As Reported by the Ways and Means and Economic Development Committee

129th General Assembly Regular Session 2011-2012

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 

---

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

18

from the tax to the extent that the refinery ships

19

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

(a) 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

(b)(i) 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

(ii) Amounts collected under division (A)(1)(b)(i) of this	567
section shall be remitted pursuant to division (A)(1) of section	568
5507.46 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
billing and 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)(1) Prior to January 1, 2014, each subscriber on which a	706
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) 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)(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)(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)(2) of this section shall	767
bear interest from that date until paid at the rate per annum	768
prescribed by section 5703.47 of the Revised Code. That interest	769
may be collected by making an assessment under division (E)(2) of	770
this section. An assessment under this division and any interest	771
due shall be remitted in the same manner as the wireless 9-1-1	772
charge imposed under division (A) of section 5507.42 of the	773
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)(4) of this section are subject to and governed by	779
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)(2) of this section. The court shall	783
hear and determine such appeal in the same manner and under the	784
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)(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)(1) of this section, a subscriber	812
pays a wireless 9-1-1 charge for the period covered by the	813
assessment, the payment shall be credited against the assessment.	814

(7) All money collected by the tax commissionercommission	815
under division (E) of this section shall be paid to the treasurer	816
of state, for deposit to the credit of the wireless 9-1-1	817
government assistance fund.	818

(F) Beginning January 1, 2014:

819

(1) If the tax commissioner has reason to believe that a	820
wireless service provider, reseller, or seller has failed to bill,	821
collect, or remit the wireless 9-1-1 charge as required by this	822
section and section 5507.42 of the Revised Code or has retained	823
more than the amount authorized under division (B)(4) of this	824
section, and after written notice to the provider, reseller, or	825
seller, the tax commissioner may audit the provider, reseller, or	826
seller for the sole purpose of making such a determination. The	827
audit may include, but is not limited to, a sample of the	828
provider's, reseller's, or seller's billings, collections,	829
remittances, or retentions for a representative period, and the	830
tax commissioner shall make a good faith effort to reach agreement	831
with the provider, reseller, or seller in selecting that sample.	832

(2) Upon written notice to the wireless service provider,	833
reseller, or seller, the tax commissioner, after completion of the	834
audit, may make an assessment against the provider, reseller, or	835
seller if, pursuant to the audit, the tax commissioner determines	836
that the provider, reseller, or seller has failed to bill,	837
collect, or remit the wireless 9-1-1 charge as required by this	838
section and section 5507.42 of the Revised Code or has retained	839
more than the amount authorized under division (B)(4) of this	840
section. The assessment shall be in the amount of any remittance	841
that was due and unpaid on the date notice of the audit was sent	842
by the tax commissioner to the provider, reseller, or seller or,	843
as applicable, in the amount of the excess amount under division	844
(B)(4) of this section retained by the provider, reseller, or	845
seller as of that date.	846

(3) The portion of any assessment not paid within sixty days	847
after the date of service by the tax commissioner of the	848
assessment notice under division (F)(2) of this section shall bear	849
interest from that date until paid at the rate per annum	850
prescribed by section 5703.47 of the Revised Code. That interest	851
may be collected by making an assessment under division (F)(2) of	852
this section. An assessment under this division and any interest	853
due shall be remitted in the same manner as the wireless 9-1-1	854
charges imposed under section 5507.42 of the Revised Code.	855

(4) The portion of the assessment not paid within sixty days	856
after the day the assessment was issued shall bear interest at the	857
rate per annum prescribed by section 5703.47 of the Revised Code	858
from the day the commissioner issues the assessment until it is	859
paid. Interest shall be remitted in the same manner as the 9-1-1	860
charges and may be collected by the issuance of an assessment	861
under division (F) of this section.	862

(5) Unless the provider, reseller, or seller assessed files	863
with the tax commissioner within sixty days after service of the	864
notice of assessment, either personally or by certified mail, a	865
written petition for reassessment, signed by the party assessed or	866
that party's authorized agent having knowledge of the facts, the	867
assessment shall become final and the amount of the assessment	868
shall be due and payable from the party assessed to the treasurer	869
of state, for deposit to the next generation 9-1-1 fund, which is	870
created under section 5507.54 of the Revised Code. The petition	871
shall indicate the objections of the party assessed, but	872
additional objections may be raised in writing if received by the	873
commissioner prior to the date shown on the final determination.	874
If the petition has been properly filed, the commissioner shall	875
proceed under section 5703.60 of the Revised Code.	876

(6) After an assessment becomes final, if any portion of the	877
assessment remains unpaid, including accrued interest, a certified	878
copy of the final assessment may be filed in the office of the	879
clerk of the court of common pleas in the county in which the	880
business of the assessed party is conducted. If the party assessed	881
maintains no place of business in this state, the certified copy	882
of the final assessment may be filed in the office of the clerk of	883
the court of common pleas of Franklin county. Immediately upon the	884
filing, the clerk shall enter a judgment for the state against the	885
assessed party in the amount shown on the final assessment. The	886
judgment may be filed by the clerk in a loose-leaf book entitled	887
"special judgments for wireless 9-1-1 charges" and shall have the	888
same effect as other judgments. The judgment shall be executed	889
upon the request of the tax commissioner.	890

(7) If the commissioner determines that the commissioner	891
erroneously has refunded a wireless 9-1-1 charge to any person,	892
the commissioner may make an assessment against that person for	893
recovery of the erroneously refunded charge.	894

(8) An assessment under division (F) of this section does not	895
discharge a subscriber's or consumer's liability to reimburse the	896
provider, reseller, or seller for a wireless 9-1-1 charge. If,	897
after the date of service of the audit notice under division	898
(F)(1) of this section, a subscriber or consumer pays a wireless	899
9-1-1 charge for the period covered by the assessment, the payment	900
shall be credited against the assessment.	901

Sec.  5507.53.  (A) There is hereby created the wireless 9-1-1	902
administrative fund in the state treasury. PeriodicA sufficient	903
percentage, determined by the chairperson of the public utilities	904
commission but not to exceed two per cent, of the periodic	905
remittances of the wireless 9-1-1 charges under section 5507.46 of	906
the Revised Code shall be deposited to the credit of the fund and	907
used as follows:	908

(1) One per cent of the remittances shall, to be used by the	909
director of public safetycommission to cover such nonpayroll	910
costs and, at the discretion of the directorcommission such	911
payroll costs, of the department of public safetycommission as	912
are incurred in assisting the directorcoordinator in carrying	913
out sections 5507.40 to 5507.66 of the Revised Code and in	914
conducting audits under division (E) of section 5507.46 of the	915
Revised Code. In addition, the compensation of the Ohio 9-1-1	916
coordinator, and any expenses of the coordinator in carrying out	917
those sections, shall be paid from the fund.	918

(2) One per cent of the remittances shall be used by the	919
department of taxation to defray the costs in carrying out	920
sections 5507.40 to 5507.66 of the Revised Code.	921

(3) Annually, the tax commissioner and the director of public	922
safety, after paying administrative costs incurred in carrying out	923
sections 5507.40 to 5507.66 of the Revised Code, shall transfer	924
any excess remaining in the wireless 9-1-1 administrative fund to	925
the wireless 9-1-1 government assistance fund.	926

(B) There is hereby created the wireless 9-1-1 government	927
assistance fund, which shall be in the custody of the treasurer of	928
state but shall not be part of the state treasury. The periodic	929
remittances of the wireless 9-1-1 charges under section 5507.46 of	930
the Revised Code, remaining after the depositsdeposit required by	931
division (A) of this section, shall be deposited to the credit of	932
the wireless 9-1-1 government assistance fund. The treasurer of	933
state shall deposit or invest the moneys in this fund in	934
accordance with Chapter 135. of the Revised Code and any other	935
provision of law governing public moneys of the state as defined	936
in section 135.01 of the Revised Code. The treasurer of state	937
shall credit the interest earned to the fund. The treasurer of	938
state shall disburse money from the fund solely upon order of the	939
tax commissionercoordinator as authorized under division (A) of	940
section 5507.55 of the Revised Code. Annually, untilunless the	941
fund is depleted, the treasurer of state shall certify to the	942
director of public safety and the tax commissionercoordinator the	943
amount of moneys in the treasurer of state's custody belonging to	944
the fund.	945

(C) There is hereby created the next generation 9-1-1 fund,	946
which shall be in the custody of the treasurer but shall not be a	947
part of the state treasury. The commission shall transfer the	948
funds remaining in the wireless 9-1-1 government assistance fund	949
after the disbursements made under division (A) of section 5507.55	950
of the Revised Code, shall be deposited to the credit of the next	951
generation 9-1-1 fund, created in section 5507.54 of the Revised	952
Code. The treasurer of state shall deposit or invest the moneys in	953
this fund in accordance with Chapter 135. of the Revised Code and	954
any other provision of law governing public moneys of the state as	955
defined in section 135.01 of the Revised Code. The treasurer of	956
state shall credit the interest earned to the fund. The treasurer	957
of state shall disburse money from the fund solely upon order of	958
the tax commissioner according to policies established by the	959
statewide emergency services internet protocol network steering	960
committee as authorized under section 5507.021 of the Revised	961
Code. Annually, until the fund is depleted, the treasurer of state	962
shall certify to the commissioner the amount of moneys in the	963
treasurer of state's custody belonging to the fund.	964

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

965

(1) The periodic remittances of the wireless 9-1-1 charges	966
under section 5507.46 of the Revised Code shall be paid to the	967
treasurer of state for deposit as follows:	968

(a) Ninety-eight per cent to the wireless 9-1-1 government	969
assistance fund, which is hereby created in the custody of the	970
treasurer of state but which shall not be a part of the state	971
treasury. The treasurer of state shall deposit or invest the	972
moneys in this fund in accordance with Chapter 135. of the Revised	973
Code and any other provision of law governing public moneys of the	974
state as defined in section 135.01 of the Revised Code. The	975
treasurer of state shall credit the interest earned to the fund.	976
The treasurer of state shall disburse money from the fund solely	977
upon order of the tax commissioner according to policies	978
established by the statewide emergency services internet protocol	979
network steering committee as authorized under section 5507.021 of	980
the Revised Code. Annually, until the fund is depleted, the	981
treasurer of state shall certify to the commissioner the amount of	982
moneys in the treasurer of state's custody belonging to the fund.	983

(b) One per cent to the wireless 9-1-1 administrative fund,	984
which is hereby created in the state treasury. The treasurer of	985
state shall credit the interest earned to the fund.	986

(c) One per cent to the wireless 9-1-1 public safety	987
administrative fund, which is hereby created in the state	988
treasury. The treasurer of state shall credit the interest earned	989
to the fund.	990

(2) The tax commissioner shall use the remittances in the	991
wireless 9-1-1 administrative fund to defray the costs in carrying	992
out this chapter.	993

(3) The director of public safety shall use the remittances	994
in the wireless 9-1-1 public safety administrative fund to defray	995
the costs incurred by the department in carrying out this chapter.	996

(4) Annually, the tax commissioner and the director of public	997
safety, after paying administrative costs under division (B) of	998
this section, shall transfer any excess remaining in the	999
administrative funds to the next generation 9-1-1 fund, created	1000
under this section.	1001

(B)(1) There is hereby created the next generation 9-1-1	1002
fund, which shall be in the custody of the treasurer but shall not	1003
be a part of the state treasury.	1004

(2) Beginning on January 1, 2014, the tax commissioner shall	1005
transfer the funds remaining in the wireless 9-1-1 government	1006
assistance fund after the disbursements made under division (B)(1)	1007
of section 5507.55 of the Revised Code to the credit of the next	1008
generation 9-1-1 fund.	1009

(3) The treasurer of state shall deposit or invest the moneys	1010
in the next generation 9-1-1 fund in accordance with Chapter 135.	1011
of the Revised Code and any other provision of law governing	1012
public moneys of the state as defined in section 135.01 of the	1013
Revised Code. The treasurer of state shall credit the interest	1014
earned to the fund. The treasurer of state shall disburse money	1015
from the fund solely upon order of the tax commissioner according	1016
to policies established by the statewide emergency services	1017
internet protocol network steering committee as authorized under	1018
section 5507.021 of the Revised Code. Annually, until the fund is	1019
depleted, the treasurer of state shall certify to the commissioner	1020
the amount of moneys in the treasurer of state's custody belonging	1021
to the fund.	1022

Sec.  5507.55. (A) Prior to the first disbursement under this	1023
section and annually thereafter not later than the twenty-fifth	1024
day of January, until the wireless 9-1-1 government assistance	1025
fund is depleted, the tax commissioner shall do both of the	1026
following for the purposes of division (B) of this section:	1027

(1) Determine, for a county that has adopted a final plan	1028
under this chapter for the provision of wireless enhanced 9-1-1	1029
within the territory covered by the countywide 9-1-1 system	1030
established under the plan, the number of wireless telephone	1031
numbers assigned to wireless service subscribers that have billing	1032
addresses within the county. That number shall be adjusted between	1033
any two counties so that the number of wireless telephone numbers	1034
assigned to wireless service subscribers who have billing	1035
addresses within any portion of a municipal corporation that	1036
territorially lies primarily in one of the two counties but	1037
extends into the other county is added to the number already	1038
determined for that primary county and subtracted for the other	1039
county.	1040

(2) Determine each county's proportionate share of the	1041
wireless 9-1-1 government assistance fund for the ensuing calendar	1042
year on the basis set forth in division (B) of this section;	1043
estimate the ensuing calendar year's fund balance; compute each	1044
such county's estimated proceeds for the ensuing calendar year	1045
based on its proportionate share and the estimated fund balance;	1046
and certify such amount of proceeds to the county auditor of each	1047
such countyJanuary 1, 2014, the public utilities commission shall	1048
disburse moneys from the wireless 9-1-1 government assistance fund	1049
to each county in the same manner as the 2012 disbursements, in	1050
accordance with divisions (A) and (B) of section 4931.64 of the	1051
Revised Code as those divisions existed prior to the effective	1052
date of H.B. 360 of the 129th general assembly.	1053

(B) Except as provided in division (F) of this section, the	1054
Beginning January 1, 2014:	1055

(1) The tax commissioner, in accordance with this division	1056
and not later than the last day of each month, shall disburse the	1057
amount credited as remittances tomoneys from the wireless 9-1-1	1058
government assistance fund during the second preceding month, plus	1059
any accrued interest on the fund. Such a disbursement shall be	1060
paid to each county treasurer. The amount to be so disbursed	1061
monthly to a particular county shall be a proportionate share of	1062
the wireless 9-1-1 government assistance fund balance based on the	1063
ratio between the following:	1064

(1) The number of wireless telephone numbers determined for	1065
the county by the tax commissioner pursuant to division (A) of	1066
this section;	1067

(2) The total number of wireless telephone numbers assigned	1068
to subscribers who have billing addresses within this state. To	1069
the extent that the fund balance permits, the disbursements to	1070
each county shall total at least ninety thousand dollars annually.	1071

(C)(1) Each county that has not adopted a final plan for the	1072
provision of wireless enhanced 9-1-1 under this chapter shall be	1073
deemed as having done so for the purposes of making the	1074
determinations under divisions (A)(1) and (2) of this section.	1075

(2) For each county described in division (C)(1) of this	1076
section, the tax commissioner shall retain in the wireless 9-1-1	1077
government assistance fund an amount equal to what would otherwise	1078
be paid as the county's disbursements under division (B) of this	1079
section if it had adopted such a final plan, plus any related	1080
accrued interest, to be set aside for that county. If the board of	1081
county commissioners notifies the tax commissioner prior to	1082
January 1, 2010, that a final plan for the provision of wireless	1083
enhanced 9-1-1 has been adopted, the tax commissioner shall	1084
disburse and pay to the county treasurer, not later than the last	1085
day of the month following the month the notification is made, the	1086
total amount so set aside for the county plus any related accrued	1087
interest. As of January 1, 2010, any money and interest so	1088
retained and not disbursed as authorized under this division shall	1089
be available for disbursement only as provided in division (B) of	1090
this sectionin the same manner as the 2012 disbursements, in	1091
accordance with divisions (A) and (B) of section 4931.64 of the	1092
Revised Code as those divisions existed prior to the effective	1093
date of H.B. 360 of the 129th general assembly.	1094

(2) The tax commissioner shall disburse moneys from the next	1095
generation 9-1-1 fund in accordance with the guidelines	1096
established under section 5507.022 of the Revised Code.	1097

(D)(C) Immediately upon receipt by a county treasurer of a	1098
disbursement under division (A) or (B) or (C)(1) of this section,	1099
the county shall disburse, in accordance with the allocation	1100
formula set forth in the final plan, the amount the county so	1101
received to any other subdivisions in the county and any regional	1102
councils of governments in the county that pay the costs of a	1103
public safety answering point providing wireless enhanced 9-1-1	1104
under the plan.	1105

(E)(D) Nothing in this chapter affects the authority of a	1106
subdivision operating or served by a public safety answering point	1107
of a 9-1-1 system or a regional council of governments operating a	1108
public safety answering point of a 9-1-1 system to use, as	1109
provided in the final plan for the system or in an agreement under	1110
section 5507.09 of the Revised Code, any other authorized revenue	1111
of the subdivision or the regional council of governments for the	1112
purposes of providing basic or enhanced 9-1-1.	1113

(F) On and after July 1, 2013, disbursements made by the tax	1114
commissioner under this section shall remain at the level	1115
disbursed in 2012. After the disbursements are made, the balances	1116
of the remittances in the wireless 9-1-1 government assistance	1117
fund shall be deposited in the next generation 9-1-1 fund.	1118

Sec.  5507.57.  Except as otherwise provided in section	1119
5507.571 of the Revised Code:	1120

(A) A countywide 9-1-1 system receiving a disbursement under	1121
section 5507.55 of the Revised Code shall provide countywide	1122
wireless enhanced 9-1-1 in accordance with this chapter beginning	1123
as soon as reasonably possible after receipt of the first	1124
disbursement or, if that service is already implemented, shall	1125
continue to provide such service. Except as provided in divisions	1126
(B), (C), and (E) of this section, a disbursement shall be used	1127
solely for the purpose of paying either or both of the following:	1128

(1) Any costs of designing, upgrading, purchasing, leasing,	1129
programming, installing, testing, or maintaining the necessary	1130
data, hardware, software, and trunking required for the public	1131
safety answering point or points of the 9-1-1 system to provide	1132
wireless enhanced 9-1-1, which costs are incurred before or on or	1133
after May 6, 2005, and consist of such additional costs of the	1134
9-1-1 system over and above any costs incurred to provide wireline	1135
9-1-1 or to otherwise provide wireless enhanced 9-1-1. Annually,	1136
up to twenty-five thousand dollars of the disbursements received	1137
on or after January 1, 2009, may be applied to data, hardware, and	1138
software that automatically alerts personnel receiving a 9-1-1	1139
call that a person at the subscriber's address or telephone number	1140
may have a mental or physical disability, of which that personnel	1141
shall inform the appropriate emergency service provider. On or	1142
after the provision of technical and operational standards	1143
pursuant to division (D)(1) of section 5507.65 of the Revised	1144
Code, a regional council of governments operating a public safety	1145
answering point or a subdivision shall consider the standards	1146
before incurring any costs described in this division.	1147

(2) Any costs of training the staff of the public safety	1148
answering point or points to provide wireless enhanced 9-1-1,	1149
which costs are incurred before or on or after May 6, 2005.	1150

(B) A subdivision or a regional council of governments that	1151
certifies to the tax commissionerdepartment of public safety that	1152
it has paid the costs described in divisions (A)(1) and (2) of	1153
this section and is providing countywide wireless enhanced 9-1-1	1154
may use disbursements received under section 5507.55 of the	1155
Revised Code to pay any of its personnel costs of one or more	1156
public safety answering points providing countywide wireless	1157
enhanced 9-1-1.	1158

(C) After receiving its July 2013 disbursement under division	1159
(A) of section 5507.55 of the Revised Code, a regional council of	1160
governments operating a public safety answering point or a	1161
subdivision may use any remaining balance of disbursements it	1162
received under that sectiondivision to pay any of its costs of	1163
providing countywide wireless 9-1-1, including the personnel costs	1164
of one or more public safety answering points providing that	1165
service.	1166

(D) The costs described in divisions (A), (B), (C), and (E)	1167
of this section may include any such costs payable pursuant to an	1168
agreement under division (J) of section 5507.03 of the Revised	1169
Code.	1170

(E)(1) No disbursement to a countywide 9-1-1 system for costs	1171
of a public safety answering point shall be made from the wireless	1172
9-1-1 government assistance fund or the next generation 9-1-1 fund	1173
unless the public safety answering point meets the standards set	1174
by rule of the statewide emergency services internet protocol	1175
network steering committee under section 5507.02 of the Revised	1176
Code.	1177

(2) The department of public safety shall monitor compliance	1178
with the standards set by the steering committee. The department	1179
shall notify the tax commissioner to suspend disbursements to a	1180
countywide 9-1-1 system that fails to meet the standards. Upon	1181
receipt of this notification, the commissioner shall suspend	1182
disbursements until the commissioner is notified of compliance	1183
with the standards.	1184

(F) The auditor of state may audit and review each county's	1185
expenditures of funds received from the wireless 9-1-1 government	1186
assistance fund to verify that the funds were used in accordance	1187
with the requirements of this chapter.	1188

Sec.  5507.63. (A) The tax commissioner and the director of	1189
public safety, after consultation with each other, shallmay adopt	1190
rules in accordance with Chapter 119. of the Revised Code to carry	1191
out sections 5507.40 to 5507.55 of the Revised Codethis chapter,	1192
including rules prescribing the necessary accounting for the	1193
billing and collection fee under division (A)(2)(B)(4) of section	1194
5507.46 of the Revised Code. The	1195

(B) The amounts of the wireless 9-1-1 charges shall be	1196
prescribed only by act of the general assembly.	1197

Sec.  5507.65.  (A) There is hereby created the Ohio 9-1-1	1198
council, consisting of eleven members as follows: the Ohio 9-1-1	1199
coordinator, until January 1, 2014; the director of public safety	1200
or a designee of the department of public safety, selected by the	1201
director of public safety, beginning January 1, 2014; and ten	1202
members appointed by the governor. In appointing the ten members,	1203
the governor shall select at least one representative of public	1204
safety communications officials in this state, one representative	1205
of administrators of 9-1-1 service in this state, one	1206
representative of countywide 9-1-1 systems in this state, three	1207
representatives of wireline service providers in this state, and	1208
three representatives of wireless service providers in this state.	1209
For each such appointment, the governor shall consider a nominee	1210
proposed, respectively, by the Ohio chapter of the association of	1211
public-safety communications officials, the Ohio chapter of the	1212
national emergency number association, the county commissioners	1213
association of Ohio; and nominees proposed, respectively, by the	1214
Ohio telecom association and the wireless operators of Ohio; or	1215
any successor organization of each such entity.	1216

Initial appointments shall be made not later than thirty days	1217
after May 6, 2005. Nothing in this section shall prevent the	1218
governor from rejecting any of the nominees or requesting that a	1219
nominating entity under this division submit the names of	1220
alternative nominees for consideration.	1221

(B) The term of the initial appointee to the council	1222
representing public safety communications officials and the terms	1223
of one of the initial appointees representing wireline service	1224
providers and one representing wireless service providers shall	1225
expire on January 31, 2007. The term of the initial appointee to	1226
the council representing administrators of 9-1-1 service and the	1227
terms of another one of the initial appointees representing	1228
wireline service providers and another representing wireless	1229
service providers shall expire on January 31, 2008. The term of	1230
the initial appointee to the council representing countywide 9-1-1	1231
systems and the terms of another one of the initial appointees	1232
representing wireline service providers and another representing	1233
wireless service providers shall expire on January 31, 2009.	1234
Thereafter, terms of appointed members shall be for three years,	1235
with each term ending on the same day of the same month as the	1236
term it succeeds.	1237

Each council member shall hold office from the date of the	1238
member's appointment until the end of the term for which the	1239
member was appointed. Members may be reappointed.	1240

Vacancies shall be filled in the manner provided for original	1241
appointments. Any member appointed to fill a vacancy occurring	1242
prior to the expiration date of the term for which the member's	1243
predecessor was appointed shall hold office as a member for the	1244
remainder of that term. A member shall continue in office after	1245
the expiration date of the member's term until the member's	1246
successor takes office or until a period of sixty days has	1247
elapsed, whichever occurs first.	1248

Appointed members shall serve without compensation and shall	1249
not be reimbursed for expenses.	1250

(C) The council shall select a chairperson from among the	1251
appointed members. Each member shall have one vote in all	1252
deliberations of the council. A majority of the voting members	1253
constitutes a quorum.	1254

(D) The duties of the council shall consist of both of the	1255
following:	1256

(1) Arbitrating or establishing relative to 9-1-1 systems in	1257
this state nondiscriminatory, competitively neutral, and uniform	1258
technical and operational standards consistent with recognized	1259
industry standards and federal law. This authority does not	1260
include authority to prescribe the technology that a telephone	1261
company or reseller uses to deliver 9-1-1 calls.	1262

(2) Including for the purpose of reporting to the general	1263
assembly, conducting research and making recommendations or	1264
reports regarding any wireline and wireless 9-1-1 issues, any	1265
improvements in the provision of service by 9-1-1 systems in this	1266
state, or any legislation or policies concerning such systems;	1267

(3) Regarding the position of Ohio 9-1-1 coordinator,	1268
submitting names of nominees and recommended duties as authorized	1269
under section 5507.40 of the Revised Code and, at least	1270
biennially, conducting and submitting with recommendations to the	1271
public utilities commission a performance evaluation of the	1272
coordinator.	1273

(E) The council is not an agency, as defined in section	1274
101.82 of the Revised Code, for purposes of sections 101.82 to	1275
101.87 of the Revised Code.	1276

Sec.  5507.66.  (A) There is hereby created the wireless 9-1-1	1277
advisory board, consisting of the Ohio 9-1-1 council appointee	1278
that represents public safety communications officials and five	1279
members appointed by the governor as follows: one of the council	1280
appointees that represents wireless service providers in this	1281
state, whose council term expires after the council term of the	1282
council appointee representing public safety communications	1283
officials, one noncouncil representative of wireless service	1284
providers in this state, one noncouncil representative of public	1285
safety communications officials in this state, and two noncouncil	1286
representatives of municipal and county governments in this state.	1287

(B) The terms of the advisory board members who are also	1288
council members shall be concurrent with their terms as members of	1289
the council, as prescribed under division (B) of section 5507.65	1290
of the Revised Code. The terms of the initial noncouncil appointee	1291
to the advisory board who represents wireless service providers	1292
and of one of the initial noncouncil appointees who represents	1293
municipal and county government shall expire on January 31, 2009.	1294
The terms of the initial noncouncil appointee to the advisory	1295
board representing public safety communications officials and of	1296
the other initial noncouncil appointee representing municipal and	1297
county government shall expire on January 31, 2010. Thereafter,	1298
terms of the noncouncil appointees shall be for three years, with	1299
each term ending on the same day of the same month as the term it	1300
succeeds. The conditions of holding office, manner of filling	1301
vacancies, and other matters concerning service by any member of	1302
the advisory board shall be the same as set forth for council	1303
members under division (B) of section 5507.65 of the Revised Code.	1304

(C) The director of public safety shall appoint the	1305
chairperson of the advisory board. Each member of the board shall	1306
be a voting member and shall have one vote in all deliberations of	1307
the board. A majority of the members constitutes a quorum.	1308

(D) The advisory board shall make recommendations to and	1309
consult with the director regarding any rules to be adopted under	1310
section 5507.63 of the Revised Code.	1311

(E) The advisory board is not an agency, as defined in	1312
section 101.82 of the Revised Code, for purposes of sections	1313
101.82 to 101.87 of the Revised Code.	1314

Sec. 5701.11.  The effective date to which this section	1315
refers is the effective date of this section as amended by H.B. 58	1316
472 of the 129th general assembly.	1317

(A)(1) Except as provided under division (A)(2) or (B) of	1318
this section, any reference in Title LVII of the Revised Code to	1319
the Internal Revenue Code, to the Internal Revenue Code "as	1320
amended," to other laws of the United States, or to other laws of	1321
the United States, "as amended," means the Internal Revenue Code	1322
or other laws of the United States as they exist on the effective	1323
date.	1324

(2) This section does not apply to any reference in Title	1325
LVII of the Revised Code to the Internal Revenue Code as of a date	1326
certain specifying the day, month, and year, or to other laws of	1327
the United States as of a date certain specifying the day, month,	1328
and year.	1329

(B)(1) For purposes of applying section 5733.04, 5745.01, or	1330
5747.01 of the Revised Code to a taxpayer's taxable year ending	1331
after December 15, 2010March 7, 2011, and before the effective	1332
date, a taxpayer may irrevocably elect to incorporate the	1333
provisions of the Internal Revenue Code or other laws of the	1334
United States that are in effect for federal income tax purposes	1335
for that taxable year if those provisions differ from the	1336
provisions that, under division (A) of this section, would	1337
otherwise apply. The filing by the taxpayer for that taxable year	1338
of a report or return that incorporates the provisions of the	1339
Internal Revenue Code or other laws of the United States	1340
applicable for federal income tax purposes for that taxable year,	1341
and that does not include any adjustments to reverse the effects	1342
of any differences between those provisions and the provisions	1343
that would otherwise apply, constitutes the making of an	1344
irrevocable election under this division for that taxable year.	1345

(2) Elections under prior versions of division (B)(1) of this	1346
section remain in effect for the taxable years to which they	1347
apply.	1348

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

1349

(1) "9-1-1 system" has the same meaning as in section 5507.01	1350
of the Revised Code.	1351

(2) "Nonrecurring 9-1-1 charges" means nonrecurring charges	1352
approved by the tax commissionerpublic utilities commission for	1353
the telephone network portion of a 9-1-1 system pursuant to	1354
section 5507.18 of the Revised Code.	1355

(3) "Eligible nonrecurring 9-1-1 charges" means all	1356
nonrecurring 9-1-1 charges for a 9-1-1 system except both of the	1357
following:	1358

(a) Charges for a system that was not established pursuant to	1359
a plan adopted under section 5507.08 of the Revised Code or an	1360
agreement under section 5507.09 of the Revised Code;	1361

(b) Charges for that part of a system established pursuant to	1362
such a plan or agreement that are excluded from the credit by	1363
division (C)(2) of section 5507.18 of the Revised Code.	1364

(4) "Telephone company" has the same meaning as in section	1365
5727.01 of the Revised Code.	1366

(B) Beginning in tax year 2005, a telephone company shall be	1367
allowed a nonrefundable credit against the tax imposed by section	1368
5733.06 of the Revised Code equal to the amount of its eligible	1369
nonrecurring 9-1-1 charges. The credit shall be claimed for the	1370
company's taxable year that covers the period in which the 9-1-1	1371
service for which the credit is claimed becomes available for use.	1372
The credit shall be claimed in the order required by section	1373
5733.98 of the Revised Code. If the credit exceeds the total taxes	1374
due under section 5733.06 of the Revised Code for the tax year,	1375
the tax commissioner shall credit the excess against taxes due	1376
under that section for succeeding tax years until the full amount	1377
of the credit is granted.	1378

(C) After the last day a return, with any extensions, may be	1379
filed by any telephone company that is eligible to claim a credit	1380
under this section, the commissioner shall determine whether the	1381
sum of the credits allowed for prior tax years commencing with tax	1382
year 2005 plus the sum of the credits claimed for the current tax	1383
year exceeds fifteen million dollars. If it does, the credits	1384
allowed under this section for the current tax year shall be	1385
reduced by a uniform percentage such that the sum of the credits	1386
allowed for the current tax year do not exceed fifteen million	1387
dollars claimed by all telephone companies for all tax years.	1388
Thereafter, no credit shall be granted under this section, except	1389
for the remaining portions of any credits allowed under division	1390
(B) of this section.	1391

(D) A telephone company that is entitled to carry forward a	1392
credit against its public utility excise tax liability under	1393
section 5727.39 of the Revised Code is entitled to carry forward	1394
any amount of that credit remaining after its last public utility	1395
excise tax payment for the period of July 1, 2003, through June	1396
30, 2004, and claim that amount as a credit against its	1397
corporation franchise tax liability under this section. Nothing in	1398
this section authorizes a telephone company to claim a credit	1399
under this section for any eligible nonrecurring 9-1-1 charges for	1400
which it has already claimed a credit under this section or	1401
section 5727.39 of the Revised Code.	1402

Sec. 5751.01.  As used in this chapter:

1403

(A) "Person" means, but is not limited to, individuals,	1404
combinations of individuals of any form, receivers, assignees,	1405
trustees in bankruptcy, firms, companies, joint-stock companies,	1406
business trusts, estates, partnerships, limited liability	1407
partnerships, limited liability companies, associations, joint	1408
ventures, clubs, societies, for-profit corporations, S	1409
corporations, qualified subchapter S subsidiaries, qualified	1410
subchapter S trusts, trusts, entities that are disregarded for	1411
federal income tax purposes, and any other entities.	1412

(B) "Consolidated elected taxpayer" means a group of two or	1413
more persons treated as a single taxpayer for purposes of this	1414
chapter as the result of an election made under section 5751.011	1415
of the Revised Code.	1416

(C) "Combined taxpayer" means a group of two or more persons	1417
treated as a single taxpayer for purposes of this chapter under	1418
section 5751.012 of the Revised Code.	1419

(D) "Taxpayer" means any person, or any group of persons in	1420
the case of a consolidated elected taxpayer or combined taxpayer	1421
treated as one taxpayer, required to register or pay tax under	1422
this chapter. "Taxpayer" does not include excluded persons.	1423

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

1424

(1) Any person with not more than one hundred fifty thousand	1425
dollars of taxable gross receipts during the calendar year.	1426
Division (E)(1) of this section does not apply to a person that is	1427
a member of a consolidated elected taxpayer;	1428

(2) A public utility that paid the excise tax imposed by	1429
section 5727.24 or 5727.30 of the Revised Code based on one or	1430
more measurement periods that include the entire tax period under	1431
this chapter, except that a public utility that is a combined	1432
company is a taxpayer with regard to the following gross receipts:	1433

(a) Taxable gross receipts directly attributed to a public	1434
utility activity, but not directly attributed to an activity that	1435
is subject to the excise tax imposed by section 5727.24 or 5727.30	1436
of the Revised Code;	1437

(b) Taxable gross receipts that cannot be directly attributed	1438
to any activity, multiplied by a fraction whose numerator is the	1439
taxable gross receipts described in division (E)(2)(a) of this	1440
section and whose denominator is the total taxable gross receipts	1441
that can be directly attributed to any activity;	1442

(c) Except for any differences resulting from the use of an	1443
accrual basis method of accounting for purposes of determining	1444
gross receipts under this chapter and the use of the cash basis	1445
method of accounting for purposes of determining gross receipts	1446
under section 5727.24 of the Revised Code, the gross receipts	1447
directly attributed to the activity of a natural gas company shall	1448
be determined in a manner consistent with division (D) of section	1449
5727.03 of the Revised Code.	1450

As used in division (E)(2) of this section, "combined	1451
company" and "public utility" have the same meanings as in section	1452
5727.01 of the Revised Code.	1453

(3) A financial institution, as defined in section 5725.01 of	1454
the Revised Code, that paid the corporation franchise tax charged	1455
by division (D) of section 5733.06 of the Revised Code based on	1456
one or more taxable years that include the entire tax period under	1457
this chapter;	1458

(4) A dealer in intangibles, as defined in section 5725.01 of	1459
the Revised Code, that paid the dealer in intangibles tax levied	1460
by division (D) of section 5707.03 of the Revised Code based on	1461
one or more measurement periods that include the entire tax period	1462
under this chapter;	1463

(5) A financial holding company as defined in the "Bank	1464
Holding Company Act," 12 U.S.C. 1841(p);	1465

(6) A bank holding company as defined in the "Bank Holding	1466
Company Act," 12 U.S.C. 1841(a);	1467

(7) A savings and loan holding company as defined in the	1468
"Home Owners Loan Act," 12 U.S.C. 1467a(a)(1)(D) that is engaging	1469
only in activities or investments permissible for a financial	1470
holding company under 12 U.S.C. 1843(k);	1471

(8) A person directly or indirectly owned by one or more	1472
financial institutions, financial holding companies, bank holding	1473
companies, or savings and loan holding companies described in	1474
division (E)(3), (5), (6), or (7) of this section that is engaged	1475
in activities permissible for a financial holding company under 12	1476
U.S.C. 1843(k), except that any such person held pursuant to	1477
merchant banking authority under 12 U.S.C. 1843(k)(4)(H) or 12	1478
U.S.C. 1843(k)(4)(I) is not an excluded person, or a person	1479
directly or indirectly owned by one or more insurance companies	1480
described in division (E)(9) of this section that is authorized to	1481
do the business of insurance in this state.	1482

For the purposes of division (E)(8) of this section, a person	1483
owns another person under the following circumstances:	1484

(a) In the case of corporations issuing capital stock, one	1485
corporation owns another corporation if it owns fifty per cent or	1486
more of the other corporation's capital stock with current voting	1487
rights;	1488

(b) In the case of a limited liability company, one person	1489
owns the company if that person's membership interest, as defined	1490
in section 1705.01 of the Revised Code, is fifty per cent or more	1491
of the combined membership interests of all persons owning such	1492
interests in the company;	1493

(c) In the case of a partnership, trust, or other	1494
unincorporated business organization other than a limited	1495
liability company, one person owns the organization if, under the	1496
articles of organization or other instrument governing the affairs	1497
of the organization, that person has a beneficial interest in the	1498
organization's profits, surpluses, losses, or distributions of	1499
fifty per cent or more of the combined beneficial interests of all	1500
persons having such an interest in the organization;	1501

(d) In the case of multiple ownership, the ownership	1502
interests of more than one person may be aggregated to meet the	1503
fifty per cent ownership tests in this division only when each	1504
such owner is described in division (E)(3), (5), (6), or (7) of	1505
this section and is engaged in activities permissible for a	1506
financial holding company under 12 U.S.C. 1843(k) or is a person	1507
directly or indirectly owned by one or more insurance companies	1508
described in division (E)(9) of this section that is authorized to	1509
do the business of insurance in this state.	1510

(9) A domestic insurance company or foreign insurance	1511
company, as defined in section 5725.01 of the Revised Code, that	1512
paid the insurance company premiums tax imposed by section 5725.18	1513
or Chapter 5729. of the Revised Code, or an unauthorized insurance	1514
company whose gross premiums are subject to tax under section	1515
3905.36 of the Revised Code based on one or more measurement	1516
periods that include the entire tax period under this chapter;	1517

(10) A person that solely facilitates or services one or more	1518
securitizations or similar transactions for any person described	1519
in division (E)(3), (5), (6), (7), (8), or (9) of this section, or	1520
a person that solely facilitates or services one or more	1521
securitizations of phase-in-recovery property pursuant to a final	1522
financing order as those terms are defined in section 4928.23 of	1523
the Revised Code. For purposes of this division, "securitization"	1524
means transferring one or more assets to one or more persons and	1525
then issuing securities backed by the right to receive payment	1526
from the asset or assets so transferred.	1527

(11) Except as otherwise provided in this division, a	1528
pre-income tax trust as defined in division (FF)(4) of section	1529
5747.01 of the Revised Code and any pass-through entity of which	1530
such pre-income tax trust owns or controls, directly, indirectly,	1531
or constructively through related interests, more than five per	1532
cent of the ownership or equity interests. If the pre-income tax	1533
trust has made a qualifying pre-income tax trust election under	1534
division (FF)(3) of section 5747.01 of the Revised Code, then the	1535
trust and the pass-through entities of which it owns or controls,	1536
directly, indirectly, or constructively through related interests,	1537
more than five per cent of the ownership or equity interests,	1538
shall not be excluded persons for purposes of the tax imposed	1539
under section 5751.02 of the Revised Code.	1540

(12) Nonprofit organizations or the state and its agencies,	1541
instrumentalities, or political subdivisions.	1542

(F) Except as otherwise provided in divisions (F)(2), (3),	1543
and (4) of this section, "gross receipts" means the total amount	1544
realized by a person, without deduction for the cost of goods sold	1545
or other expenses incurred, that contributes to the production of	1546
gross income of the person, including the fair market value of any	1547
property and any services received, and any debt transferred or	1548
forgiven as consideration.	1549

(1) The following are examples of gross receipts:

1550

(a) Amounts realized from the sale, exchange, or other	1551
disposition of the taxpayer's property to or with another;	1552

(b) Amounts realized from the taxpayer's performance of	1553
services for another;	1554

(c) Amounts realized from another's use or possession of the	1555
taxpayer's property or capital;	1556

(d) Any combination of the foregoing amounts.

1557

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

1558

(a) Interest income except interest on credit sales;

1559

(b) Dividends and distributions from corporations, and	1560
distributive or proportionate shares of receipts and income from a	1561
pass-through entity as defined under section 5733.04 of the	1562
Revised Code;	1563

(c) Receipts from the sale, exchange, or other disposition of	1564
an asset described in section 1221 or 1231 of the Internal Revenue	1565
Code, without regard to the length of time the person held the	1566
asset. Notwithstanding section 1221 of the Internal Revenue Code,	1567
receipts from hedging transactions also are excluded to the extent	1568
the transactions are entered into primarily to protect a financial	1569
position, such as managing the risk of exposure to (i) foreign	1570
currency fluctuations that affect assets, liabilities, profits,	1571
losses, equity, or investments in foreign operations; (ii)	1572
interest rate fluctuations; or (iii) commodity price fluctuations.	1573
As used in division (F)(2)(c) of this section, "hedging	1574
transaction" has the same meaning as used in section 1221 of the	1575
Internal Revenue Code and also includes transactions accorded	1576
hedge accounting treatment under statement of financial accounting	1577
standards number 133 of the financial accounting standards board.	1578
For the purposes of division (F)(2)(c) of this section, the actual	1579
transfer of title of real or tangible personal property to another	1580
entity is not a hedging transaction.	1581

(d) Proceeds received attributable to the repayment,	1582
maturity, or redemption of the principal of a loan, bond, mutual	1583
fund, certificate of deposit, or marketable instrument;	1584

(e) The principal amount received under a repurchase	1585
agreement or on account of any transaction properly characterized	1586
as a loan to the person;	1587

(f) Contributions received by a trust, plan, or other	1588
arrangement, any of which is described in section 501(a) of the	1589
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter	1590
1, Subchapter (D) of the Internal Revenue Code applies;	1591

(g) Compensation, whether current or deferred, and whether in	1592
cash or in kind, received or to be received by an employee, former	1593
employee, or the employee's legal successor for services rendered	1594
to or for an employer, including reimbursements received by or for	1595
an individual for medical or education expenses, health insurance	1596
premiums, or employee expenses, or on account of a dependent care	1597
spending account, legal services plan, any cafeteria plan	1598
described in section 125 of the Internal Revenue Code, or any	1599
similar employee reimbursement;	1600

(h) Proceeds received from the issuance of the taxpayer's own	1601
stock, options, warrants, puts, or calls, or from the sale of the	1602
taxpayer's treasury stock;	1603

(i) Proceeds received on the account of payments from	1604
insurance policies, except those proceeds received for the loss of	1605
business revenue;	1606

(j) Gifts or charitable contributions received; membership	1607
dues received by trade, professional, homeowners', or condominium	1608
associations; and payments received for educational courses,	1609
meetings, meals, or similar payments to a trade, professional, or	1610
other similar association; and fundraising receipts received by	1611
any person when any excess receipts are donated or used	1612
exclusively for charitable purposes;	1613

(k) Damages received as the result of litigation in excess of	1614
amounts that, if received without litigation, would be gross	1615
receipts;	1616

(l) Property, money, and other amounts received or acquired	1617
by an agent on behalf of another in excess of the agent's	1618
commission, fee, or other remuneration;	1619

(m) Tax refunds, other tax benefit recoveries, and	1620
reimbursements for the tax imposed under this chapter made by	1621
entities that are part of the same combined taxpayer or	1622
consolidated elected taxpayer group, and reimbursements made by	1623
entities that are not members of a combined taxpayer or	1624
consolidated elected taxpayer group that are required to be made	1625
for economic parity among multiple owners of an entity whose tax	1626
obligation under this chapter is required to be reported and paid	1627
entirely by one owner, pursuant to the requirements of sections	1628
5751.011 and 5751.012 of the Revised Code;	1629

(n) Pension reversions;

1630

(o) Contributions to capital;

1631

(p) Sales or use taxes collected as a vendor or an	1632
out-of-state seller on behalf of the taxing jurisdiction from a	1633
consumer or other taxes the taxpayer is required by law to collect	1634
directly from a purchaser and remit to a local, state, or federal	1635
tax authority;	1636

(q) In the case of receipts from the sale of cigarettes or	1637
tobacco products by a wholesale dealer, retail dealer,	1638
distributor, manufacturer, or seller, all as defined in section	1639
5743.01 of the Revised Code, an amount equal to the federal and	1640
state excise taxes paid by any person on or for such cigarettes or	1641
tobacco products under subtitle E of the Internal Revenue Code or	1642
Chapter 5743. of the Revised Code;	1643

(r) In the case of receipts from the sale of motor fuel by a	1644
licensed motor fuel dealer, licensed retail dealer, or licensed	1645
permissive motor fuel dealer, all as defined in section 5735.01 of	1646
the Revised Code, an amount equal to federal and state excise	1647
taxes paid by any person on such motor fuel under section 4081 of	1648
the Internal Revenue Code or Chapter 5735. of the Revised Code;	1649

(s) In the case of receipts from the sale of beer or	1650
intoxicating liquor, as defined in section 4301.01 of the Revised	1651
Code, by a person holding a permit issued under Chapter 4301. or	1652
4303. of the Revised Code, an amount equal to federal and state	1653
excise taxes paid by any person on or for such beer or	1654
intoxicating liquor under subtitle E of the Internal Revenue Code	1655
or Chapter 4301. or 4305. of the Revised Code;	1656

(t) Receipts realized by a new motor vehicle dealer or used	1657
motor vehicle dealer, as defined in section 4517.01 of the Revised	1658
Code, from the sale or other transfer of a motor vehicle, as	1659
defined in that section, to another motor vehicle dealer for the	1660
purpose of resale by the transferee motor vehicle dealer, but only	1661
if the sale or other transfer was based upon the transferee's need	1662
to meet a specific customer's preference for a motor vehicle;	1663

(u) Receipts from a financial institution described in	1664
division (E)(3) of this section for services provided to the	1665
financial institution in connection with the issuance, processing,	1666
servicing, and management of loans or credit accounts, if such	1667
financial institution and the recipient of such receipts have at	1668
least fifty per cent of their ownership interests owned or	1669
controlled, directly or constructively through related interests,	1670
by common owners;	1671

(v) Receipts realized from administering anti-neoplastic	1672
drugs and other cancer chemotherapy, biologicals, therapeutic	1673
agents, and supportive drugs in a physician's office to patients	1674
with cancer;	1675

(w) Funds received or used by a mortgage broker that is not a	1676
dealer in intangibles, other than fees or other consideration,	1677
pursuant to a table-funding mortgage loan or warehouse-lending	1678
mortgage loan. Terms used in division (F)(2)(w) of this section	1679
have the same meanings as in section 1322.01 of the Revised Code,	1680
except "mortgage broker" means a person assisting a buyer in	1681
obtaining a mortgage loan for a fee or other consideration paid by	1682
the buyer or a lender, or a person engaged in table-funding or	1683
warehouse-lending mortgage loans that are first lien mortgage	1684
loans.	1685

(x) Property, money, and other amounts received by a	1686
professional employer organization, as defined in section 4125.01	1687
of the Revised Code, from a client employer, as defined in that	1688
section, in excess of the administrative fee charged by the	1689
professional employer organization to the client employer;	1690

(y) In the case of amounts retained as commissions by a	1691
permit holder under Chapter 3769. of the Revised Code, an amount	1692
equal to the amounts specified under that chapter that must be	1693
paid to or collected by the tax commissioner as a tax and the	1694
amounts specified under that chapter to be used as purse money;	1695

(z) Qualifying distribution center receipts.

1696

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

1697

(I) "Qualifying distribution center receipts" means receipts	1698
of a supplier from qualified property that is delivered to a	1699
qualified distribution center, multiplied by a quantity that	1700
equals one minus the Ohio delivery percentage. If the qualified	1701
distribution center is a refining facility, "supplier" includes	1702
all dealers, brokers, processors, sellers, vendors, cosigners, and	1703
distributors of qualified property.	1704

(II) "Qualified property" means tangible personal property	1705
delivered to a qualified distribution center that is shipped to	1706
that qualified distribution center solely for further shipping by	1707
the qualified distribution center to another location in this	1708
state or elsewhere or, in the case of gold, silver, platinum, or	1709
palladium delivered to a refining facility solely for refining to	1710
a grade and fineness acceptable for delivery to a registered	1711
commodities exchange. "Further shipping" includes storing and	1712
repackaging such property into smaller or larger bundles, so long	1713
as suchthe property is not subject to further manufacturing or	1714
processing. "Refining" is limited to extracting impurities from	1715
gold, silver, platinum, or palladium through smelting or some	1716
other process at a refining facility.	1717

(III) "Qualified distribution center" means a warehouse or	1718
other similar, a facility similar to a warehouse, or a refining	1719
facility in this state that, for the qualifying year, is operated	1720
by a person that is not part of a combined taxpayer group and that	1721
has a qualifying certificate. However, allAll warehouses or	1722
other similar facilities similar to warehouses that are operated	1723
by persons in the same taxpayer group and that are located within	1724
one mile of each other shall be treated as one qualified	1725
distribution center. All refining facilities that are operated by	1726
persons in the same taxpayer group and that are located in the	1727
same or adjacent counties may be treated as one qualified	1728
distribution center.	1729

(IV) "Qualifying year" means the calendar year to which the	1730
qualifying certificate applies.	1731

(V) "Qualifying period" means the period of the first day of	1732
July of the second year preceding the qualifying year through the	1733
thirtieth day of June of the year preceding the qualifying year.	1734

(VI) "Qualifying certificate" means the certificate issued by	1735
the tax commissioner after the operator of a distribution center	1736
files an annual application with the commissioner. The application	1737
and annual fee shall be filed and paid for each qualified	1738
distribution center on or before the first day of September before	1739
the qualifying year or within forty-five days after the	1740
distribution center opens, whichever is later.	1741

The applicant must substantiate to the commissioner's	1742
satisfaction that, for the qualifying period, all persons	1743
operating the distribution center have more than fifty per cent of	1744
the cost of the qualified property shipped to a location such that	1745
it would be sitused outside this state under the provisions of	1746
division (E) of section 5751.033 of the Revised Code. The	1747
applicant must also substantiate that the distribution center	1748
cumulatively had costs from its suppliers equal to or exceeding	1749
five hundred million dollars during the qualifying period. (For	1750
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"	1751
excludes any person that is part of the consolidated elected	1752
taxpayer group, if applicable, of the operator of the qualified	1753
distribution center.) The commissioner may require the applicant	1754
to have an independent certified public accountant certify that	1755
the calculation of the minimum thresholds required for a qualified	1756
distribution center by the operator of a distribution center has	1757
been made in accordance with generally accepted accounting	1758
principles. The commissioner shall issue or deny the issuance of a	1759
certificate within sixty days after the receipt of the	1760
application. A denial is subject to appeal under section 5717.02	1761
of the Revised Code. If the operator files a timely appeal under	1762
section 5717.02 of the Revised Code, the operator shall be granted	1763
a qualifying certificate, provided that the operator is liable for	1764
any tax, interest, or penalty upon amounts claimed as qualifying	1765
distribution center receipts, other than those receipts exempt	1766
under division (C)(1) of section 5751.011 of the Revised Code,	1767
that would have otherwise not been owed by its suppliers if the	1768
qualifying certificate was valid.	1769

(VII) "Ohio delivery percentage" means the proportion of the	1770
total property delivered to a destination inside Ohio from the	1771
qualified distribution center during the qualifying period	1772
compared with total deliveries from such distribution center	1773
everywhere during the qualifying period.	1774

(VIII) "Refining facility" means one or more buildings	1775
located in a county in the Appalachian region of this state as	1776
defined by section 107.21 of the Revised Code and utilized for	1777
refining or smelting gold, silver, platinum, or palladium to a	1778
grade and fineness acceptable for delivery to a registered	1779
commodities exchange.	1780

(IX) "Registered commodities exchange" means a board of	1781
trade, such as New York mercantile exchange, inc. or commodity	1782
exchange, inc., designated as a contract market by the commodity	1783
futures trading commission under the "Commodity Exchange Act," 7	1784
U.S.C. 1 et seq., as amended.	1785

(ii) If the distribution center is new and was not open for	1786
the entire qualifying period, the operator of the distribution	1787
center may request that the commissioner grant a qualifying	1788
certificate. If the certificate is granted and it is later	1789
determined that more than fifty per cent of the qualified property	1790
during that year was not shipped to a location such that it would	1791
be sitused outside of this state under the provisions of division	1792
(E) of section 5751.033 of the Revised Code or if it is later	1793
determined that the person that operates the distribution center	1794
had average monthly costs from its suppliers of less than forty	1795
million dollars during that year, then the operator of the	1796
distribution center shall be liable for any tax, interest, or	1797
penalty upon amounts claimed as qualifying distribution center	1798
receipts, other than those receipts exempt under division (C)(1)	1799
of section 5751.011 of the Revised Code, that would have not	1800
otherwise been owed by its suppliers during the qualifying year if	1801
the qualifying certificate was valid. (For purposes of division	1802
(F)(2)(z)(ii) of this section, "supplier" excludes any person that	1803
is part of the consolidated elected taxpayer group, if applicable,	1804
of the operator of the qualified distribution center.)	1805

(iii) When filing an application for a qualifying certificate	1806
under division (F)(2)(z)(i)(VI) of this section, the operator of a	1807
qualified distribution center also shall provide documentation, as	1808
the commissioner requires, for the commissioner to ascertain the	1809
Ohio delivery percentage. The commissioner, upon issuing the	1810
qualifying certificate, also shall certify the Ohio delivery	1811
percentage. The operator of the qualified distribution center may	1812
appeal the commissioner's certification of the Ohio delivery	1813
percentage in the same manner as an appeal is taken from the	1814
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)	1815
of this section.	1816

Within thirty days after all appeals have been exhausted, the	1817
operator of the qualified distribution center shall notify the	1818
affected suppliers of qualified property that such suppliers are	1819
required to file, within sixty days after receiving notice from	1820
the operator of the qualified distribution center, amended reports	1821
for the impacted calendar quarter or quarters or calendar year,	1822
whichever the case may be. Any additional tax liability or tax	1823
overpayment shall be subject to interest but shall not be subject	1824
to the imposition of any penalty so long as the amended returns	1825
are timely filed. The supplier of tangible personal property	1826
delivered to the qualified distribution center shall include in	1827
its report of taxable gross receipts the receipts from the total	1828
sales of property delivered to the qualified distribution center	1829
for the calendar quarter or calendar year, whichever the case may	1830
be, multiplied by the Ohio delivery percentage for the qualifying	1831
year. Nothing in division (F)(2)(z)(iii) of this section shall be	1832
construed as imposing liability on the operator of a qualified	1833
distribution center for the tax imposed by this chapter arising	1834
from any change to the Ohio delivery percentage.	1835

(iv) In the case where the distribution center is new and not	1836
open for the entire qualifying period, the operator shall make a	1837
good faith estimate of an Ohio delivery percentage for use by	1838
suppliers in their reports of taxable gross receipts for the	1839
remainder of the qualifying period. The operator of the facility	1840
shall disclose to the suppliers that such Ohio delivery percentage	1841
is an estimate and is subject to recalculation. By the due date of	1842
the next application for a qualifying certificate, the operator	1843
shall determine the actual Ohio delivery percentage for the	1844
estimated qualifying period and proceed as provided in division	1845
(F)(2)(z)(iii) of this section with respect to the calculation and	1846
recalculation of the Ohio delivery percentage. The supplier is	1847
required to file, within sixty days after receiving notice from	1848
the operator of the qualified distribution center, amended reports	1849
for the impacted calendar quarter or quarters or calendar year,	1850
whichever the case may be. Any additional tax liability or tax	1851
overpayment shall be subject to interest but shall not be subject	1852
to the imposition of any penalty so long as the amended returns	1853
are timely filed.	1854

(v) Qualifying certificates and Ohio delivery percentages	1855
issued by the commissioner shall be open to public inspection and	1856
shall be timely published by the commissioner. A supplier relying	1857
in good faith on a certificate issued under this division shall	1858
not be subject to tax on the qualifying distribution center	1859
receipts under division (F)(2)(z) of this section. A person	1860
receiving a qualifying certificate is responsible for paying the	1861
tax, interest, and penalty upon amounts claimed as qualifying	1862
distribution center receipts that would not otherwise have been	1863
owed by the supplier if the qualifying certificate were available	1864
when it is later determined that the qualifying certificate should	1865
not have been issued because the statutory requirements were in	1866
fact not met.	1867

(vi) The annual fee for a qualifying certificate shall be one	1868
hundred thousand dollars for each qualified distribution center.	1869
If a qualifying certificate is not issued, the annual fee is	1870
subject to refund after the exhaustion of all appeals provided for	1871
in division (F)(2)(z)(i)(VI) of this section. The fee imposed	1872
under this division may be assessed in the same manner as the tax	1873
imposed under this chapter. The first one hundred thousand dollars	1874
of the annual application fees collected each calendar year shall	1875
be credited to the revenue enhancement fund. The remainder of the	1876
annual application fees collected shall be distributed in the same	1877
manner required under section 5751.20 of the Revised Code.	1878

(vii) The tax commissioner may require that adequate security	1879
be posted by the operator of the distribution center on appeal	1880
when the commissioner disagrees that the applicant has met the	1881
minimum thresholds for a qualified distribution center as set	1882
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this	1883
section.	1884

(aa) Receipts of an employer from payroll deductions relating	1885
to the reimbursement of the employer for advancing moneys to an	1886
unrelated third party on an employee's behalf;	1887

(bb) Cash discounts allowed and taken;

1888

(cc) Returns and allowances;

1889

(dd) Bad debts from receipts on the basis of which the tax	1890
imposed by this chapter was paid in a prior quarterly tax payment	1891
period. For the purpose of this division, "bad debts" means any	1892
debts that have become worthless or uncollectible between the	1893
preceding and current quarterly tax payment periods, have been	1894
uncollected for at least six months, and that may be claimed as a	1895
deduction under section 166 of the Internal Revenue Code and the	1896
regulations adopted under that section, or that could be claimed	1897
as such if the taxpayer kept its accounts on the accrual basis.	1898
"Bad debts" does not include repossessed property, uncollectible	1899
amounts on property that remains in the possession of the taxpayer	1900
until the full purchase price is paid, or expenses in attempting	1901
to collect any account receivable or for any portion of the debt	1902
recovered;	1903

(ee) Any amount realized from the sale of an account	1904
receivable to the extent the receipts from the underlying	1905
transaction giving rise to the account receivable were included in	1906
the gross receipts of the taxpayer;	1907

(ff) Any receipts directly attributed to providing public	1908
services pursuant to sections 126.60 to 126.605 of the Revised	1909
Code, or any receipts directly attributed to a transfer agreement	1910
or to the enterprise transferred under that agreement under	1911
section 4313.02 of the Revised Code.	1912

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

1913

(I) "Qualified uranium receipts" means receipts from the	1914
sale, exchange, lease, loan, production, processing, or other	1915
disposition of uranium within a uranium enrichment zone certified	1916
by the tax commissioner under division (F)(2)(gg)(ii) of this	1917
section. "Qualified uranium receipts" does not include any	1918
receipts with a situs in this state outside a uranium enrichment	1919
zone certified by the tax commissioner under division	1920
(F)(2)(gg)(ii) of this section.	1921

(II) "Uranium enrichment zone" means all real property that	1922
is part of a uranium enrichment facility licensed by the United	1923
States nuclear regulatory commission and that was or is owned or	1924
controlled by the United States department of energy or its	1925
successor.	1926

(ii) Any person that owns, leases, or operates real or	1927
tangible personal property constituting or located within a	1928
uranium enrichment zone may apply to the tax commissioner to have	1929
the uranium enrichment zone certified for the purpose of excluding	1930
qualified uranium receipts under division (F)(2)(gg) of this	1931
section. The application shall include such information that the	1932
tax commissioner prescribes. Within sixty days after receiving the	1933
application, the tax commissioner shall certify the zone for that	1934
purpose if the commissioner determines that the property qualifies	1935
as a uranium enrichment zone as defined in division (F)(2)(gg) of	1936
this section, or, if the tax commissioner determines that the	1937
property does not qualify, the commissioner shall deny the	1938
application or request additional information from the applicant.	1939
If the tax commissioner denies an application, the commissioner	1940
shall state the reasons for the denial. The applicant may appeal	1941
the denial of an application to the board of tax appeals pursuant	1942
to section 5717.02 of the Revised Code. If the applicant files a	1943
timely appeal, the tax commissioner shall conditionally certify	1944
the applicant's property. The conditional certification shall	1945
expire when all of the applicant's appeals are exhausted. Until	1946
final resolution of the appeal, the applicant shall retain the	1947
applicant's records in accordance with section 5751.12 of the	1948
Revised Code, notwithstanding any time limit on the preservation	1949
of records under that section.	1950

(hh) Amounts realized by licensed motor fuel dealers or	1951
licensed permissive motor fuel dealers from the exchange of	1952
petroleum products, including motor fuel, between such dealers,	1953
provided that delivery of the petroleum products occurs at a	1954
refinery, terminal, pipeline, or marine vessel and that the	1955
exchanging dealers agree neither dealer shall require monetary	1956
compensation from the other for the value of the exchanged	1957
petroleum products other than such compensation for differences in	1958
product location or grade. Division (F)(2)(hh) of this section	1959
does not apply to amounts realized as a result of differences in	1960
location or grade of exchanged petroleum products or from	1961
handling, lubricity, dye, or other additive injections fees,	1962
pipeline security fees, or similar fees. As used in this division,	1963
"motor fuel," "licensed motor fuel dealer," "licensed permissive	1964
motor fuel dealer," and "terminal" have the same meanings as in	1965
section 5735.01 of the Revised Code.	1966

(ii) In the case of amounts collected by a licensed casino	1967
operator from casino gaming, amounts in excess of the casino	1968
operator's gross casino revenue. In this division, "casino	1969
operator" and "casino gaming" have the meanings defined in section	1970
3772.01 of the Revised Code, and "gross casino revenue" has the	1971
meaning defined in section 5753.01 of the Revised Code.	1972

(jj) Any receipts for which the tax imposed by this chapter	1973
is prohibited by the constitution or laws of the United States or	1974
the constitution of this state.	1975

(3) In the case of a taxpayer when acting as a real estate	1976
broker, "gross receipts" includes only the portion of any fee for	1977
the service of a real estate broker, or service of a real estate	1978
salesperson associated with that broker, that is retained by the	1979
broker and not paid to an associated real estate salesperson or	1980
another real estate broker. For the purposes of this division,	1981
"real estate broker" and "real estate salesperson" have the same	1982
meanings as in section 4735.01 of the Revised Code.	1983

(4) A taxpayer's method of accounting for gross receipts for	1984
a tax period shall be the same as the taxpayer's method of	1985
accounting for federal income tax purposes for the taxpayer's	1986
federal taxable year that includes the tax period. If a taxpayer's	1987
method of accounting for federal income tax purposes changes, its	1988
method of accounting for gross receipts under this chapter shall	1989
be changed accordingly.	1990

(G) "Taxable gross receipts" means gross receipts sitused to	1991
this state under section 5751.033 of the Revised Code.	1992

(H) A person has "substantial nexus with this state" if any	1993
of the following applies. The person:	1994

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

1995

(2) Holds a certificate of compliance with the laws of this	1996
state authorizing the person to do business in this state;	1997

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

1998

(4) Otherwise has nexus with this state to an extent that the	1999
person can be required to remit the tax imposed under this chapter	2000
under the Constitution of the United States.	2001

(I) A person has "bright-line presence" in this state for a	2002
reporting period and for the remaining portion of the calendar	2003
year if any of the following applies. The person:	2004

(1) Has at any time during the calendar year property in this	2005
state with an aggregate value of at least fifty thousand dollars.	2006
For the purpose of division (I)(1) of this section, owned property	2007
is valued at original cost and rented property is valued at eight	2008
times the net annual rental charge.	2009

(2) Has during the calendar year payroll in this state of at	2010
least fifty thousand dollars. Payroll in this state includes all	2011
of the following:	2012

(a) Any amount subject to withholding by the person under	2013
section 5747.06 of the Revised Code;	2014

(b) Any other amount the person pays as compensation to an	2015
individual under the supervision or control of the person for work	2016
done in this state; and	2017

(c) Any amount the person pays for services performed in this	2018
state on its behalf by another.	2019

(3) Has during the calendar year taxable gross receipts of at	2020
least five hundred thousand dollars.	2021

(4) Has at any time during the calendar year within this	2022
state at least twenty-five per cent of the person's total	2023
property, total payroll, or total gross receipts.	2024

(5) Is domiciled in this state as an individual or for	2025
corporate, commercial, or other business purposes.	2026

(J) "Tangible personal property" has the same meaning as in	2027
section 5739.01 of the Revised Code.	2028

(K) "Internal Revenue Code" means the Internal Revenue Code	2029
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in	2030
this chapter that is not otherwise defined has the same meaning as	2031
when used in a comparable context in the laws of the United States	2032
relating to federal income taxes unless a different meaning is	2033
clearly required. Any reference in this chapter to the Internal	2034
Revenue Code includes other laws of the United States relating to	2035
federal income taxes.	2036

(L) "Calendar quarter" means a three-month period ending on	2037
the thirty-first day of March, the thirtieth day of June, the	2038
thirtieth day of September, or the thirty-first day of December.	2039

(M) "Tax period" means the calendar quarter or calendar year	2040
on the basis of which a taxpayer is required to pay the tax	2041
imposed under this chapter.	2042

(N) "Calendar year taxpayer" means a taxpayer for which the	2043
tax period is a calendar year.	2044

(O) "Calendar quarter taxpayer" means a taxpayer for which	2045
the tax period is a calendar quarter.	2046

(P) "Agent" means a person authorized by another person to	2047
act on its behalf to undertake a transaction for the other,	2048
including any of the following:	2049

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

2050

(2) A person retaining only a commission from a transaction	2051
with the other proceeds from the transaction being remitted to	2052
another person;	2053

(3) A person issuing licenses and permits under section	2054
1533.13 of the Revised Code;	2055

(4) A lottery sales agent holding a valid license issued	2056
under section 3770.05 of the Revised Code;	2057

(5) A person acting as an agent of the division of liquor	2058
control under section 4301.17 of the Revised Code.	2059

(Q) "Received" includes amounts accrued under the accrual	2060
method of accounting.	2061

(R) "Reporting person" means a person in a consolidated	2062
elected taxpayer or combined taxpayer group that is designated by	2063
that group to legally bind the group for all filings and tax	2064
liabilities and to receive all legal notices with respect to	2065
matters under this chapter, or, for the purposes of section	2066
5751.04 of the Revised Code, a separate taxpayer that is not a	2067
member of such a group.	2068

Section 2.  That existing sections 5502.011, 5507.01,	2069
5507.02, 5507.18, 5507.34, 5507.40, 5507.42, 5507.44, 5507.46,	2070
5507.53, 5507.55, 5507.57, 5507.63, 5507.65, 5507.66, 5701.11,	2071
5733.55, and 5751.01 and section 5507.51 of the Revised Code are	2072
hereby repealed.	2073

Section 3.  Except as otherwise provided in this act, all	2074
appropriation items in this act are appropriated out of any moneys	2075
in the state treasury to the credit of the designated fund that	2076
are not otherwise appropriated. For all appropriations made in	2077
this act, the amounts in the first column are for fiscal year 2012	2078
and the amounts in the second column are for fiscal year 2013.	2079

TAX DEPARTMENT OF TAXATION	2080

General Revenue Fund Group	2081

GRF	110321		Operating Expenses		$	0		$	1,174,000		2082
TOTAL GRF General Revenue Fund Group					$	0		$	1,174,000		2083
TOTAL ALL BUDGET FUND GROUPS					$	0		$	1,174,000		2084

Section 4. That sections 5507.40 and 5507.53 of the Revised	2086
Code are hereby repealed.	2087

Section 5. Section 4 of this act shall take effect on January	2088
1, 2014.	2089

Section 6. As used in this section, "qualified property"	2090
means real property that satisfies the qualifications for tax	2091
exemption under the terms of section 5709.08 of the Revised Code	2092
and that is owned by a municipal corporation.	2093

Notwithstanding section 5713.081 of the Revised Code, when	2094
qualified property has not received tax exemption due to a failure	2095
to comply with Chapter 5713. or section 5715.27 of the Revised	2096
Code, the current owner of the property, or the prior owner of the	2097
property requesting exemption from prior taxes, at any time on or	2098
before twelve months after the effective date of this section, may	2099
file with the Tax Commissioner an application requesting that the	2100
property be placed on the tax-exempt list and that all unpaid	2101
taxes, penalties, and interest on the property be abated.	2102

The application shall be made on the form prescribed by the	2103
Tax Commissioner under section 5715.27 of the Revised Code and	2104
shall list the name of the county in which the property is	2105
located; the property's legal description; its taxable value; the	2106
amount in dollars of the unpaid taxes, penalties, and interest;	2107
the date of acquisition of title to the property; the use of the	2108
property during any time that the unpaid taxes accrued; and any	2109
other information required by the Tax Commissioner. The county	2110
auditor shall supply the required information upon request of the	2111
applicant.	2112

Upon request of the applicant, the county treasurer shall	2113
determine if all taxes, penalties, and interest that became a lien	2114
on the qualified property before it first was used for an exempt	2115
purpose and all special assessments charged against the property	2116
have been paid in full. If so, the county treasurer shall issue a	2117
certificate to the applicant stating that all such taxes,	2118
penalties, interest, and assessments have been paid in full. Prior	2119
to filing the application with the Tax Commissioner, the applicant	2120
shall attach the county treasurer's certificate to it. The Tax	2121
Commissioner shall not consider an application filed under this	2122
section unless such a certificate is attached to it.	2123

Upon receipt of the application and after consideration of	2124
it, the Tax Commissioner shall determine if the applicant meets	2125
the qualifications set forth in this section, and if so shall	2126
issue an order directing that the property be placed on the	2127
tax-exempt list of the county and that all unpaid taxes,	2128
penalties, and interest for every year the property met the	2129
qualifications for exemption described in section 5709.08 of the	2130
Revised Code be abated. If the Tax Commissioner finds that the	2131
property is not now being so used or is being used for a purpose	2132
that would foreclose its right to tax exemption, the Tax	2133
Commissioner shall issue an order denying the application.	2134

If the Tax Commissioner finds that the property is not	2135
entitled to tax exemption and to the abatement of unpaid taxes,	2136
penalties, and interest for any of the years for which the current	2137
or prior owner claims an exemption or abatement, the Tax	2138
Commissioner shall order the county treasurer of the county in	2139
which the property is located to collect all taxes, penalties, and	2140
interest due on the property for those years in accordance with	2141
law.	2142

The Tax Commissioner may apply this section to any qualified	2143
property that is the subject of an application for exemption	2144
pending before the Tax Commissioner on the effective date of this	2145
section, without requiring the property owner to file an	2146
additional application. The Tax Commissioner also may apply this	2147
section to any qualified property that is the subject of an	2148
application for exemption filed on or after the effective date of	2149
this section and on or before twelve months after that effective	2150
date, even though the application does not expressly request	2151
abatement of unpaid taxes, penalties, and interest.	2152

Section 7.  For the purposes of this section, "qualified	2153
distribution center," "qualifying year," "qualifying period,"	2154
"qualifying certificate," "Ohio delivery percentage," and	2155
"refining facility" have the same meanings as in division	2156
(F)(2)(z) of section 5751.01 of the Revised Code.	2157

Notwithstanding divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(iii)	2158
of section 5751.01 of the Revised Code, the operator of a refining	2159
facility may apply for a qualifying certificate and pay the annual	2160
fee for qualifying year 2013 within thirty days after the	2161
effective date of this act and shall not be required to do any of	2162
the following:	2163

(A) Substantiate for the qualifying periods preceding	2164
qualifying years 2013 and 2014 that all persons operating the	2165
qualified distribution center have more than fifty per cent of the	2166
cost of the qualified property shipped to a location such that it	2167
would be sitused outside the state;	2168

(B) Obtain certification from an independent certified public	2169
accountant that the calculation of the minimum thresholds	2170
otherwise required for a qualified distribution center by the	2171
operator of the distribution center has been made in accordance	2172
with generally accepted accounting principles;	2173

(C) Provide documentation for the Tax Commissioner to	2174
ascertain the Ohio delivery percentage for qualifying years 2013	2175
and 2014.	2176

Notwithstanding division (F)(2)(z)(i)(VII) of section 5751.01	2177
of the Revised Code, the Ohio delivery percentage for qualifying	2178
years 2013 and 2014, for qualified distribution centers that are	2179
refining facilities that otherwise comply with this section and	2180
with division (F)(2)(z) of section 5751.01 of the Revised Code	2181
shall equal zero per cent.	2182

Section 8.  The General Assembly, applying the principle	2183
stated in division (B) of section 1.52 of the Revised Code that	2184
amendments are to be harmonized if reasonably capable of	2185
simultaneous operation, finds that the following sections,	2186
presented in this act as composites of the sections as amended by	2187
the acts indicated, are the resulting versions of the sections in	2188
effect prior to the effective date of the sections as presented in	2189
this act:	2190

Section 5502.011 of the Revised Code as amended by both Am.	2191
Sub. H.B. 487 and Am. Sub. S.B. 337 of the 129th General Assembly.	2192

Section 5751.01 of the Revised Code as amended by both Am.	2193
Sub. H.B. 508 and Am. Sub. S.B. 315 of the 129th General Assembly.	2194

Section 9.  This act is hereby declared to be an emergency	2195
measure necessary for the immediate preservation of the public	2196
peace, health, and safety. The reason for such necessity lies in	2197
the need to update Ohio's tax law to enable taxpayers to rely on	2198
recent rules, rulings, and interpretations of the Internal Revenue	2199
Service for their 2011 tax returns, and also to advance and ensure	2200
the provision of wireless enhanced 9-1-1 service in an efficient	2201
and effective manner, including by maintaining the prepaid	2202
wireless 9-1-1 charge, which would otherwise lapse. Therefore,	2203
this act shall go into immediate effect.	2204

Section 10. The amendment, enactment, or repeal by this act	2205
of sections 5502.011, 5507.01, 5507.02, 5507.18, 5507.34, 5507.40,	2206
5507.42, 5507.44, 5507.46, 5507.51, 5507.53, 5507.54, 5507.55,	2207
5507.57, 5507.63, 5507.65, 5507.66, and 5733.55 of the Revised	2208
Code and of Section 3 of this act is contingent upon Sub. H.B. 360	2209
of the 129th General Assembly becoming law in the same form as it	2210
passed the Senate.	2211