of any differences between those provisions and the provisions	1344
that would otherwise apply, constitutes the making of an	1345
irrevocable election under this division for that taxable year.	1346

(2) Elections under prior versions of division (B)(1) of this	1347
section remain in effect for the taxable years to which they	1348
apply.	1349

Sec. 5733.55.  (A) As used in this section:

1350

(1) "9-1-1 system" has the same meaning as in section 5507.01	1351
of the Revised Code.	1352

(2) "Nonrecurring 9-1-1 charges" means nonrecurring charges	1353
approved by the tax commissionerpublic utilities commission for	1354
the telephone network portion of a 9-1-1 system pursuant to	1355
section 5507.18 of the Revised Code.	1356

(3) "Eligible nonrecurring 9-1-1 charges" means all	1357
nonrecurring 9-1-1 charges for a 9-1-1 system except both of the	1358
following:	1359

(a) Charges for a system that was not established pursuant to	1360
a plan adopted under section 5507.08 of the Revised Code or an	1361
agreement under section 5507.09 of the Revised Code;	1362

(b) Charges for that part of a system established pursuant to	1363
such a plan or agreement that are excluded from the credit by	1364
division (C)(2) of section 5507.18 of the Revised Code.	1365

(4) "Telephone company" has the same meaning as in section	1366
5727.01 of the Revised Code.	1367

(B) Beginning in tax year 2005, a telephone company shall be	1368
allowed a nonrefundable credit against the tax imposed by section	1369
5733.06 of the Revised Code equal to the amount of its eligible	1370
nonrecurring 9-1-1 charges. The credit shall be claimed for the	1371
company's taxable year that covers the period in which the 9-1-1	1372
service for which the credit is claimed becomes available for use.	1373
The credit shall be claimed in the order required by section	1374
5733.98 of the Revised Code. If the credit exceeds the total taxes	1375
due under section 5733.06 of the Revised Code for the tax year,	1376
the tax commissioner shall credit the excess against taxes due	1377
under that section for succeeding tax years until the full amount	1378
of the credit is granted.	1379

(C) After the last day a return, with any extensions, may be	1380
filed by any telephone company that is eligible to claim a credit	1381
under this section, the commissioner shall determine whether the	1382
sum of the credits allowed for prior tax years commencing with tax	1383
year 2005 plus the sum of the credits claimed for the current tax	1384
year exceeds fifteen million dollars. If it does, the credits	1385
allowed under this section for the current tax year shall be	1386
reduced by a uniform percentage such that the sum of the credits	1387
allowed for the current tax year do not exceed fifteen million	1388
dollars claimed by all telephone companies for all tax years.	1389
Thereafter, no credit shall be granted under this section, except	1390
for the remaining portions of any credits allowed under division	1391
(B) of this section.	1392

(D) A telephone company that is entitled to carry forward a	1393
credit against its public utility excise tax liability under	1394
section 5727.39 of the Revised Code is entitled to carry forward	1395
any amount of that credit remaining after its last public utility	1396
excise tax payment for the period of July 1, 2003, through June	1397
30, 2004, and claim that amount as a credit against its	1398
corporation franchise tax liability under this section. Nothing in	1399
this section authorizes a telephone company to claim a credit	1400
under this section for any eligible nonrecurring 9-1-1 charges for	1401
which it has already claimed a credit under this section or	1402
section 5727.39 of the Revised Code.	1403

Sec. 5751.01.  As used in this chapter:

1404

(A) "Person" means, but is not limited to, individuals,	1405
combinations of individuals of any form, receivers, assignees,	1406
trustees in bankruptcy, firms, companies, joint-stock companies,	1407
business trusts, estates, partnerships, limited liability	1408
partnerships, limited liability companies, associations, joint	1409
ventures, clubs, societies, for-profit corporations, S	1410
corporations, qualified subchapter S subsidiaries, qualified	1411
subchapter S trusts, trusts, entities that are disregarded for	1412
federal income tax purposes, and any other entities.	1413

(B) "Consolidated elected taxpayer" means a group of two or	1414
more persons treated as a single taxpayer for purposes of this	1415
chapter as the result of an election made under section 5751.011	1416
of the Revised Code.	1417

(C) "Combined taxpayer" means a group of two or more persons	1418
treated as a single taxpayer for purposes of this chapter under	1419
section 5751.012 of the Revised Code.	1420

(D) "Taxpayer" means any person, or any group of persons in	1421
the case of a consolidated elected taxpayer or combined taxpayer	1422
treated as one taxpayer, required to register or pay tax under	1423
this chapter. "Taxpayer" does not include excluded persons.	1424

(E) "Excluded person" means any of the following:

1425

(1) Any person with not more than one hundred fifty thousand	1426
dollars of taxable gross receipts during the calendar year.	1427
Division (E)(1) of this section does not apply to a person that is	1428
a member of a consolidated elected taxpayer;	1429

(2) A public utility that paid the excise tax imposed by	1430
section 5727.24 or 5727.30 of the Revised Code based on one or	1431
more measurement periods that include the entire tax period under	1432
this chapter, except that a public utility that is a combined	1433
company is a taxpayer with regard to the following gross receipts:	1434

(a) Taxable gross receipts directly attributed to a public	1435
utility activity, but not directly attributed to an activity that	1436
is subject to the excise tax imposed by section 5727.24 or 5727.30	1437
of the Revised Code;	1438

(b) Taxable gross receipts that cannot be directly attributed	1439
to any activity, multiplied by a fraction whose numerator is the	1440
taxable gross receipts described in division (E)(2)(a) of this	1441
section and whose denominator is the total taxable gross receipts	1442
that can be directly attributed to any activity;	1443

(c) Except for any differences resulting from the use of an	1444
accrual basis method of accounting for purposes of determining	1445
gross receipts under this chapter and the use of the cash basis	1446
method of accounting for purposes of determining gross receipts	1447
under section 5727.24 of the Revised Code, the gross receipts	1448
directly attributed to the activity of a natural gas company shall	1449
be determined in a manner consistent with division (D) of section	1450
5727.03 of the Revised Code.	1451

As used in division (E)(2) of this section, "combined	1452
company" and "public utility" have the same meanings as in section	1453
5727.01 of the Revised Code.	1454

(3) A financial institution, as defined in section 5725.01 of	1455
the Revised Code, that paid the corporation franchise tax charged	1456
by division (D) of section 5733.06 of the Revised Code based on	1457
one or more taxable years that include the entire tax period under	1458
this chapter;	1459

(4) A dealer in intangibles, as defined in section 5725.01 of	1460
the Revised Code, that paid the dealer in intangibles tax levied	1461
by division (D) of section 5707.03 of the Revised Code based on	1462
one or more measurement periods that include the entire tax period	1463
under this chapter;	1464

(5) A financial holding company as defined in the "Bank	1465
Holding Company Act," 12 U.S.C. 1841(p);	1466

(6) A bank holding company as defined in the "Bank Holding	1467
Company Act," 12 U.S.C. 1841(a);	1468

(7) A savings and loan holding company as defined in the	1469
"Home Owners Loan Act," 12 U.S.C. 1467a(a)(1)(D) that is engaging	1470
only in activities or investments permissible for a financial	1471
holding company under 12 U.S.C. 1843(k);	1472

(8) A person directly or indirectly owned by one or more	1473
financial institutions, financial holding companies, bank holding	1474
companies, or savings and loan holding companies described in	1475
division (E)(3), (5), (6), or (7) of this section that is engaged	1476
in activities permissible for a financial holding company under 12	1477
U.S.C. 1843(k), except that any such person held pursuant to	1478
merchant banking authority under 12 U.S.C. 1843(k)(4)(H) or 12	1479
U.S.C. 1843(k)(4)(I) is not an excluded person, or a person	1480
directly or indirectly owned by one or more insurance companies	1481
described in division (E)(9) of this section that is authorized to	1482
do the business of insurance in this state.	1483

For the purposes of division (E)(8) of this section, a person	1484
owns another person under the following circumstances:	1485

(a) In the case of corporations issuing capital stock, one	1486
corporation owns another corporation if it owns fifty per cent or	1487
more of the other corporation's capital stock with current voting	1488
rights;	1489

(b) In the case of a limited liability company, one person	1490
owns the company if that person's membership interest, as defined	1491
in section 1705.01 of the Revised Code, is fifty per cent or more	1492
of the combined membership interests of all persons owning such	1493
interests in the company;	1494

(c) In the case of a partnership, trust, or other	1495
unincorporated business organization other than a limited	1496
liability company, one person owns the organization if, under the	1497
articles of organization or other instrument governing the affairs	1498
of the organization, that person has a beneficial interest in the	1499
organization's profits, surpluses, losses, or distributions of	1500
fifty per cent or more of the combined beneficial interests of all	1501
persons having such an interest in the organization;	1502

(d) In the case of multiple ownership, the ownership	1503
interests of more than one person may be aggregated to meet the	1504
fifty per cent ownership tests in this division only when each	1505
such owner is described in division (E)(3), (5), (6), or (7) of	1506
this section and is engaged in activities permissible for a	1507
financial holding company under 12 U.S.C. 1843(k) or is a person	1508
directly or indirectly owned by one or more insurance companies	1509
described in division (E)(9) of this section that is authorized to	1510
do the business of insurance in this state.	1511

(9) A domestic insurance company or foreign insurance	1512
company, as defined in section 5725.01 of the Revised Code, that	1513
paid the insurance company premiums tax imposed by section 5725.18	1514
or Chapter 5729. of the Revised Code, or an unauthorized insurance	1515
company whose gross premiums are subject to tax under section	1516
3905.36 of the Revised Code based on one or more measurement	1517
periods that include the entire tax period under this chapter;	1518

(10) A person that solely facilitates or services one or more	1519
securitizations or similar transactions for any person described	1520
in division (E)(3), (5), (6), (7), (8), or (9) of this section, or	1521
a person that solely facilitates or services one or more	1522
securitizations of phase-in-recovery property pursuant to a final	1523
financing order as those terms are defined in section 4928.23 of	1524
the Revised Code. For purposes of this division, "securitization"	1525
means transferring one or more assets to one or more persons and	1526
then issuing securities backed by the right to receive payment	1527
from the asset or assets so transferred.	1528

(11) Except as otherwise provided in this division, a	1529
pre-income tax trust as defined in division (FF)(4) of section	1530
5747.01 of the Revised Code and any pass-through entity of which	1531
such pre-income tax trust owns or controls, directly, indirectly,	1532
or constructively through related interests, more than five per	1533
cent of the ownership or equity interests. If the pre-income tax	1534
trust has made a qualifying pre-income tax trust election under	1535
division (FF)(3) of section 5747.01 of the Revised Code, then the	1536
trust and the pass-through entities of which it owns or controls,	1537
directly, indirectly, or constructively through related interests,	1538
more than five per cent of the ownership or equity interests,	1539
shall not be excluded persons for purposes of the tax imposed	1540
under section 5751.02 of the Revised Code.	1541

(12) Nonprofit organizations or the state and its agencies,	1542
instrumentalities, or political subdivisions.	1543

(F) Except as otherwise provided in divisions (F)(2), (3),	1544
and (4) of this section, "gross receipts" means the total amount	1545
realized by a person, without deduction for the cost of goods sold	1546
or other expenses incurred, that contributes to the production of	1547
gross income of the person, including the fair market value of any	1548
property and any services received, and any debt transferred or	1549
forgiven as consideration.	1550

(1) The following are examples of gross receipts:

1551

(a) Amounts realized from the sale, exchange, or other	1552
disposition of the taxpayer's property to or with another;	1553

(b) Amounts realized from the taxpayer's performance of	1554
services for another;	1555

(c) Amounts realized from another's use or possession of the	1556
taxpayer's property or capital;	1557

(d) Any combination of the foregoing amounts.

1558

(2) "Gross receipts" excludes the following amounts:

1559

(a) Interest income except interest on credit sales;

1560

(b) Dividends and distributions from corporations, and	1561
distributive or proportionate shares of receipts and income from a	1562
pass-through entity as defined under section 5733.04 of the	1563
Revised Code;	1564

(c) Receipts from the sale, exchange, or other disposition of	1565
an asset described in section 1221 or 1231 of the Internal Revenue	1566
Code, without regard to the length of time the person held the	1567
asset. Notwithstanding section 1221 of the Internal Revenue Code,	1568
receipts from hedging transactions also are excluded to the extent	1569
the transactions are entered into primarily to protect a financial	1570
position, such as managing the risk of exposure to (i) foreign	1571
currency fluctuations that affect assets, liabilities, profits,	1572
losses, equity, or investments in foreign operations; (ii)	1573
interest rate fluctuations; or (iii) commodity price fluctuations.	1574
As used in division (F)(2)(c) of this section, "hedging	1575
transaction" has the same meaning as used in section 1221 of the	1576
Internal Revenue Code and also includes transactions accorded	1577
hedge accounting treatment under statement of financial accounting	1578
standards number 133 of the financial accounting standards board.	1579
For the purposes of division (F)(2)(c) of this section, the actual	1580
transfer of title of real or tangible personal property to another	1581
entity is not a hedging transaction.	1582

(d) Proceeds received attributable to the repayment,	1583
maturity, or redemption of the principal of a loan, bond, mutual	1584
fund, certificate of deposit, or marketable instrument;	1585

(e) The principal amount received under a repurchase	1586
agreement or on account of any transaction properly characterized	1587
as a loan to the person;	1588

(f) Contributions received by a trust, plan, or other	1589
arrangement, any of which is described in section 501(a) of the	1590
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter	1591
1, Subchapter (D) of the Internal Revenue Code applies;	1592

(g) Compensation, whether current or deferred, and whether in	1593
cash or in kind, received or to be received by an employee, former	1594
employee, or the employee's legal successor for services rendered	1595
to or for an employer, including reimbursements received by or for	1596
an individual for medical or education expenses, health insurance	1597
premiums, or employee expenses, or on account of a dependent care	1598
spending account, legal services plan, any cafeteria plan	1599
described in section 125 of the Internal Revenue Code, or any	1600
similar employee reimbursement;	1601

(h) Proceeds received from the issuance of the taxpayer's own	1602
stock, options, warrants, puts, or calls, or from the sale of the	1603
taxpayer's treasury stock;	1604

(i) Proceeds received on the account of payments from	1605
insurance policies, except those proceeds received for the loss of	1606
business revenue;	1607

(j) Gifts or charitable contributions received; membership	1608
dues received by trade, professional, homeowners', or condominium	1609
associations; and payments received for educational courses,	1610
meetings, meals, or similar payments to a trade, professional, or	1611
other similar association; and fundraising receipts received by	1612
any person when any excess receipts are donated or used	1613
exclusively for charitable purposes;	1614

(k) Damages received as the result of litigation in excess of	1615
amounts that, if received without litigation, would be gross	1616
receipts;	1617

(l) Property, money, and other amounts received or acquired	1618
by an agent on behalf of another in excess of the agent's	1619
commission, fee, or other remuneration;	1620

(m) Tax refunds, other tax benefit recoveries, and	1621
reimbursements for the tax imposed under this chapter made by	1622
entities that are part of the same combined taxpayer or	1623
consolidated elected taxpayer group, and reimbursements made by	1624
entities that are not members of a combined taxpayer or	1625
consolidated elected taxpayer group that are required to be made	1626
for economic parity among multiple owners of an entity whose tax	1627
obligation under this chapter is required to be reported and paid	1628
entirely by one owner, pursuant to the requirements of sections	1629
5751.011 and 5751.012 of the Revised Code;	1630

(n) Pension reversions;

1631

(o) Contributions to capital;

1632

(p) Sales or use taxes collected as a vendor or an	1633
out-of-state seller on behalf of the taxing jurisdiction from a	1634
consumer or other taxes the taxpayer is required by law to collect	1635
directly from a purchaser and remit to a local, state, or federal	1636
tax authority;	1637

(q) In the case of receipts from the sale of cigarettes or	1638
tobacco products by a wholesale dealer, retail dealer,	1639
distributor, manufacturer, or seller, all as defined in section	1640
5743.01 of the Revised Code, an amount equal to the federal and	1641
state excise taxes paid by any person on or for such cigarettes or	1642
tobacco products under subtitle E of the Internal Revenue Code or	1643
Chapter 5743. of the Revised Code;	1644

(r) In the case of receipts from the sale of motor fuel by a	1645
licensed motor fuel dealer, licensed retail dealer, or licensed	1646
permissive motor fuel dealer, all as defined in section 5735.01 of	1647
the Revised Code, an amount equal to federal and state excise	1648
taxes paid by any person on such motor fuel under section 4081 of	1649
the Internal Revenue Code or Chapter 5735. of the Revised Code;	1650

(s) In the case of receipts from the sale of beer or	1651
intoxicating liquor, as defined in section 4301.01 of the Revised	1652
Code, by a person holding a permit issued under Chapter 4301. or	1653
4303. of the Revised Code, an amount equal to federal and state	1654
excise taxes paid by any person on or for such beer or	1655
intoxicating liquor under subtitle E of the Internal Revenue Code	1656
or Chapter 4301. or 4305. of the Revised Code;	1657

(t) Receipts realized by a new motor vehicle dealer or used	1658
motor vehicle dealer, as defined in section 4517.01 of the Revised	1659
Code, from the sale or other transfer of a motor vehicle, as	1660
defined in that section, to another motor vehicle dealer for the	1661
purpose of resale by the transferee motor vehicle dealer, but only	1662
if the sale or other transfer was based upon the transferee's need	1663
to meet a specific customer's preference for a motor vehicle;	1664

(u) Receipts from a financial institution described in	1665
division (E)(3) of this section for services provided to the	1666
financial institution in connection with the issuance, processing,	1667
servicing, and management of loans or credit accounts, if such	1668
financial institution and the recipient of such receipts have at	1669
least fifty per cent of their ownership interests owned or	1670
controlled, directly or constructively through related interests,	1671
by common owners;	1672

(v) Receipts realized from administering anti-neoplastic	1673
drugs and other cancer chemotherapy, biologicals, therapeutic	1674
agents, and supportive drugs in a physician's office to patients	1675
with cancer;	1676

(w) Funds received or used by a mortgage broker that is not a	1677
dealer in intangibles, other than fees or other consideration,	1678
pursuant to a table-funding mortgage loan or warehouse-lending	1679
mortgage loan. Terms used in division (F)(2)(w) of this section	1680
have the same meanings as in section 1322.01 of the Revised Code,	1681
except "mortgage broker" means a person assisting a buyer in	1682
obtaining a mortgage loan for a fee or other consideration paid by	1683
the buyer or a lender, or a person engaged in table-funding or	1684
warehouse-lending mortgage loans that are first lien mortgage	1685
loans.	1686

(x) Property, money, and other amounts received by a	1687
professional employer organization, as defined in section 4125.01	1688
of the Revised Code, from a client employer, as defined in that	1689
section, in excess of the administrative fee charged by the	1690
professional employer organization to the client employer;	1691

(y) In the case of amounts retained as commissions by a	1692
permit holder under Chapter 3769. of the Revised Code, an amount	1693
equal to the amounts specified under that chapter that must be	1694
paid to or collected by the tax commissioner as a tax and the	1695
amounts specified under that chapter to be used as purse money;	1696

(z) Qualifying distribution center receipts.

1697

(i) For purposes of division (F)(2)(z) of this section:

1698

(I) "Qualifying distribution center receipts" means receipts	1699
of a supplier from qualified property that is delivered to a	1700
qualified distribution center, multiplied by a quantity that	1701
equals one minus the Ohio delivery percentage. If the qualified	1702
distribution center is a refining facility, "supplier" includes	1703
all dealers, brokers, processors, sellers, vendors, cosigners, and	1704
distributors of qualified property.	1705

(II) "Qualified property" means tangible personal property	1706
delivered to a qualified distribution center that is shipped to	1707
that qualified distribution center solely for further shipping by	1708
the qualified distribution center to another location in this	1709
state or elsewhere or, in the case of gold, silver, platinum, or	1710
palladium delivered to a refining facility solely for refining to	1711
a grade and fineness acceptable for delivery to a registered	1712
commodities exchange. "Further shipping" includes storing and	1713
repackaging such property into smaller or larger bundles, so long	1714
as suchthe property is not subject to further manufacturing or	1715
processing. "Refining" is limited to extracting impurities from	1716
gold, silver, platinum, or palladium through smelting or some	1717
other process at a refining facility.	1718

(III) "Qualified distribution center" means a warehouse or	1719
other similar, a facility similar to a warehouse, or a refining	1720
facility in this state that, for the qualifying year, is operated	1721
by a person that is not part of a combined taxpayer group and that	1722
has a qualifying certificate. However, allAll warehouses or	1723
other similar facilities similar to warehouses that are operated	1724
by persons in the same taxpayer group and that are located within	1725
one mile of each other shall be treated as one qualified	1726
distribution center. All refining facilities that are operated by	1727
persons in the same taxpayer group and that are located in the	1728
same or adjacent counties may be treated as one qualified	1729
distribution center.	1730

(IV) "Qualifying year" means the calendar year to which the	1731
qualifying certificate applies.	1732

(V) "Qualifying period" means the period of the first day of	1733
July of the second year preceding the qualifying year through the	1734
thirtieth day of June of the year preceding the qualifying year.	1735

(VI) "Qualifying certificate" means the certificate issued by	1736
the tax commissioner after the operator of a distribution center	1737
files an annual application with the commissioner. The application	1738
and annual fee shall be filed and paid for each qualified	1739
distribution center on or before the first day of September before	1740
the qualifying year or within forty-five days after the	1741
distribution center opens, whichever is later.	1742

The applicant must substantiate to the commissioner's	1743
satisfaction that, for the qualifying period, all persons	1744
operating the distribution center have more than fifty per cent of	1745
the cost of the qualified property shipped to a location such that	1746
it would be sitused outside this state under the provisions of	1747
division (E) of section 5751.033 of the Revised Code. The	1748
applicant must also substantiate that the distribution center	1749
cumulatively had costs from its suppliers equal to or exceeding	1750
five hundred million dollars during the qualifying period. (For	1751
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"	1752
excludes any person that is part of the consolidated elected	1753
taxpayer group, if applicable, of the operator of the qualified	1754
distribution center.) The commissioner may require the applicant	1755
to have an independent certified public accountant certify that	1756
the calculation of the minimum thresholds required for a qualified	1757
distribution center by the operator of a distribution center has	1758
been made in accordance with generally accepted accounting	1759
principles. The commissioner shall issue or deny the issuance of a	1760
certificate within sixty days after the receipt of the	1761
application. A denial is subject to appeal under section 5717.02	1762
of the Revised Code. If the operator files a timely appeal under	1763
section 5717.02 of the Revised Code, the operator shall be granted	1764
a qualifying certificate, provided that the operator is liable for	1765
any tax, interest, or penalty upon amounts claimed as qualifying	1766
distribution center receipts, other than those receipts exempt	1767
under division (C)(1) of section 5751.011 of the Revised Code,	1768
that would have otherwise not been owed by its suppliers if the	1769
qualifying certificate was valid.	1770

(VII) "Ohio delivery percentage" means the proportion of the	1771
total property delivered to a destination inside Ohio from the	1772
qualified distribution center during the qualifying period	1773
compared with total deliveries from such distribution center	1774
everywhere during the qualifying period.	1775

(VIII) "Refining facility" means one or more buildings	1776
located in a county in the Appalachian region of this state as	1777
defined by section 107.21 of the Revised Code and utilized for	1778
refining or smelting gold, silver, platinum, or palladium to a	1779
grade and fineness acceptable for delivery to a registered	1780
commodities exchange.	1781

(IX) "Registered commodities exchange" means a board of	1782
trade, such as New York mercantile exchange, inc. or commodity	1783
exchange, inc., designated as a contract market by the commodity	1784
futures trading commission under the "Commodity Exchange Act," 7	1785
U.S.C. 1 et seq., as amended.	1786

(ii) If the distribution center is new and was not open for	1787
the entire qualifying period, the operator of the distribution	1788
center may request that the commissioner grant a qualifying	1789
certificate. If the certificate is granted and it is later	1790
determined that more than fifty per cent of the qualified property	1791
during that year was not shipped to a location such that it would	1792
be sitused outside of this state under the provisions of division	1793
(E) of section 5751.033 of the Revised Code or if it is later	1794
determined that the person that operates the distribution center	1795
had average monthly costs from its suppliers of less than forty	1796
million dollars during that year, then the operator of the	1797
distribution center shall be liable for any tax, interest, or	1798
penalty upon amounts claimed as qualifying distribution center	1799
receipts, other than those receipts exempt under division (C)(1)	1800
of section 5751.011 of the Revised Code, that would have not	1801
otherwise been owed by its suppliers during the qualifying year if	1802
the qualifying certificate was valid. (For purposes of division	1803
(F)(2)(z)(ii) of this section, "supplier" excludes any person that	1804
is part of the consolidated elected taxpayer group, if applicable,	1805
of the operator of the qualified distribution center.)	1806

(iii) When filing an application for a qualifying certificate	1807
under division (F)(2)(z)(i)(VI) of this section, the operator of a	1808
qualified distribution center also shall provide documentation, as	1809
the commissioner requires, for the commissioner to ascertain the	1810
Ohio delivery percentage. The commissioner, upon issuing the	1811
qualifying certificate, also shall certify the Ohio delivery	1812
percentage. The operator of the qualified distribution center may	1813
appeal the commissioner's certification of the Ohio delivery	1814
percentage in the same manner as an appeal is taken from the	1815
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)	1816
of this section.	1817

Within thirty days after all appeals have been exhausted, the	1818
operator of the qualified distribution center shall notify the	1819
affected suppliers of qualified property that such suppliers are	1820
required to file, within sixty days after receiving notice from	1821
the operator of the qualified distribution center, amended reports	1822
for the impacted calendar quarter or quarters or calendar year,	1823
whichever the case may be. Any additional tax liability or tax	1824
overpayment shall be subject to interest but shall not be subject	1825
to the imposition of any penalty so long as the amended returns	1826
are timely filed. The supplier of tangible personal property	1827
delivered to the qualified distribution center shall include in	1828
its report of taxable gross receipts the receipts from the total	1829
sales of property delivered to the qualified distribution center	1830
for the calendar quarter or calendar year, whichever the case may	1831
be, multiplied by the Ohio delivery percentage for the qualifying	1832
year. Nothing in division (F)(2)(z)(iii) of this section shall be	1833
construed as imposing liability on the operator of a qualified	1834
distribution center for the tax imposed by this chapter arising	1835
from any change to the Ohio delivery percentage.	1836

(iv) In the case where the distribution center is new and not	1837
open for the entire qualifying period, the operator shall make a	1838
good faith estimate of an Ohio delivery percentage for use by	1839
suppliers in their reports of taxable gross receipts for the	1840
remainder of the qualifying period. The operator of the facility	1841
shall disclose to the suppliers that such Ohio delivery percentage	1842
is an estimate and is subject to recalculation. By the due date of	1843
the next application for a qualifying certificate, the operator	1844
shall determine the actual Ohio delivery percentage for the	1845
estimated qualifying period and proceed as provided in division	1846
(F)(2)(z)(iii) of this section with respect to the calculation and	1847
recalculation of the Ohio delivery percentage. The supplier is	1848
required to file, within sixty days after receiving notice from	1849
the operator of the qualified distribution center, amended reports	1850
for the impacted calendar quarter or quarters or calendar year,	1851
whichever the case may be. Any additional tax liability or tax	1852
overpayment shall be subject to interest but shall not be subject	1853
to the imposition of any penalty so long as the amended returns	1854
are timely filed.	1855

(v) Qualifying certificates and Ohio delivery percentages	1856
issued by the commissioner shall be open to public inspection and	1857
shall be timely published by the commissioner. A supplier relying	1858
in good faith on a certificate issued under this division shall	1859
not be subject to tax on the qualifying distribution center	1860
receipts under division (F)(2)(z) of this section. A person	1861
receiving a qualifying certificate is responsible for paying the	1862
tax, interest, and penalty upon amounts claimed as qualifying	1863
distribution center receipts that would not otherwise have been	1864
owed by the supplier if the qualifying certificate were available	1865
when it is later determined that the qualifying certificate should	1866
not have been issued because the statutory requirements were in	1867
fact not met.	1868

(vi) The annual fee for a qualifying certificate shall be one	1869
hundred thousand dollars for each qualified distribution center.	1870
If a qualifying certificate is not issued, the annual fee is	1871
subject to refund after the exhaustion of all appeals provided for	1872
in division (F)(2)(z)(i)(VI) of this section. The fee imposed	1873
under this division may be assessed in the same manner as the tax	1874
imposed under this chapter. The first one hundred thousand dollars	1875
of the annual application fees collected each calendar year shall	1876
be credited to the revenue enhancement fund. The remainder of the	1877
annual application fees collected shall be distributed in the same	1878
manner required under section 5751.20 of the Revised Code.	1879

(vii) The tax commissioner may require that adequate security	1880
be posted by the operator of the distribution center on appeal	1881
when the commissioner disagrees that the applicant has met the	1882
minimum thresholds for a qualified distribution center as set	1883
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this	1884
section.	1885

(aa) Receipts of an employer from payroll deductions relating	1886
to the reimbursement of the employer for advancing moneys to an	1887
unrelated third party on an employee's behalf;	1888

(bb) Cash discounts allowed and taken;

1889

(cc) Returns and allowances;

1890

(dd) Bad debts from receipts on the basis of which the tax	1891
imposed by this chapter was paid in a prior quarterly tax payment	1892
period. For the purpose of this division, "bad debts" means any	1893
debts that have become worthless or uncollectible between the	1894
preceding and current quarterly tax payment periods, have been	1895
uncollected for at least six months, and that may be claimed as a	1896
deduction under section 166 of the Internal Revenue Code and the	1897
regulations adopted under that section, or that could be claimed	1898
as such if the taxpayer kept its accounts on the accrual basis.	1899
"Bad debts" does not include repossessed property, uncollectible	1900
amounts on property that remains in the possession of the taxpayer	1901
until the full purchase price is paid, or expenses in attempting	1902
to collect any account receivable or for any portion of the debt	1903
recovered;	1904

(ee) Any amount realized from the sale of an account	1905
receivable to the extent the receipts from the underlying	1906
transaction giving rise to the account receivable were included in	1907
the gross receipts of the taxpayer;	1908

(ff) Any receipts directly attributed to providing public	1909
services pursuant to sections 126.60 to 126.605 of the Revised	1910
Code, or any receipts directly attributed to a transfer agreement	1911
or to the enterprise transferred under that agreement under	1912
section 4313.02 of the Revised Code.	1913

(gg)(i) As used in this division:

1914

(I) "Qualified uranium receipts" means receipts from the	1915
sale, exchange, lease, loan, production, processing, or other	1916
disposition of uranium within a uranium enrichment zone certified	1917
by the tax commissioner under division (F)(2)(gg)(ii) of this	1918
section. "Qualified uranium receipts" does not include any	1919
receipts with a situs in this state outside a uranium enrichment	1920
zone certified by the tax commissioner under division	1921
(F)(2)(gg)(ii) of this section.	1922

(II) "Uranium enrichment zone" means all real property that	1923
is part of a uranium enrichment facility licensed by the United	1924
States nuclear regulatory commission and that was or is owned or	1925
controlled by the United States department of energy or its	1926
successor.	1927

(ii) Any person that owns, leases, or operates real or	1928
tangible personal property constituting or located within a	1929
uranium enrichment zone may apply to the tax commissioner to have	1930
the uranium enrichment zone certified for the purpose of excluding	1931
qualified uranium receipts under division (F)(2)(gg) of this	1932
section. The application shall include such information that the	1933
tax commissioner prescribes. Within sixty days after receiving the	1934
application, the tax commissioner shall certify the zone for that	1935
purpose if the commissioner determines that the property qualifies	1936
as a uranium enrichment zone as defined in division (F)(2)(gg) of	1937
this section, or, if the tax commissioner determines that the	1938
property does not qualify, the commissioner shall deny the	1939
application or request additional information from the applicant.	1940
If the tax commissioner denies an application, the commissioner	1941
shall state the reasons for the denial. The applicant may appeal	1942
the denial of an application to the board of tax appeals pursuant	1943
to section 5717.02 of the Revised Code. If the applicant files a	1944
timely appeal, the tax commissioner shall conditionally certify	1945
the applicant's property. The conditional certification shall	1946
expire when all of the applicant's appeals are exhausted. Until	1947
final resolution of the appeal, the applicant shall retain the	1948
applicant's records in accordance with section 5751.12 of the	1949
Revised Code, notwithstanding any time limit on the preservation	1950
of records under that section.	1951

(hh) Amounts realized by licensed motor fuel dealers or	1952
licensed permissive motor fuel dealers from the exchange of	1953
petroleum products, including motor fuel, between such dealers,	1954
provided that delivery of the petroleum products occurs at a	1955
refinery, terminal, pipeline, or marine vessel and that the	1956
exchanging dealers agree neither dealer shall require monetary	1957
compensation from the other for the value of the exchanged	1958
petroleum products other than such compensation for differences in	1959
product location or grade. Division (F)(2)(hh) of this section	1960
does not apply to amounts realized as a result of differences in	1961
location or grade of exchanged petroleum products or from	1962
handling, lubricity, dye, or other additive injections fees,	1963
pipeline security fees, or similar fees. As used in this division,	1964
"motor fuel," "licensed motor fuel dealer," "licensed permissive	1965
motor fuel dealer," and "terminal" have the same meanings as in	1966
section 5735.01 of the Revised Code.	1967

(ii) In the case of amounts collected by a licensed casino	1968
operator from casino gaming, amounts in excess of the casino	1969
operator's gross casino revenue. In this division, "casino	1970
operator" and "casino gaming" have the meanings defined in section	1971
3772.01 of the Revised Code, and "gross casino revenue" has the	1972
meaning defined in section 5753.01 of the Revised Code.	1973

(jj) Any receipts for which the tax imposed by this chapter	1974
is prohibited by the constitution or laws of the United States or	1975
the constitution of this state.	1976

(3) In the case of a taxpayer when acting as a real estate	1977
broker, "gross receipts" includes only the portion of any fee for	1978
the service of a real estate broker, or service of a real estate	1979
salesperson associated with that broker, that is retained by the	1980
broker and not paid to an associated real estate salesperson or	1981
another real estate broker. For the purposes of this division,	1982
"real estate broker" and "real estate salesperson" have the same	1983
meanings as in section 4735.01 of the Revised Code.	1984

(4) A taxpayer's method of accounting for gross receipts for	1985
a tax period shall be the same as the taxpayer's method of	1986
accounting for federal income tax purposes for the taxpayer's	1987
federal taxable year that includes the tax period. If a taxpayer's	1988
method of accounting for federal income tax purposes changes, its	1989
method of accounting for gross receipts under this chapter shall	1990
be changed accordingly.	1991

(G) "Taxable gross receipts" means gross receipts sitused to	1992
this state under section 5751.033 of the Revised Code.	1993

(H) A person has "substantial nexus with this state" if any	1994
of the following applies. The person:	1995

(1) Owns or uses a part or all of its capital in this state;

1996

(2) Holds a certificate of compliance with the laws of this	1997
state authorizing the person to do business in this state;	1998

(3) Has bright-line presence in this state;

1999

(4) Otherwise has nexus with this state to an extent that the	2000
person can be required to remit the tax imposed under this chapter	2001
under the Constitution of the United States.	2002

(I) A person has "bright-line presence" in this state for a	2003
reporting period and for the remaining portion of the calendar	2004
year if any of the following applies. The person:	2005

(1) Has at any time during the calendar year property in this	2006
state with an aggregate value of at least fifty thousand dollars.	2007
For the purpose of division (I)(1) of this section, owned property	2008
is valued at original cost and rented property is valued at eight	2009
times the net annual rental charge.	2010

(2) Has during the calendar year payroll in this state of at	2011
least fifty thousand dollars. Payroll in this state includes all	2012
of the following:	2013

(a) Any amount subject to withholding by the person under	2014
section 5747.06 of the Revised Code;	2015

(b) Any other amount the person pays as compensation to an	2016
individual under the supervision or control of the person for work	2017
done in this state; and	2018

(c) Any amount the person pays for services performed in this	2019
state on its behalf by another.	2020

(3) Has during the calendar year taxable gross receipts of at	2021
least five hundred thousand dollars.	2022

(4) Has at any time during the calendar year within this	2023
state at least twenty-five per cent of the person's total	2024
property, total payroll, or total gross receipts.	2025

(5) Is domiciled in this state as an individual or for	2026
corporate, commercial, or other business purposes.	2027

(J) "Tangible personal property" has the same meaning as in	2028
section 5739.01 of the Revised Code.	2029

(K) "Internal Revenue Code" means the Internal Revenue Code	2030
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in	2031
this chapter that is not otherwise defined has the same meaning as	2032
when used in a comparable context in the laws of the United States	2033
relating to federal income taxes unless a different meaning is	2034
clearly required. Any reference in this chapter to the Internal	2035
Revenue Code includes other laws of the United States relating to	2036
federal income taxes.	2037

(L) "Calendar quarter" means a three-month period ending on	2038
the thirty-first day of March, the thirtieth day of June, the	2039
thirtieth day of September, or the thirty-first day of December.	2040

(M) "Tax period" means the calendar quarter or calendar year	2041
on the basis of which a taxpayer is required to pay the tax	2042
imposed under this chapter.	2043

(N) "Calendar year taxpayer" means a taxpayer for which the	2044
tax period is a calendar year.	2045

(O) "Calendar quarter taxpayer" means a taxpayer for which	2046
the tax period is a calendar quarter.	2047

(P) "Agent" means a person authorized by another person to	2048
act on its behalf to undertake a transaction for the other,	2049
including any of the following:	2050

(1) A person receiving a fee to sell financial instruments;

2051

(2) A person retaining only a commission from a transaction	2052
with the other proceeds from the transaction being remitted to	2053
another person;	2054

(3) A person issuing licenses and permits under section	2055
1533.13 of the Revised Code;	2056

(4) A lottery sales agent holding a valid license issued	2057
under section 3770.05 of the Revised Code;	2058

(5) A person acting as an agent of the division of liquor	2059
control under section 4301.17 of the Revised Code.	2060

(Q) "Received" includes amounts accrued under the accrual	2061
method of accounting.	2062

(R) "Reporting person" means a person in a consolidated	2063
elected taxpayer or combined taxpayer group that is designated by	2064
that group to legally bind the group for all filings and tax	2065
liabilities and to receive all legal notices with respect to	2066
matters under this chapter, or, for the purposes of section	2067
5751.04 of the Revised Code, a separate taxpayer that is not a	2068
member of such a group.	2069

Section 2.  That existing sections 5502.011, 5507.01,	2070
5507.02, 5507.18, 5507.34, 5507.40, 5507.42, 5507.44, 5507.46,	2071
5507.53, 5507.55, 5507.57, 5507.63, 5507.65, 5507.66, 5701.11,	2072
5733.55, and 5751.01 and section 5507.51 of the Revised Code are	2073
hereby repealed.	2074

Section 3.  Except as otherwise provided in this act, all	2075
appropriation items in this act are appropriated out of any moneys	2076
in the state treasury to the credit of the designated fund that	2077
are not otherwise appropriated. For all appropriations made in	2078
this act, the amounts in the first column are for fiscal year 2012	2079
and the amounts in the second column are for fiscal year 2013.	2080

TAX DEPARTMENT OF TAXATION	2081

General Revenue Fund Group	2082

GRF	110321		Operating Expenses		$	0		$	1,174,000		2083
TOTAL GRF General Revenue Fund Group					$	0		$	1,174,000		2084
TOTAL ALL BUDGET FUND GROUPS					$	0		$	1,174,000		2085

Section 4. That sections 5507.40 and 5507.53 of the Revised	2087
Code are hereby repealed.	2088

Section 5. Section 4 of this act shall take effect on January	2089
1, 2014.	2090

Section 6. As used in this section, "qualified property"	2091
means real property that satisfies the qualifications for tax	2092
exemption under the terms of section 5709.08 of the Revised Code	2093
and that is owned by a municipal corporation.	2094

Notwithstanding section 5713.081 of the Revised Code, when	2095
qualified property has not received tax exemption due to a failure	2096
to comply with Chapter 5713. or section 5715.27 of the Revised	2097
Code, the current owner of the property, or the prior owner of the	2098
property requesting exemption from prior taxes, at any time on or	2099
before twelve months after the effective date of this section, may	2100
file with the Tax Commissioner an application requesting that the	2101
property be placed on the tax-exempt list and that all unpaid	2102
taxes, penalties, and interest on the property be abated.	2103

The application shall be made on the form prescribed by the	2104
Tax Commissioner under section 5715.27 of the Revised Code and	2105
shall list the name of the county in which the property is	2106
located; the property's legal description; its taxable value; the	2107
amount in dollars of the unpaid taxes, penalties, and interest;	2108
the date of acquisition of title to the property; the use of the	2109
property during any time that the unpaid taxes accrued; and any	2110
other information required by the Tax Commissioner. The county	2111
auditor shall supply the required information upon request of the	2112
applicant.	2113

Upon request of the applicant, the county treasurer shall	2114
determine if all taxes, penalties, and interest that became a lien	2115
on the qualified property before it first was used for an exempt	2116
purpose and all special assessments charged against the property	2117
have been paid in full. If so, the county treasurer shall issue a	2118
certificate to the applicant stating that all such taxes,	2119
penalties, interest, and assessments have been paid in full. Prior	2120
to filing the application with the Tax Commissioner, the applicant	2121
shall attach the county treasurer's certificate to it. The Tax	2122
Commissioner shall not consider an application filed under this	2123
section unless such a certificate is attached to it.	2124

Upon receipt of the application and after consideration of	2125
it, the Tax Commissioner shall determine if the applicant meets	2126
the qualifications set forth in this section, and if so shall	2127
issue an order directing that the property be placed on the	2128
tax-exempt list of the county and that all unpaid taxes,	2129
penalties, and interest for every year the property met the	2130
qualifications for exemption described in section 5709.08 of the	2131
Revised Code be abated. If the Tax Commissioner finds that the	2132
property is not now being so used or is being used for a purpose	2133
that would foreclose its right to tax exemption, the Tax	2134
Commissioner shall issue an order denying the application.	2135

If the Tax Commissioner finds that the property is not	2136
entitled to tax exemption and to the abatement of unpaid taxes,	2137
penalties, and interest for any of the years for which the current	2138
or prior owner claims an exemption or abatement, the Tax	2139
Commissioner shall order the county treasurer of the county in	2140
which the property is located to collect all taxes, penalties, and	2141
interest due on the property for those years in accordance with	2142
law.	2143

The Tax Commissioner may apply this section to any qualified	2144
property that is the subject of an application for exemption	2145
pending before the Tax Commissioner on the effective date of this	2146
section, without requiring the property owner to file an	2147
additional application. The Tax Commissioner also may apply this	2148
section to any qualified property that is the subject of an	2149
application for exemption filed on or after the effective date of	2150
this section and on or before twelve months after that effective	2151
date, even though the application does not expressly request	2152
abatement of unpaid taxes, penalties, and interest.	2153

Section 7.  For the purposes of this section, "qualified	2154
distribution center," "qualifying year," "qualifying period,"	2155
"qualifying certificate," "Ohio delivery percentage," and	2156
"refining facility" have the same meanings as in division	2157
(F)(2)(z) of section 5751.01 of the Revised Code.	2158

Notwithstanding divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(iii)	2159
of section 5751.01 of the Revised Code, the operator of a refining	2160
facility may apply for a qualifying certificate and pay the annual	2161
fee for qualifying year 2013 within thirty days after the	2162
effective date of this act and shall not be required to do any of	2163
the following:	2164

(A) Substantiate for the qualifying periods preceding	2165
qualifying years 2013 and 2014 that all persons operating the	2166
qualified distribution center have more than fifty per cent of the	2167
cost of the qualified property shipped to a location such that it	2168
would be sitused outside the state;	2169

(B) Obtain certification from an independent certified public	2170
accountant that the calculation of the minimum thresholds	2171
otherwise required for a qualified distribution center by the	2172
operator of the distribution center has been made in accordance	2173
with generally accepted accounting principles;	2174

(C) Provide documentation for the Tax Commissioner to	2175
ascertain the Ohio delivery percentage for qualifying years 2013	2176
and 2014.	2177

Notwithstanding division (F)(2)(z)(i)(VII) of section 5751.01	2178
of the Revised Code, the Ohio delivery percentage for qualifying	2179
years 2013 and 2014, for qualified distribution centers that are	2180
refining facilities that otherwise comply with this section and	2181
with division (F)(2)(z) of section 5751.01 of the Revised Code	2182
shall equal zero per cent.	2183

Section 8.  The General Assembly, applying the principle	2184
stated in division (B) of section 1.52 of the Revised Code that	2185
amendments are to be harmonized if reasonably capable of	2186
simultaneous operation, finds that the following sections,	2187
presented in this act as composites of the sections as amended by	2188
the acts indicated, are the resulting versions of the sections in	2189
effect prior to the effective date of the sections as presented in	2190
this act:	2191

Section 5502.011 of the Revised Code as amended by both Am.	2192
Sub. H.B. 487 and Am. Sub. S.B. 337 of the 129th General Assembly.	2193

Section 5751.01 of the Revised Code as amended by both Am.	2194
Sub. H.B. 508 and Am. Sub. S.B. 315 of the 129th General Assembly.	2195

Section 9.  This act is hereby declared to be an emergency	2196
measure necessary for the immediate preservation of the public	2197
peace, health, and safety. The reason for such necessity lies in	2198
the need to update Ohio's tax law to enable taxpayers to rely on	2199
recent rules, rulings, and interpretations of the Internal Revenue	2200
Service for their 2011 tax returns, and also to advance and ensure	2201
the provision of wireless enhanced 9-1-1 service in an efficient	2202
and effective manner, including by maintaining the prepaid	2203
wireless 9-1-1 charge, which would otherwise lapse. Therefore,	2204
this act shall go into immediate effect.	2205

Section 10. The amendment, enactment, or repeal by this act	2206
of sections 5502.011, 5507.01, 5507.02, 5507.18, 5507.34, 5507.40,	2207
5507.42, 5507.44, 5507.46, 5507.51, 5507.53, 5507.54, 5507.55,	2208
5507.57, 5507.63, 5507.65, 5507.66, and 5733.55 of the Revised	2209
Code and of Section 3 of this act is contingent upon Sub. H.B. 360	2210
of the 129th General Assembly becoming law in the same form as it	2211
passed the Senate.	2212