As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 278

Senators Kearney, Turner 

Cosponsors: Senators Brown, Sawyer, Schiavoni, Skindell, Smith, Tavares 

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A BILL

To amend sections 122.075, 122.71, 122.72, 122.74,

1

122.75, 122.88, 122.89, 122.90, 125.831, 169.05,

2

4141.01, 4141.241, 4141.29, 4301.20, 4719.01,

3

5733.01, 5733.98, 5739.01, 5739.02, 5739.025,

4

5739.03, 5741.02, 5747.01, 5747.98, 5751.01,

5

5751.98, and 6301.06, to enact sections 122.084,

6

122.721, 122.731, 122.891, 4141.293, 4141.302,

7

4141.50 to 4141.58, 5709.29, 5747.61, 5751.55,

8

6301.021, 6303.01, and 6303.02, and to repeal

9

sections 901.13, 5733.46, 5733.48, 5747.28,

10

5747.29, 5747.70, 5747.75, 5747.77, and 5751.53 of

11

the Revised Code, and to amend Sections 267.10,

12

267.30.30, 309.10, 309.60, 371.10, 371.40.50,

13

371.50.20, 379.10, 387.10, 387.20, and 757.10 of

14

Am. Sub. H.B. 153 of the 129th General Assembly to

15

authorize programs and tax credits to encourage

16

the hiring of unemployed individuals, to make

17

changes to the Unemployment Compensation Law, to

18

authorize grants and tax credits for the

19

rehabilitation of distressed areas and the

20

expansion of broadband connections to rural areas,

21

to create a revolving loan fund and a bonding

22

program for small businesses, to make changes to

23

the Minority Business Bonding Program, and to make

24

an appropriation.

25

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

Section 1. That sections 122.075, 122.71, 122.72, 122.74,	26
122.75, 122.88, 122.89, 122.90, 125.831, 169.05, 4141.01,	27
4141.241, 4141.29, 4301.20, 4719.01, 5733.01, 5733.98, 5739.01,	28
5739.02, 5739.025, 5739.03, 5741.02, 5747.01, 5747.98, 5751.01,	29
5751.98, and 6301.06 be amended and sections 122.084, 122.721,	30
122.731, 122.891, 4141.293, 4141.302, 4141.50, 4141.51, 4141.52,	31
4141.53, 4141.54, 4141.55, 4141.56, 4141.57, 4141.58, 5709.29,	32
5747.61, 5751.55, 6301.021, 6303.01, and 6303.02 of the Revised	33
Code be enacted to read as follows:	34

Sec. 122.075. (A) As used in this section:

35

(1) "Alternative fuel" has the same meaning as in section	36
125.831 of the Revised Code.	37

(2) "Biodiesel" means a mono-alkyl ester combustible liquid	38
fuel that is derived from vegetable oils or animal fats, or any	39
combination of those reagents, and that meets American society for	40
testing and materials specification D6751-03a for biodiesel fuel	41
(B100) blend stock distillate fuels.	42

(3) "Diesel fuel" and "gasoline" have the same meanings as in	43
section 5735.01 of the Revised Code.	44

(4) "Ethanol" has the same meaning as in section 5733.46 of	45
the Revised Codemeans fermentation ethyl alcohol derived from	46
agricultural products, including potatoes, cereal, grains, cheese	47
whey, and sugar beets; forest products; or other renewable	48
resources, including residue and waste generated from the	49
production, processing, and marketing of agricultural products,	50
forest products, and other renewable resources that meet all of	51
the specifications in the American society for testing and	52
materials (ASTM) specification D 4806-88 and is denatured as	53
specified in Parts 20 and 21 of Title 27 of the Code of Federal	54
Regulations.	55

(5) "Blended biodiesel" means diesel fuel containing at least	56
twenty per cent biodiesel by volume.	57

(6) "Blended gasoline" means gasoline containing at least	58
eighty-five per cent ethanol by volume.	59

(7) "Incremental cost" means either of the following:

60

(a) The difference in cost between blended gasoline and	61
gasoline containing ten per cent or less ethanol at the time that	62
the blended gasoline is purchased;	63

(b) The difference in cost between blended biodiesel and	64
diesel fuel containing two per cent or less biodiesel at the time	65
that the blended biodiesel is purchased.	66

(B) For the purpose of improving the air quality in this	67
state, the director of development shall establish an alternative	68
fuel transportation grant program under which the director may	69
make grants to businesses, nonprofit organizations, public school	70
systems, or local governments for the purchase and installation of	71
alternative fuel refueling or distribution facilities and	72
terminals, for the purchase and use of alternative fuel, and to	73
pay the costs of educational and promotional materials and	74
activities intended for prospective alternative fuel consumers,	75
fuel marketers, and others in order to increase the availability	76
and use of alternative fuel.	77

(C) The director, in consultation with the director of	78
agriculture, shall adopt rules in accordance with Chapter 119. of	79
the Revised Code that are necessary for the administration of the	80
alternative fuel transportation grant program. The rules shall	81
establish at least all of the following:	82

(1) An application form and procedures governing the	83
application process for a grant under the program;	84

(2) A procedure for prioritizing the award of grants under	85
the program. The procedures shall give preference to all of the	86
following:	87

(a) Publicly accessible refueling facilities;

88

(b) Entities seeking grants that have secured funding from	89
other sources, including, but not limited to, private or federal	90
grants;	91

(c) Entities that have presented compelling evidence of	92
demand in the market in which the facilities or terminals will be	93
located;	94

(d) Entities that have committed to utilizing purchased or	95
installed facilities or terminals for the greatest number of	96
years;	97

(e) Entities that will be purchasing or installing facilities	98
or terminals for any type of alternative fuel.	99

(3) A requirement that the maximum grant for the purchase and	100
installation of an alternative fuel refueling or distribution	101
facility or terminal be eighty per cent of the cost of the	102
facility or terminal, except that at least twenty per cent of the	103
total net cost of the facility or terminal shall be incurred by	104
the grant recipient and not compensated for by any other source;	105

(4) A requirement that the maximum grant for the purchase of	106
alternative fuel be eighty per cent of the cost of the fuel or, in	107
the case of blended biodiesel or blended gasoline, eighty per cent	108
of the incremental cost of the blended biodiesel or blended	109
gasoline;	110

(5) Any other criteria, procedures, or guidelines that the	111
director determines are necessary to administer the program.	112

(D) An applicant for a grant under this section that sells	113
motor vehicle fuel at retail shall agree that if the applicant	114
receives a grant, the applicant will report to the director the	115
gallon or gallon equivalent amounts of alternative fuel the	116
applicant sells at retail in this state for a period of three	117
years after the grant is awarded.	118

The director shall enter into a written confidentiality	119
agreement with the applicant regarding the gallon or gallon	120
equivalent amounts sold as described in this division, and upon	121
execution of the agreement this information is not a public	122
record.	123

(E) There is hereby created in the state treasury the	124
alternative fuel transportation grant fund. The fund shall consist	125
of money transferred to the fund under division (C) of section	126
125.836 of the Revised Code, money that is appropriated to it by	127
the general assembly, and money as may be specified by the general	128
assembly from the advanced energy fund created by section 4928.61	129
of the Revised Code. Money in the fund shall be used to make	130
grants under the alternative fuel transportation grant program and	131
by the director in the administration of that program.	132

Sec. 122.084.  As used in this section, a "small business" is	133
a business that has fewer than five hundred employees and that	134
conducts operations in this state.	135

The director of development, under Chapter 119. of the	136
Revised Code, shall adopt, and may amend and rescind as necessary	137
and proper to improve, rules that establish and provide for the	138
administration of a small business microloan revolving loan	139
program to assist small businesses. The director shall include the	140
following in the rules:	141

(A) Qualifications to be met by small businesses that seek to	142
receive microloans through the program;	143

(B) Procedures according to which small businesses shall	144
apply for microloans through the program;	145

(C) Criteria for reviewing applications for microloans, and	146
criteria for selecting small businesses that are entitled to	147
receive microloans;	148

(D) Standards for determining the amount of microloans;

149

(E) Specifications identifying the purposes to which	150
microloans may be applied, and methods through which the use of	151
microloans can be accounted for;	152

(F) Standards for setting the interest to be paid on	153
microloans, and standards for fixing the terms according to which	154
microloans are to be repaid;	155

(G) Procedures to be implemented upon default in repayment of	156
microloans;	157

(H) Qualifications to be met by, and procedures for	158
approving, business training programs in which individuals having	159
control of small businesses are required to have participated in	160
as a condition of receiving microloans; and	161

(I) Any other qualifications, procedures, criteria,	162
specifications, methods, or standards necessary and proper for	163
efficient and successful establishment and administration of the	164
small business microloan revolving loan program as a coherent	165
program to assist small businesses.	166

The director may prescribe forms that are necessary for	167
efficient and successful administration of the small business	168
microloan revolving loan program. The forms do not need to be	169
prescribed by rule.	170

The small business microloan revolving loan program is for	171
the general purposes of assisting small businesses to meet	172
capitalization requirements, expand business operations, and	173
create and retain jobs. A small business may not use a microloan	174
to pay debts that are outstanding at the time the microloan is	175
disbursed to the small business.	176

The amount of a microloan may not exceed fifty thousand	177
dollars. The interest charged on a microloan shall be a fixed rate	178
that is at or below the market rate in the community in which the	179
microloan applicant is doing business.	180

The director shall disburse microloans through the several	181
Ohio small business development centers. The individual or	182
individuals having control of a small business, as a condition of	183
receiving a microloan, shall have participated in and successfully	184
completed an approved business training program provided by or	185
through a small business development center or the department of	186
development.	187

There is hereby created the small business microloan	188
revolving loan fund in the state treasury. The fund consists of	189
money appropriated to the fund, money received in repayment of	190
microloans made from the fund, and investment earnings on money in	191
the fund. The director shall use money in the fund to make	192
microloans to qualified small businesses through the small	193
business microloan revolving loan program, and to pay reasonable	194
costs of administering the program. All investment earnings on	195
money in the fund shall be credited to the fund.	196

Sec. 122.71.  As used in sections 122.71 to 122.83 of the	197
Revised Code:	198

(A) "Financial institution" means any banking corporation,	199
trust company, insurance company, savings and loan association,	200
building and loan association, or corporation, partnership,	201
federal lending agency, foundation, or other institution engaged	202
in lending or investing funds for industrial or business purposes.	203

(B) "Project" means any real or personal property connected	204
with or being a part of an industrial, distribution, commercial,	205
or research facility to be acquired, constructed, reconstructed,	206
enlarged, improved, furnished, or equipped, or any combination	207
thereof, with the aid provided under sections 122.71 to 122.83 of	208
the Revised Code, for industrial, commercial, distribution, and	209
research development of the state.	210

(C) "Mortgage" means the lien imposed on a project by a	211
mortgage on real property, or by financing statements on personal	212
property, or a combination of a mortgage and financing statements	213
when a project consists of both real and personal property.	214

(D) "Mortgagor" means the principal user of a project or the	215
person, corporation, partnership, or association unconditionally	216
guaranteeing performance by the principal user of its obligations	217
under the mortgage.	218

(E)(1) "Minority business enterprise" means an individual who	219
is a United States citizen and owns and controls a business, or a	220
partnership, corporation, or joint venture of any kind that is	221
owned and controlled by United States citizens, which citizen or	222
citizens are residents of this state and are members of one of the	223
following economically disadvantaged groups: Blacks or African	224
Americans, American Indians, Hispanics or Latinos, and Asians.	225

(2) "Owned and controlled" means that at least fifty-one per	226
cent of the business, including corporate stock if a corporation,	227
is owned by persons who belong to one or more of the groups set	228
forth in division (E)(1) of this section, and that those owners	229
have control over the management and day-to-day operations of the	230
business and an interest in the capital, assets, and profits and	231
losses of the business proportionate to their percentage of	232
ownership. In order to qualify as a minority business enterprise,	233
a business shall have been owned and controlled by those persons	234
at least one year prior to being awarded a contract pursuant to	235
this section.	236

(F) "Community improvement corporation" means a corporation	237
organized under Chapter 1724. of the Revised Code.	238

(G) "Ohio development corporation" means a corporation	239
organized under Chapter 1726. of the Revised Code.	240

(H) "Minority contractors business assistance organization"	241
means an entity engaged in the provision of management and	242
technical business assistance to minority business enterprise	243
entrepreneurs.	244

(I) "Minority business supplier development council" means a	245
nonprofit organization established as an affiliate of the national	246
minority supplier development council.	247

(J) "Regional economic development entity" means an entity	248
that is under contract with the director of development to	249
administer a loan program under this chapter in a particular area	250
of the state.	251

(K) "Community development corporation" means a corporation	252
organized under Chapter 1702. of the Revised Code that consists of	253
residents of the community and business and civic leaders and that	254
has as a principal purpose one or more of the following: the	255
revitalization and development of a low- to moderate-income	256
neighborhood or community; the creation of jobs for low- to	257
moderate-income residents; the development of commercial	258
facilities and services; providing training, technical assistance,	259
and financial assistance to small businesses; and planning,	260
developing, or managing low-income housing or other community	261
development activities.	262

(L) "Small business" means a business operating in this state	263
having five million dollars or less in annual payroll	264
expenditures.	265

Sec. 122.72.  (A) There is hereby created the minority	266
development financing advisory board to assist in carrying out the	267
programs created pursuant to sections 122.71 to 122.89 of the	268
Revised Code.	269

(B) The board shall consist of ten members. The director of	270
development or the director's designee shall be a voting member on	271
the board. Seven members shall be appointed by the governor with	272
the advice and consent of the senate and selected because of their	273
knowledge of and experience in industrial, business, and	274
commercial financing, suretyship, construction, and their	275
understanding of the problems of minority business enterprises;	276
one member also shall be a member of the senate and appointed by	277
the president of the senate, and one member also shall be a member	278
of the house of representatives and appointed by the speaker of	279
the house of representatives. With respect to the board, all of	280
the following apply:	281

(1) Not more than four of the members of the board appointed	282
by the governor shall be of the same political party.	283

(2) Each member shall hold office from the date of the	284
member's appointment until the end of the term for which the	285
member was appointed.	286

(3) The terms of office for the seven members appointed by	287
the governor shall be for seven years, commencing on the first day	288
of October and ending on the thirtieth day of September of the	289
seventh year, except that of the original seven members, three	290
shall be appointed for three years and two shall be appointed for	291
five years.	292

(4) Any member of the board is eligible for reappointment.

293

(5) Any member appointed to fill a vacancy occurring prior to	294
the expiration of the term for which the member's predecessor was	295
appointed shall hold office for the remainder of the predecessor's	296
term.	297

(6) Any member shall continue in office subsequent to the	298
expiration date of the member's term until the member's successor	299
takes office, or until a period of sixty days has elapsed,	300
whichever occurs first.	301

(7) Before entering upon official duties as a member of the	302
board, each member shall take an oath as provided by Section 7 of	303
Article XV, Ohio Constitution.	304

(8) The governor may, at any time, remove any member	305
appointed by the governor pursuant to section 3.04 of the Revised	306
Code.	307

(9) Notwithstanding section 101.26 of the Revised Code,	308
members shall receive their necessary and actual expenses while	309
engaged in the business of the board and shall be paid at the per	310
diem rate of step 1 of pay range 31 of section 124.15 of the	311
Revised Code.	312

(10) Six members of the board constitute a quorum and the	313
affirmative vote of six members is necessary for any action taken	314
by the board.	315

(11) In the event of the absence of a member appointed by the	316
president of the senate or by the speaker of the house of	317
representatives, either of the following persons may serve in the	318
member's absence:	319

(a) The president of the senate or the speaker of the house	320
of representatives, whoever appointed the absent member;	321

(b) A member of the senate or of the house of representatives	322
of the same political party as the absent member, as designated by	323
the president of the senate or the speaker of the house of	324
representatives, whoever appointed the absent member.	325

(12) The board shall annually elect one of its members as	326
chairperson and another as vice-chairperson.	327

(13) The board shall meet on the second Tuesday of each	328
month.	329

Sec. 122.721. The small business development financing	330
advisory board is established to assist in carrying out the	331
programs created under section 122.891 of the Revised Code.	332

The board consists of ten members. The director of	333
development or the director's designee is a voting member of the	334
board. Seven members shall be appointed by the governor with the	335
advice and consent of the senate, and shall have knowledge of and	336
experience in industrial, business, and commercial financing,	337
suretyship, and construction, and an understanding of the problems	338
of small businesses. One member shall be a member of the senate	339
appointed by the president of the senate, and one member shall be	340
a member of the house of representatives appointed by the speaker	341
of the house of representatives.	342

Not more than four members appointed by the governor shall be	343
members of the same political party.	344

The terms of office for the seven members appointed by the	345
governor shall be seven years, commencing on the first day of	346
October and ending on the thirtieth day of September of the	347
seventh year, except that of the original seven members, three	348
shall be appointed for three years and two shall be appointed for	349
five years.	350

Each member shall hold office from the date of the member's	351
appointment until the end of the term for which the member was	352
appointed.	353

A member is eligible for reappointment.

354

A member appointed to fill a vacancy occurring prior to the	355
expiration of the term for which the member's predecessor was	356
appointed shall hold office for the remainder of the predecessor's	357
term.	358

A member shall continue in office subsequent to the	359
expiration date of the member's term until the member's successor	360
takes office, or until a period of sixty days has elapsed,	361
whichever occurs first.	362

Before entering upon official duties as a member, the member	363
shall take an oath as provided by Ohio Constitution, Article XV,	364
Section 7.	365

The governor, at any time under section 3.04 of the Revised	366
Code, may remove a member appointed by the governor.	367

Notwithstanding section 101.26 of the Revised Code, members	368
are entitled to their necessary and actual expenses while engaged	369
in the business of the board and shall be paid at the per diem	370
rate of step 1 of pay range 31 of section 124.15 of the Revised	371
Code.	372

Six members of the board constitute a quorum, and the	373
affirmative vote of six members is necessary for any action taken	374
by the board.	375

In the event a member appointed by the president of the	376
senate or by the speaker of the house of representatives is	377
absent, either of the following persons may serve in the member's	378
absence: the president of the senate or the speaker of the house	379
of representatives, whoever appointed the absent member, or a	380
member of the senate or of the house of representatives of the	381
same political party as the absent member, as designated by the	382
president of the senate or the speaker of the house of	383
representatives, whoever appointed the absent member.	384

The board shall annually elect one of its members as	385
chairperson and another member as vice-chairperson.	386

The board shall meet on the second Tuesday of each month.

387

Sec. 122.731.  (A) The powers and duties provided in section	388
122.891 of the Revised Code are established in order to promote	389
the welfare of the people of the state by encouraging the	390
establishment and expansion of small businesses; to stabilize the	391
economy; to provide employment; to assist in the development	392
within the state of industrial, commercial, distribution, and	393
research activities required for the people of the state, and for	394
their gainful employment; and otherwise to create or preserve jobs	395
and employment opportunities and to improve the economic welfare	396
of the people of the state. It is determined that the	397
accomplishment of those purposes is essential so that the people	398
of the state may maintain their present high standards of living	399
in comparison with the people of other states and so that	400
opportunities for employment and for favorable markets for the	401
products of the state's natural resources, agriculture, and	402
manufacturing will be improved. It further is determined that it	403
therefore is necessary to establish the program authorized under	404
section 122.891 of the Revised Code, to establish the small	405
business development financing advisory board, and to vest it and	406
the director of development with the powers and duties provided in	407
that section.	408

(B) The small business development financing advisory board	409
shall do all of the following:	410

(1) Make recommendations to the director with regard to	411
applications for assistance under section 122.891 of the Revised	412
Code;	413

(2) Advise the director in the administration of section	414
122.891 of the Revised Code; and	415

(3) Adopt bylaws to govern the conduct of the business of the	416
board.	417

The board may revise its recommendations to reflect any	418
changes in the proposed assistance made by the director.	419

Sec. 122.74.  (A)(1) The director of development shall do all	420
of the following:	421

(a) Receive applications for assistance under sections 122.71	422
to 122.89122.891 of the Revised Code and applications from surety	423
companies for bond guarantees under section 122.90 of the Revised	424
Code, and, after processing but subject to division (A)(2) of this	425
section, forward them to the minority development financing	426
advisory board or small business development financing advisory	427
board, as applicable, together with necessary supporting	428
information;	429

(b) Receive the recommendations of the board and make a final	430
determination whether to approve the application for assistance;	431

(c) Receive recommendations from a regional economic	432
development entity for loans made under section 122.76 of the	433
Revised Code and make a final determination, notwithstanding	434
divisions (A)(1) and (2) of this section, whether to approve the	435
proposed loan;	436

(d) Transmit the director's determinations to approve	437
assistance to the controlling board unless such assistance falls	438
under section 122.90 of the Revised Code and has been previously	439
approved by the controlling board, together with any information	440
the controlling board requires for its review and decision as to	441
whether to approve the assistance.	442

(2) The director is not required to submit any determination,	443
data, terms, or any other application materials or information to	444
the minority development financing advisory board when provision	445
of the assistance has been recommended to the director by a	446
regional economic development entity or when an application for a	447
surety company for bond guarantees under section 122.90 of the	448
Revised Code has been previously approved by the controlling	449
board.	450

(B) The director may do all of the following:

451

(1) Fix the rate of interest and charges to be made upon or	452
with respect to moneys loaned or guaranteed by the director and	453
the terms upon which mortgages and lease rentals may be guaranteed	454
and the rates of charges to be made for them and make provisions	455
for the operation of the funds established by the director in	456
accordance with this section and sections 122.80, 122.88, and	457
122.90 of the Revised Code;	458

(2) Loan and guarantee moneys from the fund established in	459
accordance with section 122.80 of the Revised Code pursuant to and	460
in compliance with sections 122.71 to 122.90 of the Revised Code.	461

(3) Acquire in the name of the director any property of any	462
kind or character in accordance with sections 122.71 to 122.90 of	463
the Revised Code, by purchase, purchase at foreclosure, or	464
exchange on such terms and in such manner as the director	465
considers proper;	466

(4) Make and enter into all contracts and agreements	467
necessary or incidental to the performance of the director's	468
duties and the exercise of the director's powers under sections	469
122.71 to 122.90 of the Revised Code;	470

(5) Maintain, protect, repair, improve, and insure any	471
property that the director has acquired and dispose of it by sale,	472
exchange, or lease for the consideration and on the terms and in	473
the manner as the director considers proper, but the director	474
shall not operate any such property as a business except as the	475
lessor of it;	476

(6)(a) When the cost of any contract for the maintenance,	477
protection, repair, or improvement of any property held by the	478
director, other than compensation for personal services, involves	479
an expenditure of more than fifty thousand dollars, the director	480
shall make a written contract with the lowest responsive and	481
responsible bidder in accordance with section 9.312 of the Revised	482
Code after advertisement for not less than two consecutive weeks	483
in a newspaper of general circulation in the county where such	484
contract, or some substantial part of it, is to be performed, and	485
in such other publications as the director determines, which	486
notice shall state the general character of the work and the	487
general character of the materials to be furnished, the place	488
where plans and specifications therefor may be examined, and the	489
time and place of receiving bids.	490

(b) Each bid for a contract for the construction, demolition,	491
alteration, repair, or reconstruction of an improvement shall	492
contain the full name of every person interested in it and meet	493
the requirements of section 153.54 of the Revised Code.	494

(c) Each bid for a contract, except as provided in division	495
(B)(6)(b) of this section, shall contain the full name of every	496
person interested in it and shall be accompanied by bond or	497
certified check on a solvent bank, in such amount as the director	498
considers sufficient, that if the bid is accepted a contract will	499
be entered into and the performance of the proposal secured.	500

(d) The director may reject any and all bids.

501

(e) A bond with good and sufficient surety, approved by the	502
director, shall be required of every contractor awarded a contract	503
except as provided in division (B)(6)(b) of this section, in an	504
amount equal to at least fifty per cent of the contract price,	505
conditioned upon faithful performance of the contract.	506

(7) Employ or contract with financial consultants,	507
appraisers, consulting engineers, superintendents, managers,	508
construction and accounting experts, attorneys, and other	509
employees and agents as are necessary in the director's judgment	510
and fix their compensation;	511

(8) Receive and accept grants, gifts, and contributions of	512
money, property, labor, and other things of value to be held,	513
used, and applied only for the purpose for which the grants,	514
gifts, and contributions are made, from individuals, private and	515
public corporations, from the United States or any agency thereof,	516
from the state or any agency thereof, and from any political	517
subdivision of the state, and may agree to repay any contribution	518
of money or to return any property contributed or the value	519
thereof at such times, in amounts, and on terms and conditions,	520
excluding the payment of interest, as the director determines at	521
the time the contribution is made, and may evidence the	522
obligations by notes, bonds, or other written instruments;	523

(9) Establish with the treasurer of state the funds provided	524
in sections 122.80 and 122.88 of the Revised Code in addition to	525
such funds as the director determines are necessary or proper;	526

(10) Adopt rules under Chapter 119. of the Revised Code	527
necessary to implement sections 122.71 to 122.90 of the Revised	528
Code.	529

(11) Do all acts and things necessary or proper to carry out	530
the powers expressly granted and the duties imposed in sections	531
122.71 to 122.90 of the Revised Code.	532

(C)(1) All expenses and obligations incurred by the director	533
in carrying out the director's powers and in exercising the	534
director's duties under sections 122.71 to 122.90 of the Revised	535
Code shall be payable solely from revenues or other receipts or	536
income of the director, from grants, gifts, and contributions, or	537
funds established in accordance with such sections. Such sections	538
do not authorize the director to incur indebtedness or to impose	539
liability on the state or any political subdivision of the state.	540

(2) Financial statements and other data submitted to the	541
director by any corporation, partnership, or person in connection	542
with financial assistance provided under sections 122.71 to 122.90	543
of the Revised Code, or any information taken from such statements	544
or data for any purpose, shall not be open to public inspection.	545

Sec. 122.75.  The director of development shall, for the	546
minority business development loan program, the minority business	547
bonding program, the small business bonding program, and the	548
minority business bond guarantee program under sections 122.87 to	549
122.90 of the Revised Code, do all of the following:	550

(A) Hire employees, consultants, and agents and fix their	551
compensation;	552

(B) Adopt bylaws and rules for the regulation of the business	553
of the minority development financing advisory board and the small	554
business development financing advisory board;	555

(C) Receive and accept grants, gifts, and contributions of	556
money, property, labor, and other things of value, to be held,	557
used, and applied only for the purpose for which the grants,	558
gifts, and contributions are made, from individuals, private and	559
public corporations, the United States or any agency of the United	560
States, the state or any agency of the state, and any political	561
subdivision of the state. The director may agree to repay any	562
contribution of money or to return any property contributed or its	563
value at such times, in amounts, and on terms and conditions,	564
excluding the payment of interest, as the director determines at	565
the time the contribution is made. The director may evidence the	566
obligations by written contracts, subject to section 122.76 of the	567
Revised Code; provided, that the director shall not thereby incur	568
indebtedness of or impose liability upon the state or any	569
political subdivision.	570

(D) Establish funds with the treasurer of state in addition	571
to the minority and small business bonding fund created under	572
section 122.88 of the Revised Code;	573

(E) Invest money in the funds the director establishes	574
pursuant to division (D) of this section that is in excess of	575
current needs, in notes, bonds, or other obligations that are	576
direct obligations of or are guaranteed by the United States, or	577
in certificates of deposit or withdrawable accounts of banks,	578
trust companies, or savings and loan associations organized under	579
the laws of this state or the United States, and may credit the	580
income or sell the investments at the director's discretion;	581

(F) Acquire any property of any kind or character in	582
accordance with sections 122.71 to 122.83 of the Revised Code, by	583
purchase, purchase at foreclosure, or exchange on terms and in a	584
manner the director considers proper;	585

(G)(1) Maintain, protect, repair, improve, and insure any	586
property the director has acquired and dispose of it by sale,	587
exchange, or lease for the consideration and on terms and in a	588
manner the director considers proper. The director may not operate	589
any property as a business except as a lessor of the property.	590
When the cost of any contract for the maintenance, protection,	591
repair, or improvement of any property of the advisory board	592
connected with the minority business development loan program,	593
other than compensation for personal services, involves an	594
expenditure of more than one thousand dollars, the director shall	595
enter into a written contract with the lowest and best bidder	596
after advertisement for not less than four consecutive weeks in a	597
newspaper of general circulation in the county where the contract,	598
or some substantial part of it, is to be performed, and in other	599
publications as the director determines. The notice shall state	600
the general character of the work and the general character of the	601
materials to be furnished, the place where plans and	602
specifications for the work and materials may be examined, and the	603
time and place of receiving bids.	604

(2) Each bid for a contract for the construction, demolition,	605
alteration, repair, or reconstruction of an improvement shall	606
contain the full name of every person interested in it and meet	607
the requirements of section 153.54 of the Revised Code.	608

(3) Each bid for a contract, except as provided in division	609
(G)(2) of this section, shall contain the full name of every	610
person interested in it and shall be accompanied by a bond or	611
certified check on a solvent bank, in the amount of ten per cent	612
of the bid, that if the bid is accepted a contract will be entered	613
into and the performance of its proposal secured. The director may	614
reject any or all bids. A bond with good and sufficient surety,	615
approved by the director, shall be required of all contractors in	616
an amount equal to at least one hundred per cent of the contract	617
price, conditioned upon faithful performance of the contract.	618

(H) Expend money appropriated to the department of	619
development by the general assembly for the purposes of sections	620
122.71 to 122.83 and 122.87 to 122.90 of the Revised Code;	621

(I) Do all acts and things necessary or proper to carry out	622
the powers expressly granted and the duties imposed in sections	623
122.71 to 122.83 and 122.87 to 122.90 of the Revised Code.	624

Sec. 122.88.  (A) There is hereby created in the state	625
treasury the minority and small business bonding fund, consisting	626
of moneys deposited or credited to it pursuant to section 169.05	627
of the Revised Code; all grants, gifts, and contributions received	628
pursuant to division (B)(9) of section 122.74 of the Revised Code;	629
all moneys recovered following defaults; and any other moneys	630
obtained by the director of development for the purposes of	631
sections 122.87 to 122.90 of the Revised Code. The fund shall be	632
administered by the director. Moneys in the fund shall be held in	633
trust for the purposes of sections 122.87 to 122.90 of the Revised	634
Code.	635

(B) Any claims against the state arising from defaults shall	636
be payable from the minority and small business bonding program	637
administrative and loss reserve fund as provided in division (C)	638
of this section or from the minority and small business bonding	639
fund. Nothing in sections 122.87 to 122.90 of the Revised Code	640
grants or pledges to any obligee or other person any state moneys	641
other than the moneys in the minority and small business bonding	642
program administrative and loss reserve fund or the minority and	643
small business bonding fund, or moneys available to the minority	644
and small business bonding fund upon request of the director in	645
accordance with division (B) of section 169.05 of the Revised	646
Code.	647

(C) There is hereby created in the state treasury the	648
minority and small business bonding program administrative and	649
loss reserve fund, consisting of all premiums charged and	650
collected in accordance with sectionsections 122.89 and 122.891	651
of the Revised Code and any interest income earned from the moneys	652
in the minority and small business bonding fund. All expenses of	653
the director and, the minority development financing advisory	654
board, and the small business development financing advisory board	655
in carrying out the purposes of sections 122.87 to 122.90 of the	656
Revised Code shall be paid from the minority and small business	657
bonding program administrative and loss reserve fund.	658

Any moneys to the credit of the minority and small business	659
bonding program administrative and loss reserve fund in excess of	660
the amount necessary to fund the appropriation authority for the	661
minority and small business bonding program administrative and	662
loss reserve fund shall be held as a loss reserve to pay claims	663
arising from defaults on surety bonds underwritten in accordance	664
with section 122.89 or 122.891 of the Revised Code or guaranteed	665
in accordance with section 122.90 of the Revised Code. If the	666
balance of funds in the minority and small business bonding	667
program administrative and loss reserve fund is insufficient to	668
pay a claim against the state arising from default, then such	669
claim shall be payable from the minority and small business	670
bonding fund.	671

Sec. 122.89.  (A) The director of development may execute	672
bonds as surety for minority businesses as principals, on	673
contracts with the state, any political subdivision or	674
instrumentality thereof, or any person as the obligee. The	675
director as surety may exercise all the rights and powers of a	676
company authorized by the department of insurance to execute bonds	677
as surety but shall not be subject to any requirements of a surety	678
company under Title XXXIX of the Revised Code nor to any rules of	679
the department of insurance.	680

(B) The director, with the advice of the minority development	681
financing advisory board, shall adopt rules under Chapter 119. of	682
the Revised Code establishing procedures for application for	683
surety bonds by minority businesses and for review and approval of	684
applications. The board shall review each application in	685
accordance with the rules and, based on the bond worthiness of	686
each applicant, shall refer all qualified applicants to the	687
director. Based on the recommendation of the board, the director	688
shall determine whether or not the applicant shall receive	689
bonding. The rules shall establish the maximum amount of any bond	690
issued at two million dollars.	691

(C) The rules of the board shall require the minority	692
business to pay a premium in advance for the bond to be	693
established by the director, with the advice of the board after	694
the director receives advice from the superintendent of insurance	695
regarding the standard market rates for premiums for similar	696
bonds. All premiums paid by minority businesses shall be paid into	697
the minority and small business bonding program administrative and	698
loss reserve fund.	699

(D) The rules of the board shall provide for a retainage of	700
money paid to the minority business or EDGE business enterprise of	701
fifteen per cent for a contract valued at more than fifty thousand	702
dollars and for a retainage of twelve per cent for a contract	703
valued at fifty thousand dollars or less.	704

(E) The penal sum amounts of all outstanding bonds issued by	705
the director shall not exceed the amount of moneys in the minority	706
and small business bonding fund and available to the fund under	707
division (B) of section 169.05 of the Revised Code.	708

(F) The superintendent of insurance shall provide such	709
technical and professional assistance as is considered necessary	710
by the director, including providing advice regarding the standard	711
market rates for bond premiums as described under division (C) of	712
this section.	713

(G) Notwithstanding any provision of the Revised Code to the	714
contrary, a minority business or EDGE business enterprise may bid	715
or enter into a contract with the state or with any	716
instrumentality of the state without being required to provide a	717
bond as follows:	718

(1) For the first contract that a minority business or EDGE	719
business enterprise enters into with the state or with any	720
particular instrumentality of the state, the minority business or	721
EDGE business enterprise may bid or enter into a contract valued	722
at twenty-five thousand dollars or less without being required to	723
provide a bond, but only if the minority business or EDGE business	724
enterprise is participating in a qualified contractor assistance	725
program or has successfully completed a qualified contractor	726
assistance program after the effective date of this amendment	727
October 16, 2009;	728

(2) After the state or any particular instrumentality of the	729
state has accepted the first contract as completed and all	730
subcontractors and suppliers on the contract have been paid, the	731
minority business or EDGE business enterprise may bid or enter	732
into a second contract with the state or with that particular	733
instrumentality of the state valued at fifty thousand dollars or	734
less without being required to provide a bond, but only if the	735
minority business or EDGE business enterprise is participating in	736
a qualified contractor assistance program or has successfully	737
completed a qualified contractor assistance program after the	738
effective date of this amendmentOctober 16, 2009;	739

(3) After the state or any particular instrumentality of the	740
state has accepted the second contract as completed and all	741
subcontractors and suppliers on the contract have been paid, the	742
minority business or EDGE business enterprise may bid or enter	743
into a third contract with the state or with that particular	744
instrumentality of the state valued at one hundred thousand	745
dollars or less without being required to provide a bond, but only	746
if the minority business or EDGE business enterprise has	747
successfully completed a qualified contractor assistance program	748
after the effective date of this amendmentOctober 16, 2009;	749

(4) After the state or any particular instrumentality of the	750
state has accepted the third contract as completed and all	751
subcontractors and suppliers on the contract have been paid, the	752
minority business or EDGE business enterprise may bid or enter	753
into a fourth contract with the state or with that particular	754
instrumentality of the state valued at three hundred thousand	755
dollars or less without being required to provide a bond, but only	756
if the minority business or EDGE business enterprise has	757
successfully completed a qualified contractor assistance program	758
after the effective date of this amendmentOctober 16, 2009;	759

(5) After the state or any instrumentality of the state has	760
accepted the fourth contract as completed and all subcontractors	761
and suppliers on the contract have been paid, upon a showing that	762
with respect to a contract valued at four hundred thousand dollars	763
or less with the state or with any particular instrumentality of	764
the state, that the minority business or EDGE business enterprise	765
either has been denied a bond by two surety companies or that the	766
minority business or EDGE business enterprise has applied to two	767
surety companies for a bond and, at the expiration of sixty days	768
after making the application, has neither received nor been denied	769
a bond, the minority business or EDGE business enterprise may	770
repeat its participation in the unbonded state contractor program.	771
Under no circumstances shall a minority business or EDGE business	772
enterprise be permitted to participate in the unbonded state	773
contractor program more than twice.	774

(H) Notwithstanding any provision of the Revised Code to the	775
contrary, a minority business or EDGE business enterprise may bid	776
or enter into a contract with any political subdivision of the	777
state or with any instrumentality of a political subdivision	778
without being required to provide a bond as follows:	779

(1) For the first contract that the minority business or EDGE	780
business enterprise enters into with any particular political	781
subdivision of the state or with any particular instrumentality of	782
a political subdivision, the minority business or EDGE business	783
enterprise may bid or enter into a contract valued at twenty-five	784
thousand dollars or less without being required to provide a bond,	785
but only if the minority business or EDGE business enterprise is	786
participating in a qualified contractor assistance program or has	787
successfully completed a qualified contractor assistance program	788
after the effective date of this amendmentOctober 16, 2009;	789

(2) After any political subdivision of the state or any	790
instrumentality of a political subdivision has accepted the first	791
contract as completed and all subcontractors and suppliers on the	792
contract have been paid, the minority business or EDGE business	793
enterprise may bid or enter into a second contract with that	794
particular political subdivision of the state or with that	795
particular instrumentality of a political subdivision valued at	796
fifty thousand dollars or less without being required to provide a	797
bond, but only if the minority business or EDGE business	798
enterprise is participating in a qualified contractor assistance	799
program or has successfully completed a qualified contractor	800
assistance program after the effective date of this amendment	801
October 16, 2009;	802

(3) After any political subdivision of the state or any	803
instrumentality of a political subdivision has accepted the second	804
contract as completed and all subcontractors and suppliers on the	805
contract have been paid, the minority business or EDGE business	806
enterprise may bid or enter into a third contract with that	807
particular political subdivision of the state or with that	808
particular instrumentality of a political subdivision valued at	809
one hundred thousand dollars or less without being required to	810
provide a bond, but only if the minority business or EDGE business	811
enterprise has successfully completed a qualified contractor	812
assistance program after the effective date of this amendment	813
October 16, 2009;	814

(4) After any political subdivision of the state or any	815
instrumentality of a political subdivision has accepted the third	816
contract as completed and all subcontractors and suppliers on the	817
contract have been paid, the minority business or EDGE business	818
enterprise may bid or enter into a fourth contract with that	819
particular political subdivision of the state or with that	820
particular instrumentality of a political subdivision valued at	821
two hundred thousand dollars or less without being required to	822
provide a bond, but only if the minority business or EDGE business	823
enterprise has successfully completed a qualified contractor	824
assistance program after the effective date of this amendment	825
October 16, 2009;	826

(5) After any political subdivision of the state or any	827
instrumentality of a political subdivision has accepted the fourth	828
contract as completed and all subcontractors and suppliers on the	829
contract have been paid, upon a showing that with respect to a	830
contract valued at three hundred thousand dollars or less with any	831
political subdivision of the state or any instrumentality of a	832
political subdivision, that the minority business or EDGE business	833
enterprise either has been denied a bond by two surety companies	834
or that the minority business or EDGE business enterprise has	835
applied to two surety companies for a bond and, at the expiration	836
of sixty days after making the application, has neither received	837
nor been denied a bond, the minority business or EDGE business	838
enterprise may repeat its participation in the unbonded political	839
subdivision contractor program. Under no circumstances shall a	840
minority business or EDGE business enterprise be permitted to	841
participate in the unbonded political subdivision contractor	842
program more than twice.	843

(I) Notwithstanding any provision of the Revised Code to the	844
contrary, if a minority business or EDGE business enterprise has	845
entered into two or more contracts with the state or with any	846
instrumentality of the state, the minority business or EDGE	847
business enterprise may bid or enter into a contract with a	848
political subdivision of the state or with any instrumentality of	849
a political subdivision valued at the level at which the minority	850
business or EDGE business enterprise would qualify if entering	851
into an additional contract with the state.	852

(J) The director of development shall coordinate and oversee	853
the unbonded state contractor program described in division (G) of	854
this section, the unbonded political subdivision contractor	855
program described in division (H) of this section, and the	856
approval of a qualified contractor assistance program. The	857
director shall prepare an annual report and submit it to the	858
governor and the general assembly on or before the first day of	859
February that includes the following: information on the	860
director's activities for the preceding calendar year regarding	861
the unbonded state contractor program, the unbonded political	862
subdivision contractor program, and the qualified contractor	863
assistance program; a summary and description of the operations	864
and activities of these programs; an assessment of the	865
achievements of these programs; and a recommendation as to whether	866
these programs need to continue.	867

(K) As used in this section:

868

(1) "EDGE business enterprise" means an EDGE business	869
enterprise certified under section 123.152 of the Revised Code.	870

(2) "Qualified contractor assistance program" means an	871
educational program or technical assistance program for business	872
development that is designed to assist a minority business or EDGE	873
business enterprise in becoming eligible for bonding and has been	874
approved by the director of development for use as required under	875
this section.	876

(3) "Successfully completed a qualified contractor assistance	877
program" means the minority business or EDGE business enterprise	878
completed such a program on or after the effective date of this	879
amendmentOctober 16, 2009.	880

(4) "Unbonded state contractor program" means the program	881
described in division (G) of this section.	882

(5) "Unbonded political subdivision contractor program" means	883
the program described in division (H) of this section.	884

Sec. 122.891. (A) As used in this section:

885

(1) "Qualified contractor assistance program" means an	886
educational program or technical assistance program for business	887
development that is designed to assist a small business in	888
becoming eligible for bonding and that has been approved by the	889
director of development for operation and attendance as required	890
under this section.	891

(2) "Successfully completed a qualified contractor assistance	892
program" means the small business completed such a program on or	893
after the effective date of this section.	894

(3) "Unbonded state contractor program" means the program	895
described in division (H) of this section.	896

(4) "Unbonded political subdivision contractor program" means	897
the program described in division (I) of this section.	898

(B) The director of development may execute bonds as surety	899
for small businesses as principals on contracts with the state or	900
instrumentality thereof, a political subdivision or	901
instrumentality thereof, or any person as the obligee. The	902
director as surety may exercise all the rights and powers of a	903
company authorized by the department of insurance to execute bonds	904
as surety, but shall not be subject to any requirements of a	905
surety company under Title XXXIX of the Revised Code or to any	906
rules of the department or superintendent of insurance.	907

(C) The director, with the advice of the small business	908
development financing advisory board, shall adopt rules under	909
Chapter 119. of the Revised Code establishing procedures whereby	910
small businesses shall apply for surety bonds, and for the review	911
and approval of applications. The board shall review each	912
application in accordance with the rules and, based upon the bond	913
worthiness of each applicant, shall refer all qualified applicants	914
to the director. Based on the recommendation of the board, the	915
director shall determine whether or not the applicant is entitled	916
to receive bonding. The rules shall establish the maximum amount	917
of any bond issued at two million dollars.	918

(D) The rules shall require the small business to pay a	919
premium in advance for the bond. The premium shall be established	920
by the director, with the advice of the board, after the director	921
has received advice from the superintendent of insurance regarding	922
the standard market rates for premiums for similar bonds. All	923
premiums paid by small businesses shall be paid into the minority	924
and small business bonding program administrative and loss reserve	925
fund.	926

(E) The rules of the board shall provide for a retainage of	927
money paid to the small business of fifteen per cent for a	928
contract valued at more than fifty thousand dollars and for a	929
retainage of twelve per cent for a contract valued at fifty	930
thousand dollars or less.	931

(F) The penal sum amounts of all outstanding bonds issued by	932
the director shall not exceed the amount of money in and available	933
to the minority and small business bonding fund under division (B)	934
of section 169.05 of the Revised Code.	935

(G) The superintendent of insurance shall provide technical	936
and professional assistance as is considered necessary by the	937
director, including providing advice regarding the standard market	938
rates for bond premiums as described under division (D) of this	939
section.	940

(H) Notwithstanding any provision of the Revised Code to the	941
contrary, a small business may bid or enter into a contract with	942
the state or with any instrumentality of the state without being	943
required to provide a bond as follows:	944

(1) For the first contract that a small business enters into	945
with the state or with any particular instrumentality of the	946
state, the small business may bid or enter into a contract valued	947
at twenty-five thousand dollars or less without being required to	948
provide a bond, but only if the small business is participating in	949
a qualified contractor assistance program or has successfully	950
completed a qualified contractor assistance program after the	951
effective date of this section.	952

(2) After the state or the particular instrumentality of the	953
state has accepted the first contract as completed and all	954
subcontractors and suppliers on the contract have been paid, the	955
small business may bid or enter into a second contract with the	956
state or with that particular instrumentality of the state valued	957
at fifty thousand dollars or less without being required to	958
provide a bond, but only if the small business is participating in	959
a qualified contractor assistance program or has successfully	960
completed a qualified contractor assistance program after the	961
effective date of this section.	962

(3) After the state or the particular instrumentality of the	963
state has accepted the second contract as completed and all	964
subcontractors and suppliers on the contract have been paid, the	965
small business may bid or enter into a third contract with the	966
state or with that particular instrumentality of the state valued	967
at one hundred thousand dollars or less without being required to	968
provide a bond, but only if the minority business has successfully	969
completed a qualified contractor assistance program after the	970
effective date of this section.	971

(4) After the state or the particular instrumentality of the	972
state has accepted the third contract as completed and all	973
subcontractors and suppliers on the contract have been paid, the	974
small business may bid or enter into a fourth contract with the	975
state or with that particular instrumentality of the state valued	976
at three hundred thousand dollars or less without being required	977
to provide a bond, but only if the small business has successfully	978
completed a qualified contractor assistance program after the	979
effective date of this section.	980

(5) After the state or the instrumentality of the state has	981
accepted the fourth contract as completed and all subcontractors	982
and suppliers on the contract have been paid, upon a showing that	983
with respect to a contract valued at four hundred thousand dollars	984
or less with the state or with any particular instrumentality of	985
the state, that the small business either has been denied a bond	986
by two surety companies or that the small business has applied to	987
two surety companies for a bond and, at the expiration of sixty	988
days after making the application, has neither received nor been	989
denied a bond, the small business may repeat its participation in	990
the unbonded state contractor program. Under no circumstances	991
shall a small business be permitted to participate in the unbonded	992
state contractor program more than twice.	993

(I) Notwithstanding any provision of the Revised Code to the	994
contrary, a small business may bid or enter into a contract with	995
any political subdivision of the state or with any instrumentality	996
of a political subdivision without being required to provide a	997
bond as follows:	998

(1) For the first contract that the small business enters	999
into with any particular political subdivision of the state or	1000
with any particular instrumentality of a political subdivision,	1001
the small business may bid or enter into a contract valued at	1002
twenty-five thousand dollars or less without being required to	1003
provide a bond, but only if the small business is participating in	1004
a qualified contractor assistance program or has successfully	1005
completed a qualified contractor assistance program after the	1006
effective date of this section.	1007

(2) After the political subdivision or the instrumentality of	1008
a political subdivision has accepted the first contract as	1009
completed and all subcontractors and suppliers on the contract	1010
have been paid, the small business may bid or enter into a second	1011
contract with that particular political subdivision or with that	1012
particular instrumentality of a political subdivision valued at	1013
fifty thousand dollars or less without being required to provide a	1014
bond, but only if the small business is participating in a	1015
qualified contractor assistance program or has successfully	1016
completed a qualified contractor assistance program after the	1017
effective date of this section.	1018

(3) After the political subdivision or the instrumentality of	1019
a political subdivision has accepted the second contract as	1020
completed and all subcontractors and suppliers on the contract	1021
have been paid, the small business may bid or enter into a third	1022
contract with that particular political subdivision or with that	1023
particular instrumentality of a political subdivision valued at	1024
one hundred thousand dollars or less without being required to	1025
provide a bond, but only if the small business has successfully	1026
completed a qualified contractor assistance program after the	1027
effective date of this section.	1028

(4) After the political subdivision or the instrumentality of	1029
a political subdivision has accepted the third contract as	1030
completed and all subcontractors and suppliers on the contract	1031
have been paid, the small business may bid or enter into a fourth	1032
contract with that particular political subdivision of the state	1033
or with that particular instrumentality of a political subdivision	1034
valued at two hundred thousand dollars or less without being	1035
required to provide a bond, but only if the small business has	1036
successfully completed a qualified contractor assistance program	1037
after the effective date of this section.	1038

(5) After the political subdivision or the instrumentality of	1039
a political subdivision has accepted the fourth contract as	1040
completed and all subcontractors and suppliers on the contract	1041
have been paid, upon a showing that with respect to a contract	1042
valued at three hundred thousand dollars or less with any	1043
political subdivision or any instrumentality of a political	1044
subdivision, that the small business either has been denied a bond	1045
by two surety companies or that the small business has applied to	1046
two surety companies for a bond and, at the expiration of sixty	1047
days after making the application, has neither received nor been	1048
denied a bond, the small business may repeat its participation in	1049
the unbonded political subdivision contractor program. Under no	1050
circumstances shall a small business be permitted to participate	1051
in the unbonded political subdivision contractor program more than	1052
twice.	1053

(J) Notwithstanding any provision of the Revised Code to the	1054
contrary, if a small business has entered into two or more	1055
contracts with the state or with any instrumentality of the state,	1056
the small business may bid or enter into a contract with a	1057
political subdivision or with any instrumentality of a political	1058
subdivision valued at the level at which the small business would	1059
qualify if entering into an additional contract with the state.	1060

(K) The director of development shall coordinate and oversee	1061
the unbonded state contractor program described in division (H) of	1062
this section, the unbonded political subdivision contractor	1063
program described in division (I) of this section, and the	1064
approval of a qualified contractor assistance program. The	1065
director shall prepare an annual report and submit it to the	1066
governor and the general assembly on or before the first day of	1067
February that includes the following: information on the	1068
director's activities for the preceding calendar year regarding	1069
the unbonded state contractor program, the unbonded political	1070
subdivision contractor program, and the qualified contractor	1071
assistance program; a summary and description of the operations	1072
and activities of these programs; an assessment of the	1073
achievements of these programs; and a recommendation as to whether	1074
these programs need to continue.	1075

Sec. 122.90.  (A) The director of development may guarantee	1076
bonds executed by sureties for minority businesses and EDGE	1077
business enterprises certified under section 123.152 of the	1078
Revised Code as principals on contracts with the state, any	1079
political subdivision or instrumentality, or any person as the	1080
obligee. The director, as guarantor, may exercise all the rights	1081
and powers of a company authorized by the department of insurance	1082
to guarantee bonds under Chapter 3929. of the Revised Code but	1083
otherwise is not subject to any laws related to a guaranty company	1084
under Title XXXIX of the Revised Code nor to any rules of the	1085
department of insurance.	1086

(B) The director shall adopt rules under Chapter 119. of the	1087
Revised Code to establish procedures for the application for bond	1088
guarantees and the review and approval of applications for bond	1089
guarantees submitted by sureties that execute bonds eligible for	1090
guarantees under division (A) of this section.	1091

(C) In accordance with rules adopted pursuant to this	1092
section, the director may guarantee up to ninety per cent of the	1093
loss incurred and paid by sureties on bonds guaranteed under	1094
division (A) of this section.	1095

(D) The penal sum amounts of all outstanding guarantees made	1096
by the director under this section shall not exceed three times	1097
the difference between the amount of moneys in the minority and	1098
small business bonding fund and available to the fund under	1099
division (B) of section 169.05 of the Revised Code and the amount	1100
of all outstanding bonds issued by the director in accordance with	1101
division (A) of section 122.89 of the Revised Code.	1102

(E) The director of development, with controlling board	1103
approval, may approve one application per fiscal year from each	1104
surety bond company for bond guarantees in an amount requested to	1105
support one fiscal year of that company's activity under this	1106
section. A surety bond company that applies for a bond guarantee	1107
under this division, whether or not the guarantee is approved, is	1108
not restricted from also applying for individual bond guarantees	1109
under division (A) of this section.	1110

Sec. 125.831. As used in sections 125.831 to 125.834 of the	1111
Revised Code:	1112

(A) "Alternative fuel" means any of the following fuels used	1113
in a motor vehicle:	1114

(1) E85 blend fuel;

1115

(2) Blended biodiesel;

1116

(3) Natural gas;

1117

(4) Liquefied petroleum gas;

1118

(5) Hydrogen;

1119

(6) Compressed air;

1120

(7) Any power source, including electricity;

1121

(8) Any fuel not described in divisions (A)(1) to (7) of this	1122
section that the United States department of energy determines, by	1123
final rule, to be substantially not petroleum, and that would	1124
yield substantial energy security and environmental benefits.	1125

(B) "Biodiesel" means a mono-alkyl ester combustible liquid	1126
fuel that is derived from vegetable oils or animal fats, or any	1127
combination of those reagents that meets the American society for	1128
testing and materials specification for biodiesel fuel (B100)	1129
blend stock distillate fuels and any other standards that the	1130
director of administrative services adopts by rule.	1131

(C) "Blended biodiesel" means a blend of biodiesel with	1132
petroleum based diesel fuel in which the resultant product	1133
contains not less than twenty per cent biodiesel that meets the	1134
American society for testing and materials specification for	1135
blended diesel fuel and any other standards that the director of	1136
administrative services adopts by rule.	1137

(D) "Diesel fuel" means any liquid fuel that is capable of	1138
use in discrete form or as a blend component in the operation of	1139
engines of the diesel type.	1140

(E) "E85 blend fuel" means fuel containing eighty-five per	1141
cent or more ethanol as defined in section 5733.46122.075 of the	1142
Revised Code or containing any other percentage of not less than	1143
seventy per cent ethanol if the United States department of energy	1144
determines, by rule, that the lower percentage is necessary to	1145
provide for the requirements of cold start, safety, or vehicle	1146
functions, and that meets the American society for testing and	1147
materials specification for E85 blend fuel and any other standards	1148
that the director of administrative services adopts by rule.	1149

(F) "Law enforcement officer" means an officer, agent, or	1150
employee of a state agency upon whom, by statute, a duty to	1151
conserve the peace or to enforce all or certain laws is imposed	1152
and the authority to arrest violators is conferred, within the	1153
limits of that statutory duty and authority, but does not include	1154
such an officer, agent, or employee if that duty and authority is	1155
location specific.	1156

(G)(1) "Motor vehicle" means any automobile, car minivan,	1157
cargo van, passenger van, sport utility vehicle, or pickup truck	1158
with a gross vehicle weight of under twelve thousand pounds.	1159

(2) "Motor vehicle" does not include, except for the purposes	1160
of division (C) of section 125.832 of the Revised Code, any	1161
vehicle described in division (G)(1) of this section that is used	1162
by a law enforcement officer and law enforcement agency or any	1163
vehicle that is so described and that is equipped with specialized	1164
equipment that is not normally found in such a vehicle and that is	1165
used to carry out a state agency's specific and specialized duties	1166
and responsibilities.	1167

(H) "Specialized equipment" does not include standard mobile	1168
radios with no capabilities other than voice communication,	1169
exterior and interior lights, or roof-mounted caution lights.	1170

(I) "State agency" means every organized body, office, board,	1171
authority, commission, or agency established by the laws of the	1172
state for the exercise of any governmental or quasi-governmental	1173
function of state government regardless of the funding source for	1174
that entity, other than any state institution of higher education,	1175
the office of the governor, lieutenant governor, auditor of state,	1176
treasurer of state, secretary of state, or attorney general, the	1177
general assembly or any legislative agency, the courts or any	1178
judicial agency, or any state retirement system or retirement	1179
program established by or referenced in the Revised Code.	1180

(J) "State institution of higher education" has the same	1181
meaning as in section 3345.011 of the Revised Code.	1182

Sec. 169.05.  (A) Every holder required to file a report	1183
under section 169.03 of the Revised Code shall, at the time of	1184
filing, pay to the director of commerce ten per cent of the	1185
aggregate amount of unclaimed funds as shown on the report, except	1186
for aggregate amounts of fifty dollars or less in which case one	1187
hundred per cent shall be paid. The funds may be deposited by the	1188
director in the state treasury to the credit of the unclaimed	1189
funds trust fund, which is hereby created, or placed with a	1190
financial organization. Any interest earned on money in the trust	1191
fund shall be credited to the trust fund. The remainder of the	1192
aggregate amount of unclaimed funds as shown on the report, plus	1193
earnings accrued to date of payment to the director, shall, at the	1194
option of the director, be retained by the holder or paid to the	1195
director for deposit as agent for the mortgage funds with a	1196
financial organization as defined in section 169.01 of the Revised	1197
Code, with the funds to be in income-bearing accounts to the	1198
credit of the mortgage funds, or the holder may enter into an	1199
agreement with the director specifying the obligations of the	1200
United States in which funds are to be invested, and agree to pay	1201
the interest on the obligations to the state. Holders retaining	1202
any funds not in obligations of the United States shall enter into	1203
an agreement with the director specifying the classification of	1204
income-bearing account in which the funds will be held and pay the	1205
state interest on the funds at a rate equal to the prevailing	1206
market rate for similar funds. Moneys that the holder is required	1207
to pay to the director rather than to retain may be deposited with	1208
the treasurer of state, or placed with a financial organization.	1209

Securities and other intangible property transferred to the	1210
director shall, within a reasonable time, be converted to cash and	1211
the proceeds deposited as provided for other funds.	1212

One-half of the funds evidenced by agreements, in	1213
income-bearing accounts, or on deposit with the treasurer of state	1214
shall be allocated on the records of the director to the mortgage	1215
insurance fund created by section 122.561 of the Revised Code. Out	1216
of the remaining half, after allocation of sufficient moneys to	1217
the minority and small business bonding fund to meet the	1218
provisions of division (B) of this section, the remainder shall be	1219
allocated on the records of the director to the housing	1220
development fund created by division (A) of section 175.11 of the	1221
Revised Code.	1222

(B) The director shall serve as agent for the director of	1223
development and as agent for the Ohio housing finance agency in	1224
making deposits and withdrawals and maintaining records pertaining	1225
to the minority and small business bonding fund created by section	1226
122.88 of the Revised Code, the mortgage insurance fund, and the	1227
housing development fund created by section 175.11 of the Revised	1228
Code. Funds from the mortgage insurance fund are available to the	1229
director of development when those funds are to be disbursed to	1230
prevent or cure, or upon the occurrence of, a default of a	1231
mortgage insured pursuant to section 122.451 of the Revised Code.	1232
Funds from the housing development fund are available upon request	1233
to the Ohio housing finance agency, in an amount not to exceed the	1234
funds allocated on the records of the director, for the purposes	1235
of section 175.05 of the Revised Code. Funds from the minority and	1236
small business bonding fund are available to the director of	1237
development upon request to pay obligations on bonds the director	1238
writes pursuant to section 122.88 of the Revised Code; except	1239
that, unless the general assembly authorizes additional amounts,	1240
the total maximum amount of moneys that may be allocated to the	1241
minority and small business bonding fund under this division is	1242
ten million dollars.	1243

When funds are to be disbursed, the appropriate agency shall	1244
call upon the director to transfer the necessary funds to it. The	1245
director shall first withdraw the funds paid by the holders and	1246
deposited with the treasurer of state or in a financial	1247
institution as agent for the funds. Whenever these funds are	1248
inadequate to meet the request, the director shall provide for a	1249
withdrawal of funds, within a reasonable time and in the amount	1250
necessary to meet the request, from financial institutions in	1251
which the funds were retained or placed by a holder and from other	1252
holders who have retained funds, in an equitable manner as the	1253
director prescribes. In the event that the amount to be withdrawn	1254
from any one holder is less than five hundred dollars, the amount	1255
to be withdrawn is at the director's discretion. The director	1256
shall then transfer to the agency the amount of funds requested.	1257

Funds deposited in the unclaimed funds trust fund are subject	1258
to call by the director when necessary to pay claims the director	1259
allows under section 169.08 of the Revised Code, in accordance	1260
with the director's rules, to defray the necessary costs of making	1261
publications this chapter requires and to pay other operating and	1262
administrative expenses the department of commerce incurs in the	1263
administration and enforcement of this chapter.	1264

The unclaimed funds trust fund shall be assessed a	1265
proportionate share of the administrative costs of the department	1266
of commerce in accordance with procedures the director of commerce	1267
prescribes and the director of budget and management approves. The	1268
assessment shall be paid from the unclaimed funds trust fund to	1269
the division of administration fund.	1270

(C) Earnings on the accounts in financial organizations to	1271
the credit of the mortgage funds shall, at the option of the	1272
financial organization, be credited to the accounts at times and	1273
at rates as earnings are paid on other accounts of the same	1274
classification held in the financial organization or paid to the	1275
director. The director shall be notified annually, and at other	1276
times as the director may request, of the amount of the earnings	1277
credited to the accounts. Interest on unclaimed funds a holder	1278
retains shall be paid to the director or credited as specified in	1279
the agreement under which the organization retains the funds.	1280
Interest payable to the director under an agreement to invest	1281
unclaimed funds and obligations of the United States shall be paid	1282
annually by the holder to the director. Any earnings or interest	1283
the director receives under this division shall be deposited in	1284
and credited to the mortgage funds.	1285

Sec. 4141.01.  As used in this chapter, unless the context	1286
otherwise requires:	1287

(A)(1) "Employer" means the state, its instrumentalities, its	1288
political subdivisions and their instrumentalities, Indian tribes,	1289
and any individual or type of organization including any	1290
partnership, limited liability company, association, trust,	1291
estate, joint-stock company, insurance company, or corporation,	1292
whether domestic or foreign, or the receiver, trustee in	1293
bankruptcy, trustee, or the successor thereof, or the legal	1294
representative of a deceased person who subsequent to December 31,	1295
1971, or in the case of political subdivisions or their	1296
instrumentalities, subsequent to December 31, 1973:	1297

(a) Had in employment at least one individual, or in the case	1298
of a nonprofit organization, subsequent to December 31, 1973, had	1299
not less than four individuals in employment for some portion of a	1300
day in each of twenty different calendar weeks, in either the	1301
current or the preceding calendar year whether or not the same	1302
individual was in employment in each such day; or	1303

(b) Except for a nonprofit organization, had paid for service	1304
in employment wages of fifteen hundred dollars or more in any	1305
calendar quarter in either the current or preceding calendar year;	1306
or	1307

(c) Had paid, subsequent to December 31, 1977, for employment	1308
in domestic service in a local college club, or local chapter of a	1309
college fraternity or sorority, cash remuneration of one thousand	1310
dollars or more in any calendar quarter in the current calendar	1311
year or the preceding calendar year, or had paid subsequent to	1312
December 31, 1977, for employment in domestic service in a private	1313
home cash remuneration of one thousand dollars in any calendar	1314
quarter in the current calendar year or the preceding calendar	1315
year:	1316

(i) For the purposes of divisions (A)(1)(a) and (b) of this	1317
section, there shall not be taken into account any wages paid to,	1318
or employment of, an individual performing domestic service as	1319
described in this division.	1320

(ii) An employer under this division shall not be an employer	1321
with respect to wages paid for any services other than domestic	1322
service unless the employer is also found to be an employer under	1323
division (A)(1)(a), (b), or (d) of this section.	1324

(d) As a farm operator or a crew leader subsequent to	1325
December 31, 1977, had in employment individuals in agricultural	1326
labor; and	1327

(i) During any calendar quarter in the current calendar year	1328
or the preceding calendar year, paid cash remuneration of twenty	1329
thousand dollars or more for the agricultural labor; or	1330

(ii) Had at least ten individuals in employment in	1331
agricultural labor, not including agricultural workers who are	1332
aliens admitted to the United States to perform agricultural labor	1333
pursuant to sections 1184(c) and 1101(a)(15)(H) of the	1334
"Immigration and Nationality Act," 66 Stat. 163, 189, 8 U.S.C.A.	1335
1101(a)(15)(H)(ii)(a), 1184(c), for some portion of a day in each	1336
of the twenty different calendar weeks, in either the current or	1337
preceding calendar year whether or not the same individual was in	1338
employment in each day; or	1339

(e) Is not otherwise an employer as defined under division	1340
(A)(1)(a) or (b) of this section; and	1341

(i) For which, within either the current or preceding	1342
calendar year, service, except for domestic service in a private	1343
home not covered under division (A)(1)(c) of this section, is or	1344
was performed with respect to which such employer is liable for	1345
any federal tax against which credit may be taken for	1346
contributions required to be paid into a state unemployment fund;	1347

(ii) Which, as a condition for approval of this chapter for	1348
full tax credit against the tax imposed by the "Federal	1349
Unemployment Tax Act," 84 Stat. 713, 26 U.S.C.A. 3301 to 3311, is	1350
required, pursuant to such act to be an employer under this	1351
chapter; or	1352

(iii) Who became an employer by election under division	1353
(A)(4) or (5) of this section and for the duration of such	1354
election; or	1355

(f) In the case of the state, its instrumentalities, its	1356
political subdivisions, and their instrumentalities, and Indian	1357
tribes, had in employment, as defined in divisions (B)(2)(a) and	1358
(B)(2)(l) of this section, at least one individual;	1359

(g) For the purposes of division (A)(1)(a) of this section,	1360
if any week includes both the thirty-first day of December and the	1361
first day of January, the days of that week before the first day	1362
of January shall be considered one calendar week and the days	1363
beginning the first day of January another week.	1364

(2) Each individual employed to perform or to assist in	1365
performing the work of any agent or employee of an employer is	1366
employed by such employer for all the purposes of this chapter,	1367
whether such individual was hired or paid directly by such	1368
employer or by such agent or employee, provided the employer had	1369
actual or constructive knowledge of the work. All individuals	1370
performing services for an employer of any person in this state	1371
who maintains two or more establishments within this state are	1372
employed by a single employer for the purposes of this chapter.	1373

(3) An employer subject to this chapter within any calendar	1374
year is subject to this chapter during the whole of such year and	1375
during the next succeeding calendar year.	1376

(4) An employer not otherwise subject to this chapter who	1377
files with the director of job and family services a written	1378
election to become an employer subject to this chapter for not	1379
less than two calendar years shall, with the written approval of	1380
such election by the director, become an employer subject to this	1381
chapter to the same extent as all other employers as of the date	1382
stated in such approval, and shall cease to be subject to this	1383
chapter as of the first day of January of any calendar year	1384
subsequent to such two calendar years only if at least thirty days	1385
prior to such first day of January the employer has filed with the	1386
director a written notice to that effect.	1387

(5) Any employer for whom services that do not constitute	1388
employment are performed may file with the director a written	1389
election that all such services performed by individuals in the	1390
employer's employ in one or more distinct establishments or places	1391
of business shall be deemed to constitute employment for all the	1392
purposes of this chapter, for not less than two calendar years.	1393
Upon written approval of the election by the director, such	1394
services shall be deemed to constitute employment subject to this	1395
chapter from and after the date stated in such approval. Such	1396
services shall cease to be employment subject to this chapter as	1397
of the first day of January of any calendar year subsequent to	1398
such two calendar years only if at least thirty days prior to such	1399
first day of January such employer has filed with the director a	1400
written notice to that effect.	1401

(B)(1) "Employment" means service performed by an individual	1402
for remuneration under any contract of hire, written or oral,	1403
express or implied, including service performed in interstate	1404
commerce and service performed by an officer of a corporation,	1405
without regard to whether such service is executive, managerial,	1406
or manual in nature, and without regard to whether such officer is	1407
a stockholder or a member of the board of directors of the	1408
corporation, unless it is shown to the satisfaction of the	1409
director that such individual has been and will continue to be	1410
free from direction or control over the performance of such	1411
service, both under a contract of service and in fact. The	1412
director shall adopt rules to define "direction or control."	1413

(2) "Employment" includes:

1414

(a) Service performed after December 31, 1977, by an	1415
individual in the employ of the state or any of its	1416
instrumentalities, or any political subdivision thereof or any of	1417
its instrumentalities or any instrumentality of more than one of	1418
the foregoing or any instrumentality of any of the foregoing and	1419
one or more other states or political subdivisions and without	1420
regard to divisions (A)(1)(a) and (b) of this section, provided	1421
that such service is excluded from employment as defined in the	1422
"Federal Unemployment Tax Act," 53 Stat. 183, 26 U.S.C.A. 3301,	1423
3306(c)(7) and is not excluded under division (B)(3) of this	1424
section; or the services of employees covered by voluntary	1425
election, as provided under divisions (A)(4) and (5) of this	1426
section;	1427

(b) Service performed after December 31, 1971, by an	1428
individual in the employ of a religious, charitable, educational,	1429
or other organization which is excluded from the term "employment"	1430
as defined in the "Federal Unemployment Tax Act," 84 Stat. 713, 26	1431
U.S.C.A. 3301 to 3311, solely by reason of section 26 U.S.C.A.	1432
3306(c)(8) of that act and is not excluded under division (B)(3)	1433
of this section;	1434

(c) Domestic service performed after December 31, 1977, for	1435
an employer, as provided in division (A)(1)(c) of this section;	1436

(d) Agricultural labor performed after December 31, 1977, for	1437
a farm operator or a crew leader, as provided in division	1438
(A)(1)(d) of this section;	1439

(e) Service not covered under division (B)(1) of this section	1440
which is performed after December 31, 1971:	1441

(i) As an agent-driver or commission-driver engaged in	1442
distributing meat products, vegetable products, fruit products,	1443
bakery products, beverages other than milk, laundry, or	1444
dry-cleaning services, for the individual's employer or principal;	1445

(ii) As a traveling or city salesperson, other than as an	1446
agent-driver or commission-driver, engaged on a full-time basis in	1447
the solicitation on behalf of and in the transmission to the	1448
salesperson's employer or principal except for sideline sales	1449
activities on behalf of some other person of orders from	1450
wholesalers, retailers, contractors, or operators of hotels,	1451
restaurants, or other similar establishments for merchandise for	1452
resale, or supplies for use in their business operations, provided	1453
that for the purposes of division (B)(2)(e)(ii) of this section,	1454
the services shall be deemed employment if the contract of service	1455
contemplates that substantially all of the services are to be	1456
performed personally by the individual and that the individual	1457
does not have a substantial investment in facilities used in	1458
connection with the performance of the services other than in	1459
facilities for transportation, and the services are not in the	1460
nature of a single transaction that is not a part of a continuing	1461
relationship with the person for whom the services are performed.	1462

(f) An individual's entire service performed within or both	1463
within and without the state if:	1464

(i) The service is localized in this state.

1465

(ii) The service is not localized in any state, but some of	1466
the service is performed in this state and either the base of	1467
operations, or if there is no base of operations then the place	1468
from which such service is directed or controlled, is in this	1469
state or the base of operations or place from which such service	1470
is directed or controlled is not in any state in which some part	1471
of the service is performed but the individual's residence is in	1472
this state.	1473

(g) Service not covered under division (B)(2)(f)(ii) of this	1474
section and performed entirely without this state, with respect to	1475
no part of which contributions are required and paid under an	1476
unemployment compensation law of any other state, the Virgin	1477
Islands, Canada, or of the United States, if the individual	1478
performing such service is a resident of this state and the	1479
director approves the election of the employer for whom such	1480
services are performed; or, if the individual is not a resident of	1481
this state but the place from which the service is directed or	1482
controlled is in this state, the entire services of such	1483
individual shall be deemed to be employment subject to this	1484
chapter, provided service is deemed to be localized within this	1485
state if the service is performed entirely within this state or if	1486
the service is performed both within and without this state but	1487
the service performed without this state is incidental to the	1488
individual's service within the state, for example, is temporary	1489
or transitory in nature or consists of isolated transactions;	1490

(h) Service of an individual who is a citizen of the United	1491
States, performed outside the United States except in Canada after	1492
December 31, 1971, or the Virgin Islands, after December 31, 1971,	1493
and before the first day of January of the year following that in	1494
which the United States secretary of labor approves the Virgin	1495
Islands law for the first time, in the employ of an American	1496
employer, other than service which is "employment" under divisions	1497
(B)(2)(f) and (g) of this section or similar provisions of another	1498
state's law, if:	1499

(i) The employer's principal place of business in the United	1500
States is located in this state;	1501

(ii) The employer has no place of business in the United	1502
States, but the employer is an individual who is a resident of	1503
this state; or the employer is a corporation which is organized	1504
under the laws of this state, or the employer is a partnership or	1505
a trust and the number of partners or trustees who are residents	1506
of this state is greater than the number who are residents of any	1507
other state; or	1508

(iii) None of the criteria of divisions (B)(2)(f)(i) and (ii)	1509
of this section is met but the employer has elected coverage in	1510
this state or the employer having failed to elect coverage in any	1511
state, the individual has filed a claim for benefits, based on	1512
such service, under this chapter.	1513

(i) For the purposes of division (B)(2)(h) of this section,	1514
the term "American employer" means an employer who is an	1515
individual who is a resident of the United States; or a	1516
partnership, if two-thirds or more of the partners are residents	1517
of the United States; or a trust, if all of the trustees are	1518
residents of the United States; or a corporation organized under	1519
the laws of the United States or of any state, provided the term	1520
"United States" includes the states, the District of Columbia, the	1521
Commonwealth of Puerto Rico, and the Virgin Islands.	1522

(j) Notwithstanding any other provisions of divisions (B)(1)	1523
and (2) of this section, service, except for domestic service in a	1524
private home not covered under division (A)(1)(c) of this section,	1525
with respect to which a tax is required to be paid under any	1526
federal law imposing a tax against which credit may be taken for	1527
contributions required to be paid into a state unemployment fund,	1528
or service, except for domestic service in a private home not	1529
covered under division (A)(1)(c) of this section, which, as a	1530
condition for full tax credit against the tax imposed by the	1531
"Federal Unemployment Tax Act," 84 Stat. 713, 26 U.S.C.A. 3301 to	1532
3311, is required to be covered under this chapter.	1533

(k) Construction services performed by any individual under a	1534
construction contract, as defined in section 4141.39 of the	1535
Revised Code, if the director determines that the employer for	1536
whom services are performed has the right to direct or control the	1537
performance of the services and that the individuals who perform	1538
the services receive remuneration for the services performed. The	1539
director shall presume that the employer for whom services are	1540
performed has the right to direct or control the performance of	1541
the services if ten or more of the following criteria apply:	1542

(i) The employer directs or controls the manner or method by	1543
which instructions are given to the individual performing	1544
services;	1545

(ii) The employer requires particular training for the	1546
individual performing services;	1547

(iii) Services performed by the individual are integrated	1548
into the regular functioning of the employer;	1549

(iv) The employer requires that services be provided by a	1550
particular individual;	1551

(v) The employer hires, supervises, or pays the wages of the	1552
individual performing services;	1553

(vi) A continuing relationship between the employer and the	1554
individual performing services exists which contemplates	1555
continuing or recurring work, even if not full-time work;	1556

(vii) The employer requires the individual to perform	1557
services during established hours;	1558

(viii) The employer requires that the individual performing	1559
services be devoted on a full-time basis to the business of the	1560
employer;	1561

(ix) The employer requires the individual to perform services	1562
on the employer's premises;	1563

(x) The employer requires the individual performing services	1564
to follow the order of work established by the employer;	1565

(xi) The employer requires the individual performing services	1566
to make oral or written reports of progress;	1567

(xii) The employer makes payment to the individual for	1568
services on a regular basis, such as hourly, weekly, or monthly;	1569

(xiii) The employer pays expenses for the individual	1570
performing services;	1571

(xiv) The employer furnishes the tools and materials for use	1572
by the individual to perform services;	1573

(xv) The individual performing services has not invested in	1574
the facilities used to perform services;	1575

(xvi) The individual performing services does not realize a	1576
profit or suffer a loss as a result of the performance of the	1577
services;	1578

(xvii) The individual performing services is not performing	1579
services for more than two employers simultaneously;	1580

(xviii) The individual performing services does not make the	1581
services available to the general public;	1582

(xix) The employer has a right to discharge the individual	1583
performing services;	1584

(xx) The individual performing services has the right to end	1585
the individual's relationship with the employer without incurring	1586
liability pursuant to an employment contract or agreement.	1587

(l) Service performed by an individual in the employ of an	1588
Indian tribe as defined by section 4(e) of the "Indian	1589
Self-Determination and Education Assistance Act," 88 Stat. 2204	1590
(1975), 25 U.S.C.A. 450b(e), including any subdivision,	1591
subsidiary, or business enterprise wholly owned by an Indian tribe	1592
provided that the service is excluded from employment as defined	1593
in the "Federal Unemployment Tax Act," 53 Stat. 183, (1939), 26	1594
U.S.C.A. 3301 and 3306(c)(7) and is not excluded under division	1595
(B)(3) of this section.	1596

(3) "Employment" does not include the following services if	1597
they are found not subject to the "Federal Unemployment Tax Act,"	1598
84 Stat. 713 (1970), 26 U.S.C.A. 3301 to 3311, and if the services	1599
are not required to be included under division (B)(2)(j) of this	1600
section:	1601

(a) Service performed after December 31, 1977, in	1602
agricultural labor, except as provided in division (A)(1)(d) of	1603
this section;	1604

(b) Domestic service performed after December 31, 1977, in a	1605
private home, local college club, or local chapter of a college	1606
fraternity or sorority except as provided in division (A)(1)(c) of	1607
this section;	1608

(c) Service performed after December 31, 1977, for this state	1609
or a political subdivision as described in division (B)(2)(a) of	1610
this section when performed:	1611

(i) As a publicly elected official;

1612

(ii) As a member of a legislative body, or a member of the	1613
judiciary;	1614

(iii) As a military member of the Ohio national guard;

1615

(iv) As an employee, not in the classified service as defined	1616
in section 124.11 of the Revised Code, serving on a temporary	1617
basis in case of fire, storm, snow, earthquake, flood, or similar	1618
emergency;	1619

(v) In a position which, under or pursuant to law, is	1620
designated as a major nontenured policymaking or advisory	1621
position, not in the classified service of the state, or a	1622
policymaking or advisory position the performance of the duties of	1623
which ordinarily does not require more than eight hours per week.	1624

(d) In the employ of any governmental unit or instrumentality	1625
of the United States;	1626

(e) Service performed after December 31, 1971:

1627

(i) Service in the employ of an educational institution or	1628
institution of higher education, including those operated by the	1629
state or a political subdivision, if such service is performed by	1630
a student who is enrolled and is regularly attending classes at	1631
the educational institution or institution of higher education; or	1632

(ii) By an individual who is enrolled at a nonprofit or	1633
public educational institution which normally maintains a regular	1634
faculty and curriculum and normally has a regularly organized body	1635
of students in attendance at the place where its educational	1636
activities are carried on as a student in a full-time program,	1637
taken for credit at the institution, which combines academic	1638
instruction with work experience, if the service is an integral	1639
part of the program, and the institution has so certified to the	1640
employer, provided that this subdivision shall not apply to	1641
service performed in a program established for or on behalf of an	1642
employer or group of employers;.	1643

(f) Service performed by an individual in the employ of the	1644
individual's son, daughter, or spouse and service performed by a	1645
child under the age of eighteen in the employ of the child's	1646
father or mother;	1647

(g) Service performed for one or more principals by an	1648
individual who is compensated on a commission basis, who in the	1649
performance of the work is master of the individual's own time and	1650
efforts, and whose remuneration is wholly dependent on the amount	1651
of effort the individual chooses to expend, and which service is	1652
not subject to the "Federal Unemployment Tax Act," 53 Stat. 183	1653
(1939), 26 U.S.C.A. 3301 to 3311. Service performed after December	1654
31, 1971:	1655

(i) By an individual for an employer as an insurance agent or	1656
as an insurance solicitor, if all this service is performed for	1657
remuneration solely by way of commission;	1658

(ii) As a home worker performing work, according to	1659
specifications furnished by the employer for whom the services are	1660
performed, on materials or goods furnished by such employer which	1661
are required to be returned to the employer or to a person	1662
designated for that purpose.	1663

(h) Service performed after December 31, 1971:

1664

(i) In the employ of a church or convention or association of	1665
churches, or in an organization which is operated primarily for	1666
religious purposes and which is operated, supervised, controlled,	1667
or principally supported by a church or convention or association	1668
of churches;	1669

(ii) By a duly ordained, commissioned, or licensed minister	1670
of a church in the exercise of the individual's ministry or by a	1671
member of a religious order in the exercise of duties required by	1672
such order; or	1673

(iii) In a facility conducted for the purpose of carrying out	1674
a program of rehabilitation for individuals whose earning capacity	1675
is impaired by age or physical or mental deficiency or injury, or	1676
providing remunerative work for individuals who because of their	1677
impaired physical or mental capacity cannot be readily absorbed in	1678
the competitive labor market, by an individual receiving such	1679
rehabilitation or remunerative work;.	1680

(i) Service performed after June 30, 1939, with respect to	1681
which unemployment compensation is payable under the "Railroad	1682
Unemployment Insurance Act," 52 Stat. 1094 (1938), 45 U.S.C. 351;	1683

(j) Service performed by an individual in the employ of any	1684
organization exempt from income tax under section 501 of the	1685
"Internal Revenue Code of 1954," if the remuneration for such	1686
service does not exceed fifty dollars in any calendar quarter, or	1687
if such service is in connection with the collection of dues or	1688
premiums for a fraternal beneficial society, order, or association	1689
and is performed away from the home office or is ritualistic	1690
service in connection with any such society, order, or	1691
association;	1692

(k) Casual labor not in the course of an employer's trade or	1693
business; incidental service performed by an officer, appraiser,	1694
or member of a finance committee of a bank, building and loan	1695
association, savings and loan association, or savings association	1696
when the remuneration for such incidental service exclusive of the	1697
amount paid or allotted for directors' fees does not exceed sixty	1698
dollars per calendar quarter is casual labor;	1699

(l) Service performed in the employ of a voluntary employees'	1700
beneficial association providing for the payment of life,	1701
sickness, accident, or other benefits to the members of such	1702
association or their dependents or their designated beneficiaries,	1703
if admission to a membership in such association is limited to	1704
individuals who are officers or employees of a municipal or public	1705
corporation, of a political subdivision of the state, or of the	1706
United States and no part of the net earnings of such association	1707
inures, other than through such payments, to the benefit of any	1708
private shareholder or individual;	1709

(m) Service performed by an individual in the employ of a	1710
foreign government, including service as a consular or other	1711
officer or employee or of a nondiplomatic representative;	1712

(n) Service performed in the employ of an instrumentality	1713
wholly owned by a foreign government if the service is of a	1714
character similar to that performed in foreign countries by	1715
employees of the United States or of an instrumentality thereof	1716
and if the director finds that the secretary of state of the	1717
United States has certified to the secretary of the treasury of	1718
the United States that the foreign government, with respect to	1719
whose instrumentality exemption is claimed, grants an equivalent	1720
exemption with respect to similar service performed in the foreign	1721
country by employees of the United States and of instrumentalities	1722
thereof;	1723

(o) Service with respect to which unemployment compensation	1724
is payable under an unemployment compensation system established	1725
by an act of congress;	1726

(p) Service performed as a student nurse in the employ of a	1727
hospital or a nurses' training school by an individual who is	1728
enrolled and is regularly attending classes in a nurses' training	1729
school chartered or approved pursuant to state law, and service	1730
performed as an intern in the employ of a hospital by an	1731
individual who has completed a four years' course in a medical	1732
school chartered or approved pursuant to state law;	1733

(q) Service performed by an individual under the age of	1734
eighteen in the delivery or distribution of newspapers or shopping	1735
news, not including delivery or distribution to any point for	1736
subsequent delivery or distribution;	1737

(r) Service performed in the employ of the United States or	1738
an instrumentality of the United States immune under the	1739
Constitution of the United States from the contributions imposed	1740
by this chapter, except that to the extent that congress permits	1741
states to require any instrumentalities of the United States to	1742
make payments into an unemployment fund under a state unemployment	1743
compensation act, this chapter shall be applicable to such	1744
instrumentalities and to services performed for such	1745
instrumentalities in the same manner, to the same extent, and on	1746
the same terms as to all other employers, individuals, and	1747
services, provided that if this state is not certified for any	1748
year by the proper agency of the United States under section 3304	1749
of the "Internal Revenue Code of 1954," the payments required of	1750
such instrumentalities with respect to such year shall be refunded	1751
by the director from the fund in the same manner and within the	1752
same period as is provided in division (E) of section 4141.09 of	1753
the Revised Code with respect to contributions erroneously	1754
collected;	1755

(s) Service performed by an individual as a member of a band	1756
or orchestra, provided such service does not represent the	1757
principal occupation of such individual, and which service is not	1758
subject to or required to be covered for full tax credit against	1759
the tax imposed by the "Federal Unemployment Tax Act," 53 Stat.	1760
183 (1939), 26 U.S.C.A. 3301 to 3311.	1761

(t) Service performed in the employ of a day camp whose	1762
camping season does not exceed twelve weeks in any calendar year,	1763
and which service is not subject to the "Federal Unemployment Tax	1764
Act," 53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311. Service	1765
performed after December 31, 1971:	1766

(i) In the employ of a hospital, if the service is performed	1767
by a patient of the hospital, as defined in division (W) of this	1768
section;	1769

(ii) For a prison or other correctional institution by an	1770
inmate of the prison or correctional institution;	1771

(iii) Service performed after December 31, 1977, by an inmate	1772
of a custodial institution operated by the state, a political	1773
subdivision, or a nonprofit organization.	1774

(u) Service that is performed by a nonresident alien	1775
individual for the period the individual temporarily is present in	1776
the United States as a nonimmigrant under division (F), (J), (M),	1777
or (Q) of section 101(a)(15) of the "Immigration and Nationality	1778
Act," 66 Stat. 163, 8 U.S.C.A. 1101, as amended, that is excluded	1779
under section 3306(c)(19) of the "Federal Unemployment Tax Act,"	1780
53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311.	1781

(v) Notwithstanding any other provisions of division (B)(3)	1782
of this section, services that are excluded under divisions	1783
(B)(3)(g), (j), (k), and (l) of this section shall not be excluded	1784
from employment when performed for a nonprofit organization, as	1785
defined in division (X) of this section, or for this state or its	1786
instrumentalities, or for a political subdivision or its	1787
instrumentalities or for Indian tribes;	1788

(w) Service that is performed by an individual working as an	1789
election official or election worker if the amount of remuneration	1790
received by the individual during the calendar year for services	1791
as an election official or election worker is less than one	1792
thousand dollars;	1793

(x) Service performed for an elementary or secondary school	1794
that is operated primarily for religious purposes, that is	1795
described in subsection 501(c)(3) and exempt from federal income	1796
taxation under subsection 501(a) of the Internal Revenue Code, 26	1797
U.S.C.A. 501;	1798

(y) Service performed by a person committed to a penal	1799
institution.	1800

(z) Service performed for an Indian tribe as described in	1801
division (B)(2)(l) of this section when performed in any of the	1802
following manners:	1803

(i) As a publicly elected official;

1804

(ii) As a member of an Indian tribal council;

1805

(iii) As a member of a legislative or judiciary body;

1806

(iv) In a position which, pursuant to Indian tribal law, is	1807
designated as a major nontenured policymaking or advisory	1808
position, or a policymaking or advisory position where the	1809
performance of the duties ordinarily does not require more than	1810
eight hours of time per week;	1811

(v) As an employee serving on a temporary basis in the case	1812
of a fire, storm, snow, earthquake, flood, or similar emergency.	1813

(aa) Service performed after December 31, 1971, for a	1814
nonprofit organization, this state or its instrumentalities, a	1815
political subdivision or its instrumentalities, or an Indian tribe	1816
as part of an unemployment work-relief or work-training program	1817
assisted or financed in whole or in part by any federal agency or	1818
an agency of a state or political subdivision, thereof, by an	1819
individual receiving the work-relief or work-training.	1820

(4) If the services performed during one half or more of any	1821
pay period by an employee for the person employing that employee	1822
constitute employment, all the services of such employee for such	1823
period shall be deemed to be employment; but if the services	1824
performed during more than one half of any such pay period by an	1825
employee for the person employing that employee do not constitute	1826
employment, then none of the services of such employee for such	1827
period shall be deemed to be employment. As used in division	1828
(B)(4) of this section, "pay period" means a period, of not more	1829
than thirty-one consecutive days, for which payment of	1830
remuneration is ordinarily made to the employee by the person	1831
employing that employee. Division (B)(4) of this section does not	1832
apply to services performed in a pay period by an employee for the	1833
person employing that employee, if any of such service is excepted	1834
by division (B)(3)(o) of this section.	1835

(C) "Benefits" means money payments payable to an individual	1836
who has established benefit rights, as provided in this chapter,	1837
for loss of remuneration due to the individual's unemployment.	1838

(D) "Benefit rights" means the weekly benefit amount and the	1839
maximum benefit amount that may become payable to an individual	1840
within the individual's benefit year as determined by the	1841
director.	1842

(E) "Claim for benefits" means a claim for waiting period or	1843
benefits for a designated week.	1844

(F) "Additional claim" means the first claim for benefits	1845
filed following any separation from employment during a benefit	1846
year; "continued claim" means any claim other than the first claim	1847
for benefits and other than an additional claim.	1848

(G)(1) "Wages" means remuneration paid to an employee by each	1849
of the employee's employers with respect to employment; except	1850
that wages shall not include that part of remuneration paid during	1851
any calendar year to an individual by an employer or such	1852
employer's predecessor in interest in the same business or	1853
enterprise, which in any calendar year is in excess of eight	1854
thousand two hundred fifty dollars on and after January 1, 1992;	1855
eight thousand five hundred dollars on and after January 1, 1993;	1856
eight thousand seven hundred fifty dollars on and after January 1,	1857
1994; and nine thousand dollars on and after January 1, 1995.	1858
Remuneration in excess of such amounts shall be deemed wages	1859
subject to contribution to the same extent that such remuneration	1860
is defined as wages under the "Federal Unemployment Tax Act," 84	1861
Stat. 714 (1970), 26 U.S.C.A. 3301 to 3311, as amended. The	1862
remuneration paid an employee by an employer with respect to	1863
employment in another state, upon which contributions were	1864
required and paid by such employer under the unemployment	1865
compensation act of such other state, shall be included as a part	1866
of remuneration in computing the amount specified in this	1867
division.	1868

(2) Notwithstanding division (G)(1) of this section, if, as	1869
of the computation date for any calendar year, the director	1870
determines that the level of the unemployment compensation fund is	1871
sixty per cent or more below the minimum safe level as defined in	1872
section 4141.25 of the Revised Code, then, effective the first day	1873
of January of the following calendar year, wages subject to this	1874
chapter shall not include that part of remuneration paid during	1875
any calendar year to an individual by an employer or such	1876
employer's predecessor in interest in the same business or	1877
enterprise which is in excess of nine thousand dollars. The	1878
increase in the dollar amount of wages subject to this chapter	1879
under this division shall remain in effect from the date of the	1880
director's determination pursuant to division (G)(2) of this	1881
section and thereafter notwithstanding the fact that the level in	1882
the fund may subsequently become less than sixty per cent below	1883
the minimum safe level.	1884

(H)(1) "Remuneration" means all compensation for personal	1885
services, including commissions and bonuses and the cash value of	1886
all compensation in any medium other than cash, except that in the	1887
case of agricultural or domestic service, "remuneration" includes	1888
only cash remuneration. Gratuities customarily received by an	1889
individual in the course of the individual's employment from	1890
persons other than the individual's employer and which are	1891
accounted for by such individual to the individual's employer are	1892
taxable wages.	1893

The reasonable cash value of compensation paid in any medium	1894
other than cash shall be estimated and determined in accordance	1895
with rules prescribed by the director, provided that	1896
"remuneration" does not include:	1897

(a) Payments as provided in divisions (b)(2) to (b)(16) of	1898
section 3306 of the "Federal Unemployment Tax Act," 84 Stat. 713,	1899
26 U.S.C.A. 3301 to 3311, as amended;	1900

(b) The payment by an employer, without deduction from the	1901
remuneration of the individual in the employer's employ, of the	1902
tax imposed upon an individual in the employer's employ under	1903
section 3101 of the "Internal Revenue Code of 1954," with respect	1904
to services performed after October 1, 1941.	1905

(2) "Cash remuneration" means all remuneration paid in cash,	1906
including commissions and bonuses, but not including the cash	1907
value of all compensation in any medium other than cash.	1908

(I) "Interested party" means the director and any party to	1909
whom notice of a determination of an application for benefit	1910
rights or a claim for benefits is required to be given under	1911
section 4141.28 of the Revised Code.	1912

(J) "Annual payroll" means the total amount of wages subject	1913
to contributions during a twelve-month period ending with the last	1914
day of the second calendar quarter of any calendar year.	1915

(K) "Average annual payroll" means the average of the last	1916
three annual payrolls of an employer, provided that if, as of any	1917
computation date, the employer has had less than three annual	1918
payrolls in such three-year period, such average shall be based on	1919
the annual payrolls which the employer has had as of such date.	1920

(L)(1) "Contributions" means the money payments to the state	1921
unemployment compensation fund required of employers by section	1922
4141.25 of the Revised Code and of the state and any of its	1923
political subdivisions electing to pay contributions under section	1924
4141.242 of the Revised Code. Employers paying contributions shall	1925
be described as "contributory employers."	1926

(2) "Payments in lieu of contributions" means the money	1927
payments to the state unemployment compensation fund required of	1928
reimbursing employers under sections 4141.241 and 4141.242 of the	1929
Revised Code.	1930

(M) An individual is "totally unemployed" in any week during	1931
which the individual performs no services and with respect to such	1932
week no remuneration is payable to the individual.	1933

(N) An individual is "partially unemployed" in any week if,	1934
due to involuntary loss of work, the total remuneration payable to	1935
the individual for such week is less than the individual's weekly	1936
benefit amount.	1937

(O) "Week" means the calendar week ending at midnight	1938
Saturday unless an equivalent week of seven consecutive calendar	1939
days is prescribed by the director.	1940

(1) "Qualifying week" means any calendar week in an	1941
individual's base period with respect to which the individual	1942
earns or is paid remuneration in employment subject to this	1943
chapter. A calendar week with respect to which an individual earns	1944
remuneration but for which payment was not made within the base	1945
period, when necessary to qualify for benefit rights, may be	1946
considered to be a qualifying week. The number of qualifying weeks	1947
which may be established in a calendar quarter shall not exceed	1948
the number of calendar weeks in the quarter.	1949

(2) "Average weekly wage" means the amount obtained by	1950
dividing an individual's total remuneration for all qualifying	1951
weeks during the base period by the number of such qualifying	1952
weeks, provided that if the computation results in an amount that	1953
is not a multiple of one dollar, such amount shall be rounded to	1954
the next lower multiple of one dollar.	1955

(P) "Weekly benefit amount" means the amount of benefits an	1956
individual would be entitled to receive for one week of total	1957
unemployment.	1958

(Q)(1) "Base period" means the first four of the last five	1959
completed calendar quarters immediately preceding the first day of	1960
an individual's benefit year, except as provided in division	1961
(Q)(2) of this section.	1962

(2) If an individual does not have sufficient qualifying	1963
weeks and wages in the base period to qualify for benefit rights,	1964
the individual's base period shall be the four most recently	1965
completed calendar quarters preceding the first day of the	1966
individual's benefit year. Such base period shall be known as the	1967
"alternate base period." If information as to weeks and wages for	1968
the most recent quarter of the alternate base period is not	1969
available to the director from the regular quarterly reports of	1970
wage information, which are systematically accessible, the	1971
director may, consistent with the provisions of section 4141.28 of	1972
the Revised Code, base the determination of eligibility for	1973
benefits on the affidavit of the claimant with respect to weeks	1974
and wages for that calendar quarter. The claimant shall furnish	1975
payroll documentation, where available, in support of the	1976
affidavit. The determination based upon the alternate base period	1977
as it relates to the claimant's benefit rights, shall be amended	1978
when the quarterly report of wage information from the employer is	1979
timely received and that information causes a change in the	1980
determination. As provided in division (B) of section 4141.28 of	1981
the Revised Code, any benefits paid and charged to an employer's	1982
account, based upon a claimant's affidavit, shall be adjusted	1983
effective as of the beginning of the claimant's benefit year. No	1984
calendar quarter in a base period or alternate base period shall	1985
be used to establish a subsequent benefit year.	1986

(3) The "base period" of a combined wage claim, as described	1987
in division (H) of section 4141.43 of the Revised Code, shall be	1988
the base period prescribed by the law of the state in which the	1989
claim is allowed.	1990

(4) For purposes of determining the weeks that comprise a	1991
completed calendar quarter under this division, only those weeks	1992
ending at midnight Saturday within the calendar quarter shall be	1993
utilized.	1994

(R)(1) "Benefit year" with respect to an individual means the	1995
fifty-two week period beginning with the first day of that week	1996
with respect to which the individual first files a valid	1997
application for determination of benefit rights, and thereafter	1998
the fifty-two week period beginning with the first day of that	1999
week with respect to which the individual next files a valid	2000
application for determination of benefit rights after the	2001
termination of the individual's last preceding benefit year,	2002
except that the application shall not be considered valid unless	2003
the individual has had employment in six weeks that is subject to	2004
this chapter or the unemployment compensation act of another	2005
state, or the United States, and has, since the beginning of the	2006
individual's previous benefit year, in the employment earned three	2007
times the average weekly wage determined for the previous benefit	2008
year. The "benefit year" of a combined wage claim, as described in	2009
division (H) of section 4141.43 of the Revised Code, shall be the	2010
benefit year prescribed by the law of the state in which the claim	2011
is allowed. Any application for determination of benefit rights	2012
made in accordance with section 4141.28 of the Revised Code is	2013
valid if the individual filing such application is unemployed, has	2014
been employed by an employer or employers subject to this chapter	2015
in at least twenty qualifying weeks within the individual's base	2016
period, and has earned or been paid remuneration at an average	2017
weekly wage of not less than twenty-seven and one-half per cent of	2018
the statewide average weekly wage for such weeks. For purposes of	2019
determining whether an individual has had sufficient employment	2020
since the beginning of the individual's previous benefit year to	2021
file a valid application, "employment" means the performance of	2022
services for which remuneration is payable.	2023

(2) Effective for benefit years beginning on and after	2024
December 26, 2004, any application for determination of benefit	2025
rights made in accordance with section 4141.28 of the Revised Code	2026
is valid if the individual satisfies the criteria described in	2027
division (R)(1) of this section, and if the reason for the	2028
individual's separation from employment is not disqualifying	2029
pursuant to division (D)(2) of section 4141.29 or section 4141.291	2030
of the Revised Code. A disqualification imposed pursuant to	2031
division (D)(2) of section 4141.29 or section 4141.291 of the	2032
Revised Code must be removed as provided in those sections as a	2033
requirement of establishing a valid application for benefit years	2034
beginning on and after December 26, 2004.	2035

(3) The statewide average weekly wage shall be calculated by	2036
the director once a year based on the twelve-month period ending	2037
the thirtieth day of June, as set forth in division (B)(3) of	2038
section 4141.30 of the Revised Code, rounded down to the nearest	2039
dollar. Increases or decreases in the amount of remuneration	2040
required to have been earned or paid in order for individuals to	2041
have filed valid applications shall become effective on Sunday of	2042
the calendar week in which the first day of January occurs that	2043
follows the twelve-month period ending the thirtieth day of June	2044
upon which the calculation of the statewide average weekly wage	2045
was based.	2046

(4) As used in this division, an individual is "unemployed"	2047
if, with respect to the calendar week in which such application is	2048
filed, the individual is "partially unemployed" or "totally	2049
unemployed" as defined in this section or if, prior to filing the	2050
application, the individual was separated from the individual's	2051
most recent work for any reason which terminated the individual's	2052
employee-employer relationship, or was laid off indefinitely or	2053
for a definite period of seven or more days.	2054

(S) "Calendar quarter" means the period of three consecutive	2055
calendar months ending on the thirty-first day of March, the	2056
thirtieth day of June, the thirtieth day of September, and the	2057
thirty-first day of December, or the equivalent thereof as the	2058
director prescribes by rule.	2059

(T) "Computation date" means the first day of the third	2060
calendar quarter of any calendar year.	2061

(U) "Contribution period" means the calendar year beginning	2062
on the first day of January of any year.	2063

(V) "Agricultural labor," for the purpose of this division,	2064
means any service performed prior to January 1, 1972, which was	2065
agricultural labor as defined in this division prior to that date,	2066
and service performed after December 31, 1971:	2067

(1) On a farm, in the employ of any person, in connection	2068
with cultivating the soil, or in connection with raising or	2069
harvesting any agricultural or horticultural commodity, including	2070
the raising, shearing, feeding, caring for, training, and	2071
management of livestock, bees, poultry, and fur-bearing animals	2072
and wildlife;	2073

(2) In the employ of the owner or tenant or other operator of	2074
a farm in connection with the operation, management, conservation,	2075
improvement, or maintenance of such farm and its tools and	2076
equipment, or in salvaging timber or clearing land of brush and	2077
other debris left by hurricane, if the major part of such service	2078
is performed on a farm;	2079

(3) In connection with the production or harvesting of any	2080
commodity defined as an agricultural commodity in section 15 (g)	2081
of the "Agricultural Marketing Act," 46 Stat. 1550 (1931), 12	2082
U.S.C. 1141j, as amended, or in connection with the ginning of	2083
cotton, or in connection with the operation or maintenance of	2084
ditches, canals, reservoirs, or waterways, not owned or operated	2085
for profit, used exclusively for supplying and storing water for	2086
farming purposes;	2087

(4) In the employ of the operator of a farm in handling,	2088
planting, drying, packing, packaging, processing, freezing,	2089
grading, storing, or delivering to storage or to market or to a	2090
carrier for transportation to market, in its unmanufactured state,	2091
any agricultural or horticultural commodity, but only if the	2092
operator produced more than one half of the commodity with respect	2093
to which such service is performed;	2094

(5) In the employ of a group of operators of farms, or a	2095
cooperative organization of which the operators are members, in	2096
the performance of service described in division (V)(4) of this	2097
section, but only if the operators produced more than one-half of	2098
the commodity with respect to which the service is performed;	2099

(6) Divisions (V)(4) and (5) of this section shall not be	2100
deemed to be applicable with respect to service performed:	2101

(a) In connection with commercial canning or commercial	2102
freezing or in connection with any agricultural or horticultural	2103
commodity after its delivery to a terminal market for distribution	2104
for consumption; or	2105

(b) On a farm operated for profit if the service is not in	2106
the course of the employer's trade or business.	2107

As used in division (V) of this section, "farm" includes	2108
stock, dairy, poultry, fruit, fur-bearing animal, and truck farms,	2109
plantations, ranches, nurseries, ranges, greenhouses, or other	2110
similar structures used primarily for the raising of agricultural	2111
or horticultural commodities and orchards.	2112

(W) "Hospital" means an institution which has been registered	2113
or licensed by the Ohio department of health as a hospital.	2114

(X) "Nonprofit organization" means an organization, or group	2115
of organizations, described in section 501(c)(3) of the "Internal	2116
Revenue Code of 1954," and exempt from income tax under section	2117
501(a) of that code.	2118

(Y) "Institution of higher education" means a public or	2119
nonprofit educational institution, including an educational	2120
institution operated by an Indian tribe, which:	2121

(1) Admits as regular students only individuals having a	2122
certificate of graduation from a high school, or the recognized	2123
equivalent;	2124

(2) Is legally authorized in this state or by the Indian	2125
tribe to provide a program of education beyond high school; and	2126

(3) Provides an educational program for which it awards a	2127
bachelor's or higher degree, or provides a program which is	2128
acceptable for full credit toward such a degree, a program of	2129
post-graduate or post-doctoral studies, or a program of training	2130
to prepare students for gainful employment in a recognized	2131
occupation.	2132

For the purposes of this division, all colleges and	2133
universities in this state are institutions of higher education.	2134

(Z) For the purposes of this chapter, "states" includes the	2135
District of Columbia, the Commonwealth of Puerto Rico, and the	2136
Virgin Islands.	2137

(AA) "Alien" means, for the purposes of division (A)(1)(d) of	2138
this section, an individual who is an alien admitted to the United	2139
States to perform service in agricultural labor pursuant to	2140
sections 214 (c) and 101 (a)(15)(H) of the "Immigration and	2141
Nationality Act," 66 Stat. 163, 8 U.S.C.A. 1101.	2142

(BB)(1) "Crew leader" means an individual who furnishes	2143
individuals to perform agricultural labor for any other employer	2144
or farm operator, and:	2145

(a) Pays, either on the individual's own behalf or on behalf	2146
of the other employer or farm operator, the individuals so	2147
furnished by the individual for the service in agricultural labor	2148
performed by them;	2149

(b) Has not entered into a written agreement with the other	2150
employer or farm operator under which the agricultural worker is	2151
designated as in the employ of the other employer or farm	2152
operator.	2153

(2) For the purposes of this chapter, any individual who is a	2154
member of a crew furnished by a crew leader to perform service in	2155
agricultural labor for any other employer or farm operator shall	2156
be treated as an employee of the crew leader if:	2157

(a) The crew leader holds a valid certificate of registration	2158
under the "Farm Labor Contractor Registration Act of 1963," 90	2159
Stat. 2668, 7 U.S.C. 2041; or	2160

(b) Substantially all the members of the crew operate or	2161
maintain tractors, mechanized harvesting or crop-dusting	2162
equipment, or any other mechanized equipment, which is provided by	2163
the crew leader; and	2164

(c) If the individual is not in the employment of the other	2165
employer or farm operator within the meaning of division (B)(1) of	2166
this section.	2167

(3) For the purposes of this division, any individual who is	2168
furnished by a crew leader to perform service in agricultural	2169
labor for any other employer or farm operator and who is not	2170
treated as in the employment of the crew leader under division	2171
(BB)(2) of this section shall be treated as the employee of the	2172
other employer or farm operator and not of the crew leader. The	2173
other employer or farm operator shall be treated as having paid	2174
cash remuneration to the individual in an amount equal to the	2175
amount of cash remuneration paid to the individual by the crew	2176
leader, either on the crew leader's own behalf or on behalf of the	2177
other employer or farm operator, for the service in agricultural	2178
labor performed for the other employer or farm operator.	2179

(CC) "Educational institution" means an institution other	2180
than an institution of higher education as defined in division (Y)	2181
of this section, including an educational institution operated by	2182
an Indian tribe, which:	2183

(1) Offers participants, trainees, or students an organized	2184
course of study or training designed to transfer to them	2185
knowledge, skills, information, doctrines, attitudes, or abilities	2186
from, by, or under the guidance of an instructor or teacher; and	2187

(2) Is approved, chartered, or issued a permit to operate as	2188
a school by the state board of education, other government agency,	2189
or Indian tribe that is authorized within the state to approve,	2190
charter, or issue a permit for the operation of a school.	2191

For the purposes of this division, the courses of study or	2192
training which the institution offers may be academic, technical,	2193
trade, or preparation for gainful employment in a recognized	2194
occupation.	2195

(DD) "Cost savings day" means any unpaid day off from work in	2196
which employees continue to accrue employee benefits which have a	2197
determinable value including, but not limited to, vacation,	2198
pension contribution, sick time, and life and health insurance.	2199

(EE) "Affected unit" means a group of two or more employees,	2200
including a department or shift, designated by an employer to	2201
participate in a short-time compensation plan.	2202

(FF) "Fringe benefit" means health insurance or a defined	2203
benefit plan or defined contribution plan as those terms are	2204
defined in the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	2205
U.S.C. 414, as amended.	2206

(GG) "Normal weekly hours of work" means the number of hours	2207
in a week that an employee normally works for an employer or an	2208
average of forty hours per week over a two-week pay period,	2209
whichever is less.	2210

(HH) "Participating employee" means an employee who works a	2211
reduced number of hours under an approved short-time compensation	2212
plan.	2213

(II) "Short-time compensation benefit" means an unemployment	2214
compensation benefit that is payable to an employee participating	2215
in a short-time compensation plan.	2216

(JJ) "Short-time compensation plan" means a plan under which	2217
an employer reduces the normal weekly hours of work of the	2218
employees who are members of an affected unit in lieu of laying	2219
off those employees.	2220

Sec. 4141.241.  (A)(1) Any nonprofit organization described	2221
in division (X) of section 4141.01 of the Revised Code, which	2222
becomes subject to this chapter on or after January 1, 1972, shall	2223
pay contributions under section 4141.25 of the Revised Code,	2224
unless it elects, in accordance with this division, to pay to the	2225
director of job and family services for deposit in the	2226
unemployment compensation fund an amount in lieu of contributions	2227
equal to the amount of regular benefits plus one half of extended	2228
benefits paid from that fund that is attributable to service in	2229
the employ of the nonprofit organization to individuals whose	2230
service, during the base period of the claims, was within the	2231
effective period of such election.	2232

(2) Any nonprofit organization which becomes subject to this	2233
chapter after January 1, 1972, may elect to become liable for	2234
payments in lieu of contributions for a period of not less than	2235
the remainder of that calendar year and the next calendar year,	2236
beginning with the date on which such subjectivity begins, by	2237
filing a written notice of its election with the director not	2238
later than thirty days immediately following the date of the	2239
determination of such subjectivity.	2240

(3) Any nonprofit organization which makes an election in	2241
accordance with this division will continue to be liable for	2242
payments in lieu of contributions for the period described in this	2243
division and until it files with the director a written notice	2244
terminating its election. The notice shall be filed not later than	2245
thirty days prior to the beginning of the calendar year for which	2246
the termination is to become effective.	2247

(4) Any nonprofit organization which has been paying	2248
contributions for a period subsequent to January 1, 1972, may	2249
change to a reimbursable basis by filing with the director, not	2250
later than thirty days prior to the beginning of any calendar	2251
year, a written notice of election to become liable for payments	2252
in lieu of contributions. The election shall not be terminable by	2253
the organization during that calendar year and the next calendar	2254
year.	2255

(5) The director, in accordance with any rules the director	2256
prescribes, shall notify each nonprofit organization of any	2257
determination which the director may make of its status as an	2258
employer and of the effective date of any election which it makes	2259
and of any termination of the election. Any determinations shall	2260
be subject to reconsideration, appeal, and review in accordance	2261
with section 4141.26 of the Revised Code.	2262

(B) Except as provided in division (I)(J) of section 4141.29	2263
of the Revised Code, benefits based on service with a nonprofit	2264
organization granted a reimbursing status under this section shall	2265
be payable in the same amount, on the same terms, and subject to	2266
the same conditions, as benefits payable on the basis of other	2267
service subject to this chapter. Payments in lieu of contributions	2268
shall be made in accordance with this division and division (D) of	2269
section 4141.24 of the Revised Code.	2270

(1)(a) At the end of each calendar quarter, or at the end of	2271
any other period as determined by the director under division	2272
(D)(4) of section 4141.24 of the Revised Code, the director shall	2273
bill each nonprofit organization or group of such organizations	2274
which has elected to make payments in lieu of contributions for an	2275
amount equal to the full amount of regular benefits plus one half	2276
of the amount of extended benefits paid during such quarter or	2277
other prescribed period which is attributable to service in the	2278
employ of such organization.	2279

(b) In the computation of the amount of benefits to be	2280
charged to employers liable for payments in lieu of contributions,	2281
all benefits attributable to service described in division	2282
(B)(1)(a) of this section shall be computed and charged to such	2283
organization as described in division (D) of section 4141.24 of	2284
the Revised Code, and, except as provided in division (D)(2) of	2285
section 4141.24 of the Revised Code, no portion of the amount may	2286
be charged to the mutualized account established by division (B)	2287
of section 4141.25 of the Revised Code.	2288

(c) The director may prescribe regulations under which	2289
organizations, which have elected to make payments in lieu of	2290
contributions may request permission to make such payments in	2291
equal installments throughout the year with an adjustment at the	2292
end of the year for any excess or shortage of the amount of such	2293
installment payments compared with the total amount of benefits	2294
actually charged the organization's account during the year. In	2295
making any adjustment, where the total installment payments are	2296
less than the actual benefits charged, the organization shall be	2297
liable for payment of the unpaid balance in accordance with	2298
division (B)(2) of this section. If the total installment payments	2299
exceed the actual benefits charged, all or part of the excess may,	2300
at the discretion of the director, be refunded or retained in the	2301
fund as part of the payments which may be required in the next	2302
year.	2303

(2) Payment of any bill rendered under division (B)(1) of	2304
this section shall be made not later than thirty days after the	2305
bill was mailed to the last known address of the organization or	2306
was otherwise delivered to it, unless there has been an	2307
application for review and redetermination in accordance with	2308
division (B)(4) of this section.	2309

(3) Payments made by an organization under this section shall	2310
not be deducted or deductible, in whole or in part, from the	2311
remuneration of individuals in the employ of the organization.	2312

(4) An organization may file an application for review and	2313
redetermination of the amounts appearing on any bill rendered to	2314
such organization under division (B)(1) of this section. The	2315
application shall be filed and determined under division (D)(4) of	2316
section 4141.24 of the Revised Code.	2317

(5) Past-due payments of amounts in lieu of contributions	2318
shall be subject to the same interest rates and collection	2319
procedures that apply to past-due contributions under sections	2320
4141.23 and 414.27 of the Revised Code. In case of failure to file	2321
a required quarterly report within the time prescribed by the	2322
director, the nonprofit organization shall be subject to a	2323
forfeiture pursuant to section 4141.20 of the Revised Code for	2324
each quarterly report that is not timely filed.	2325

All interest and forfeitures collected under this division	2326
shall be paid into the unemployment compensation special	2327
administrative fund as provided in section 4141.11 of the Revised	2328
Code.	2329

(6) All payments in lieu of contributions collected under	2330
this section shall be paid into the unemployment compensation fund	2331
as provided in section 4141.09 of the Revised Code. Any refunds of	2332
such payments shall be paid from the unemployment compensation	2333
fund, as provided in section 4141.09 of the Revised Code.	2334

(C)(1) Any nonprofit organization, or group of such	2335
organizations approved under division (D) of this section, that	2336
elects to become liable for payments in lieu of contributions	2337
shall be required within thirty days after the effective date of	2338
its election, to execute and file with the director a surety bond	2339
approved by the director or it may elect instead to deposit with	2340
the director approved municipal or other bonds, or approved	2341
securities, or a combination thereof, or other forms of collateral	2342
security approved by the director.	2343

(2)(a) The amount of the bond or deposit required shall be	2344
equal to three per cent of the organization's wages paid for	2345
employment as defined in section 4141.01 of the Revised Code that	2346
would have been taxable had the organization been a subject	2347
employer during the four calendar quarters immediately preceding	2348
the effective date of the election, or the amount established by	2349
the director within the limitation provided in division (C)(2)(d)	2350
of this section, whichever is the less. The effective date of the	2351
amount of the bond or other collateral security required after the	2352
employer initially is determined by the director to be liable for	2353
payments in lieu of contributions shall be the renewal date in the	2354
case of a bond or the biennial anniversary of the effective date	2355
of election in the case of deposit of securities or other forms of	2356
collateral security approved by the director, whichever date shall	2357
be most recent and applicable. If the nonprofit organization did	2358
not pay wages in each of such four calendar quarters, the amount	2359
of the bond or deposit shall be as determined by the director	2360
under regulations prescribed for this purpose.	2361

(b) Any bond or other form of collateral security approved by	2362
the director deposited under this division shall be in force for a	2363
period of not less than two calendar years and shall be renewed	2364
with the approval of the director, at such times as the director	2365
may prescribe, but not less frequently than at two-year intervals	2366
as long as the organization continues to be liable for payments in	2367
lieu of contributions. The director shall require adjustments to	2368
be made in a previously filed bond or other form of collateral	2369
security as the director considers appropriate. If the bond or	2370
other form of collateral security is to be increased, the adjusted	2371
bond or collateral security shall be filed by the organization	2372
within thirty days of the date that notice of the required	2373
adjustment was mailed or otherwise delivered to it. Failure by any	2374
organization covered by such bond or collateral security to pay	2375
the full amount of payments in lieu of contributions when due,	2376
together with any applicable interest provided for in division	2377
(B)(5) of this section, shall render the surety liable on the bond	2378
or collateral security to the extent of the bond or collateral	2379
security, as though the surety was the organization.	2380

(c) Any securities accepted in lieu of surety bond by the	2381
director shall be deposited with the treasurer of state who shall	2382
have custody thereof and retain the same in the treasurer of	2383
state's possession, or release them, according to conditions	2384
prescribed by regulations of the director. Income from the	2385
securities, held in custody by the treasurer of state, shall	2386
accrue to the benefit of the depositor and shall be distributed to	2387
the depositor in the absence of any notification from the director	2388
that the depositor is in default on any payment owed to the	2389
director. The director may require the sale of any such bonds to	2390
the extent necessary to satisfy any unpaid payments in lieu of	2391
contributions, together with any applicable interest or	2392
forfeitures provided for in division (B)(5) of this section. The	2393
director shall require the employer within thirty days following	2394
any sale of deposited securities, under this subdivision, to	2395
deposit additional securities, surety bond, or combination of	2396
both, to make whole the employer's security deposit at the	2397
approved level. Any cash remaining from the sale of such	2398
securities may, at the discretion of the director, be refunded in	2399
whole or in part, or be paid into the unemployment compensation	2400
fund to cover future payments required of the organization.	2401

(d) The required bond or deposit for any nonprofit	2402
organization, or group of such organizations approved by the	2403
director under division (D) of this section, that is determined by	2404
the director to be liable for payments in lieu of contributions	2405
effective beginning on and after January 1, 1996, but prior to	2406
January 1, 1998, and the required bond or deposit for any renewed	2407
elections under division (C)(2)(b) of this section effective	2408
during that period shall not exceed one million two hundred fifty	2409
thousand dollars. The required bond or deposit for any nonprofit	2410
organization, or group of such organizations approved by the	2411
director under division (D) of this section, that is determined to	2412
be liable for payments in lieu of contributions effective on and	2413
after January 1, 1998, and the required bond or deposit for any	2414
renewed elections effective on and after January 1, 1998, shall	2415
not exceed two million dollars.	2416

(3) If any nonprofit organization fails to file a bond or	2417
make a deposit, or to file a bond in an increased amount or to	2418
make whole the amount of a previously made deposit, as provided	2419
under this division, the director may terminate the organization's	2420
election to make payments in lieu of contributions effective for	2421
the quarter following such failure and the termination shall	2422
continue for not less than the remainder of that calendar year and	2423
the next calendar year, beginning with the quarter in which the	2424
termination becomes effective; except that the director may extend	2425
for good cause the applicable filing, deposit, or adjustment	2426
period by not more than thirty days.	2427

(D)(1) Two or more nonprofit organizations that have become	2428
liable for payments in lieu of contributions, in accordance with	2429
division (A) of this section, may file a joint application to the	2430
director for the establishment of the group account for the	2431
purpose of sharing the cost of benefits paid that are attributable	2432
to service in the employ of those employers. Notwithstanding	2433
division (E) of section 4141.242 of the Revised Code, hospitals	2434
operated by this state or a political subdivision may participate	2435
in a group account with nonprofit organizations under the	2436
procedures set forth in this section. Each application shall	2437
identify and authorize a group representative to act as the	2438
group's agent for the purposes of this division.	2439

(2) Upon the director's approval of the application, the	2440
director shall establish a group account for the employers	2441
effective as of the beginning of the calendar quarter in which the	2442
director receives the application and shall notify the group's	2443
representative of the effective date of the account. The account	2444
shall remain in effect for not less than two years and thereafter	2445
until terminated by the director or upon application by the group.	2446

(3) Upon establishment of the account, each member of the	2447
group shall be liable, in the event that the group representative	2448
fails to pay any bill issued to it pursuant to division (B) of	2449
this section, for payments in lieu of contributions with respect	2450
to each calendar quarter in the amount that bears the same ratio	2451
to the total benefits paid in the quarter that are attributable to	2452
service performed in the employ of all members of the group as the	2453
total wages paid for service in employment by the member in the	2454
quarter bear to the total wages paid during the quarter for	2455
service performed in the employ of all members of the group.	2456

(4) The director shall adopt regulations as considered	2457
necessary with respect to the following: applications for	2458
establishment, bonding, maintenance, and termination of group	2459
accounts that are authorized by this section; addition of new	2460
members to and withdrawal of active members from such accounts;	2461
and the determination of the amounts that are payable under this	2462
division by the group representative and in the event of default	2463
in payment by the group representative, members of the group, and	2464
the time and manner of payments.	2465

Sec. 4141.29.  Each eligible individual shall receive	2466
benefits as compensation for loss of remuneration due to	2467
involuntary total or partial unemployment in the amounts and	2468
subject to the conditions stipulated in this chapter.	2469

(A) No individual is entitled to a waiting period or benefits	2470
for any week unless the individual:	2471

(1) Has filed a valid application for determination of	2472
benefit rights in accordance with section 4141.28 of the Revised	2473
Code;	2474

(2) Has made a claim for benefits in accordance with section	2475
4141.28 of the Revised Code;	2476

(3) Has registered at an employment office or other	2477
registration place maintained or designated by the director of job	2478
and family services. Registration shall be made in accordance with	2479
the time limits, frequency, and manner prescribed by the director.	2480

(4)(a)(i) Is able to work and available for suitable work	2481
and, except as provided in division (A)(4)(a)(ii) of this section,	2482
is actively seeking suitable work either in a locality in which	2483
the individual has earned wages subject to this chapter during the	2484
individual's base period, or if the individual leaves that	2485
locality, then in a locality where suitable work normally is	2486
performed.	2487

(ii) The director may waive the requirement that a claimant	2488
be actively seeking work when the director finds that the	2489
individual has been laid off and the employer who laid the	2490
individual off has notified the director within ten days after the	2491
layoff, that work is expected to be available for the individual	2492
within a specified number of days not to exceed forty-five	2493
calendar days following the last day the individual worked. In the	2494
event the individual is not recalled within the specified period,	2495
this waiver shall cease to be operative with respect to that	2496
layoff.	2497

(b) The individual shall be instructed as to the efforts that	2498
the individual must make in the search for suitable work, except	2499
where the active search for work requirement has been waived under	2500
division (A)(4)(a) of this section, and shall keep a record of	2501
where and when the individual has sought work in complying with	2502
those instructions and, upon request, shall produce that record	2503
for examination by the director.	2504

(c) An individual who is attending a training course approved	2505
by the director meets the requirement of this division, if	2506
attendance was recommended by the director and the individual is	2507
regularly attending the course and is making satisfactory	2508
progress. An individual also meets the requirements of this	2509
division if the individual is participating and advancing in a	2510
training program, as defined in division (P) of section 5709.61 of	2511
the Revised Code, and if an enterprise, defined in division (B) of	2512
section 5709.61 of the Revised Code, is paying all or part of the	2513
cost of the individual's participation in the training program	2514
with the intention of hiring the individual for employment as a	2515
new employee, as defined in division (L) of section 5709.61 of the	2516
Revised Code, for at least ninety days after the individual's	2517
completion of the training program.	2518

(d) An individual who becomes unemployed while attending a	2519
regularly established school and whose base period qualifying	2520
weeks were earned in whole or in part while attending that school,	2521
meets the availability and active search for work requirements of	2522
division (A)(4)(a) of this section if the individual regularly	2523
attends the school during weeks with respect to which the	2524
individual claims unemployment benefits and makes self available	2525
on any shift of hours for suitable employment with the	2526
individual's most recent employer or any other employer in the	2527
individual's base period, or for any other suitable employment to	2528
which the individual is directed, under this chapter.	2529

(e) The director shall adopt any rules that the director	2530
deems necessary for the administration of division (A)(4) of this	2531
section.	2532

(f) Notwithstanding any other provisions of this section, no	2533
otherwise eligible individual shall be denied benefits for any	2534
week because the individual is in training approved under section	2535
236(a)(1) of the "Trade Act of 1974," 88 Stat. 1978, 19 U.S.C.A.	2536
2296, nor shall that individual be denied benefits by reason of	2537
leaving work to enter such training, provided the work left is not	2538
suitable employment, or because of the application to any week in	2539
training of provisions in this chapter, or any applicable federal	2540
unemployment compensation law, relating to availability for work,	2541
active search for work, or refusal to accept work.	2542

For the purposes of division (A)(4)(f) of this section,	2543
"suitable employment" means with respect to an individual, work of	2544
a substantially equal or higher skill level than the individual's	2545
past adversely affected employment, as defined for the purposes of	2546
the "Trade Act of 1974," 88 Stat. 1978, 19 U.S.C.A. 2101, and	2547
wages for such work at not less than eighty per cent of the	2548
individual's average weekly wage as determined for the purposes of	2549
that federal act.	2550

(5) Is unable to obtain suitable work. An individual who is	2551
provided temporary work assignments by the individual's employer	2552
under agreed terms and conditions of employment, and who is	2553
required pursuant to those terms and conditions to inquire with	2554
the individual's employer for available work assignments upon the	2555
conclusion of each work assignment, is not considered unable to	2556
obtain suitable employment if suitable work assignments are	2557
available with the employer but the individual fails to contact	2558
the employer to inquire about work assignments.	2559

(6) Participates in reemployment services, such as job search	2560
assistance services, if the individual has been determined to be	2561
likely to exhaust benefits under this chapter, including	2562
compensation payable pursuant to 5 U.S.C.A. Chapter 85, other than	2563
extended compensation, and needs reemployment services pursuant to	2564
the profiling system established by the director under division	2565
(K)(L) of this section, unless the director determines that:	2566

(a) The individual has completed such services; or

2567

(b) There is justifiable cause for the claimant's failure to	2568
participate in such services.	2569

(B) An individual suffering total or partial unemployment is	2570
eligible for benefits for unemployment occurring subsequent to a	2571
waiting period of one week and no benefits shall be payable during	2572
this required waiting period. Not more than one week of waiting	2573
period shall be required of any individual in any benefit year in	2574
order to establish the individual's eligibility for total or	2575
partial unemployment benefits.	2576

(C) The waiting period for total or partial unemployment	2577
shall commence on the first day of the first week with respect to	2578
which the individual first files a claim for benefits at an	2579
employment office or other place of registration maintained or	2580
designated by the director or on the first day of the first week	2581
with respect to which the individual has otherwise filed a claim	2582
for benefits in accordance with the rules of the department of job	2583
and family services, provided such claim is allowed by the	2584
director.	2585

(D) Notwithstanding division (A) of this section, no	2586
individual may serve a waiting period or be paid benefits under	2587
the following conditions:	2588

(1) For any week with respect to which the director finds	2589
that:	2590

(a) The individual's unemployment was due to a labor dispute	2591
other than a lockout at any factory, establishment, or other	2592
premises located in this or any other state and owned or operated	2593
by the employer by which the individual is or was last employed;	2594
and for so long as the individual's unemployment is due to such	2595
labor dispute. No individual shall be disqualified under this	2596
provision if either of the following applies:	2597

(i) The individual's employment was with such employer at any	2598
factory, establishment, or premises located in this state, owned	2599
or operated by such employer, other than the factory,	2600
establishment, or premises at which the labor dispute exists, if	2601
it is shown that the individual is not financing, participating	2602
in, or directly interested in such labor dispute;	2603

(ii) The individual's employment was with an employer not	2604
involved in the labor dispute but whose place of business was	2605
located within the same premises as the employer engaged in the	2606
dispute, unless the individual's employer is a wholly owned	2607
subsidiary of the employer engaged in the dispute, or unless the	2608
individual actively participates in or voluntarily stops work	2609
because of such dispute. If it is established that the claimant	2610
was laid off for an indefinite period and not recalled to work	2611
prior to the dispute, or was separated by the employer prior to	2612
the dispute for reasons other than the labor dispute, or that the	2613
individual obtained a bona fide job with another employer while	2614
the dispute was still in progress, such labor dispute shall not	2615
render the employee ineligible for benefits.	2616

(b) The individual has been given a disciplinary layoff for	2617
misconduct in connection with the individual's work.	2618

(2) For the duration of the individual's unemployment if the	2619
director finds that:	2620

(a) The individual quit work without just cause or has been	2621
discharged for just cause in connection with the individual's	2622
work, provided division (D)(2) of this section does not apply to	2623
the separation of a person under any of the following	2624
circumstances:	2625

(i) Separation from employment for the purpose of entering	2626
the armed forces of the United States if the individual is	2627
inducted into the armed forces within one of the following	2628
periods:	2629

(I) Thirty days after separation;

2630

(II) One hundred eighty days after separation if the	2631
individual's date of induction is delayed solely at the discretion	2632
of the armed forces.	2633

(ii) Separation from employment pursuant to a	2634
labor-management contract or agreement, or pursuant to an	2635
established employer plan, program, or policy, which permits the	2636
employee, because of lack of work, to accept a separation from	2637
employment;	2638

(iii) The individual has left employment to accept a recall	2639
from a prior employer or, except as provided in division	2640
(D)(2)(a)(iv) of this section, to accept other employment as	2641
provided under section 4141.291 of the Revised Code, or left or	2642
was separated from employment that was concurrent employment at	2643
the time of the most recent separation or within six weeks prior	2644
to the most recent separation where the remuneration, hours, or	2645
other conditions of such concurrent employment were substantially	2646
less favorable than the individual's most recent employment and	2647
where such employment, if offered as new work, would be considered	2648
not suitable under the provisions of divisions (E) and (F) of this	2649
section. Any benefits that would otherwise be chargeable to the	2650
account of the employer from whom an individual has left	2651
employment or was separated from employment that was concurrent	2652
employment under conditions described in division (D)(2)(a)(iii)	2653
of this section, shall instead be charged to the mutualized	2654
account created by division (B) of section 4141.25 of the Revised	2655
Code, except that any benefits chargeable to the account of a	2656
reimbursing employer under division (D)(2)(a)(iii) of this section	2657
shall be charged to the account of the reimbursing employer and	2658
not to the mutualized account, except as provided in division	2659
(D)(2) of section 4141.24 of the Revised Code.	2660

(iv) When an individual has been issued a definite layoff	2661
date by the individual's employer and before the layoff date, the	2662
individual quits to accept other employment, the provisions of	2663
division (D)(2)(a)(iii) of this section apply and no	2664
disqualification shall be imposed under division (D) of this	2665
section. However, if the individual fails to meet the employment	2666
and earnings requirements of division (A)(2) of section 4141.291	2667
of the Revised Code, then the individual, pursuant to division	2668
(A)(5) of this section, shall be ineligible for benefits for any	2669
week of unemployment that occurs prior to the layoff date.	2670

(b) The individual has refused without good cause to accept	2671
an offer of suitable work when made by an employer either in	2672
person or to the individual's last known address, or has refused	2673
or failed to investigate a referral to suitable work when directed	2674
to do so by a local employment office of this state or another	2675
state, provided that this division shall not cause a	2676
disqualification for a waiting week or benefits under the	2677
following circumstances:	2678

(i) When work is offered by the individual's employer and the	2679
individual is not required to accept the offer pursuant to the	2680
terms of the labor-management contract or agreement; or	2681

(ii) When the individual is attending a training course	2682
pursuant to division (A)(4) of this section except, in the event	2683
of a refusal to accept an offer of suitable work or a refusal or	2684
failure to investigate a referral, benefits thereafter paid to	2685
such individual shall not be charged to the account of any	2686
employer and, except as provided in division (B)(1)(b) of section	2687
4141.241 of the Revised Code, shall be charged to the mutualized	2688
account as provided in division (B) of section 4141.25 of the	2689
Revised Code.	2690

(c) SuchExcept as otherwise provided in section 4141.293 of	2691
the Revised Code, such individual quit work to marry or because of	2692
marital, parental, filial, or other domestic obligations.	2693

(d) The individual became unemployed by reason of commitment	2694
to any correctional institution.	2695

(e) The individual became unemployed because of dishonesty in	2696
connection with the individual's most recent or any base period	2697
work. Remuneration earned in such work shall be excluded from the	2698
individual's total base period remuneration and qualifying weeks	2699
that otherwise would be credited to the individual for such work	2700
in the individual's base period shall not be credited for the	2701
purpose of determining the total benefits to which the individual	2702
is eligible and the weekly benefit amount to be paid under section	2703
4141.30 of the Revised Code. Such excluded remuneration and	2704
noncredited qualifying weeks shall be excluded from the	2705
calculation of the maximum amount to be charged, under division	2706
(D) of section 4141.24 and section 4141.33 of the Revised Code,	2707
against the accounts of the individual's base period employers. In	2708
addition, no benefits shall thereafter be paid to the individual	2709
based upon such excluded remuneration or noncredited qualifying	2710
weeks.	2711

For purposes of division (D)(2)(e) of this section,	2712
"dishonesty" means the commission of substantive theft, fraud, or	2713
deceitful acts.	2714

(E) No individual otherwise qualified to receive benefits	2715
shall lose the right to benefits by reason of a refusal to accept	2716
new work if:	2717

(1) As a condition of being so employed the individual would	2718
be required to join a company union, or to resign from or refrain	2719
from joining any bona fide labor organization, or would be denied	2720
the right to retain membership in and observe the lawful rules of	2721
any such organization.	2722

(2) The position offered is vacant due directly to a strike,	2723
lockout, or other labor dispute.	2724

(3) The work is at an unreasonable distance from the	2725
individual's residence, having regard to the character of the work	2726
the individual has been accustomed to do, and travel to the place	2727
of work involves expenses substantially greater than that required	2728
for the individual's former work, unless the expense is provided	2729
for.	2730

(4) The remuneration, hours, or other conditions of the work	2731
offered are substantially less favorable to the individual than	2732
those prevailing for similar work in the locality.	2733

(F) Subject to the special exceptions contained in division	2734
(A)(4)(f) of this section and section 4141.301 of the Revised	2735
Code, in determining whether any work is suitable for a claimant	2736
in the administration of this chapter, the director, in addition	2737
to the determination required under division (E) of this section,	2738
shall consider the degree of risk to the claimant's health,	2739
safety, and morals, the individual's physical fitness for the	2740
work, the individual's prior training and experience, the length	2741
of the individual's unemployment, the distance of the available	2742
work from the individual's residence, and the individual's	2743
prospects for obtaining local work.	2744

(G) No claimant shall be denied regular unemployment benefits	2745
under this section due to failing to satisfy the requirement	2746
regarding availability for work, failing to actively search for	2747
suitable work, or refusing to accept suitable work as described	2748
under division (A) of this section, solely because the claimant is	2749
seeking only part-time work.	2750

(H) The "duration of unemployment" as used in this section	2751
means the full period of unemployment next ensuing after a	2752
separation from any base period or subsequent work and until an	2753
individual has become reemployed in employment subject to this	2754
chapter, or the unemployment compensation act of another state, or	2755
of the United States, and until such individual has worked six	2756
weeks and for those weeks has earned or been paid remuneration	2757
equal to six times an average weekly wage of not less than:	2758
eighty-five dollars and ten cents per week beginning on June 26,	2759
1990; and beginning on and after January 1, 1992, twenty-seven and	2760
one-half per cent of the statewide average weekly wage as computed	2761
each first day of January under division (B)(3) of section 4141.30	2762
of the Revised Code, rounded down to the nearest dollar, except	2763
for purposes of division (D)(2)(c) of this section, such term	2764
means the full period of unemployment next ensuing after a	2765
separation from such work and until such individual has become	2766
reemployed subject to the terms set forth above, and has earned	2767
wages equal to one-half of the individual's average weekly wage or	2768
sixty dollars, whichever is less.	2769

(H)(I) If a claimant is disqualified under division	2770
(D)(2)(a), (c), or (d) of this section or found to be qualified	2771
under the exceptions provided in division (D)(2)(a)(i), (iii), or	2772
(iv) of this section or, division (A)(2) of section 4141.291 of	2773
the Revised Code, or section 4141.293 of the Revised Code, then	2774
benefits that may become payable to such claimant, which are	2775
chargeable to the account of the employer from whom the individual	2776
was separated under such conditions, shall be charged to the	2777
mutualized account provided in section 4141.25 of the Revised	2778
Code, provided that no charge shall be made to the mutualized	2779
account for benefits chargeable to a reimbursing employer, except	2780
as provided in division (D)(2) of section 4141.24 of the Revised	2781
Code. In the case of a reimbursing employer, the director shall	2782
refund or credit to the account of the reimbursing employer any	2783
over-paid benefits that are recovered under division (B) of	2784
section 4141.35 of the Revised Code. Amounts chargeable to other	2785
states, the United States, or Canada that are subject to	2786
agreements and arrangements that are established pursuant to	2787
section 4141.43 of the Revised Code shall be credited or	2788
reimbursed according to the agreements and arrangements to which	2789
the chargeable amounts are subject.	2790

(I)(J)(1) Benefits based on service in employment as provided	2791
in divisions (B)(2)(a) and (b) of section 4141.01 of the Revised	2792
Code shall be payable in the same amount, on the same terms, and	2793
subject to the same conditions as benefits payable on the basis of	2794
other service subject to this chapter; except that after December	2795
31, 1977:	2796

(a) Benefits based on service in an instructional, research,	2797
or principal administrative capacity in an institution of higher	2798
education, as defined in division (Y) of section 4141.01 of the	2799
Revised Code; or for an educational institution as defined in	2800
division (CC) of section 4141.01 of the Revised Code, shall not be	2801
paid to any individual for any week of unemployment that begins	2802
during the period between two successive academic years or terms,	2803
or during a similar period between two regular but not successive	2804
terms or during a period of paid sabbatical leave provided for in	2805
the individual's contract, if the individual performs such	2806
services in the first of those academic years or terms and has a	2807
contract or a reasonable assurance that the individual will	2808
perform services in any such capacity for any such institution in	2809
the second of those academic years or terms.	2810

(b) Benefits based on service for an educational institution	2811
or an institution of higher education in other than an	2812
instructional, research, or principal administrative capacity,	2813
shall not be paid to any individual for any week of unemployment	2814
which begins during the period between two successive academic	2815
years or terms of the employing educational institution or	2816
institution of higher education, provided the individual performed	2817
those services for the educational institution or institution of	2818
higher education during the first such academic year or term and,	2819
there is a reasonable assurance that such individual will perform	2820
those services for any educational institution or institution of	2821
higher education in the second of such academic years or terms.	2822

If compensation is denied to any individual for any week	2823
under division (I)(J)(1)(b) of this section and the individual was	2824
not offered an opportunity to perform those services for an	2825
institution of higher education or for an educational institution	2826
for the second of such academic years or terms, the individual is	2827
entitled to a retroactive payment of compensation for each week	2828
for which the individual timely filed a claim for compensation and	2829
for which compensation was denied solely by reason of division	2830
(I)(J)(1)(b) of this section. An application for retroactive	2831
benefits shall be timely filed if received by the director or the	2832
director's deputy within or prior to the end of the fourth full	2833
calendar week after the end of the period for which benefits were	2834
denied because of reasonable assurance of employment. The	2835
provision for the payment of retroactive benefits under division	2836
(I)(J)(1)(b) of this section is applicable to weeks of	2837
unemployment beginning on and after November 18, 1983. The	2838
provisions under division (I)(J)(1)(b) of this section shall be	2839
retroactive to September 5, 1982, only if, as a condition for full	2840
tax credit against the tax imposed by the "Federal Unemployment	2841
Tax Act," 53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311, the	2842
United States secretary of labor determines that retroactivity is	2843
required by federal law.	2844

(c) With respect to weeks of unemployment beginning after	2845
December 31, 1977, benefits shall be denied to any individual for	2846
any week which commences during an established and customary	2847
vacation period or holiday recess, if the individual performs any	2848
services described in divisions (I)(J)(1)(a) and (b) of this	2849
section in the period immediately before the vacation period or	2850
holiday recess, and there is a reasonable assurance that the	2851
individual will perform any such services in the period	2852
immediately following the vacation period or holiday recess.	2853

(d) With respect to any services described in division	2854
(I)(J)(1)(a), (b), or (c) of this section, benefits payable on the	2855
basis of services in any such capacity shall be denied as	2856
specified in division (I)(J)(1)(a), (b), or (c) of this section to	2857
any individual who performs such services in an educational	2858
institution or institution of higher education while in the employ	2859
of an educational service agency. For this purpose, the term	2860
"educational service agency" means a governmental agency or	2861
governmental entity that is established and operated exclusively	2862
for the purpose of providing services to one or more educational	2863
institutions or one or more institutions of higher education.	2864

(e) Any individual employed by a public school district or a	2865
county board of developmental disabilities shall be notified by	2866
the thirtieth day of April each year if the individual is not to	2867
be reemployed the following academic year.	2868

(2) No disqualification will be imposed, between academic	2869
years or terms or during a vacation period or holiday recess under	2870
this division, unless the director or the director's deputy has	2871
received a statement in writing from the educational institution	2872
or institution of higher education that the claimant has a	2873
contract for, or a reasonable assurance of, reemployment for the	2874
ensuing academic year or term.	2875

(3) If an individual has employment with an educational	2876
institution or an institution of higher education and employment	2877
with a noneducational employer, during the base period of the	2878
individual's benefit year, then the individual may become eligible	2879
for benefits during the between-term, or vacation or holiday	2880
recess, disqualification period, based on employment performed for	2881
the noneducational employer, provided that the employment is	2882
sufficient to qualify the individual for benefit rights separately	2883
from the benefit rights based on school employment. The weekly	2884
benefit amount and maximum benefits payable during a	2885
disqualification period shall be computed based solely on the	2886
nonschool employment.	2887

(J)(K) Benefits shall not be paid on the basis of employment	2888
performed by an alien, unless the alien had been lawfully admitted	2889
to the United States for permanent residence at the time the	2890
services were performed, was lawfully present for purposes of	2891
performing the services, or was otherwise permanently residing in	2892
the United States under color of law at the time the services were	2893
performed, under section 212(d)(5) of the "Immigration and	2894
Nationality Act," 66 Stat. 163, 8 U.S.C.A. 1101:	2895

(1) Any data or information required of individuals applying	2896
for benefits to determine whether benefits are not payable to them	2897
because of their alien status shall be uniformly required from all	2898
applicants for benefits.	2899

(2) In the case of an individual whose application for	2900
benefits would otherwise be approved, no determination that	2901
benefits to the individual are not payable because of the	2902
individual's alien status shall be made except upon a	2903
preponderance of the evidence that the individual had not, in	2904
fact, been lawfully admitted to the United States.	2905

(K)(L) The director shall establish and utilize a system of	2906
profiling all new claimants under this chapter that:	2907

(1) Identifies which claimants will be likely to exhaust	2908
regular compensation and will need job search assistance services	2909
to make a successful transition to new employment;	2910

(2) Refers claimants identified pursuant to division	2911
(K)(L)(1) of this section to reemployment services, such as job	2912
search assistance services, available under any state or federal	2913
law;	2914

(3) Collects follow-up information relating to the services	2915
received by such claimants and the employment outcomes for such	2916
claimant's subsequent to receiving such services and utilizes such	2917
information in making identifications pursuant to division	2918
(K)(L)(1) of this section; and	2919

(4) Meets such other requirements as the United States	2920
secretary of labor determines are appropriate.	2921

(M) As used in this section, "seeking only part-time work"	2922
means the claimant is willing and able to work at least twelve	2923
hours per week.	2924

Sec. 4141.293.  (A) As used in this section:

2925

(1) "Compelling family circumstances" means any of the	2926
following:	2927

(a) The claimant was separated from employment with the	2928
claimant's employer because of the claimant's illness or	2929
disability and, based upon available information, the director of	2930
job and family services finds that it was medically necessary for	2931
the claimant to stop working or change occupations.	2932

(b) The claimant was separated from work due to an immediate	2933
family member's illness or disability.	2934

(c) The claimant's spouse was transferred or employed in	2935
another city or state, the family is required to move to the	2936
location of that job, the location is outside the commuting	2937
distance of the claimant's previous employment, and the claimant	2938
separates from employment in order to move to the new location	2939
with the claimant's spouse.	2940

(2) "Disability" means a verified disability that	2941
necessitates the care of the disabled person for a period of time	2942
that exceeds the amount of time an employer will provide paid or	2943
unpaid leave. "Disability" includes mental and physical	2944
disabilities, permanent and temporary disabilities, and partial	2945
and total disabilities.	2946

(3) "Immediate family member" means a claimant's spouse,	2947
parent, or child under the age of eighteen.	2948

(4) "Illness" means a verified illness that necessitates the	2949
care of the ill person for a period of time that exceeds the	2950
amount of time an employer will provide paid or unpaid leave.	2951

(B)(1) Notwithstanding section 4141.29 of the Revised Code, a	2952
claimant is eligible for waiting week credit and for unemployment	2953
compensation benefits if the director finds that the claimant has	2954
left work voluntarily or has been discharged because of	2955
circumstances directly resulting from domestic abuse and any of	2956
the following applies:	2957

(a) The claimant reasonably fears future domestic abuse at or	2958
en route to the workplace.	2959

(b) The claimant needs to relocate to avoid future domestic	2960
abuse.	2961

(c) The claimant reasonably believes that leaving work is	2962
necessary for the safety of the claimant or the claimant's family.	2963

(2) When determining if a claimant has experienced domestic	2964
abuse for the purpose of receiving unemployment compensation	2965
benefits, the director shall require the claimant to provide	2966
documentation of domestic abuse that may include police or court	2967
records or other documentation of abuse from a shelter worker,	2968
attorney, member of the clergy, or medical or other professional	2969
from whom the claimant has sought assistance.	2970

(3) The director shall keep confidential any documentation or	2971
evidence of domestic abuse acquired by the director pursuant to	2972
this section unless the claimant gives written consent for	2973
disclosure.	2974

(C) Notwithstanding section 4141.29 of the Revised Code, an	2975
individual is eligible for waiting week credit and for	2976
unemployment compensation benefits if the director determines that	2977
the claimant was separated from employment due to compelling	2978
family circumstances.	2979

Sec. 4141.302. (A) As used in this section:

2980

(1) "Declining occupation" means either of the following	2981
occupations:	2982

(a) An occupation in which a lack of sufficient current	2983
demand in a claimant's labor market area exists for the	2984
occupational skills for which the claimant is qualified by	2985
training and experience or current physical or mental capacity,	2986
and the lack of employment opportunities is expected to continue	2987
for an extended period of time;	2988

(b) An occupation for which a seasonal variation in demand	2989
exists in the labor market and a claimant has no other skills for	2990
which a current demand exists.	2991

(2) "Extended benefits" and "regular benefits" have the same	2992
meanings as in section 4141.301 of the Revised Code.	2993

(3) "High-demand occupation" means an occupation in a labor	2994
market area where work opportunities are available and qualified	2995
applicants are lacking as determined by the use of available labor	2996
market information.	2997

(4) "Similar stipend" means an amount provided under a	2998
program with similar aims, such as providing training to increase	2999
employability, as the program described in division (B)(3) of this	3000
section.	3001

(B) A claimant who otherwise is eligible for regular benefits	3002
is eligible to receive training extension benefits if the director	3003
of job and family services determines that the claimant satisfies	3004
all of the following criteria:	3005

(1) The claimant is unemployed.

3006

(2) The claimant has exhausted all rights to regular	3007
benefits, all rights to extended benefits, and all rights to	3008
benefits under section 2002 of division B, title n, known as "The	3009
Assistance for Unemployed Workers and Struggling Families Act" of	3010
the "American Recovery and Reinvestment Act of 2009," Pub. L. No.	3011
111-5, 123 Stat. 115, as amended.	3012

(3) The claimant is enrolled in a training program approved	3013
by the director or in a job training program authorized under the	3014
"Workforce Investment Act of 1998," 112 Stat. 936, 29 U.S.C. 2801	3015
et seq., as amended; except that the training program must prepare	3016
the claimant for entry into a high-demand occupation if the	3017
director determines that the claimant separated from a declining	3018
occupation or has been involuntarily and indefinitely separated	3019
from employment as a result of a permanent reduction of operations	3020
at the claimant's place of employment.	3021

(4) The claimant is making satisfactory progress to complete	3022
the training as determined by the director.	3023

(C) The amount of a claimant's weekly training extension	3024
benefit shall equal the claimant's weekly benefit amount as	3025
determined for the most recent benefit year, less any deductible	3026
income as determined under section 4141.31 of the Revised Code and	3027
any reduction required by division (D) of this section. The total	3028
amount of training extension benefits payable to a claimant shall	3029
be equal to twenty-six times the claimant's average weekly benefit	3030
amount for the most recent benefit year. A claimant who is	3031
receiving training extension benefits shall not be denied training	3032
extension benefits because the claimant may not satisfy the	3033
requirements of division (A)(4) or (5) of section 4141.29 of the	3034
Revised Code. The director shall charge any training extension	3035
benefits paid pursuant to this section to the mutualized account	3036
created in section 4141.25 of the Revised Code and shall not	3037
charge an employer's account for any training extension benefits	3038
paid to a claimant.	3039

(D) The amount of a claimant's weekly training extension	3040
benefit shall be reduced by the amount of any similar stipend or	3041
other training allowances for nontraining costs received by the	3042
claimant for the week that the weekly training extension benefit	3043
is due to the claimant.	3044

Sec. 4141.50.  There is hereby created the short-time	3045
compensation program. An employer who wishes to participate in the	3046
program shall submit a plan to the director of job and family	3047
services that satisfies the requirements listed in section 4141.51	3048
of the Revised Code. If an employee the employer covers under the	3049
plan is subject to a collective bargaining agreement, the employer	3050
shall have the employee's collective bargaining agent approve the	3051
plan in writing. The written approval shall include a statement as	3052
to whether the agent believes the implementation of the plan is	3053
consistent with federal law. The employer shall submit that	3054
approval to the director with the employer's proposed plan.	3055

Sec. 4141.51.  (A) The director of job and family services	3056
shall approve a short-time compensation plan submitted under	3057
section 4141.50 of the Revised Code if all of the following are	3058
satisfied:	3059

(1) The employer identifies a specific affected unit in the	3060
plan to which the plan will apply.	3061

(2) The employer identifies in the plan the employees in the	3062
affected unit by name and social security number.	3063

(3) The employer includes a provision in the plan that	3064
reduces the normal weekly hours of work for an employee in the	3065
affected unit identified in the plan by at least ten per cent but	3066
not more than sixty per cent.	3067

(4) The employer states in the plan that the participating	3068
employer will continue to provide fringe benefits on the same	3069
basis as the fringe benefits were provided before the reduction in	3070
work hours to implement the plan.	3071

(5) The employer certifies in the plan that the	3072
implementation of a short-time compensation plan and resulting	3073
reduction in work hours is in lieu of temporary layoffs and	3074
includes an estimate of the number of layoffs that would have	3075
occurred absent the ability to participate in the short-time	3076
compensation plan.	3077

(6) The employer agrees in writing in the plan to furnish the	3078
director reports relating to the operation of the plan as the	3079
director requests in accordance with section 4141.54 of the	3080
Revised Code.	3081

(7) The employer describes in the plan the manner in which	3082
the plan will be implemented and includes a plan to give advance	3083
notice, if feasible, to an employee whose normal weekly hours of	3084
work will be reduced under the plan.	3085

(B) An employer that traditionally has used part-time	3086
employees shall not implement a short-time compensation plan to	3087
subsidize the employer's employees. A seasonal employer shall not	3088
implement a shared work plan to subsidize the seasonal employer's	3089
employees during the off-season. As used in this division,	3090
"seasonal employer" has the same meaning as in section 4141.33 of	3091
the Revised Code.	3092

(C) The director shall approve or deny a short-time	3093
compensation plan and shall send a written notice to the employer	3094
stating whether the director approved or denied the plan not later	3095
than thirty days after the director receives the plan. If the	3096
director denies approval of a short-time compensation plan, the	3097
director shall state the reasons for denying approval in the	3098
written notice sent to the employer.	3099

Sec. 4141.52.  A short-time compensation plan approved under	3100
section 4141.51 of the Revised Code takes effect on the date the	3101
director of job and family services approves the plan. An approved	3102
plan expires on the last day of the twelfth calendar month	3103
beginning after the effective date of the plan. The director may	3104
terminate any approved plan for good cause if the plan is not	3105
being executed according to the terms and intent of the short-time	3106
compensation program.	3107

Sec. 4141.53.  A participating employer may modify a	3108
short-time compensation plan approved under section 4141.51 of the	3109
Revised Code to meet changed conditions regarding the	3110
participating employer's business if the modification conforms to	3111
the basic provisions of the plan as approved by the director of	3112
job and family services. Before implementing the proposed change,	3113
the participating employer shall report the proposed change in	3114
writing to the director. If the director determines that the	3115
proposed change will result in a substantial modification of the	3116
plan approved under section 4141.51 of the Revised Code, the	3117
director shall reevaluate the proposed modified plan to determine	3118
whether the plan continues to satisfy the requirements listed in	3119
divisions (A)(1) to (7) of that section. The director shall	3120
approve or deny the modification in accordance with that section.	3121
If the director determines that the proposed change does not	3122
result in a substantial modification to the approved plan, the	3123
director shall approve the proposed change unless the director	3124
determines that the modification does not conform to the basic	3125
provisions of the approved plan.	3126

Approval of a modified plan does not affect the plan's	3127
original expiration date determined under section 4141.52 of the	3128
Revised Code.	3129

Sec. 4141.54.  Upon request of the director of job and family	3130
services, a participating employer shall monitor and evaluate the	3131
operation of the participating employer's short-time compensation	3132
plan and shall report the participating employer's findings to the	3133
director.	3134

Sec. 4141.55.  (A) Notwithstanding section 4141.01, 4141.29,	3135
4141.30, or 4141.31 of the Revised Code, an individual is	3136
unemployed for purposes of this chapter in a week during which the	3137
individual is a participating employee under a short-time	3138
compensation plan approved under section 4141.51 of the Revised	3139
Code that is in effect for that week.	3140

(B) An individual is eligible to receive short-time	3141
compensation benefits for a week in which the individual satisfies	3142
all of the following:	3143

(1) The individual is employed as a member of an affected	3144
unit subject to a shared-time compensation plan that was approved	3145
before that week and is in effect for that week.	3146

(2) The individual is able to work and is available for work	3147
with the employer under the employer's short-time compensation	3148
plan.	3149

(3) The individual's normal weekly hours of work have been	3150
reduced by at least ten per cent but not more than sixty per cent	3151
and the individual receives a corresponding reduction in wages.	3152

(C) Notwithstanding section 4141.29 of the Revised Code, the	3153
director of job and family services shall not deny short-time	3154
compensation benefits for a week to an otherwise eligible employee	3155
because the employee is unavailable for work other than as	3156
required under division (B)(2) of this section, is not actively	3157
searching for work, or refuses to apply for or to accept work with	3158
an employer other than with the employer who is implementing the	3159
plan.	3160

(D) The director shall pay an employee who is eligible for a	3161
weekly short-time compensation benefit in an amount equal to the	3162
employee's regular weekly benefit amount for a period of total	3163
unemployment as described in division (D) of section 4141.30 of	3164
the Revised Code multiplied by the nearest full percentage of	3165
reduction of the employee's wages under the employer's short-time	3166
compensation plan. The director shall round the amount of a	3167
short-time compensation benefit that is not a multiple of one	3168
dollar to the next highest dollar amount.	3169

(E) An employee is not entitled to receive short-time	3170
compensation benefits and regular unemployment compensation	3171
benefits that exceed the maximum total benefits payable to the	3172
employee in a benefit year under section 4141.30 of the Revised	3173
Code. An employee shall receive short-time compensation benefits	3174
for a maximum of twenty-six weeks regardless of whether the	3175
employee has received the total maximum benefits payable for the	3176
employee's benefit year. An individual who receives short-time	3177
compensation benefits is not entitled to receive benefits for	3178
partial unemployment under division (C) of section 4141.30 of the	3179
Revised Code for any week during which the individual participates	3180
in a short-time compensation plan. The director shall not pay an	3181
individual short-time compensation benefits for a week during	3182
which the individual performs paid work for the employer	3183
implementing the short-time compensation plan that exceeds the	3184
reduced hours established under the plan.	3185

(F) An individual participating in a short-time compensation	3186
plan may participate in training, including a training program	3187
sponsored by the employer implementing the plan or funded under	3188
the federal "Workforce Development Act of 1998," 112 Stat. 936, 29	3189
U.S.C. 2801 et seq., as amended, to enhance job skills if the	3190
program is approved by the director.	3191

(G) An individual who has received all of the short-time	3192
compensation benefits and regular unemployment compensation	3193
benefits available in a benefit year is an individual who has	3194
exhausted regular benefits under section 4141.30 of the Revised	3195
Code and is entitled to receive extended benefits under section	3196
4141.301 of the Revised Code if the individual is otherwise	3197
eligible to receive benefits under that section.	3198

Sec. 4141.56.  (A) As used in this section and sections	3199
4141.57 and 4141.58 of the Revised Code, "regular benefits" has	3200
the same meaning as in section 4141.301 of the Revised Code.	3201

(B) There is hereby created the bridge to work program. An	3202
employer certified to participate in the program under section	3203
4141.57 of the Revised Code shall provide short-term work	3204
experience to a claimant who is receiving regular benefits under	3205
this chapter and who participates. A participating claimant shall	3206
be paid in accordance with division (C) of this section and the	3207
employer is not required to pay the claimant wages.	3208

(C) The regular benefits a claimant receives while	3209
participating in the bridge to work program constitute the	3210
claimant's wages for work performed in that program.	3211

(D) None of the wages paid under division (C) of this section	3212
shall be considered as income for the purposes of determining	3213
eligibility for, and the amount of income transfer and in-kind aid	3214
furnished under, any federal or federally assisted program based	3215
on need.	3216

(E) All wages or other payments to an individual under this	3217
section shall be treated as payments of unemployment insurance for	3218
purposes of section 209 of the "Social Security Act," 49 Stat.	3219
625, 42 U.S.C. 409, as amended, and for purposes of subtitle A and	3220
sections 3101 and 3111 of the "Internal Revenue Code of 1986," 100	3221
Stat. 2085, 26 U.S.C. 1 et seq., as amended.	3222

Sec. 4141.57.  (A) The director of job and family services	3223
shall adopt rules in accordance with Chapter 119. of the Revised	3224
Code to establish criteria an employer shall satisfy to	3225
participate in the bridge to work program created under section	3226
4141.56 of the Revised Code. The criteria shall include a	3227
requirement that the employer provide coverage under Chapters	3228
4121., 4123., 4127., and 4131. of the Revised Code to claimants	3229
who participate in the program and who are employed by the	3230
employer under the program. The director shall certify an employer	3231
to participate in the program if the employer satisfies the	3232
criteria established by the director in the rules the director	3233
adopts unless any of the following circumstances apply:	3234

(1) The employer is a federal, state, or local government	3235
agency.	3236

(2) The employer would engage an eligible claimant in work	3237
activities under any employer's grant, contract, or subcontract	3238
with a federal, state, or local government agency, except with	3239
regard to work activities under the employer's supply contract or	3240
subcontract.	3241

(3) The employer is delinquent with respect to any taxes or	3242
employer contributions described under sections 3301 and	3243
3303(a)(1) of the "Internal Revenue Code of 1986," 100 Stat. 2085,	3244
26 U.S.C. 1 et seq., as amended, or with respect to any related	3245
reporting requirements.	3246

(4) The employer is engaged in the business of supplying	3247
workers to other employers and would participate in the program	3248
for the purpose of supplying claimants participating in the	3249
program to other employers.	3250

(5) The employer previously has participated in the program	3251
and the director has determined that the employer failed to abide	3252
by any of the requirements specified in divisions (B), (C), or (D)	3253
of this section, or by any other requirements that the director	3254
establishes for employers under division (A) of this section,	3255
unless the employer provides assurances that it has not displaced	3256
existing workers pursuant to the requirements of division (B) of	3257
this section.	3258

(B) An employer participating in the bridge to work program	3259
shall not use a participant in the program to displace any	3260
employee employed by the employer as of the date the employer	3261
participates in the program, including for any partial	3262
displacement, such as a reduction in the hours of nonovertime	3263
work, wages, or employment benefits.	3264

An employer participating in the program shall not permit a	3265
claimant participating in the program to perform work activities	3266
related to any job for which any of the following circumstances	3267
apply:	3268

(1) Another individual is on layoff from the same or any	3269
substantially equivalent position.	3270

(2) The employer has terminated the employment of any	3271
employee or otherwise reduced the workforce of the employer with	3272
the intention of filling or partially filling the vacancy so	3273
created with the work activities to be performed by a program	3274
participant.	3275

(3) A strike or lockout is occurring at the worksite that is	3276
the place of employment for a claimant participating in the	3277
program.	3278

(4) The position is created in a manner that infringes in any	3279
way upon the promotional opportunities of individuals currently	3280
employed by the employer as of the date of the employer's	3281
participation in the program.	3282

(C) An employer participating in the bridge to work program	3283
shall not, by means of assigning work activities under the	3284
program, impair an existing contract for services or a collective	3285
bargaining agreement. Such an employer shall not undertake any	3286
activity that would be inconsistent with the terms of a collective	3287
bargaining agreement without the written concurrence of the labor	3288
organization that is signatory to the collective bargaining	3289
agreement.	3290

(D) If, after twenty-four weeks of participation in the	3291
program, an employer has not made an offer of suitable long-term	3292
employment to any claimant participating in the program who was	3293
placed with the employer and who has completed the program, the	3294
director shall bar the employer from further participation in the	3295
program. The director may impose additional conditions on	3296
participating employers to ensure that an appropriate number of	3297
participants receive offers of suitable long-term employment.	3298

(E) If the director determines, based on information provided	3299
to the director or acquired by the director by means of the	3300
administration and oversight functions of the director under this	3301
chapter, that an employer participating in the bridge to work	3302
program has violated a requirement of this section or section	3303
4141.56 of the Revised Code, the director shall bar the employer	3304
from further participation in the program. The director shall	3305
adopt rules in accordance with Chapter 119. of the Revised Code to	3306
establish a process to allow a claimant participating in the	3307
program, or any other affected individual or entity, to file a	3308
complaint with the director regarding a violation of any	3309
requirement or prohibition under this section or section 4141.56	3310
of the Revised Code.	3311

Sec. 4141.58.  A claimant receiving regular benefits may	3312
participate in the bridge to work program created under section	3313
4141.56 of the Revised Code for not more than eight weeks and may	3314
work for thirty-eight hours per week. A claimant participating in	3315
the program may elect to discontinue participation in the program,	3316
and that election does not affect the claimant's ability to	3317
receive unemployment compensation benefits under this chapter.	3318

Any wages paid to a claimant under section 4141.56 of the	3319
Revised Code, and any work activities performed by the claimant	3320
individual as a participant in the bridge to work program, shall	3321
not be construed so as to render such individual ineligible to	3322
receive emergency unemployment compensation under Title IV of the	3323
"Supplemental Appropriations Act," 2008, Pub. Law 110-252, 26	3324
U.S.C. 3304 note.	3325

Unless otherwise provided in this section or section 4141.56	3326
or 4141.57 of the Revised Code, nothing in this section or section	3327
4141.56 or 4141.57 of the Revised Code shall be construed to alter	3328
or affect the rights or obligations under any federal, state, or	3329
local laws with respect to any claimant or employer participating	3330
in the bridge to work program.	3331

Sec. 4301.20.  This chapter and Chapter 4303. of the Revised	3332
Code do not prevent the following:	3333

(A) The storage of intoxicating liquor in bonded warehouses,	3334
established in accordance with the acts of congress and under the	3335
regulation of the United States, located in this state, or the	3336
transportation of intoxicating liquor to or from bonded warehouses	3337
of the United States wherever located;	3338

(B) A bona fide resident of this state who is the owner of a	3339
warehouse receipt from obtaining or transporting to the resident's	3340
residence for the resident's own consumption and not for resale	3341
spirituous liquor stored in a government bonded warehouse in this	3342
state or in another state prior to December 1933, subject to such	3343
terms as are prescribed by the division of liquor control;	3344

(C) The manufacture of cider from fruit for the purpose of	3345
making vinegar, and nonintoxicating cider and fruit juices for use	3346
and sale;	3347

(D) A licensed physician or dentist from administering or	3348
dispensing intoxicating liquor or alcohol to a patient in good	3349
faith in the actual course of the practice of the physician's or	3350
dentist's profession;	3351

(E) The sale of alcohol to physicians, dentists, druggists,	3352
veterinary surgeons, manufacturers, hospitals, infirmaries, or	3353
medical or educational institutions using the alcohol for	3354
medicinal, mechanical, chemical, or scientific purposes;	3355

(F) The sale, gift, or keeping for sale by druggists and	3356
others of any of the medicinal preparations manufactured in	3357
accordance with the formulas prescribed by the United States	3358
Pharmacopoeia and National Formulary, patent or proprietary	3359
preparations, and other bona fide medicinal and technical	3360
preparations, which contain no more alcohol than is necessary to	3361
hold the medicinal agents in solution and to preserve the same,	3362
which are manufactured and sold as medicine and not as beverages,	3363
are unfit for use for beverage purposes, and the sale of which	3364
does not require the payment of a United States liquor dealer's	3365
tax;	3366

(G) The manufacture and sale of tinctures or of toilet,	3367
medicinal, and antiseptic preparations and solutions not intended	3368
for internal human use nor to be sold as beverages, and which are	3369
unfit for beverage purposes, if upon the outside of each bottle,	3370
box, or package of which there is printed in the English language,	3371
conspicuously and legibly, the quantity by volume of alcohol in	3372
the preparation or solution;	3373

(H) The manufacture and keeping for sale of the food products	3374
known as flavoring extracts when manufactured and sold for	3375
cooking, culinary, or flavoring purposes, and which are unfit for	3376
use for beverage purposes;	3377

(I) The lawful sale of wood alcohol or of ethyl alcohol for	3378
external use when combined with other substances as to make it	3379
unfit for internal use;	3380

(J) The manufacture, sale, and transport of ethanol or ethyl	3381
alcohol for use as fuel. As used in this division, "ethanol" has	3382
the same meaning as in section 5733.46122.075 of the Revised	3383
Code.	3384

(K) The purchase and importation into this state or the	3385
purchase at wholesale from A or B permit holders in this state of	3386
beer and intoxicating liquor for use in manufacturing processes of	3387
nonbeverage food products under terms prescribed by the division,	3388
provided that the terms prescribed by the division shall not	3389
increase the cost of the beer or intoxicating liquor to any	3390
person, firm, or corporation purchasing and importing it into this	3391
state or purchasing it from an A or B permit holder for that use;	3392

(L) Any resident of this state or any member of the armed	3393
forces of the United States, who has attained the age of	3394
twenty-one years, from bringing into this state, for personal use	3395
and not for resale, not more than one liter of spirituous liquor,	3396
four and one-half liters of wine, or two hundred eighty-eight	3397
ounces of beer in any thirty-day period, and the same is free of	3398
any tax consent fee when the resident or member of the armed	3399
forces physically possesses and accompanies the spirituous liquor,	3400
wine, or beer on returning from a foreign country, another state,	3401
or an insular possession of the United States;	3402

(M) Persons, at least twenty-one years of age, who collect	3403
ceramic commemorative bottles containing spirituous liquor that	3404
have unbroken federal tax stamps on them from selling or trading	3405
the bottles to other collectors. The bottles shall originally have	3406
been purchased at retail from the division, legally imported under	3407
division (L) of this section, or legally imported pursuant to a	3408
supplier registration issued by the division. The sales shall be	3409
for the purpose of exchanging a ceramic commemorative bottle	3410
between private collectors and shall not be for the purpose of	3411
selling the spirituous liquor for personal consumption. The sale	3412
or exchange authorized by this division shall not occur on the	3413
premises of any permit holder, shall not be made in connection	3414
with the business of any permit holder, and shall not be made in	3415
connection with any mercantile business.	3416

(N) The sale of beer or intoxicating liquor without a liquor	3417
permit at a private residence, not more than five times per	3418
calendar year at a residence address, at an event that has the	3419
following characteristics:	3420

(1) The event is for a charitable, benevolent, or political	3421
purpose, but shall not include any event the proceeds of which are	3422
for the profit or gain of any individual;	3423

(2) The event has in attendance not more than fifty people;

3424

(3) The event shall be for a period not to exceed twelve	3425
hours;	3426

(4) The sale of beer and intoxicating liquor at the event	3427
shall not take place between two-thirty a.m. and five-thirty a.m.;	3428

(5) No person under twenty-one years of age shall purchase or	3429
consume beer or intoxicating liquor at the event and no beer or	3430
intoxicating liquor shall be sold to any person under twenty-one	3431
years of age at the event; and	3432

(6) No person at the event shall sell or furnish beer or	3433
intoxicating liquor to an intoxicated person.	3434

Sec. 4719.01.  (A) As used in sections 4719.01 to 4719.18 of	3435
the Revised Code:	3436

(1) "Affiliate" means a business entity that is owned by,	3437
operated by, controlled by, or under common control with another	3438
business entity.	3439

(2) "Communication" means a written or oral notification or	3440
advertisement that meets both of the following criteria, as	3441
applicable:	3442

(a) The notification or advertisement is transmitted by or on	3443
behalf of the seller of goods or services and by or through any	3444
printed, audio, video, cinematic, telephonic, or electronic means.	3445

(b) In the case of a notification or advertisement other than	3446
by telephone, either of the following conditions is met:	3447

(i) The notification or advertisement is followed by a	3448
telephone call from a telephone solicitor or salesperson.	3449

(ii) The notification or advertisement invites a response by	3450
telephone, and, during the course of that response, a telephone	3451
solicitor or salesperson attempts to make or makes a sale of goods	3452
or services. As used in division (A)(2)(b)(ii) of this section,	3453
"invites a response by telephone" excludes the mere listing or	3454
inclusion of a telephone number in a notification or	3455
advertisement.	3456

(3) "Gift, award, or prize" means anything of value that is	3457
offered or purportedly offered, or given or purportedly given by	3458
chance, at no cost to the receiver and with no obligation to	3459
purchase goods or services. As used in this division, "chance"	3460
includes a situation in which a person is guaranteed to receive an	3461
item and, at the time of the offer or purported offer, the	3462
telephone solicitor does not identify the specific item that the	3463
person will receive.	3464

(4) "Goods or services" means any real property or any	3465
tangible or intangible personal property, or services of any kind	3466
provided or offered to a person. "Goods or services" includes, but	3467
is not limited to, advertising; labor performed for the benefit of	3468
a person; personal property intended to be attached to or	3469
installed in any real property, regardless of whether it is so	3470
attached or installed; timeshare estates or licenses; and extended	3471
service contracts.	3472

(5) "Purchaser" means a person that is solicited to become or	3473
does become financially obligated as a result of a telephone	3474
solicitation.	3475

(6) "Salesperson" means an individual who is employed,	3476
appointed, or authorized by a telephone solicitor to make	3477
telephone solicitations but does not mean any of the following:	3478

(a) An individual who comes within one of the exemptions in	3479
division (B) of this section;	3480

(b) An individual employed, appointed, or authorized by a	3481
person who comes within one of the exemptions in division (B) of	3482
this section;	3483

(c) An individual under a written contract with a person who	3484
comes within one of the exemptions in division (B) of this	3485
section, if liability for all transactions with purchasers is	3486
assumed by the person so exempted.	3487

(7) "Telephone solicitation" means a communication to a	3488
person that meets both of the following criteria:	3489

(a) The communication is initiated by or on behalf of a	3490
telephone solicitor or by a salesperson.	3491

(b) The communication either represents a price or the	3492
quality or availability of goods or services or is used to induce	3493
the person to purchase goods or services, including, but not	3494
limited to, inducement through the offering of a gift, award, or	3495
prize.	3496

(8) "Telephone solicitor" means a person that engages in	3497
telephone solicitation directly or through one or more	3498
salespersons either from a location in this state, or from a	3499
location outside this state to persons in this state. "Telephone	3500
solicitor" includes, but is not limited to, any such person that	3501
is an owner, operator, officer, or director of, partner in, or	3502
other individual engaged in the management activities of, a	3503
business.	3504

(9) "Magazines distributed as controlled circulation	3505
publications" means magazines containing at least twenty-four	3506
pages, at least twenty-five per cent editorial content, issued at	3507
regular intervals four or more times a year, and circulated	3508
without charge to the recipient, provided that such magazines are	3509
not owned or controlled by individuals or business concerns which	3510
conduct such publications as an auxiliary to, and essentially for	3511
the advancement of the main business or calling of, those who own	3512
or control them.	3513

(B) A telephone solicitor is exempt from the provisions of	3514
sections 4719.02 to 4719.18 and section 4719.99 of the Revised	3515
Code if the telephone solicitor is any one of the following:	3516

(1) A person engaging in a telephone solicitation that is a	3517
one-time or infrequent transaction not done in the course of a	3518
pattern of repeated transactions of a like nature;	3519

(2) A person engaged in telephone solicitation solely for	3520
religious or political purposes; a charitable organization,	3521
fund-raising counsel, or professional solicitor in compliance with	3522
the registration and reporting requirements of Chapter 1716. of	3523
the Revised Code; or any person or other entity exempt under	3524
section 1716.03 of the Revised Code from filing a registration	3525
statement under section 1716.02 of the Revised Code;	3526

(3) A person, making a telephone solicitation involving a	3527
home solicitation sale as defined in section 1345.21 of the	3528
Revised Code, that makes the sales presentation and completes the	3529
sale at a later, face-to-face meeting between the seller and the	3530
purchaser rather than during the telephone solicitation. However,	3531
if the person, following the telephone solicitation, causes	3532
another person to collect the payment of any money, this exemption	3533
does not apply.	3534

(4) A licensed securities, commodities, or investment broker,	3535
dealer, investment advisor, or associated person when making a	3536
telephone solicitation within the scope of the person's license.	3537
As used in division (B)(4) of this section, "licensed securities,	3538
commodities, or investment broker, dealer, investment advisor, or	3539
associated person" means a person subject to licensure or	3540
registration as such by the securities and exchange commission;	3541
the National Association of Securities Dealers or other	3542
self-regulatory organization, as defined by 15 U.S.C.A. 78c; by	3543
the division of securities under Chapter 1707. of the Revised	3544
Code; or by an official or agency of any other state of the United	3545
States.	3546

(5)(a) A person primarily engaged in soliciting the sale of a	3547
newspaper of general circulation;	3548

(b) As used in division (B)(5)(a) of this section, "newspaper	3549
of general circulation" includes, but is not limited to, both of	3550
the following:	3551

(i) A newspaper that is a daily law journal designated as an	3552
official publisher of court calendars pursuant to section 2701.09	3553
of the Revised Code;	3554

(ii) A newspaper or publication that has at least twenty-five	3555
per cent editorial, non-advertising content, exclusive of inserts,	3556
measured relative to total publication space, and an audited	3557
circulation to at least fifty per cent of the households in the	3558
newspaper's retail trade zone as defined by the audit.	3559

(6)(a) An issuer, or its subsidiary, that has a class of	3560
securities to which all of the following apply:	3561

(i) The class of securities is subject to section 12 of the	3562
"Securities Exchange Act of 1934," 15 U.S.C.A. 78l, and is	3563
registered or is exempt from registration under 15 U.S.C.A.	3564
78l(g)(2)(A), (B), (C), (E), (F), (G), or (H);	3565

(ii) The class of securities is listed on the New York stock	3566
exchange, the American stock exchange, or the NASDAQ national	3567
market system;	3568

(iii) The class of securities is a reported security as	3569
defined in 17 C.F.R. 240.11Aa3-1(a)(4).	3570

(b) An issuer, or its subsidiary, that formerly had a class	3571
of securities that met the criteria set forth in division	3572
(B)(6)(a) of this section if the issuer, or its subsidiary, has a	3573
net worth in excess of one hundred million dollars, files or its	3574
parent files with the securities and exchange commission an S.E.C.	3575
form 10-K, and has continued in substantially the same business	3576
since it had a class of securities that met the criteria in	3577
division (B)(6)(a) of this section. As used in division (B)(6)(b)	3578
of this section, "issuer" and "subsidiary" include the successor	3579
to an issuer or subsidiary.	3580

(7) A person soliciting a transaction regulated by the	3581
commodity futures trading commission, if the person is registered	3582
or temporarily registered for that activity with the commission	3583
under 7 U.S.C.A. 1 et. seq. and the registration or temporary	3584
registration has not expired or been suspended or revoked;	3585

(8) A person soliciting the sale of any book, record, audio	3586
tape, compact disc, or video, if the person allows the purchaser	3587
to review the merchandise for at least seven days and provides a	3588
full refund within thirty days to a purchaser who returns the	3589
merchandise or if the person solicits the sale on behalf of a	3590
membership club operating in compliance with regulations adopted	3591
by the federal trade commission in 16 C.F.R. 425;	3592

(9) A supervised financial institution or its subsidiary. As	3593
used in division (B)(9) of this section, "supervised financial	3594
institution" means a bank, trust company, savings and loan	3595
association, savings bank, credit union, industrial loan company,	3596
consumer finance lender, commercial finance lender, or institution	3597
described in section 2(c)(2)(F) of the "Bank Holding Company Act	3598
of 1956," 12 U.S.C.A. 1841(c)(2)(F), as amended, supervised by an	3599
official or agency of the United States, this state, or any other	3600
state of the United States; or a licensee or registrant under	3601
sections 1321.01 to 1321.19, 1321.51 to 1321.60, or 1321.71 to	3602
1321.83 of the Revised Code.	3603

(10)(a) An insurance company, association, or other	3604
organization that is licensed or authorized to conduct business in	3605
this state by the superintendent of insurance pursuant to Title	3606
XXXIX of the Revised Code or Chapter 1751. of the Revised Code,	3607
when soliciting within the scope of its license or authorization.	3608

(b) A licensed insurance broker, agent, or solicitor when	3609
soliciting within the scope of the person's license. As used in	3610
division (B)(10)(b) of this section, "licensed insurance broker,	3611
agent, or solicitor" means any person licensed as an insurance	3612
broker, agent, or solicitor by the superintendent of insurance	3613
pursuant to Title XXXIX of the Revised Code.	3614

(11) A person soliciting the sale of services provided by a	3615
cable television system operating under authority of a	3616
governmental franchise or permit;	3617

(12) A person soliciting a business-to-business sale under	3618
which any of the following conditions are met:	3619

(a) The telephone solicitor has been operating continuously	3620
for at least three years under the same business name under which	3621
it solicits purchasers, and at least fifty-one per cent of its	3622
gross dollar volume of sales consists of repeat sales to existing	3623
customers to whom it has made sales under the same business name.	3624

(b) The purchaser business intends to resell the goods	3625
purchased.	3626

(c) The purchaser business intends to use the goods or	3627
services purchased in a recycling, reuse, manufacturing, or	3628
remanufacturing process.	3629

(d) The telephone solicitor is a publisher of a periodical or	3630
of magazines distributed as controlled circulation publications as	3631
defined in division (CC) of section 5739.01 of the Revised Code	3632
and is soliciting sales of advertising, subscriptions, reprints,	3633
lists, information databases, conference participation or	3634
sponsorships, trade shows or media products related to the	3635
periodical or magazine, or other publishing services provided by	3636
the controlled circulation publication.	3637

(13) A person that, not less often than once each year,	3638
publishes and delivers to potential purchasers a catalog that	3639
complies with both of the following:	3640

(a) It includes all of the following:

3641

(i) The business address of the seller;

3642

(ii) A written description or illustration of each good or	3643
service offered for sale;	3644

(iii) A clear and conspicuous disclosure of the sale price of	3645
each good or service; shipping, handling, and other charges; and	3646
return policy;.	3647

(b) One of the following applies:

3648

(i) The catalog includes at least twenty-four pages of	3649
written material and illustrations, is distributed in more than	3650
one state, and has an annual postage-paid mail circulation of not	3651
less than two hundred fifty thousand households;	3652

(ii) The catalog includes at least ten pages of written	3653
material or an equivalent amount of material in electronic form on	3654
the internet or an on-line computer service, the person does not	3655
solicit customers by telephone but solely receives telephone calls	3656
made in response to the catalog, and during the calls the person	3657
takes orders but does not engage in further solicitation of the	3658
purchaser. As used in division (B)(13)(b)(ii) of this section,	3659
"further solicitation" does not include providing the purchaser	3660
with information about, or attempting to sell, any other item in	3661
the catalog that prompted the purchaser's call or in a	3662
substantially similar catalog issued by the seller.	3663

(14) A political subdivision or instrumentality of the United	3664
States, this state, or any state of the United States;	3665

(15) A college or university or any other public or private	3666
institution of higher education in this state;	3667

(16) A public utility as defined in section 4905.02 of the	3668
Revised Code or a retail natural gas supplier as defined in	3669
section 4929.01 of the Revised Code, if the utility or supplier is	3670
subject to regulation by the public utilities commission, or the	3671
affiliate of the utility or supplier;	3672

(17) A person that solicits sales through a television	3673
program or advertisement that is presented in the same market area	3674
no fewer than twenty days per month or offers for sale no fewer	3675
than ten distinct items of goods or services; and offers to the	3676
purchaser an unconditional right to return any good or service	3677
purchased within a period of at least seven days and to receive a	3678
full refund within thirty days after the purchaser returns the	3679
good or cancels the service;	3680

(18)(a) A person that, for at least one year, has been	3681
operating a retail business under the same name as that used in	3682
connection with telephone solicitation and both of the following	3683
occur on a continuing basis:	3684

(i) The person either displays goods and offers them for	3685
retail sale at the person's business premises or offers services	3686
for sale and provides them at the person's business premises.	3687

(ii) At least fifty-one per cent of the person's gross dollar	3688
volume of retail sales involves purchases of goods or services at	3689
the person's business premises.	3690

(b) An affiliate of a person that meets the requirements in	3691
division (B)(18)(a) of this section if the affiliate meets all of	3692
the following requirements:	3693

(i) The affiliate has operated a retail business for a period	3694
of less than one year;	3695

(ii) The affiliate either displays goods and offers them for	3696
retail sale at the affiliate's business premises or offers	3697
services for sale and provides them at the affiliate's business	3698
premises;	3699

(iii) At least fifty-one per cent of the affiliate's gross	3700
dollar volume of retail sales involves purchases of goods or	3701
services at the affiliate's business premises.	3702

(c) A person that, for a period of less than one year, has	3703
been operating a retail business in this state under the same name	3704
as that used in connection with telephone solicitation, as long as	3705
all of the following requirements are met:	3706

(i) The person either displays goods and offers them for	3707
retail sale at the person's business premises or offers services	3708
for sale and provides them at the person's business premises;	3709

(ii) The goods or services that are the subject of telephone	3710
solicitation are sold at the person's business premises, and at	3711
least sixty-five per cent of the person's gross dollar volume of	3712
retail sales involves purchases of goods or services at the	3713
person's business premises;	3714

(iii) The person conducts all telephone solicitation	3715
activities according to sections 310.3, 310.4, and 310.5 of the	3716
telemarketing sales rule adopted by the federal trade commission	3717
in 16 C.F.R. part 310.	3718

(19) A person who performs telephone solicitation sales	3719
services on behalf of other persons and to whom one of the	3720
following applies:	3721

(a) The person has operated under the same ownership,	3722
control, and business name for at least five years, and the person	3723
receives at least seventy-five per cent of its gross revenues from	3724
written telephone solicitation contracts with persons who come	3725
within one of the exemptions in division (B) of this section.	3726

(b) The person is an affiliate of one or more exempt persons	3727
and makes telephone solicitations on behalf of only the exempt	3728
persons of which it is an affiliate.	3729

(c) The person makes telephone solicitations on behalf of	3730
only exempt persons, the person and each exempt person on whose	3731
behalf telephone solicitations are made have entered into a	3732
written contract that specifies the manner in which the telephone	3733
solicitations are to be conducted and that at a minimum requires	3734
compliance with the telemarketing sales rule adopted by the	3735
federal trade commission in 16 C.F.R. part 310, and the person	3736
conducts the telephone solicitations in the manner specified in	3737
the written contract.	3738

(d) The person performs telephone solicitation for religious	3739
or political purposes, a charitable organization, a fund-raising	3740
council, or a professional solicitor in compliance with the	3741
registration and reporting requirements of Chapter 1716. of the	3742
Revised Code; and meets all of the following requirements:	3743

(i) The person has operated under the same ownership,	3744
control, and business name for at least five years, and the person	3745
receives at least fifty-one per cent of its gross revenues from	3746
written telephone solicitation contracts with persons who come	3747
within the exemption in division (B)(2) of this section;	3748

(ii) The person does not conduct a prize promotion or offer	3749
the sale of an investment opportunity;	3750

(iii) The person conducts all telephone solicitation	3751
activities according to sections 310.3, 310.4, and 310.5 of the	3752
telemarketing sales rules adopted by the federal trade commission	3753
in 16 C.F.R. part 310.	3754

(20) A person that is a licensed real estate salesperson or	3755
broker under Chapter 4735. of the Revised Code when soliciting	3756
within the scope of the person's license;	3757

(21)(a) Either of the following:

3758

(i) A publisher that solicits the sale of the publisher's	3759
periodical or magazine of general, paid circulation, or a person	3760
that solicits a sale of that nature on behalf of a publisher under	3761
a written agreement directly between the publisher and the person.	3762

(ii) A publisher that solicits the sale of the publisher's	3763
periodical or magazine of general, paid circulation, or a person	3764
that solicits a sale of that nature as authorized by a publisher	3765
under a written agreement directly with a publisher's	3766
clearinghouse provided the person is a resident of Ohio for more	3767
than three years and initiates all telephone solicitations from	3768
Ohio and the person conducts the solicitation and sale in	3769
compliance with 16 C.F.R. part 310, as adopted by the federal	3770
trade commission.	3771

(b) As used in division (B)(21) of this section, "periodical	3772
or magazine of general, paid circulation" excludes a periodical or	3773
magazine circulated only as part of a membership package or given	3774
as a free gift or prize from the publisher or person.	3775

(22) A person that solicits the sale of food, as defined in	3776
section 3715.01 of the Revised Code, or the sale of products of	3777
horticulture, as defined in section 5739.01 of the Revised Code,	3778
if the person does not intend the solicitation to result in, or	3779
the solicitation actually does not result in, a sale that costs	3780
the purchaser an amount greater than five hundred dollars.	3781

(23) A funeral director licensed pursuant to Chapter 4717. of	3782
the Revised Code when soliciting within the scope of that license,	3783
if both of the following apply:	3784

(a) The solicitation and sale are conducted in compliance	3785
with 16 C.F.R. part 453, as adopted by the federal trade	3786
commission, and with sections 1107.33 and 1345.21 to 1345.28 of	3787
the Revised Code;	3788

(b) The person provides to the purchaser of any preneed	3789
funeral contract a notice that clearly and conspicuously sets	3790
forth the cancellation rights specified in division (G) of section	3791
1107.33 of the Revised Code, and retains a copy of the notice	3792
signed by the purchaser.	3793

(24) A person, or affiliate thereof, licensed to sell or	3794
issue Ohio instruments designated as travelers checks pursuant to	3795
sections 1315.01 to 1315.18 of the Revised Code.	3796

(25) A person that solicits sales from its previous	3797
purchasers and meets all of the following requirements:	3798

(a) The solicitation is made under the same business name	3799
that was previously used to sell goods or services to the	3800
purchaser;	3801

(b) The person has, for a period of not less than three	3802
years, operated a business under the same business name as that	3803
used in connection with telephone solicitation;	3804

(c) The person does not conduct a prize promotion or offer	3805
the sale of an investment opportunity;	3806

(d) The person conducts all telephone solicitation activities	3807
according to sections 310.3, 310.4, and 310.5 of the telemarketing	3808
sales rules adopted by the federal trade commission in 16 C.F.R.	3809
part 310;	3810

(e) Neither the person nor any of its principals has been	3811
convicted of, pleaded guilty to, or has entered a plea of no	3812
contest for a felony or a theft offense as defined in sections	3813
2901.02 and 2913.01 of the Revised Code or similar law of another	3814
state or of the United States;	3815

(f) Neither the person nor any of its principals has had	3816
entered against them an injunction or a final judgment or order,	3817
including an agreed judgment or order, an assurance of voluntary	3818
compliance, or any similar instrument, in any civil or	3819
administrative action involving engaging in a pattern of corrupt	3820
practices, fraud, theft, embezzlement, fraudulent conversion, or	3821
misappropriation of property; the use of any untrue, deceptive, or	3822
misleading representation; or the use of any unfair, unlawful,	3823
deceptive, or unconscionable trade act or practice.	3824

(26) An institution defined as a home health agency in	3825
section 3701.881 of the Revised Code, that conducts all telephone	3826
solicitation activities according to sections 310.3, 310.4, and	3827
310.5 of the telemarketing sales rules adopted by the federal	3828
trade commission in 16 C.F.R. part 310, and engages in telephone	3829
solicitation only within the scope of the institution's	3830
certification, accreditation, contract with the department of	3831
aging, or status as a home health agency; and that meets one of	3832
the following requirements:	3833

(a) The institution is certified as a provider of home health	3834
services under Title XVIII of the Social Security Act, 49 Stat.	3835
620, 42 U.S.C. 301, as amended;	3836

(b) The institution is accredited by either the joint	3837
commission on accreditation of health care organizations or the	3838
community health accreditation program;	3839

(c) The institution is providing passport services under the	3840
direction of the Ohio department of aging under section 173.40 of	3841
the Revised Code;	3842

(d) An affiliate of an institution that meets the	3843
requirements of division (B)(26)(a), (b), or (c) of this section	3844
when offering for sale substantially the same goods and services	3845
as those that are offered by the institution that meets the	3846
requirements of division (B)(26)(a), (b), or (c) of this section.	3847

(27) A person licensed to provide a hospice care program by	3848
the department of health pursuant to section 3712.04 of the	3849
Revised Code when conducting telephone solicitations within the	3850
scope of the person's license and according to sections 310.3,	3851
310.4, and 310.5 of the telemarketing sales rules adopted by the	3852
federal trade commission in 16 C.F.R. part 310.	3853

Sec. 5709.29.  (A) As used in this section:

3854

(1) "Distressed residential or commercial property" means	3855
real property that was or is used exclusively for residential or	3856
commercial purposes as classified in the county real property tax	3857
records and that is vacant, abandoned, foreclosed-upon, or located	3858
in a blighted area.	3859

(2) "Blighted area" has the same meaning as in section 1.08	3860
of the Revised Code.	3861

(3) "Qualifying improvement" means the increase in the	3862
assessed value of distressed residential or commercial property as	3863
shown on the tax list for a tax year after the tax year in which	3864
the owner of that property remodels the property.	3865

(4) "Remodel" means to make any change to a building that	3866
constitutes distressed residential or commercial property for the	3867
purpose of making it structurally more sound or more habitable or	3868
to improve its appearance.	3869

(B) If the owner of distressed residential or commercial	3870
property remodels the property within one year after first	3871
acquiring title to the property, the qualifying improvement is	3872
exempt from taxation until the tax year immediately following the	3873
tax year in which that owner transfers title to the property to	3874
another person.	3875

Sec. 5733.01.  (A) The tax provided by this chapter for	3876
domestic corporations shall be the amount charged against each	3877
corporation organized for profit under the laws of this state and	3878
each nonprofit corporation organized pursuant to Chapter 1729. of	3879
the Revised Code, except as provided in sections 5733.09 and	3880
5733.10 of the Revised Code, for the privilege of exercising its	3881
franchise during the calendar year in which that amount is	3882
payable, and the tax provided by this chapter for foreign	3883
corporations shall be the amount charged against each corporation	3884
organized for profit and each nonprofit corporation organized or	3885
operating in the same or similar manner as nonprofit corporations	3886
organized under Chapter 1729. of the Revised Code, under the laws	3887
of any state or country other than this state, except as provided	3888
in sections 5733.09 and 5733.10 of the Revised Code, for the	3889
privilege of doing business in this state, owning or using a part	3890
or all of its capital or property in this state, holding a	3891
certificate of compliance with the laws of this state authorizing	3892
it to do business in this state, or otherwise having nexus in or	3893
with this state under the Constitution of the United States,	3894
during the calendar year in which that amount is payable.	3895

(B) A corporation is subject to the tax imposed by section	3896
5733.06 of the Revised Code for each calendar year that it is so	3897
organized, doing business, owning or using a part or all of its	3898
capital or property, holding a certificate of compliance, or	3899
otherwise having nexus in or with this state under the	3900
Constitution of the United States, on the first day of January of	3901
that calendar year.	3902

(C) Any corporation subject to this chapter that is not	3903
subject to the federal income tax shall file its returns and	3904
compute its tax liability as required by this chapter in the same	3905
manner as if that corporation were subject to the federal income	3906
tax.	3907

(D) For purposes of this chapter, a federally chartered	3908
financial institution shall be deemed to be organized under the	3909
laws of the state within which its principal office is located.	3910

(E) For purposes of this chapter, any person, as defined in	3911
section 5701.01 of the Revised Code, shall be treated as a	3912
corporation if the person is classified for federal income tax	3913
purposes as an association taxable as a corporation, and an equity	3914
interest in the person shall be treated as capital stock of the	3915
person.	3916

(F) For the purposes of this chapter, "disregarded entity"	3917
has the same meaning as in division (D) of section 5745.01 of the	3918
Revised Code.	3919

(1) A person's interest in a disregarded entity, whether held	3920
directly or indirectly, shall be treated as the person's ownership	3921
of the assets and liabilities of the disregarded entity, and the	3922
income, including gain or loss, shall be included in the person's	3923
net income under this chapter.	3924

(2) Any sale, exchange, or other disposition of the person's	3925
interest in the disregarded entity, whether held directly or	3926
indirectly, shall be treated as a sale, exchange, or other	3927
disposition of the person's share of the disregarded entity's	3928
underlying assets or liabilities, and the gain or loss from such	3929
sale, exchange, or disposition shall be included in the person's	3930
net income under this chapter.	3931

(3) The disregarded entity's payroll, property, and sales	3932
factors shall be included in the person's factors.	3933

(G) The tax a corporation is required to pay under this	3934
chapter shall be as follows:	3935

(1)(a) For financial institutions, the greater of the minimum	3936
payment required under division (E) of section 5733.06 of the	3937
Revised Code or the difference between all taxes charged the	3938
financial institution under this chapter, without regard to	3939
division (G)(2) of this section, less any credits allowable	3940
against such tax.	3941

(b) A corporation satisfying the description in division	3942
(E)(5), (6), (7), (8), or (10) of section 5751.01 of the Revised	3943
Code that is not a financial institution, insurance company, or	3944
dealer in intangibles is subject to the taxes imposed under this	3945
chapter as a corporation and not subject to tax as a financial	3946
institution, and shall pay the greater of the minimum payment	3947
required under division (E) of section 5733.06 of the Revised Code	3948
or the difference between all the taxes charged under this	3949
chapter, without regard to division (G)(2) of this section, less	3950
any credits allowable against such tax.	3951

(2) For all corporations other than those persons described	3952
in division (G)(1)(a) or (b) of this section, the amount under	3953
division (G)(2)(a) of this section applicable to the tax year	3954
specified less the amount under division (G)(2)(b) of this	3955
section:	3956

(a)(i) For tax year 2005, the greater of the minimum payment	3957
required under division (E) of section 5733.06 of the Revised Code	3958
or the difference between all taxes charged the corporation under	3959
this chapter and any credits allowable against such tax;	3960

(ii) For tax year 2006, the greater of the minimum payment	3961
required under division (E) of section 5733.06 of the Revised Code	3962
or four-fifths of the difference between all taxes charged the	3963
corporation under this chapter and any credits allowable against	3964
such tax, except the qualifying pass-through entity tax credit	3965
described in division (A)(30) and the refundable credits described	3966
in divisions (A)(31) to (35) of section 5733.98 of the Revised	3967
Code;	3968

(iii) For tax year 2007, the greater of the minimum payment	3969
required under division (E) of section 5733.06 of the Revised Code	3970
or three-fifths of the difference between all taxes charged the	3971
corporation under this chapter and any credits allowable against	3972
such tax, except the qualifying pass-through entity tax credit	3973
described in division (A)(30)(28) and the refundable credits	3974
described in divisions (A)(31)(29) to (35)(33) of section 5733.98	3975
of the Revised Code;	3976

(iv) For tax year 2008, the greater of the minimum payment	3977
required under division (E) of section 5733.06 of the Revised Code	3978
or two-fifths of the difference between all taxes charged the	3979
corporation under this chapter and any credits allowable against	3980
such tax, except the qualifying pass-through entity tax credit	3981
described in division (A)(30) and the refundable credits described	3982
in divisions (A)(31) to (35) of section 5733.98 of the Revised	3983
Code;	3984

(v) For tax year 2009, the greater of the minimum payment	3985
required under division (E) of section 5733.06 of the Revised Code	3986
or one-fifth of the difference between all taxes charged the	3987
corporation under this chapter and any credits allowable against	3988
such tax, except the qualifying pass-through entity tax credit	3989
described in division (A)(30) and the refundable credits described	3990
in divisions (A)(31), (32), (33), and (34) of section 5733.98 of	3991
the Revised Code;	3992

(vi) For tax year 2010 and each tax year thereafter, no tax.

3993

(b) A corporation shall subtract from the amount calculated	3994
under division (G)(2)(a)(ii), (iii), (iv), or (v) of this section	3995
any qualifying pass-through entity tax credit described in	3996
division (A)(30) and any refundable credits described in divisions	3997
(A)(31) to (35) of section 5733.98 of the Revised Code to which	3998
the corporation is entitled. Any unused qualifying pass-through	3999
entity tax credit is not refundable.	4000

(c) For the purposes of computing the amount of a credit that	4001
may be carried forward to a subsequent tax year under division	4002
(G)(2) of this section, a credit is utilized against the tax for a	4003
tax year to the extent the credit applies against the tax for that	4004
tax year, even if the difference is then multiplied by the	4005
applicable fraction under division (G)(2)(a) of this section.	4006

(3) Nothing in division (G) of this section eliminates or	4007
reduces the tax imposed by section 5733.41 of the Revised Code on	4008
a qualifying pass-through entity.	4009

Sec. 5733.98.  (A) To provide a uniform procedure for	4010
calculating the amount of tax imposed by section 5733.06 of the	4011
Revised Code that is due under this chapter, a taxpayer shall	4012
claim any credits to which it is entitled in the following order,	4013
except as otherwise provided in section 5733.058 of the Revised	4014
Code:	4015

(1) For tax year 2005, the credit for taxes paid by a	4016
qualifying pass-through entity allowed under section 5733.0611 of	4017
the Revised Code;	4018

(2) The credit allowed for financial institutions under	4019
section 5733.45 of the Revised Code;	4020

(3) The credit for qualifying affiliated groups under section	4021
5733.068 of the Revised Code;	4022

(4) The subsidiary corporation credit under section 5733.067	4023
of the Revised Code;	4024

(5) The savings and loan assessment credit under section	4025
5733.063 of the Revised Code;	4026

(6) The credit for recycling and litter prevention donations	4027
under section 5733.064 of the Revised Code;	4028

(7) The credit for employers that enter into agreements with	4029
child day-care centers under section 5733.36 of the Revised Code;	4030

(8) The credit for employers that reimburse employee child	4031
care expenses under section 5733.38 of the Revised Code;	4032

(9) The credit for maintaining railroad active grade crossing	4033
warning devices under section 5733.43 of the Revised Code;	4034

(10) The credit for purchases of lights and reflectors under	4035
section 5733.44 of the Revised Code;	4036

(11) The nonrefundable job retention credit under division	4037
(B) of section 5733.0610 of the Revised Code;	4038

(12) The credit for tax years 2008 and 2009 for selling	4039
alternative fuel under section 5733.48 of the Revised Code;	4040

(13) The second credit for purchases of new manufacturing	4041
machinery and equipment under section 5733.33 of the Revised Code;	4042

(14)(13) The job training credit under section 5733.42 of the	4043
Revised Code;	4044

(15)(14) The credit for qualified research expenses under	4045
section 5733.351 of the Revised Code;	4046

(16)(15) The enterprise zone credit under section 5709.66 of	4047
the Revised Code;	4048

(17)(16) The credit for the eligible costs associated with a	4049
voluntary action under section 5733.34 of the Revised Code;	4050

(18)(17) The credit for employers that establish on-site	4051
child day-care centers under section 5733.37 of the Revised Code;	4052

(19) The ethanol plant investment credit under section	4053
5733.46 of the Revised Code;	4054

(20)(18) The credit for purchases of qualifying grape	4055
production property under section 5733.32 of the Revised Code;	4056

(21)(19) The export sales credit under section 5733.069 of	4057
the Revised Code;	4058

(22)(20) The credit for research and development and	4059
technology transfer investors under section 5733.35 of the Revised	4060
Code;	4061

(23)(21) The enterprise zone credits under section 5709.65 of	4062
the Revised Code;	4063

(24)(22) The credit for using Ohio coal under section 5733.39	4064
of the Revised Code;	4065

(25)(23) The credit for purchases of qualified low-income	4066
community investments under section 5733.58 of the Revised Code;	4067

(26)(24) The credit for small telephone companies under	4068
section 5733.57 of the Revised Code;	4069

(27)(25) The credit for eligible nonrecurring 9-1-1 charges	4070
under section 5733.55 of the Revised Code;	4071

(28)(26) For tax year 2005, the credit for providing programs	4072
to aid the communicatively impaired under division (A) of section	4073
5733.56 of the Revised Code;	4074

(29)(27) The research and development credit under section	4075
5733.352 of the Revised Code;	4076

(30)(28) For tax years 2006 and subsequent tax years, the	4077
credit for taxes paid by a qualifying pass-through entity allowed	4078
under section 5733.0611 of the Revised Code;	4079

(31)(29) The refundable credit for rehabilitating a historic	4080
building under section 5733.47 of the Revised Code;	4081

(32)(30) The refundable jobs creation credit or job retention	4082
credit under division (A) of section 5733.0610 of the Revised	4083
Code;	4084

(33)(31) The refundable credit for tax withheld under	4085
division (B)(2) of section 5747.062 of the Revised Code;	4086

(34)(32) The refundable credit under section 5733.49 of the	4087
Revised Code for losses on loans made to the Ohio venture capital	4088
program under sections 150.01 to 150.10 of the Revised Code;	4089

(35)(33) For tax years 2006, 2007, and 2008, the refundable	4090
credit allowable under division (B) of section 5733.56 of the	4091
Revised Code;	4092

(36)(34) The refundable motion picture production credit	4093
under section 5733.59 of the Revised Code.	4094

(B) For any credit except the refundable credits enumerated	4095
in this section, the amount of the credit for a tax year shall not	4096
exceed the tax due after allowing for any other credit that	4097
precedes it in the order required under this section. Any excess	4098
amount of a particular credit may be carried forward if authorized	4099
under the section creating that credit.	4100

Sec. 5739.01.  As used in this chapter:

4101

(A) "Person" includes individuals, receivers, assignees,	4102
trustees in bankruptcy, estates, firms, partnerships,	4103
associations, joint-stock companies, joint ventures, clubs,	4104
societies, corporations, the state and its political subdivisions,	4105
and combinations of individuals of any form.	4106

(B) "Sale" and "selling" include all of the following	4107
transactions for a consideration in any manner, whether absolutely	4108
or conditionally, whether for a price or rental, in money or by	4109
exchange, and by any means whatsoever:	4110

(1) All transactions by which title or possession, or both,	4111
of tangible personal property, is or is to be transferred, or a	4112
license to use or consume tangible personal property is or is to	4113
be granted;	4114

(2) All transactions by which lodging by a hotel is or is to	4115
be furnished to transient guests;	4116

(3) All transactions by which:

4117

(a) An item of tangible personal property is or is to be	4118
repaired, except property, the purchase of which would not be	4119
subject to the tax imposed by section 5739.02 of the Revised Code;	4120

(b) An item of tangible personal property is or is to be	4121
installed, except property, the purchase of which would not be	4122
subject to the tax imposed by section 5739.02 of the Revised Code	4123
or property that is or is to be incorporated into and will become	4124
a part of a production, transmission, transportation, or	4125
distribution system for the delivery of a public utility service;	4126

(c) The service of washing, cleaning, waxing, polishing, or	4127
painting a motor vehicle is or is to be furnished;	4128

(d) Until August 1, 2003, industrial laundry cleaning	4129
services are or are to be provided and, on and after August 1,	4130
2003, laundry and dry cleaning services are or are to be provided;	4131

(e) Automatic data processing, computer services, or	4132
electronic information services are or are to be provided for use	4133
in business when the true object of the transaction is the receipt	4134
by the consumer of automatic data processing, computer services,	4135
or electronic information services rather than the receipt of	4136
personal or professional services to which automatic data	4137
processing, computer services, or electronic information services	4138
are incidental or supplemental. Notwithstanding any other	4139
provision of this chapter, such transactions that occur between	4140
members of an affiliated group are not sales. An "affiliated	4141
group" means two or more persons related in such a way that one	4142
person owns or controls the business operation of another member	4143
of the group. In the case of corporations with stock, one	4144
corporation owns or controls another if it owns more than fifty	4145
per cent of the other corporation's common stock with voting	4146
rights.	4147

(f) Telecommunications service, including prepaid calling	4148
service, prepaid wireless calling service, or ancillary service,	4149
is or is to be provided, but not including coin-operated telephone	4150
service;	4151

(g) Landscaping and lawn care service is or is to be	4152
provided;	4153

(h) Private investigation and security service is or is to be	4154
provided;	4155

(i) Information services or tangible personal property is	4156
provided or ordered by means of a nine hundred telephone call;	4157

(j) Building maintenance and janitorial service is or is to	4158
be provided;	4159

(k) Employment service is or is to be provided;

4160

(l) Employment placement service is or is to be provided;

4161

(m) Exterminating service is or is to be provided;

4162

(n) Physical fitness facility service is or is to be	4163
provided;	4164

(o) Recreation and sports club service is or is to be	4165
provided;	4166

(p) On and after August 1, 2003, satellite broadcasting	4167
service is or is to be provided;	4168

(q) On and after August 1, 2003, personal care service is or	4169
is to be provided to an individual. As used in this division,	4170
"personal care service" includes skin care, the application of	4171
cosmetics, manicuring, pedicuring, hair removal, tattooing, body	4172
piercing, tanning, massage, and other similar services. "Personal	4173
care service" does not include a service provided by or on the	4174
order of a licensed physician or licensed chiropractor, or the	4175
cutting, coloring, or styling of an individual's hair.	4176

(r) On and after August 1, 2003, the transportation of	4177
persons by motor vehicle or aircraft is or is to be provided, when	4178
the transportation is entirely within this state, except for	4179
transportation provided by an ambulance service, by a transit bus,	4180
as defined in section 5735.01 of the Revised Code, and	4181
transportation provided by a citizen of the United States holding	4182
a certificate of public convenience and necessity issued under 49	4183
U.S.C. 41102;	4184

(s) On and after August 1, 2003, motor vehicle towing service	4185
is or is to be provided. As used in this division, "motor vehicle	4186
towing service" means the towing or conveyance of a wrecked,	4187
disabled, or illegally parked motor vehicle.	4188

(t) On and after August 1, 2003, snow removal service is or	4189
is to be provided. As used in this division, "snow removal	4190
service" means the removal of snow by any mechanized means, but	4191
does not include the providing of such service by a person that	4192
has less than five thousand dollars in sales of such service	4193
during the calendar year.	4194

(u) Electronic publishing service is or is to be provided to	4195
a consumer for use in business, except that such transactions	4196
occurring between members of an affiliated group, as defined in	4197
division (B)(3)(e) of this section, are not sales.	4198

(4) All transactions by which printed, imprinted,	4199
overprinted, lithographic, multilithic, blueprinted, photostatic,	4200
or other productions or reproductions of written or graphic matter	4201
are or are to be furnished or transferred;	4202

(5) The production or fabrication of tangible personal	4203
property for a consideration for consumers who furnish either	4204
directly or indirectly the materials used in the production of	4205
fabrication work; and include the furnishing, preparing, or	4206
serving for a consideration of any tangible personal property	4207
consumed on the premises of the person furnishing, preparing, or	4208
serving such tangible personal property. Except as provided in	4209
section 5739.03 of the Revised Code, a construction contract	4210
pursuant to which tangible personal property is or is to be	4211
incorporated into a structure or improvement on and becoming a	4212
part of real property is not a sale of such tangible personal	4213
property. The construction contractor is the consumer of such	4214
tangible personal property, provided that the sale and	4215
installation of carpeting, the sale and installation of	4216
agricultural land tile, the sale and erection or installation of	4217
portable grain bins, or the provision of landscaping and lawn care	4218
service and the transfer of property as part of such service is	4219
never a construction contract.	4220

As used in division (B)(5) of this section:

4221

(a) "Agricultural land tile" means fired clay or concrete	4222
tile, or flexible or rigid perforated plastic pipe or tubing,	4223
incorporated or to be incorporated into a subsurface drainage	4224
system appurtenant to land used or to be used primarily in	4225
production by farming, agriculture, horticulture, or floriculture.	4226
The term does not include such materials when they are or are to	4227
be incorporated into a drainage system appurtenant to a building	4228
or structure even if the building or structure is used or to be	4229
used in such production.	4230

(b) "Portable grain bin" means a structure that is used or to	4231
be used by a person engaged in farming or agriculture to shelter	4232
the person's grain and that is designed to be disassembled without	4233
significant damage to its component parts.	4234

(6) All transactions in which all of the shares of stock of a	4235
closely held corporation are transferred, if the corporation is	4236
not engaging in business and its entire assets consist of boats,	4237
planes, motor vehicles, or other tangible personal property	4238
operated primarily for the use and enjoyment of the shareholders;	4239

(7) All transactions in which a warranty, maintenance or	4240
service contract, or similar agreement by which the vendor of the	4241
warranty, contract, or agreement agrees to repair or maintain the	4242
tangible personal property of the consumer is or is to be	4243
provided;	4244

(8) The transfer of copyrighted motion picture films used	4245
solely for advertising purposes, except that the transfer of such	4246
films for exhibition purposes is not a sale;	4247

(9) On and after August 1, 2003, all transactions by which	4248
tangible personal property is or is to be stored, except such	4249
property that the consumer of the storage holds for sale in the	4250
regular course of business;	4251

(10) All transactions in which "guaranteed auto protection"	4252
is provided whereby a person promises to pay to the consumer the	4253
difference between the amount the consumer receives from motor	4254
vehicle insurance and the amount the consumer owes to a person	4255
holding title to or a lien on the consumer's motor vehicle in the	4256
event the consumer's motor vehicle suffers a total loss under the	4257
terms of the motor vehicle insurance policy or is stolen and not	4258
recovered, if the protection and its price are included in the	4259
purchase or lease agreement;	4260

(11)(a) Except as provided in division (B)(11)(b) of this	4261
section, on and after October 1, 2009, all transactions by which	4262
health care services are paid for, reimbursed, provided,	4263
delivered, arranged for, or otherwise made available by a medicaid	4264
health insuring corporation pursuant to the corporation's contract	4265
with the state.	4266

(b) If the centers for medicare and medicaid services of the	4267
United States department of health and human services determines	4268
that the taxation of transactions described in division (B)(11)(a)	4269
of this section constitutes an impermissible health care-related	4270
tax under section 1903(w) of the "Social Security Act," 49 Stat.	4271
620 (1935), 42 U.S.C. 1396b(w), as amended, and regulations	4272
adopted thereunder, the director of job and family services shall	4273
notify the tax commissioner of that determination. Beginning with	4274
the first day of the month following that notification, the	4275
transactions described in division (B)(11)(a) of this section are	4276
not sales for the purposes of this chapter or Chapter 5741. of the	4277
Revised Code. The tax commissioner shall order that the collection	4278
of taxes under sections 5739.02, 5739.021, 5739.023, 5739.026,	4279
5741.02, 5741.021, 5741.022, and 5741.023 of the Revised Code	4280
shall cease for transactions occurring on or after that date.	4281

Except as provided in this section, "sale" and "selling" do	4282
not include transfers of interest in leased property where the	4283
original lessee and the terms of the original lease agreement	4284
remain unchanged, or professional, insurance, or personal service	4285
transactions that involve the transfer of tangible personal	4286
property as an inconsequential element, for which no separate	4287
charges are made.	4288

(C) "Vendor" means the person providing the service or by	4289
whom the transfer effected or license given by a sale is or is to	4290
be made or given and, for sales described in division (B)(3)(i) of	4291
this section, the telecommunications service vendor that provides	4292
the nine hundred telephone service; if two or more persons are	4293
engaged in business at the same place of business under a single	4294
trade name in which all collections on account of sales by each	4295
are made, such persons shall constitute a single vendor.	4296

Physicians, dentists, hospitals, and veterinarians who are	4297
engaged in selling tangible personal property as received from	4298
others, such as eyeglasses, mouthwashes, dentifrices, or similar	4299
articles, are vendors. Veterinarians who are engaged in	4300
transferring to others for a consideration drugs, the dispensing	4301
of which does not require an order of a licensed veterinarian or	4302
physician under federal law, are vendors.	4303

(D)(1) "Consumer" means the person for whom the service is	4304
provided, to whom the transfer effected or license given by a sale	4305
is or is to be made or given, to whom the service described in	4306
division (B)(3)(f) or (i) of this section is charged, or to whom	4307
the admission is granted.	4308

(2) Physicians, dentists, hospitals, and blood banks operated	4309
by nonprofit institutions and persons licensed to practice	4310
veterinary medicine, surgery, and dentistry are consumers of all	4311
tangible personal property and services purchased by them in	4312
connection with the practice of medicine, dentistry, the rendition	4313
of hospital or blood bank service, or the practice of veterinary	4314
medicine, surgery, and dentistry. In addition to being consumers	4315
of drugs administered by them or by their assistants according to	4316
their direction, veterinarians also are consumers of drugs that	4317
under federal law may be dispensed only by or upon the order of a	4318
licensed veterinarian or physician, when transferred by them to	4319
others for a consideration to provide treatment to animals as	4320
directed by the veterinarian.	4321

(3) A person who performs a facility management, or similar	4322
service contract for a contractee is a consumer of all tangible	4323
personal property and services purchased for use in connection	4324
with the performance of such contract, regardless of whether title	4325
to any such property vests in the contractee. The purchase of such	4326
property and services is not subject to the exception for resale	4327
under division (E)(1) of this section.	4328

(4)(a) In the case of a person who purchases printed matter	4329
for the purpose of distributing it or having it distributed to the	4330
public or to a designated segment of the public, free of charge,	4331
that person is the consumer of that printed matter, and the	4332
purchase of that printed matter for that purpose is a sale.	4333

(b) In the case of a person who produces, rather than	4334
purchases, printed matter for the purpose of distributing it or	4335
having it distributed to the public or to a designated segment of	4336
the public, free of charge, that person is the consumer of all	4337
tangible personal property and services purchased for use or	4338
consumption in the production of that printed matter. That person	4339
is not entitled to claim exemption under division (B)(42)(f) of	4340
section 5739.02 of the Revised Code for any material incorporated	4341
into the printed matter or any equipment, supplies, or services	4342
primarily used to produce the printed matter.	4343

(c) The distribution of printed matter to the public or to a	4344
designated segment of the public, free of charge, is not a sale to	4345
the members of the public to whom the printed matter is	4346
distributed or to any persons who purchase space in the printed	4347
matter for advertising or other purposes.	4348

(5) A person who makes sales of any of the services listed in	4349
division (B)(3) of this section is the consumer of any tangible	4350
personal property used in performing the service. The purchase of	4351
that property is not subject to the resale exception under	4352
division (E)(1) of this section.	4353

(6) A person who engages in highway transportation for hire	4354
is the consumer of all packaging materials purchased by that	4355
person and used in performing the service, except for packaging	4356
materials sold by such person in a transaction separate from the	4357
service.	4358

(7) In the case of a transaction for health care services	4359
under division (B)(11) of this section, a medicaid health insuring	4360
corporation is the consumer of such services. The purchase of such	4361
services by a medicaid health insuring corporation is not subject	4362
to the exception for resale under division (E)(1) of this section	4363
or to the exemptions provided under divisions (B)(12), (18), (19),	4364
and (22) of section 5739.02 of the Revised Code.	4365

(E) "Retail sale" and "sales at retail" include all sales,	4366
except those in which the purpose of the consumer is to resell the	4367
thing transferred or benefit of the service provided, by a person	4368
engaging in business, in the form in which the same is, or is to	4369
be, received by the person.	4370

(F) "Business" includes any activity engaged in by any person	4371
with the object of gain, benefit, or advantage, either direct or	4372
indirect. "Business" does not include the activity of a person in	4373
managing and investing the person's own funds.	4374

(G) "Engaging in business" means commencing, conducting, or	4375
continuing in business, and liquidating a business when the	4376
liquidator thereof holds itself out to the public as conducting	4377
such business. Making a casual sale is not engaging in business.	4378

(H)(1)(a) "Price," except as provided in divisions (H)(2),	4379
(3), and (4) of this section, means the total amount of	4380
consideration, including cash, credit, property, and services, for	4381
which tangible personal property or services are sold, leased, or	4382
rented, valued in money, whether received in money or otherwise,	4383
without any deduction for any of the following:	4384

(i) The vendor's cost of the property sold;

4385

(ii) The cost of materials used, labor or service costs,	4386
interest, losses, all costs of transportation to the vendor, all	4387
taxes imposed on the vendor, including the tax imposed under	4388
Chapter 5751. of the Revised Code, and any other expense of the	4389
vendor;	4390

(iii) Charges by the vendor for any services necessary to	4391
complete the sale;	4392

(iv) On and after August 1, 2003, delivery charges. As used	4393
in this division, "delivery charges" means charges by the vendor	4394
for preparation and delivery to a location designated by the	4395
consumer of tangible personal property or a service, including	4396
transportation, shipping, postage, handling, crating, and packing.	4397

(v) Installation charges;

4398

(vi) Credit for any trade-in.

4399

(b) "Price" includes consideration received by the vendor	4400
from a third party, if the vendor actually receives the	4401
consideration from a party other than the consumer, and the	4402
consideration is directly related to a price reduction or discount	4403
on the sale; the vendor has an obligation to pass the price	4404
reduction or discount through to the consumer; the amount of the	4405
consideration attributable to the sale is fixed and determinable	4406
by the vendor at the time of the sale of the item to the consumer;	4407
and one of the following criteria is met:	4408

(i) The consumer presents a coupon, certificate, or other	4409
document to the vendor to claim a price reduction or discount	4410
where the coupon, certificate, or document is authorized,	4411
distributed, or granted by a third party with the understanding	4412
that the third party will reimburse any vendor to whom the coupon,	4413
certificate, or document is presented;	4414

(ii) The consumer identifies the consumer's self to the	4415
seller as a member of a group or organization entitled to a price	4416
reduction or discount. A preferred customer card that is available	4417
to any patron does not constitute membership in such a group or	4418
organization.	4419

(iii) The price reduction or discount is identified as a	4420
third party price reduction or discount on the invoice received by	4421
the consumer, or on a coupon, certificate, or other document	4422
presented by the consumer.	4423

(c) "Price" does not include any of the following:

4424

(i) Discounts, including cash, term, or coupons that are not	4425
reimbursed by a third party that are allowed by a vendor and taken	4426
by a consumer on a sale;	4427

(ii) Interest, financing, and carrying charges from credit	4428
extended on the sale of tangible personal property or services, if	4429
the amount is separately stated on the invoice, bill of sale, or	4430
similar document given to the purchaser;	4431

(iii) Any taxes legally imposed directly on the consumer that	4432
are separately stated on the invoice, bill of sale, or similar	4433
document given to the consumer. For the purpose of this division,	4434
the tax imposed under Chapter 5751. of the Revised Code is not a	4435
tax directly on the consumer, even if the tax or a portion thereof	4436
is separately stated.	4437

(iv) Notwithstanding divisions (H)(1)(b)(i) to (iii) of this	4438
section, any discount allowed by an automobile manufacturer to its	4439
employee, or to the employee of a supplier, on the purchase of a	4440
new motor vehicle from a new motor vehicle dealer in this state.	4441

(v) The dollar value of a gift card that is not sold by a	4442
vendor or purchased by a consumer and that is redeemed by the	4443
consumer in purchasing tangible personal property or services if	4444
the vendor is not reimbursed and does not receive compensation	4445
from a third party to cover all or part of the gift card value.	4446
For the purposes of this division, a gift card is not sold by a	4447
vendor or purchased by a consumer if it is distributed pursuant to	4448
an awards, loyalty, or promotional program. Past and present	4449
purchases of tangible personal property or services by the	4450
consumer shall not be treated as consideration exchanged for a	4451
gift card.	4452

(2) In the case of a sale of any new motor vehicle by a new	4453
motor vehicle dealer, as defined in section 4517.01 of the Revised	4454
Code, in which another motor vehicle is accepted by the dealer as	4455
part of the consideration received, "price" has the same meaning	4456
as in division (H)(1) of this section, reduced by the credit	4457
afforded the consumer by the dealer for the motor vehicle received	4458
in trade.	4459

(3) In the case of a sale of any watercraft or outboard motor	4460
by a watercraft dealer licensed in accordance with section	4461
1547.543 of the Revised Code, in which another watercraft,	4462
watercraft and trailer, or outboard motor is accepted by the	4463
dealer as part of the consideration received, "price" has the same	4464
meaning as in division (H)(1) of this section, reduced by the	4465
credit afforded the consumer by the dealer for the watercraft,	4466
watercraft and trailer, or outboard motor received in trade. As	4467
used in this division, "watercraft" includes an outdrive unit	4468
attached to the watercraft.	4469

(4) In the case of transactions for health care services	4470
under division (B)(11) of this section, "price" means the amount	4471
of managed care premiums received each month by a medicaid health	4472
insuring corporation.	4473

(I) "Receipts" means the total amount of the prices of the	4474
sales of vendors, provided that the dollar value of gift cards	4475
distributed pursuant to an awards, loyalty, or promotional	4476
program, and cash discounts allowed and taken on sales at the time	4477
they are consummated are not included, minus any amount deducted	4478
as a bad debt pursuant to section 5739.121 of the Revised Code.	4479
"Receipts" does not include the sale price of property returned or	4480
services rejected by consumers when the full sale price and tax	4481
are refunded either in cash or by credit.	4482

(J) "Place of business" means any location at which a person	4483
engages in business.	4484

(K) "Premises" includes any real property or portion thereof	4485
upon which any person engages in selling tangible personal	4486
property at retail or making retail sales and also includes any	4487
real property or portion thereof designated for, or devoted to,	4488
use in conjunction with the business engaged in by such person.	4489

(L) "Casual sale" means a sale of an item of tangible	4490
personal property that was obtained by the person making the sale,	4491
through purchase or otherwise, for the person's own use and was	4492
previously subject to any state's taxing jurisdiction on its sale	4493
or use, and includes such items acquired for the seller's use that	4494
are sold by an auctioneer employed directly by the person for such	4495
purpose, provided the location of such sales is not the	4496
auctioneer's permanent place of business. As used in this	4497
division, "permanent place of business" includes any location	4498
where such auctioneer has conducted more than two auctions during	4499
the year.	4500

(M) "Hotel" means every establishment kept, used, maintained,	4501
advertised, or held out to the public to be a place where sleeping	4502
accommodations are offered to guests, in which five or more rooms	4503
are used for the accommodation of such guests, whether the rooms	4504
are in one or several structures, except as otherwise provided in	4505
division (G) of section 5739.09 of the Revised Code.	4506

(N) "Transient guests" means persons occupying a room or	4507
rooms for sleeping accommodations for less than thirty consecutive	4508
days.	4509

(O) "Making retail sales" means the effecting of transactions	4510
wherein one party is obligated to pay the price and the other	4511
party is obligated to provide a service or to transfer title to or	4512
possession of the item sold. "Making retail sales" does not	4513
include the preliminary acts of promoting or soliciting the retail	4514
sales, other than the distribution of printed matter which	4515
displays or describes and prices the item offered for sale, nor	4516
does it include delivery of a predetermined quantity of tangible	4517
personal property or transportation of property or personnel to or	4518
from a place where a service is performed, regardless of whether	4519
the vendor is a delivery vendor.	4520

(P) "Used directly in the rendition of a public utility	4521
service" means that property that is to be incorporated into and	4522
will become a part of the consumer's production, transmission,	4523
transportation, or distribution system and that retains its	4524
classification as tangible personal property after such	4525
incorporation; fuel or power used in the production, transmission,	4526
transportation, or distribution system; and tangible personal	4527
property used in the repair and maintenance of the production,	4528
transmission, transportation, or distribution system, including	4529
only such motor vehicles as are specially designed and equipped	4530
for such use. Tangible personal property and services used	4531
primarily in providing highway transportation for hire are not	4532
used directly in the rendition of a public utility service. In	4533
this definition, "public utility" includes a citizen of the United	4534
States holding, and required to hold, a certificate of public	4535
convenience and necessity issued under 49 U.S.C. 41102.	4536

(Q) "Refining" means removing or separating a desirable	4537
product from raw or contaminated materials by distillation or	4538
physical, mechanical, or chemical processes.	4539

(R) "Assembly" and "assembling" mean attaching or fitting	4540
together parts to form a product, but do not include packaging a	4541
product.	4542

(S) "Manufacturing operation" means a process in which	4543
materials are changed, converted, or transformed into a different	4544
state or form from which they previously existed and includes	4545
refining materials, assembling parts, and preparing raw materials	4546
and parts by mixing, measuring, blending, or otherwise committing	4547
such materials or parts to the manufacturing process.	4548
"Manufacturing operation" does not include packaging.	4549

(T) "Fiscal officer" means, with respect to a regional	4550
transit authority, the secretary-treasurer thereof, and with	4551
respect to a county that is a transit authority, the fiscal	4552
officer of the county transit board if one is appointed pursuant	4553
to section 306.03 of the Revised Code or the county auditor if the	4554
board of county commissioners operates the county transit system.	4555

(U) "Transit authority" means a regional transit authority	4556
created pursuant to section 306.31 of the Revised Code or a county	4557
in which a county transit system is created pursuant to section	4558
306.01 of the Revised Code. For the purposes of this chapter, a	4559
transit authority must extend to at least the entire area of a	4560
single county. A transit authority that includes territory in more	4561
than one county must include all the area of the most populous	4562
county that is a part of such transit authority. County population	4563
shall be measured by the most recent census taken by the United	4564
States census bureau.	4565

(V) "Legislative authority" means, with respect to a regional	4566
transit authority, the board of trustees thereof, and with respect	4567
to a county that is a transit authority, the board of county	4568
commissioners.	4569

(W) "Territory of the transit authority" means all of the	4570
area included within the territorial boundaries of a transit	4571
authority as they from time to time exist. Such territorial	4572
boundaries must at all times include all the area of a single	4573
county or all the area of the most populous county that is a part	4574
of such transit authority. County population shall be measured by	4575
the most recent census taken by the United States census bureau.	4576

(X) "Providing a service" means providing or furnishing	4577
anything described in division (B)(3) of this section for	4578
consideration.	4579

(Y)(1)(a) "Automatic data processing" means processing of	4580
others' data, including keypunching or similar data entry services	4581
together with verification thereof, or providing access to	4582
computer equipment for the purpose of processing data.	4583

(b) "Computer services" means providing services consisting	4584
of specifying computer hardware configurations and evaluating	4585
technical processing characteristics, computer programming, and	4586
training of computer programmers and operators, provided in	4587
conjunction with and to support the sale, lease, or operation of	4588
taxable computer equipment or systems.	4589

(c) "Electronic information services" means providing access	4590
to computer equipment by means of telecommunications equipment for	4591
the purpose of either of the following:	4592

(i) Examining or acquiring data stored in or accessible to	4593
the computer equipment;	4594

(ii) Placing data into the computer equipment to be retrieved	4595
by designated recipients with access to the computer equipment.	4596

For transactions occurring on or after the effective date of	4597
the amendment of this section by H.B. 157 of the 127th general	4598
assembly, December 21, 2007, "electronic information services"	4599
does not include electronic publishing as defined in division	4600
(LLL) of this section.	4601

(d) "Automatic data processing, computer services, or	4602
electronic information services" shall not include personal or	4603
professional services.	4604

(2) As used in divisions (B)(3)(e) and (Y)(1) of this	4605
section, "personal and professional services" means all services	4606
other than automatic data processing, computer services, or	4607
electronic information services, including but not limited to:	4608

(a) Accounting and legal services such as advice on tax	4609
matters, asset management, budgetary matters, quality control,	4610
information security, and auditing and any other situation where	4611
the service provider receives data or information and studies,	4612
alters, analyzes, interprets, or adjusts such material;	4613

(b) Analyzing business policies and procedures;

4614

(c) Identifying management information needs;

4615

(d) Feasibility studies, including economic and technical	4616
analysis of existing or potential computer hardware or software	4617
needs and alternatives;	4618

(e) Designing policies, procedures, and custom software for	4619
collecting business information, and determining how data should	4620
be summarized, sequenced, formatted, processed, controlled, and	4621
reported so that it will be meaningful to management;	4622

(f) Developing policies and procedures that document how	4623
business events and transactions are to be authorized, executed,	4624
and controlled;	4625

(g) Testing of business procedures;

4626

(h) Training personnel in business procedure applications;

4627

(i) Providing credit information to users of such information	4628
by a consumer reporting agency, as defined in the "Fair Credit	4629
Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C. 1681a(f), or	4630
as hereafter amended, including but not limited to gathering,	4631
organizing, analyzing, recording, and furnishing such information	4632
by any oral, written, graphic, or electronic medium;	4633

(j) Providing debt collection services by any oral, written,	4634
graphic, or electronic means.	4635

The services listed in divisions (Y)(2)(a) to (j) of this	4636
section are not automatic data processing or computer services.	4637

(Z) "Highway transportation for hire" means the	4638
transportation of personal property belonging to others for	4639
consideration by any of the following:	4640

(1) The holder of a permit or certificate issued by this	4641
state or the United States authorizing the holder to engage in	4642
transportation of personal property belonging to others for	4643
consideration over or on highways, roadways, streets, or any	4644
similar public thoroughfare;	4645

(2) A person who engages in the transportation of personal	4646
property belonging to others for consideration over or on	4647
highways, roadways, streets, or any similar public thoroughfare	4648
but who could not have engaged in such transportation on December	4649
11, 1985, unless the person was the holder of a permit or	4650
certificate of the types described in division (Z)(1) of this	4651
section;	4652

(3) A person who leases a motor vehicle to and operates it	4653
for a person described by division (Z)(1) or (2) of this section.	4654

(AA)(1) "Telecommunications service" means the electronic	4655
transmission, conveyance, or routing of voice, data, audio, video,	4656
or any other information or signals to a point, or between or	4657
among points. "Telecommunications service" includes such	4658
transmission, conveyance, or routing in which computer processing	4659
applications are used to act on the form, code, or protocol of the	4660
content for purposes of transmission, conveyance, or routing	4661
without regard to whether the service is referred to as voice-over	4662
internet protocol service or is classified by the federal	4663
communications commission as enhanced or value-added.	4664
"Telecommunications service" does not include any of the	4665
following:	4666

(a) Data processing and information services that allow data	4667
to be generated, acquired, stored, processed, or retrieved and	4668
delivered by an electronic transmission to a consumer where the	4669
consumer's primary purpose for the underlying transaction is the	4670
processed data or information;	4671

(b) Installation or maintenance of wiring or equipment on a	4672
customer's premises;	4673

(c) Tangible personal property;

4674

(d) Advertising, including directory advertising;

4675

(e) Billing and collection services provided to third	4676
parties;	4677

(f) Internet access service;

4678

(g) Radio and television audio and video programming	4679
services, regardless of the medium, including the furnishing of	4680
transmission, conveyance, and routing of such services by the	4681
programming service provider. Radio and television audio and video	4682
programming services include, but are not limited to, cable	4683
service, as defined in 47 U.S.C. 522(6), and audio and video	4684
programming services delivered by commercial mobile radio service	4685
providers, as defined in 47 C.F.R. 20.3;	4686

(h) Ancillary service;

4687

(i) Digital products delivered electronically, including	4688
software, music, video, reading materials, or ring tones.	4689

(2) "Ancillary service" means a service that is associated	4690
with or incidental to the provision of telecommunications service,	4691
including conference bridging service, detailed telecommunications	4692
billing service, directory assistance, vertical service, and voice	4693
mail service. As used in this division:	4694

(a) "Conference bridging service" means an ancillary service	4695
that links two or more participants of an audio or video	4696
conference call, including providing a telephone number.	4697
"Conference bridging service" does not include telecommunications	4698
services used to reach the conference bridge.	4699

(b) "Detailed telecommunications billing service" means an	4700
ancillary service of separately stating information pertaining to	4701
individual calls on a customer's billing statement.	4702

(c) "Directory assistance" means an ancillary service of	4703
providing telephone number or address information.	4704

(d) "Vertical service" means an ancillary service that is	4705
offered in connection with one or more telecommunications	4706
services, which offers advanced calling features that allow	4707
customers to identify callers and manage multiple calls and call	4708
connections, including conference bridging service.	4709

(e) "Voice mail service" means an ancillary service that	4710
enables the customer to store, send, or receive recorded messages.	4711
"Voice mail service" does not include any vertical services that	4712
the customer may be required to have in order to utilize the voice	4713
mail service.	4714

(3) "900 service" means an inbound toll telecommunications	4715
service purchased by a subscriber that allows the subscriber's	4716
customers to call in to the subscriber's prerecorded announcement	4717
or live service, and which is typically marketed under the name	4718
"900" service and any subsequent numbers designated by the federal	4719
communications commission. "900 service" does not include the	4720
charge for collection services provided by the seller of the	4721
telecommunications service to the subscriber, or services or	4722
products sold by the subscriber to the subscriber's customer.	4723

(4) "Prepaid calling service" means the right to access	4724
exclusively telecommunications services, which must be paid for in	4725
advance and which enables the origination of calls using an access	4726
number or authorization code, whether manually or electronically	4727
dialed, and that is sold in predetermined units of dollars of	4728
which the number declines with use in a known amount.	4729

(5) "Prepaid wireless calling service" means a	4730
telecommunications service that provides the right to utilize	4731
mobile telecommunications service as well as other	4732
non-telecommunications services, including the download of digital	4733
products delivered electronically, and content and ancillary	4734
services, that must be paid for in advance and that is sold in	4735
predetermined units of dollars of which the number declines with	4736
use in a known amount.	4737

(6) "Value-added non-voice data service" means a	4738
telecommunications service in which computer processing	4739
applications are used to act on the form, content, code, or	4740
protocol of the information or data primarily for a purpose other	4741
than transmission, conveyance, or routing.	4742

(7) "Coin-operated telephone service" means a	4743
telecommunications service paid for by inserting money into a	4744
telephone accepting direct deposits of money to operate.	4745

(8) "Customer" has the same meaning as in section 5739.034 of	4746
the Revised Code.	4747

(BB) "Laundry and dry cleaning services" means removing soil	4748
or dirt from towels, linens, articles of clothing, or other fabric	4749
items that belong to others and supplying towels, linens, articles	4750
of clothing, or other fabric items. "Laundry and dry cleaning	4751
services" does not include the provision of self-service	4752
facilities for use by consumers to remove soil or dirt from	4753
towels, linens, articles of clothing, or other fabric items.	4754

(CC) "Magazines distributed as controlled circulation	4755
publications" means magazines containing at least twenty-four	4756
pages, at least twenty-five per cent editorial content, issued at	4757
regular intervals four or more times a year, and circulated	4758
without charge to the recipient, provided that such magazines are	4759
not owned or controlled by individuals or business concerns which	4760
conduct such publications as an auxiliary to, and essentially for	4761
the advancement of the main business or calling of, those who own	4762
or control them.	4763

(DD) "Landscaping and lawn care service" means the services	4764
of planting, seeding, sodding, removing, cutting, trimming,	4765
pruning, mulching, aerating, applying chemicals, watering,	4766
fertilizing, and providing similar services to establish, promote,	4767
or control the growth of trees, shrubs, flowers, grass, ground	4768
cover, and other flora, or otherwise maintaining a lawn or	4769
landscape grown or maintained by the owner for ornamentation or	4770
other nonagricultural purpose. However, "landscaping and lawn care	4771
service" does not include the providing of such services by a	4772
person who has less than five thousand dollars in sales of such	4773
services during the calendar year.	4774

(EE) "Private investigation and security service" means the	4775
performance of any activity for which the provider of such service	4776
is required to be licensed pursuant to Chapter 4749. of the	4777
Revised Code, or would be required to be so licensed in performing	4778
such services in this state, and also includes the services of	4779
conducting polygraph examinations and of monitoring or overseeing	4780
the activities on or in, or the condition of, the consumer's home,	4781
business, or other facility by means of electronic or similar	4782
monitoring devices. "Private investigation and security service"	4783
does not include special duty services provided by off-duty police	4784
officers, deputy sheriffs, and other peace officers regularly	4785
employed by the state or a political subdivision.	4786

(FF) "Information services" means providing conversation,	4787
giving consultation or advice, playing or making a voice or other	4788
recording, making or keeping a record of the number of callers,	4789
and any other service provided to a consumer by means of a nine	4790
hundred telephone call, except when the nine hundred telephone	4791
call is the means by which the consumer makes a contribution to a	4792
recognized charity.	4793

(GG) "Research and development" means designing, creating, or	4794
formulating new or enhanced products, equipment, or manufacturing	4795
processes, and also means conducting scientific or technological	4796
inquiry and experimentation in the physical sciences with the goal	4797
of increasing scientific knowledge which may reveal the bases for	4798
new or enhanced products, equipment, or manufacturing processes.	4799

(HH) "Qualified research and development equipment" means	4800
capitalized tangible personal property, and leased personal	4801
property that would be capitalized if purchased, used by a person	4802
primarily to perform research and development. Tangible personal	4803
property primarily used in testing, as defined in division (A)(4)	4804
of section 5739.011 of the Revised Code, or used for recording or	4805
storing test results, is not qualified research and development	4806
equipment unless such property is primarily used by the consumer	4807
in testing the product, equipment, or manufacturing process being	4808
created, designed, or formulated by the consumer in the research	4809
and development activity or in recording or storing such test	4810
results.	4811

(II) "Building maintenance and janitorial service" means	4812
cleaning the interior or exterior of a building and any tangible	4813
personal property located therein or thereon, including any	4814
services incidental to such cleaning for which no separate charge	4815
is made. However, "building maintenance and janitorial service"	4816
does not include the providing of such service by a person who has	4817
less than five thousand dollars in sales of such service during	4818
the calendar year.	4819

(JJ) "Employment service" means providing or supplying	4820
personnel, on a temporary or long-term basis, to perform work or	4821
labor under the supervision or control of another, when the	4822
personnel so provided or supplied receive their wages, salary, or	4823
other compensation from the provider or supplier of the employment	4824
service or from a third party that provided or supplied the	4825
personnel to the provider or supplier. "Employment service" does	4826
not include:	4827

(1) Acting as a contractor or subcontractor, where the	4828
personnel performing the work are not under the direct control of	4829
the purchaser.	4830

(2) Medical and health care services.

4831

(3) Supplying personnel to a purchaser pursuant to a contract	4832
of at least one year between the service provider and the	4833
purchaser that specifies that each employee covered under the	4834
contract is assigned to the purchaser on a permanent basis.	4835

(4) Transactions between members of an affiliated group, as	4836
defined in division (B)(3)(e) of this section.	4837

(5) Transactions where the personnel so provided or supplied	4838
by a provider or supplier to a purchaser of an employment service	4839
are then provided or supplied by that purchaser to a third party	4840
as an employment service, except "employment service" does include	4841
the transaction between that purchaser and the third party.	4842

(KK) "Employment placement service" means locating or finding	4843
employment for a person or finding or locating an employee to fill	4844
an available position.	4845

(LL) "Exterminating service" means eradicating or attempting	4846
to eradicate vermin infestations from a building or structure, or	4847
the area surrounding a building or structure, and includes	4848
activities to inspect, detect, or prevent vermin infestation of a	4849
building or structure.	4850

(MM) "Physical fitness facility service" means all	4851
transactions by which a membership is granted, maintained, or	4852
renewed, including initiation fees, membership dues, renewal fees,	4853
monthly minimum fees, and other similar fees and dues, by a	4854
physical fitness facility such as an athletic club, health spa, or	4855
gymnasium, which entitles the member to use the facility for	4856
physical exercise.	4857

(NN) "Recreation and sports club service" means all	4858
transactions by which a membership is granted, maintained, or	4859
renewed, including initiation fees, membership dues, renewal fees,	4860
monthly minimum fees, and other similar fees and dues, by a	4861
recreation and sports club, which entitles the member to use the	4862
facilities of the organization. "Recreation and sports club" means	4863
an organization that has ownership of, or controls or leases on a	4864
continuing, long-term basis, the facilities used by its members	4865
and includes an aviation club, gun or shooting club, yacht club,	4866
card club, swimming club, tennis club, golf club, country club,	4867
riding club, amateur sports club, or similar organization.	4868

(OO) "Livestock" means farm animals commonly raised for food,	4869
food production, or other agricultural purposes, including, but	4870
not limited to, cattle, sheep, goats, swine, poultry, and captive	4871
deer. "Livestock" does not include invertebrates, amphibians,	4872
reptiles, domestic pets, animals for use in laboratories or for	4873
exhibition, or other animals not commonly raised for food or food	4874
production.	4875

(PP) "Livestock structure" means a building or structure used	4876
exclusively for the housing, raising, feeding, or sheltering of	4877
livestock, and includes feed storage or handling structures and	4878
structures for livestock waste handling.	4879

(QQ) "Horticulture" means the growing, cultivation, and	4880
production of flowers, fruits, herbs, vegetables, sod, mushrooms,	4881
and nursery stock. As used in this division, "nursery stock" has	4882
the same meaning as in section 927.51 of the Revised Code.	4883

(RR) "Horticulture structure" means a building or structure	4884
used exclusively for the commercial growing, raising, or	4885
overwintering of horticultural products, and includes the area	4886
used for stocking, storing, and packing horticultural products	4887
when done in conjunction with the production of those products.	4888

(SS) "Newspaper" means an unbound publication bearing a title	4889
or name that is regularly published, at least as frequently as	4890
biweekly, and distributed from a fixed place of business to the	4891
public in a specific geographic area, and that contains a	4892
substantial amount of news matter of international, national, or	4893
local events of interest to the general public.	4894

(TT) "Professional racing team" means a person that employs	4895
at least twenty full-time employees for the purpose of conducting	4896
a motor vehicle racing business for profit. The person must	4897
conduct the business with the purpose of racing one or more motor	4898
racing vehicles in at least ten competitive professional racing	4899
events each year that comprise all or part of a motor racing	4900
series sanctioned by one or more motor racing sanctioning	4901
organizations. A "motor racing vehicle" means a vehicle for which	4902
the chassis, engine, and parts are designed exclusively for motor	4903
racing, and does not include a stock or production model vehicle	4904
that may be modified for use in racing. For the purposes of this	4905
division:	4906

(1) A "competitive professional racing event" is a motor	4907
vehicle racing event sanctioned by one or more motor racing	4908
sanctioning organizations, at which aggregate cash prizes in	4909
excess of eight hundred thousand dollars are awarded to the	4910
competitors.	4911

(2) "Full-time employee" means an individual who is employed	4912
for consideration for thirty-five or more hours a week, or who	4913
renders any other standard of service generally accepted by custom	4914
or specified by contract as full-time employment"Managed care	4915
premium" means any premium, capitation, or other payment a	4916
medicaid health insuring corporation receives for providing or	4917
arranging for the provision of health care services to its members	4918
or enrollees residing in this state.	4919

(UU)(1) "Lease" or "rental" means any transfer of the	4920
possession or control of tangible personal property for a fixed or	4921
indefinite term, for consideration. "Lease" or "rental" includes	4922
future options to purchase or extend, and agreements described in	4923
26 U.S.C. 7701(h)(1) covering motor vehicles and trailers where	4924
the amount of consideration may be increased or decreased by	4925
reference to the amount realized upon the sale or disposition of	4926
the property. "Lease" or "rental" does not include:	4927

(a) A transfer of possession or control of tangible personal	4928
property under a security agreement or a deferred payment plan	4929
that requires the transfer of title upon completion of the	4930
required payments;	4931

(b) A transfer of possession or control of tangible personal	4932
property under an agreement that requires the transfer of title	4933
upon completion of required payments and payment of an option	4934
price that does not exceed the greater of one hundred dollars or	4935
one per cent of the total required payments;	4936

(c) Providing tangible personal property along with an	4937
operator for a fixed or indefinite period of time, if the operator	4938
is necessary for the property to perform as designed. For purposes	4939
of this division, the operator must do more than maintain,	4940
inspect, or set-up the tangible personal property.	4941

(2) "Lease" and "rental," as defined in division (UU) of this	4942
section, shall not apply to leases or rentals that exist before	4943
June 26, 2003.	4944

(3) "Lease" and "rental" have the same meaning as in division	4945
(UU)(1) of this section regardless of whether a transaction is	4946
characterized as a lease or rental under generally accepted	4947
accounting principles, the Internal Revenue Code, Title XIII of	4948
the Revised Code, or other federal, state, or local laws.	4949

(VV) "Mobile telecommunications service" has the same meaning	4950
as in the "Mobile Telecommunications Sourcing Act," Pub. L. No.	4951
106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended, and,	4952
on and after August 1, 2003, includes related fees and ancillary	4953
services, including universal service fees, detailed billing	4954
service, directory assistance, service initiation, voice mail	4955
service, and vertical services, such as caller ID and three-way	4956
calling.	4957

(WW) "Certified service provider" has the same meaning as in	4958
section 5740.01 of the Revised Code.	4959

(XX) "Satellite broadcasting service" means the distribution	4960
or broadcasting of programming or services by satellite directly	4961
to the subscriber's receiving equipment without the use of ground	4962
receiving or distribution equipment, except the subscriber's	4963
receiving equipment or equipment used in the uplink process to the	4964
satellite, and includes all service and rental charges, premium	4965
channels or other special services, installation and repair	4966
service charges, and any other charges having any connection with	4967
the provision of the satellite broadcasting service.	4968

(YY) "Tangible personal property" means personal property	4969
that can be seen, weighed, measured, felt, or touched, or that is	4970
in any other manner perceptible to the senses. For purposes of	4971
this chapter and Chapter 5741. of the Revised Code, "tangible	4972
personal property" includes motor vehicles, electricity, water,	4973
gas, steam, and prewritten computer software.	4974

(ZZ) "Direct mail" means printed material delivered or	4975
distributed by United States mail or other delivery service to a	4976
mass audience or to addressees on a mailing list provided by the	4977
consumer or at the direction of the consumer when the cost of the	4978
items are not billed directly to the recipients. "Direct mail"	4979
includes tangible personal property supplied directly or	4980
indirectly by the consumer to the direct mail vendor for inclusion	4981
in the package containing the printed material. "Direct mail" does	4982
not include multiple items of printed material delivered to a	4983
single address.	4984

(AAA) "Computer" means an electronic device that accepts	4985
information in digital or similar form and manipulates it for a	4986
result based on a sequence of instructions.	4987

(BBB) "Computer software" means a set of coded instructions	4988
designed to cause a computer or automatic data processing	4989
equipment to perform a task.	4990

(CCC) "Delivered electronically" means delivery of computer	4991
software from the seller to the purchaser by means other than	4992
tangible storage media.	4993

(DDD) "Prewritten computer software" means computer software,	4994
including prewritten upgrades, that is not designed and developed	4995
by the author or other creator to the specifications of a specific	4996
purchaser. The combining of two or more prewritten computer	4997
software programs or prewritten portions thereof does not cause	4998
the combination to be other than prewritten computer software.	4999
"Prewritten computer software" includes software designed and	5000
developed by the author or other creator to the specifications of	5001
a specific purchaser when it is sold to a person other than the	5002
purchaser. If a person modifies or enhances computer software of	5003
which the person is not the author or creator, the person shall be	5004
deemed to be the author or creator only of such person's	5005
modifications or enhancements. Prewritten computer software or a	5006
prewritten portion thereof that is modified or enhanced to any	5007
degree, where such modification or enhancement is designed and	5008
developed to the specifications of a specific purchaser, remains	5009
prewritten computer software; provided, however, that where there	5010
is a reasonable, separately stated charge or an invoice or other	5011
statement of the price given to the purchaser for the modification	5012
or enhancement, the modification or enhancement shall not	5013
constitute prewritten computer software.	5014

(EEE)(1) "Food" means substances, whether in liquid,	5015
concentrated, solid, frozen, dried, or dehydrated form, that are	5016
sold for ingestion or chewing by humans and are consumed for their	5017
taste or nutritional value. "Food" does not include alcoholic	5018
beverages, dietary supplements, soft drinks, or tobacco.	5019

(2) As used in division (EEE)(1) of this section:

5020

(a) "Alcoholic beverages" means beverages that are suitable	5021
for human consumption and contain one-half of one per cent or more	5022
of alcohol by volume.	5023

(b) "Dietary supplements" means any product, other than	5024
tobacco, that is intended to supplement the diet and that is	5025
intended for ingestion in tablet, capsule, powder, softgel,	5026
gelcap, or liquid form, or, if not intended for ingestion in such	5027
a form, is not represented as conventional food for use as a sole	5028
item of a meal or of the diet; that is required to be labeled as a	5029
dietary supplement, identifiable by the "supplement facts" box	5030
found on the label, as required by 21 C.F.R. 101.36; and that	5031
contains one or more of the following dietary ingredients:	5032

(i) A vitamin;

5033

(ii) A mineral;

5034

(iii) An herb or other botanical;

5035

(iv) An amino acid;

5036

(v) A dietary substance for use by humans to supplement the	5037
diet by increasing the total dietary intake;	5038

(vi) A concentrate, metabolite, constituent, extract, or	5039
combination of any ingredient described in divisions	5040
(EEE)(2)(b)(i) to (v) of this section.	5041

(c) "Soft drinks" means nonalcoholic beverages that contain	5042
natural or artificial sweeteners. "Soft drinks" does not include	5043
beverages that contain milk or milk products, soy, rice, or	5044
similar milk substitutes, or that contains greater than fifty per	5045
cent vegetable or fruit juice by volume.	5046

(d) "Tobacco" means cigarettes, cigars, chewing or pipe	5047
tobacco, or any other item that contains tobacco.	5048

(FFF) "Drug" means a compound, substance, or preparation, and	5049
any component of a compound, substance, or preparation, other than	5050
food, dietary supplements, or alcoholic beverages that is	5051
recognized in the official United States pharmacopoeia, official	5052
homeopathic pharmacopoeia of the United States, or official	5053
national formulary, and supplements to them; is intended for use	5054
in the diagnosis, cure, mitigation, treatment, or prevention of	5055
disease; or is intended to affect the structure or any function of	5056
the body.	5057

(GGG) "Prescription" means an order, formula, or recipe	5058
issued in any form of oral, written, electronic, or other means of	5059
transmission by a duly licensed practitioner authorized by the	5060
laws of this state to issue a prescription.	5061

(HHH) "Durable medical equipment" means equipment, including	5062
repair and replacement parts for such equipment, that can	5063
withstand repeated use, is primarily and customarily used to serve	5064
a medical purpose, generally is not useful to a person in the	5065
absence of illness or injury, and is not worn in or on the body.	5066
"Durable medical equipment" does not include mobility enhancing	5067
equipment.	5068

(III) "Mobility enhancing equipment" means equipment,	5069
including repair and replacement parts for such equipment, that is	5070
primarily and customarily used to provide or increase the ability	5071
to move from one place to another and is appropriate for use	5072
either in a home or a motor vehicle, that is not generally used by	5073
persons with normal mobility, and that does not include any motor	5074
vehicle or equipment on a motor vehicle normally provided by a	5075
motor vehicle manufacturer. "Mobility enhancing equipment" does	5076
not include durable medical equipment.	5077

(JJJ) "Prosthetic device" means a replacement, corrective, or	5078
supportive device, including repair and replacement parts for the	5079
device, worn on or in the human body to artificially replace a	5080
missing portion of the body, prevent or correct physical deformity	5081
or malfunction, or support a weak or deformed portion of the body.	5082
As used in this division, "prosthetic device" does not include	5083
corrective eyeglasses, contact lenses, or dental prosthesis.	5084

(KKK)(1) "Fractional aircraft ownership program" means a	5085
program in which persons within an affiliated group sell and	5086
manage fractional ownership program aircraft, provided that at	5087
least one hundred airworthy aircraft are operated in the program	5088
and the program meets all of the following criteria:	5089

(a) Management services are provided by at least one program	5090
manager within an affiliated group on behalf of the fractional	5091
owners.	5092

(b) Each program aircraft is owned or possessed by at least	5093
one fractional owner.	5094

(c) Each fractional owner owns or possesses at least a	5095
one-sixteenth interest in at least one fixed-wing program	5096
aircraft.	5097

(d) A dry-lease aircraft interchange arrangement is in effect	5098
among all of the fractional owners.	5099

(e) Multi-year program agreements are in effect regarding the	5100
fractional ownership, management services, and dry-lease aircraft	5101
interchange arrangement aspects of the program.	5102

(2) As used in division (KKK)(1) of this section:

5103

(a) "Affiliated group" has the same meaning as in division	5104
(B)(3)(e) of this section.	5105

(b) "Fractional owner" means a person that owns or possesses	5106
at least a one-sixteenth interest in a program aircraft and has	5107
entered into the agreements described in division (KKK)(1)(e) of	5108
this section.	5109

(c) "Fractional ownership program aircraft" or "program	5110
aircraft" means a turbojet aircraft that is owned or possessed by	5111
a fractional owner and that has been included in a dry-lease	5112
aircraft interchange arrangement and agreement under divisions	5113
(KKK)(1)(d) and (e) of this section, or an aircraft a program	5114
manager owns or possesses primarily for use in a fractional	5115
aircraft ownership program.	5116

(d) "Management services" means administrative and aviation	5117
support services furnished under a fractional aircraft ownership	5118
program in accordance with a management services agreement under	5119
division (KKK)(1)(e) of this section, and offered by the program	5120
manager to the fractional owners, including, at a minimum, the	5121
establishment and implementation of safety guidelines; the	5122
coordination of the scheduling of the program aircraft and crews;	5123
program aircraft maintenance; program aircraft insurance; crew	5124
training for crews employed, furnished, or contracted by the	5125
program manager or the fractional owner; the satisfaction of	5126
record-keeping requirements; and the development and use of an	5127
operations manual and a maintenance manual for the fractional	5128
aircraft ownership program.	5129

(e) "Program manager" means the person that offers management	5130
services to fractional owners pursuant to a management services	5131
agreement under division (KKK)(1)(e) of this section"Captive	5132
deer" means deer and other cervidae that have been legally	5133
acquired, or their offspring, that are privately owned for	5134
agricultural or farming purposes.	5135

(LLL) "Electronic publishing" means providing access to one	5136
or more of the following primarily for business customers,	5137
including the federal government or a state government or a	5138
political subdivision thereof, to conduct research: news;	5139
business, financial, legal, consumer, or credit materials;	5140
editorials, columns, reader commentary, or features; photos or	5141
images; archival or research material; legal notices, identity	5142
verification, or public records; scientific, educational,	5143
instructional, technical, professional, trade, or other literary	5144
materials; or other similar information which has been gathered	5145
and made available by the provider to the consumer in an	5146
electronic format. Providing electronic publishing includes the	5147
functions necessary for the acquisition, formatting, editing,	5148
storage, and dissemination of data or information that is the	5149
subject of a sale.	5150

(MMM) "Medicaid health insuring corporation" means a health	5151
insuring corporation that holds a certificate of authority under	5152
Chapter 1751. of the Revised Code and is under contract with the	5153
department of job and family services pursuant to section 5111.17	5154
of the Revised Code.	5155

(NNN) "Managed care premium" means any premium, capitation,	5156
or other payment a medicaid health insuring corporation receives	5157
for providing or arranging for the provision of health care	5158
services to its members or enrollees residing in this state.	5159

(OOO) "Captive deer" means deer and other cervidae that have	5160
been legally acquired, or their offspring, that are privately	5161
owned for agricultural or farming purposes.	5162

(PPP) "Gift card" means a document, card, certificate, or	5163
other record, whether tangible or intangible, that may be redeemed	5164
by a consumer for a dollar value when making a purchase of	5165
tangible personal property or services.	5166

Sec. 5739.02.  For the purpose of providing revenue with	5167
which to meet the needs of the state, for the use of the general	5168
revenue fund of the state, for the purpose of securing a thorough	5169
and efficient system of common schools throughout the state, for	5170
the purpose of affording revenues, in addition to those from	5171
general property taxes, permitted under constitutional	5172
limitations, and from other sources, for the support of local	5173
governmental functions, and for the purpose of reimbursing the	5174
state for the expense of administering this chapter, an excise tax	5175
is hereby levied on each retail sale made in this state.	5176

(A)(1) The tax shall be collected as provided in section	5177
5739.025 of the Revised Code. The rate of the tax shall be five	5178
and one-half per cent. The tax applies and is collectible when the	5179
sale is made, regardless of the time when the price is paid or	5180
delivered.	5181

(2) In the case of the lease or rental, with a fixed term of	5182
more than thirty days or an indefinite term with a minimum period	5183
of more than thirty days, of any motor vehicles designed by the	5184
manufacturer to carry a load of not more than one ton, watercraft,	5185
outboard motor, or aircraft, or of any tangible personal property,	5186
other than motor vehicles designed by the manufacturer to carry a	5187
load of more than one ton, to be used by the lessee or renter	5188
primarily for business purposes, the tax shall be collected by the	5189
vendor at the time the lease or rental is consummated and shall be	5190
calculated by the vendor on the basis of the total amount to be	5191
paid by the lessee or renter under the lease agreement. If the	5192
total amount of the consideration for the lease or rental includes	5193
amounts that are not calculated at the time the lease or rental is	5194
executed, the tax shall be calculated and collected by the vendor	5195
at the time such amounts are billed to the lessee or renter. In	5196
the case of an open-end lease or rental, the tax shall be	5197
calculated by the vendor on the basis of the total amount to be	5198
paid during the initial fixed term of the lease or rental, and for	5199
each subsequent renewal period as it comes due. As used in this	5200
division, "motor vehicle" has the same meaning as in section	5201
4501.01 of the Revised Code, and "watercraft" includes an outdrive	5202
unit attached to the watercraft.	5203

A lease with a renewal clause and a termination penalty or	5204
similar provision that applies if the renewal clause is not	5205
exercised is presumed to be a sham transaction. In such a case,	5206
the tax shall be calculated and paid on the basis of the entire	5207
length of the lease period, including any renewal periods, until	5208
the termination penalty or similar provision no longer applies.	5209
The taxpayer shall bear the burden, by a preponderance of the	5210
evidence, that the transaction or series of transactions is not a	5211
sham transaction.	5212

(3) Except as provided in division (A)(2) of this section, in	5213
the case of a sale, the price of which consists in whole or in	5214
part of the lease or rental of tangible personal property, the tax	5215
shall be measured by the installments of that lease or rental.	5216

(4) In the case of a sale of a physical fitness facility	5217
service or recreation and sports club service, the price of which	5218
consists in whole or in part of a membership for the receipt of	5219
the benefit of the service, the tax applicable to the sale shall	5220
be measured by the installments thereof.	5221

(B) The tax does not apply to the following:

5222

(1) Sales to the state or any of its political subdivisions,	5223
or to any other state or its political subdivisions if the laws of	5224
that state exempt from taxation sales made to this state and its	5225
political subdivisions;	5226

(2) Sales of food for human consumption off the premises	5227
where sold;	5228

(3) Sales of food sold to students only in a cafeteria,	5229
dormitory, fraternity, or sorority maintained in a private,	5230
public, or parochial school, college, or university;	5231

(4) Sales of newspapers and of magazine subscriptions and	5232
sales or transfers of magazines distributed as controlled	5233
circulation publications;	5234

(5) The furnishing, preparing, or serving of meals without	5235
charge by an employer to an employee provided the employer records	5236
the meals as part compensation for services performed or work	5237
done;	5238

(6) Sales of motor fuel upon receipt, use, distribution, or	5239
sale of which in this state a tax is imposed by the law of this	5240
state, but this exemption shall not apply to the sale of motor	5241
fuel on which a refund of the tax is allowable under division (A)	5242
of section 5735.14 of the Revised Code; and the tax commissioner	5243
may deduct the amount of tax levied by this section applicable to	5244
the price of motor fuel when granting a refund of motor fuel tax	5245
pursuant to division (A) of section 5735.14 of the Revised Code	5246
and shall cause the amount deducted to be paid into the general	5247
revenue fund of this state;	5248

(7) Sales of natural gas by a natural gas company, of water	5249
by a water-works company, or of steam by a heating company, if in	5250
each case the thing sold is delivered to consumers through pipes	5251
or conduits, and all sales of communications services by a	5252
telegraph company, all terms as defined in section 5727.01 of the	5253
Revised Code, and sales of electricity delivered through wires;	5254

(8) Casual sales by a person, or auctioneer employed directly	5255
by the person to conduct such sales, except as to such sales of	5256
motor vehicles, watercraft or outboard motors required to be	5257
titled under section 1548.06 of the Revised Code, watercraft	5258
documented with the United States coast guard, snowmobiles, and	5259
all-purpose vehicles as defined in section 4519.01 of the Revised	5260
Code;	5261

(9)(a) Sales of services or tangible personal property, other	5262
than motor vehicles, mobile homes, and manufactured homes, by	5263
churches, organizations exempt from taxation under section	5264
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit	5265
organizations operated exclusively for charitable purposes as	5266
defined in division (B)(12) of this section, provided that the	5267
number of days on which such tangible personal property or	5268
services, other than items never subject to the tax, are sold does	5269
not exceed six in any calendar year, except as otherwise provided	5270
in division (B)(9)(b) of this section. If the number of days on	5271
which such sales are made exceeds six in any calendar year, the	5272
church or organization shall be considered to be engaged in	5273
business and all subsequent sales by it shall be subject to the	5274
tax. In counting the number of days, all sales by groups within a	5275
church or within an organization shall be considered to be sales	5276
of that church or organization.	5277

(b) The limitation on the number of days on which tax-exempt	5278
sales may be made by a church or organization under division	5279
(B)(9)(a) of this section does not apply to sales made by student	5280
clubs and other groups of students of a primary or secondary	5281
school, or a parent-teacher association, booster group, or similar	5282
organization that raises money to support or fund curricular or	5283
extracurricular activities of a primary or secondary school.	5284

(c) Divisions (B)(9)(a) and (b) of this section do not apply	5285
to sales by a noncommercial educational radio or television	5286
broadcasting station.	5287

(10) Sales not within the taxing power of this state under	5288
the Constitution of the United States;	5289

(11) Except for transactions that are sales under division	5290
(B)(3)(r) of section 5739.01 of the Revised Code, the	5291
transportation of persons or property, unless the transportation	5292
is by a private investigation and security service;	5293

(12) Sales of tangible personal property or services to	5294
churches, to organizations exempt from taxation under section	5295
501(c)(3) of the Internal Revenue Code of 1986, and to any other	5296
nonprofit organizations operated exclusively for charitable	5297
purposes in this state, no part of the net income of which inures	5298
to the benefit of any private shareholder or individual, and no	5299
substantial part of the activities of which consists of carrying	5300
on propaganda or otherwise attempting to influence legislation;	5301
sales to offices administering one or more homes for the aged or	5302
one or more hospital facilities exempt under section 140.08 of the	5303
Revised Code; and sales to organizations described in division (D)	5304
of section 5709.12 of the Revised Code.	5305

"Charitable purposes" means the relief of poverty; the	5306
improvement of health through the alleviation of illness, disease,	5307
or injury; the operation of an organization exclusively for the	5308
provision of professional, laundry, printing, and purchasing	5309
services to hospitals or charitable institutions; the operation of	5310
a home for the aged, as defined in section 5701.13 of the Revised	5311
Code; the operation of a radio or television broadcasting station	5312
that is licensed by the federal communications commission as a	5313
noncommercial educational radio or television station; the	5314
operation of a nonprofit animal adoption service or a county	5315
humane society; the promotion of education by an institution of	5316
learning that maintains a faculty of qualified instructors,	5317
teaches regular continuous courses of study, and confers a	5318
recognized diploma upon completion of a specific curriculum; the	5319
operation of a parent-teacher association, booster group, or	5320
similar organization primarily engaged in the promotion and	5321
support of the curricular or extracurricular activities of a	5322
primary or secondary school; the operation of a community or area	5323
center in which presentations in music, dramatics, the arts, and	5324
related fields are made in order to foster public interest and	5325
education therein; the production of performances in music,	5326
dramatics, and the arts; or the promotion of education by an	5327
organization engaged in carrying on research in, or the	5328
dissemination of, scientific and technological knowledge and	5329
information primarily for the public.	5330

Nothing in this division shall be deemed to exempt sales to	5331
any organization for use in the operation or carrying on of a	5332
trade or business, or sales to a home for the aged for use in the	5333
operation of independent living facilities as defined in division	5334
(A) of section 5709.12 of the Revised Code.	5335

(13) Building and construction materials and services sold to	5336
construction contractors for incorporation into a structure or	5337
improvement to real property under a construction contract with	5338
this state or a political subdivision of this state, or with the	5339
United States government or any of its agencies; building and	5340
construction materials and services sold to construction	5341
contractors for incorporation into a structure or improvement to	5342
real property that are accepted for ownership by this state or any	5343
of its political subdivisions, or by the United States government	5344
or any of its agencies at the time of completion of the structures	5345
or improvements; building and construction materials sold to	5346
construction contractors for incorporation into a horticulture	5347
structure or livestock structure for a person engaged in the	5348
business of horticulture or producing livestock; building	5349
materials and services sold to a construction contractor for	5350
incorporation into a house of public worship or religious	5351
education, or a building used exclusively for charitable purposes	5352
under a construction contract with an organization whose purpose	5353
is as described in division (B)(12) of this section; building	5354
materials and services sold to a construction contractor for	5355
incorporation into a building under a construction contract with	5356
an organization exempt from taxation under section 501(c)(3) of	5357
the Internal Revenue Code of 1986 when the building is to be used	5358
exclusively for the organization's exempt purposes; building and	5359
construction materials sold for incorporation into the original	5360
construction of a sports facility under section 307.696 of the	5361
Revised Code; building and construction materials and services	5362
sold to a construction contractor for incorporation into real	5363
property outside this state if such materials and services, when	5364
sold to a construction contractor in the state in which the real	5365
property is located for incorporation into real property in that	5366
state, would be exempt from a tax on sales levied by that state;	5367
and, until one calendar year after the construction of a	5368
convention center that qualifies for property tax exemption under	5369
section 5709.084 of the Revised Code is completed, building and	5370
construction materials and services sold to a construction	5371
contractor for incorporation into the real property comprising	5372
that convention center;	5373

(14) Sales of ships or vessels or rail rolling stock used or	5374
to be used principally in interstate or foreign commerce, and	5375
repairs, alterations, fuel, and lubricants for such ships or	5376
vessels or rail rolling stock;	5377

(15) Sales to persons primarily engaged in any of the	5378
activities mentioned in division (B)(42)(a), (g), or (h) of this	5379
section, to persons engaged in making retail sales, or to persons	5380
who purchase for sale from a manufacturer tangible personal	5381
property that was produced by the manufacturer in accordance with	5382
specific designs provided by the purchaser, of packages, including	5383
material, labels, and parts for packages, and of machinery,	5384
equipment, and material for use primarily in packaging tangible	5385
personal property produced for sale, including any machinery,	5386
equipment, and supplies used to make labels or packages, to	5387
prepare packages or products for labeling, or to label packages or	5388
products, by or on the order of the person doing the packaging, or	5389
sold at retail. "Packages" includes bags, baskets, cartons,	5390
crates, boxes, cans, bottles, bindings, wrappings, and other	5391
similar devices and containers, but does not include motor	5392
vehicles or bulk tanks, trailers, or similar devices attached to	5393
motor vehicles. "Packaging" means placing in a package. Division	5394
(B)(15) of this section does not apply to persons engaged in	5395
highway transportation for hire.	5396

(16) Sales of food to persons using supplemental nutrition	5397
assistance program benefits to purchase the food. As used in this	5398
division, "food" has the same meaning as in 7 U.S.C. 2012 and	5399
federal regulations adopted pursuant to the Food and Nutrition Act	5400
of 2008.	5401

(17) Sales to persons engaged in farming, agriculture,	5402
horticulture, or floriculture, of tangible personal property for	5403
use or consumption primarily in the production by farming,	5404
agriculture, horticulture, or floriculture of other tangible	5405
personal property for use or consumption primarily in the	5406
production of tangible personal property for sale by farming,	5407
agriculture, horticulture, or floriculture; or material and parts	5408
for incorporation into any such tangible personal property for use	5409
or consumption in production; and of tangible personal property	5410
for such use or consumption in the conditioning or holding of	5411
products produced by and for such use, consumption, or sale by	5412
persons engaged in farming, agriculture, horticulture, or	5413
floriculture, except where such property is incorporated into real	5414
property;	5415

(18) Sales of drugs for a human being that may be dispensed	5416
only pursuant to a prescription; insulin as recognized in the	5417
official United States pharmacopoeia; urine and blood testing	5418
materials when used by diabetics or persons with hypoglycemia to	5419
test for glucose or acetone; hypodermic syringes and needles when	5420
used by diabetics for insulin injections; epoetin alfa when	5421
purchased for use in the treatment of persons with medical	5422
disease; hospital beds when purchased by hospitals, nursing homes,	5423
or other medical facilities; and medical oxygen and medical	5424
oxygen-dispensing equipment when purchased by hospitals, nursing	5425
homes, or other medical facilities;	5426

(19) Sales of prosthetic devices, durable medical equipment	5427
for home use, or mobility enhancing equipment, when made pursuant	5428
to a prescription and when such devices or equipment are for use	5429
by a human being.	5430

(20) Sales of emergency and fire protection vehicles and	5431
equipment to nonprofit organizations for use solely in providing	5432
fire protection and emergency services, including trauma care and	5433
emergency medical services, for political subdivisions of the	5434
state;	5435

(21) Sales of tangible personal property manufactured in this	5436
state, if sold by the manufacturer in this state to a retailer for	5437
use in the retail business of the retailer outside of this state	5438
and if possession is taken from the manufacturer by the purchaser	5439
within this state for the sole purpose of immediately removing the	5440
same from this state in a vehicle owned by the purchaser;	5441

(22) Sales of services provided by the state or any of its	5442
political subdivisions, agencies, instrumentalities, institutions,	5443
or authorities, or by governmental entities of the state or any of	5444
its political subdivisions, agencies, instrumentalities,	5445
institutions, or authorities;	5446

(23) Sales of motor vehicles to nonresidents of this state	5447
under the circumstances described in division (B) of section	5448
5739.029 of the Revised Code;	5449

(24) Sales to persons engaged in the preparation of eggs for	5450
sale of tangible personal property used or consumed directly in	5451
such preparation, including such tangible personal property used	5452
for cleaning, sanitizing, preserving, grading, sorting, and	5453
classifying by size; packages, including material and parts for	5454
packages, and machinery, equipment, and material for use in	5455
packaging eggs for sale; and handling and transportation equipment	5456
and parts therefor, except motor vehicles licensed to operate on	5457
public highways, used in intraplant or interplant transfers or	5458
shipment of eggs in the process of preparation for sale, when the	5459
plant or plants within or between which such transfers or	5460
shipments occur are operated by the same person. "Packages"	5461
includes containers, cases, baskets, flats, fillers, filler flats,	5462
cartons, closure materials, labels, and labeling materials, and	5463
"packaging" means placing therein.	5464

(25)(a) Sales of water to a consumer for residential use,	5465
except the sale of bottled water, distilled water, mineral water,	5466
carbonated water, or ice;	5467

(b) Sales of water by a nonprofit corporation engaged	5468
exclusively in the treatment, distribution, and sale of water to	5469
consumers, if such water is delivered to consumers through pipes	5470
or tubing.	5471

(26) Fees charged for inspection or reinspection of motor	5472
vehicles under section 3704.14 of the Revised Code;	5473

(27) Sales to persons licensed to conduct a food service	5474
operation pursuant to section 3717.43 of the Revised Code, of	5475
tangible personal property primarily used directly for the	5476
following:	5477

(a) To prepare food for human consumption for sale;

5478

(b) To preserve food that has been or will be prepared for	5479
human consumption for sale by the food service operator, not	5480
including tangible personal property used to display food for	5481
selection by the consumer;	5482

(c) To clean tangible personal property used to prepare or	5483
serve food for human consumption for sale.Sales of	5484
telecommunications service that is used directly and primarily to	5485
perform the functions of a call center. As used in this division,	5486
"call center" means any physical location where telephone calls	5487
are placed or received in high volume for the purpose of making	5488
sales, marketing, customer service, technical support, or other	5489
specialized business activity, and that employs at least fifty	5490
individuals that engage in call center activities on a full-time	5491
basis, or sufficient individuals to fill fifty full-time	5492
equivalent positions;	5493

(28) Sales of animals by nonprofit animal adoption services	5494
or county humane societies;	5495

(29) Sales of services to a corporation described in division	5496
(A) of section 5709.72 of the Revised Code, and sales of tangible	5497
personal property that qualifies for exemption from taxation under	5498
section 5709.72 of the Revised Code;	5499

(30) Sales and installation of agricultural land tile, as	5500
defined in division (B)(5)(a) of section 5739.01 of the Revised	5501
Codeby a telecommunications service vendor of 900 service to a	5502
subscriber. This division does not apply to information services,	5503
as defined in division (FF) of section 5739.01 of the Revised	5504
Code;	5505

(31) Sales and erection or installation of portable grain	5506
bins, as defined in division (B)(5)(b) of section 5739.01 of the	5507
Revised Codeof value-added non-voice data service. This division	5508
does not apply to any similar service that is not otherwise a	5509
telecommunications service;	5510

(32) The sale, lease, repair, and maintenance of, parts for,	5511
or items attached to or incorporated in, motor vehicles that are	5512
primarily used for transporting tangible personal property	5513
belonging to others by a person engaged in highway transportation	5514
for hire, except for packages and packaging used for the	5515
transportation of tangible personal property;	5516

(33) Sales to the state headquarters of any veterans'	5517
organization in this state that is either incorporated and issued	5518
a charter by the congress of the United States or is recognized by	5519
the United States veterans administration, for use by the	5520
headquarters;	5521

(34) Sales to a telecommunications service vendor, mobile	5522
telecommunications service vendor, or satellite broadcasting	5523
service vendor of tangible personal property and services used	5524
directly and primarily in transmitting, receiving, switching, or	5525
recording any interactive, one- or two-way electromagnetic	5526
communications, including voice, image, data, and information,	5527
through the use of any medium, including, but not limited to,	5528
poles, wires, cables, switching equipment, computers, and record	5529
storage devices and media, and component parts for the tangible	5530
personal property. The exemption provided in this division shall	5531
be in lieu of all other exemptions under division (B)(42)(a) or	5532
(n) of this section to which the vendor may otherwise be entitled,	5533
based upon the use of the thing purchased in providing the	5534
telecommunications, mobile telecommunications, or satellite	5535
broadcasting service.	5536

(35)(a) Sales where the purpose of the consumer is to use or	5537
consume the things transferred in making retail sales and	5538
consisting of newspaper inserts, catalogues, coupons, flyers, gift	5539
certificates, or other advertising material that prices and	5540
describes tangible personal property offered for retail sale.	5541

(b) Sales to direct marketing vendors of preliminary	5542
materials such as photographs, artwork, and typesetting that will	5543
be used in printing advertising material; of printed matter that	5544
offers free merchandise or chances to win sweepstake prizes and	5545
that is mailed to potential customers with advertising material	5546
described in division (B)(35)(a) of this section; and of equipment	5547
such as telephones, computers, facsimile machines, and similar	5548
tangible personal property primarily used to accept orders for	5549
direct marketing retail sales.	5550

(c) Sales of automatic food vending machines that preserve	5551
food with a shelf life of forty-five days or less by refrigeration	5552
and dispense it to the consumer.	5553

For purposes of division (B)(35) of this section, "direct	5554
marketing" means the method of selling where consumers order	5555
tangible personal property by United States mail, delivery	5556
service, or telecommunication and the vendor delivers or ships the	5557
tangible personal property sold to the consumer from a warehouse,	5558
catalogue distribution center, or similar fulfillment facility by	5559
means of the United States mail, delivery service, or common	5560
carrierof machinery, equipment, and software to a qualified	5561
direct selling entity for use in a warehouse or distribution	5562
center primarily for storing, transporting, or otherwise handling	5563
inventory that is held for sale to independent salespersons who	5564
operate as direct sellers and that is held primarily for	5565
distribution outside this state;	5566

(b) As used in division (B)(35)(a) of this section:

5567

(i) "Direct seller" means a person selling consumer products	5568
to individuals for personal or household use and not from a fixed	5569
retail location, including selling such product at in-home product	5570
demonstrations, parties, and other one-on-one selling.	5571

(ii) "Qualified direct selling entity" means an entity	5572
selling to direct sellers at the time the entity enters into a tax	5573
credit agreement with the tax credit authority pursuant to section	5574
122.17 of the Revised Code, provided that the agreement was	5575
entered into on or after January 1, 2007. Neither contingencies	5576
relevant to the granting of, nor later developments with respect	5577
to, the tax credit shall impair the status of the qualified direct	5578
selling entity under division (B)(35) of this section after	5579
execution of the tax credit agreement by the tax credit authority.	5580

(c) Division (B)(35) of this section is limited to machinery,	5581
equipment, and software first stored, used, or consumed in this	5582
state within the period commencing June 24, 2008, and ending June	5583
24, 2013.	5584

(36) Sales to a person engaged in the business of	5585
horticulture or producing livestock of materials to be	5586
incorporated into a horticulture structure or livestock structure;	5587

(37) Sales of personal computers, computer monitors, computer	5588
keyboards, modems, and other peripheral computer equipment to an	5589
individual who is licensed or certified to teach in an elementary	5590
or a secondary school in this state for use by that individual in	5591
preparation for teaching elementary or secondary school students;	5592

(38) Sales to a professional racing team of any of the	5593
following:	5594

(a) Motor racing vehicles;

5595

(b) Repair services for motor racing vehicles;

5596

(c) Items of property that are attached to or incorporated in	5597
motor racing vehicles, including engines, chassis, and all other	5598
components of the vehicles, and all spare, replacement, and	5599
rebuilt parts or components of the vehicles; except not including	5600
tires, consumable fluids, paint, and accessories consisting of	5601
instrumentation sensors and related items added to the vehicle to	5602
collect and transmit data by means of telemetry and other forms of	5603
communication Any transfer or lease of tangible personal property	5604
between the state and a successful proposer in accordance with	5605
sections 126.60 to 126.605 of the Revised Code, provided the	5606
property is part of a project as defined in section 126.60 of the	5607
Revised Code and the state retains ownership of the project or	5608
part thereof that is being transferred or leased, between the	5609
state and JobsOhio in accordance with section 4313.02 of the	5610
Revised Code.	5611

(39) Sales of used manufactured homes and used mobile homes,	5612
as defined in section 5739.0210 of the Revised Code, made on or	5613
after January 1, 2000;	5614

(40) Sales of tangible personal property and services to a	5615
provider of electricity used or consumed directly and primarily in	5616
generating, transmitting, or distributing electricity for use by	5617
others, including property that is or is to be incorporated into	5618
and will become a part of the consumer's production, transmission,	5619
or distribution system and that retains its classification as	5620
tangible personal property after incorporation; fuel or power used	5621
in the production, transmission, or distribution of electricity;	5622
energy conversion equipment as defined in section 5727.01 of the	5623
Revised Code; and tangible personal property and services used in	5624
the repair and maintenance of the production, transmission, or	5625
distribution system, including only those motor vehicles as are	5626
specially designed and equipped for such use. The exemption	5627
provided in this division shall be in lieu of all other exemptions	5628
in division (B)(42)(a) or (n) of this section to which a provider	5629
of electricity may otherwise be entitled based on the use of the	5630
tangible personal property or service purchased in generating,	5631
transmitting, or distributing electricity.	5632

(41) Sales to a person providing services under division	5633
(B)(3)(r) of section 5739.01 of the Revised Code of tangible	5634
personal property and services used directly and primarily in	5635
providing taxable services under that section.	5636

(42) Sales where the purpose of the purchaser is to do any of	5637
the following:	5638

(a) To incorporate the thing transferred as a material or a	5639
part into tangible personal property to be produced for sale by	5640
manufacturing, assembling, processing, or refining; or to use or	5641
consume the thing transferred directly in producing tangible	5642
personal property for sale by mining, including, without	5643
limitation, the extraction from the earth of all substances that	5644
are classed geologically as minerals, production of crude oil and	5645
natural gas, or directly in the rendition of a public utility	5646
service, except that the sales tax levied by this section shall be	5647
collected upon all meals, drinks, and food for human consumption	5648
sold when transporting persons. Persons engaged in rendering	5649
services in the exploration for, and production of, crude oil and	5650
natural gas for others are deemed engaged directly in the	5651
exploration for, and production of, crude oil and natural gas.	5652
This paragraph does not exempt from "retail sale" or "sales at	5653
retail" the sale of tangible personal property that is to be	5654
incorporated into a structure or improvement to real property.	5655

(b) To hold the thing transferred as security for the	5656
performance of an obligation of the vendor;	5657

(c) To resell, hold, use, or consume the thing transferred as	5658
evidence of a contract of insurance;	5659

(d) To use or consume the thing directly in commercial	5660
fishing;	5661

(e) To incorporate the thing transferred as a material or a	5662
part into, or to use or consume the thing transferred directly in	5663
the production of, magazines distributed as controlled circulation	5664
publications;	5665

(f) To use or consume the thing transferred in the production	5666
and preparation in suitable condition for market and sale of	5667
printed, imprinted, overprinted, lithographic, multilithic,	5668
blueprinted, photostatic, or other productions or reproductions of	5669
written or graphic matter;	5670

(g) To use the thing transferred, as described in section	5671
5739.011 of the Revised Code, primarily in a manufacturing	5672
operation to produce tangible personal property for sale;	5673

(h) To use the benefit of a warranty, maintenance or service	5674
contract, or similar agreement, as described in division (B)(7) of	5675
section 5739.01 of the Revised Code, to repair or maintain	5676
tangible personal property, if all of the property that is the	5677
subject of the warranty, contract, or agreement would not be	5678
subject to the tax imposed by this section;	5679

(i) To use the thing transferred as qualified research and	5680
development equipment;	5681

(j) To use or consume the thing transferred primarily in	5682
storing, transporting, mailing, or otherwise handling purchased	5683
sales inventory in a warehouse, distribution center, or similar	5684
facility when the inventory is primarily distributed outside this	5685
state to retail stores of the person who owns or controls the	5686
warehouse, distribution center, or similar facility, to retail	5687
stores of an affiliated group of which that person is a member, or	5688
by means of direct marketing. This division does not apply to	5689
motor vehicles registered for operation on the public highways. As	5690
used in this division, "affiliated group" has the same meaning as	5691
in division (B)(3)(e) of section 5739.01 of the Revised Code and	5692
"direct marketing" has the same meaning as in division (B)(35) of	5693
this sectionmeans the method of selling where consumers order	5694
tangible personal property by United States mail, delivery	5695
service, or telecommunication and the vendor delivers or ships the	5696
tangible personal property sold to the consumer from a warehouse,	5697
catalogue distribution center, or similar fulfillment facility by	5698
means of the United States mail, delivery service, or common	5699
carrier.	5700

(k) To use or consume the thing transferred to fulfill a	5701
contractual obligation incurred by a warrantor pursuant to a	5702
warranty provided as a part of the price of the tangible personal	5703
property sold or by a vendor of a warranty, maintenance or service	5704
contract, or similar agreement the provision of which is defined	5705
as a sale under division (B)(7) of section 5739.01 of the Revised	5706
Code;	5707

(l) To use or consume the thing transferred in the production	5708
of a newspaper for distribution to the public;	5709

(m) To use tangible personal property to perform a service	5710
listed in division (B)(3) of section 5739.01 of the Revised Code,	5711
if the property is or is to be permanently transferred to the	5712
consumer of the service as an integral part of the performance of	5713
the service;	5714

(n) To use or consume the thing transferred primarily in	5715
producing tangible personal property for sale by farming,	5716
agriculture, horticulture, or floriculture. Persons engaged in	5717
rendering farming, agriculture, horticulture, or floriculture	5718
services for others are deemed engaged primarily in farming,	5719
agriculture, horticulture, or floriculture. This paragraph does	5720
not exempt from "retail sale" or "sales at retail" the sale of	5721
tangible personal property that is to be incorporated into a	5722
structure or improvement to real property.	5723

(o) To use or consume the thing transferred in acquiring,	5724
formatting, editing, storing, and disseminating data or	5725
information by electronic publishing.	5726

As used in division (B)(42) of this section, "thing" includes	5727
all transactions included in divisions (B)(3)(a), (b), and (e) of	5728
section 5739.01 of the Revised Code.	5729

(43) Sales conducted through a coin operated device that	5730
activates vacuum equipment or equipment that dispenses water,	5731
whether or not in combination with soap or other cleaning agents	5732
or wax, to the consumer for the consumer's use on the premises in	5733
washing, cleaning, or waxing a motor vehicle, provided no other	5734
personal property or personal service is provided as part of the	5735
transaction.	5736

(44) Sales of replacement and modification parts for engines,	5737
airframes, instruments, and interiors in, and paint for, aircraft	5738
used primarily in a fractional aircraft ownership program, and	5739
sales of services for the repair, modification, and maintenance of	5740
such aircraft, and machinery, equipment, and supplies primarily	5741
used to provide those services.	5742

(45) Sales of telecommunications service that is used	5743
directly and primarily to perform the functions of a call center.	5744
As used in this division, "call center" means any physical	5745
location where telephone calls are placed or received in high	5746
volume for the purpose of making sales, marketing, customer	5747
service, technical support, or other specialized business	5748
activity, and that employs at least fifty individuals that engage	5749
in call center activities on a full-time basis, or sufficient	5750
individuals to fill fifty full-time equivalent positions.	5751

(46) Sales by a telecommunications service vendor of 900	5752
service to a subscriber. This division does not apply to	5753
information services, as defined in division (FF) of section	5754
5739.01 of the Revised Code.	5755

(47) Sales of value-added non-voice data service. This	5756
division does not apply to any similar service that is not	5757
otherwise a telecommunications service.	5758

(48)(a) Sales of machinery, equipment, and software to a	5759
qualified direct selling entity for use in a warehouse or	5760
distribution center primarily for storing, transporting, or	5761
otherwise handling inventory that is held for sale to independent	5762
salespersons who operate as direct sellers and that is held	5763
primarily for distribution outside this state;	5764

(b) As used in division (B)(48)(a) of this section:

5765

(i) "Direct seller" means a person selling consumer products	5766
to individuals for personal or household use and not from a fixed	5767
retail location, including selling such product at in-home product	5768
demonstrations, parties, and other one-on-one selling.	5769

(ii) "Qualified direct selling entity" means an entity	5770
selling to direct sellers at the time the entity enters into a tax	5771
credit agreement with the tax credit authority pursuant to section	5772
122.17 of the Revised Code, provided that the agreement was	5773
entered into on or after January 1, 2007. Neither contingencies	5774
relevant to the granting of, nor later developments with respect	5775
to, the tax credit shall impair the status of the qualified direct	5776
selling entity under division (B)(48) of this section after	5777
execution of the tax credit agreement by the tax credit authority.	5778

(c) Division (B)(48) of this section is limited to machinery,	5779
equipment, and software first stored, used, or consumed in this	5780
state within the period commencing June 24, 2008, and ending on	5781
the date that is five years after that date.	5782

(49) Sales of materials, parts, equipment, or engines used in	5783
the repair or maintenance of aircraft or avionics systems of such	5784
aircraft, and sales of repair, remodeling, replacement, or	5785
maintenance services in this state performed on aircraft or on an	5786
aircraft's avionics, engine, or component materials or parts. As	5787
used in division (B)(49) of this section, "aircraft" means	5788
aircraft of more than six thousand pounds maximum certified	5789
takeoff weight or used exclusively in general aviation.	5790

(50) Sales of full flight simulators that are used for pilot	5791
or flight-crew training, sales of repair or replacement parts or	5792
components, and sales of repair or maintenance services for such	5793
full flight simulators. "Full flight simulator" means a replica of	5794
a specific type, or make, model, and series of aircraft cockpit.	5795
It includes the assemblage of equipment and computer programs	5796
necessary to represent aircraft operations in ground and flight	5797
conditions, a visual system providing an out-of-the-cockpit view,	5798
and a system that provides cues at least equivalent to those of a	5799
three-degree-of-freedom motion system, and has the full range of	5800
capabilities of the systems installed in the device as described	5801
in appendices A and B of part 60 of chapter 1 of title 14 of the	5802
Code of Federal Regulations.	5803

(51) Any transfer or lease of tangible personal property	5804
between the state and a successful proposer in accordance with	5805
sections 126.60 to 126.605 of the Revised Code, provided the	5806
property is part of a project as defined in section 126.60 of the	5807
Revised Code and the state retains ownership of the project or	5808
part thereof that is being transferred or leased, between the	5809
state and JobsOhio in accordance with section 4313.02 of the	5810
Revised Code.	5811

(C) For the purpose of the proper administration of this	5812
chapter, and to prevent the evasion of the tax, it is presumed	5813
that all sales made in this state are subject to the tax until the	5814
contrary is established.	5815

(D) The levy of this tax on retail sales of recreation and	5816
sports club service shall not prevent a municipal corporation from	5817
levying any tax on recreation and sports club dues or on any	5818
income generated by recreation and sports club dues.	5819

(E) The tax collected by the vendor from the consumer under	5820
this chapter is not part of the price, but is a tax collection for	5821
the benefit of the state, and of counties levying an additional	5822
sales tax pursuant to section 5739.021 or 5739.026 of the Revised	5823
Code and of transit authorities levying an additional sales tax	5824
pursuant to section 5739.023 of the Revised Code. Except for the	5825
discount authorized under section 5739.12 of the Revised Code and	5826
the effects of any rounding pursuant to section 5703.055 of the	5827
Revised Code, no person other than the state or such a county or	5828
transit authority shall derive any benefit from the collection or	5829
payment of the tax levied by this section or section 5739.021,	5830
5739.023, or 5739.026 of the Revised Code.	5831

Sec. 5739.025.  As used in this section, "local tax" means a	5832
tax imposed pursuant to section 5739.021, 5739.023, 5739.026,	5833
5741.021, 5741.022, or 5741.023 of the Revised Code.	5834

(A) The taxes levied by sections 5739.02 and 5741.02 of the	5835
Revised Code shall be collected as follows:	5836

(1) On and after July 1, 2003, and on or before June 30,	5837
2005, in accordance with the following schedule:	5838

If the price		The amount of			5839
is at least		But not more than		the tax is			5840
	$ .01		$ .15		No tax		5841
	.16		.16		1¢		5842
	.17		.33		2¢		5843
	.34		.50		3¢		5844
	.51		.66		4¢		5845
	.67		.83		5¢		5846
	.84		1.00		6¢		5847

If the price exceeds one dollar, the tax is six cents on each	5848
one dollar. If the price exceeds one dollar or a multiple thereof	5849
by not more than seventeen cents, the amount of tax is six cents	5850
for each one dollar plus one cent. If the price exceeds one dollar	5851
or a multiple thereof by more than seventeen cents, the amount of	5852
tax is six cents for each one dollar plus the amount of tax for	5853
prices eighteen cents through ninety-nine cents in accordance with	5854
the schedule above.	5855

(2) On and after July 1, 2005, and on and before December 31,	5856
2005, in accordance with the following schedule:	5857

	If the price		But not		The amount			5858
	is at least		more than		of the tax is			5859

	$ .01		$ .15		No tax			5860
	.16		.18		1¢			5861
	.19		.36		2¢			5862
	.37		.54		3¢			5863
	.55		.72		4¢			5864
	.73		.90		5¢			5865
	.91		1.09		6¢			5866
	1.10		1.27		7¢			5867
	1.28		1.46		8¢			5868
	1.47		1.64		9¢			5869
	1.65		1.82		10¢			5870
	1.83		2.00		11¢			5871

If the price exceeds two dollars, the tax is eleven cents on	5872
each two dollars. If the price exceeds two dollars or a multiple	5873
thereof by not more than eighteen cents, the amount of tax is	5874
eleven cents for each two dollars plus one cent. If the price	5875
exceeds two dollars or a multiple thereof by more than eighteen	5876
cents, the amount of tax is eleven cents for each two dollars plus	5877
the amount of tax for prices nineteen cents through one dollar and	5878
ninety-nine cents in accordance with the schedule above.	5879

(B) On and after July 1, 2003, and on and before June 30,	5880
2005, the combined taxes levied by sections 5739.02 and 5741.02	5881
and pursuant to sections 5739.021, 5739.023, 5739.026, 5741.021,	5882
5741.022, and 5741.023 of the Revised Code shall be collected in	5883
accordance with the following schedules:	5884

(1) When the combined rate of state and local tax is six and	5885
one-fourth per cent:	5886

If the price		The amount of			5887
is at least		But not more than		the tax is			5888
	$ .01		$ .15		No tax		5889
	.16		.16		1¢		5890
	.17		.32		2¢		5891
	.33		.48		3¢		5892
	.49		.64		4¢		5893
	.65		.80		5¢		5894
	.81		.96		6¢		5895
	.97		1.12		7¢		5896
	1.13		1.28		8¢		5897
	1.29		1.44		9¢		5898
	1.45		1.60		10¢		5899
	1.61		1.76		11¢		5900
	1.77		1.92		12¢		5901
	1.93		2.08		13¢		5902
	2.09		2.24		14¢		5903
	2.25		2.40		15¢		5904
	2.41		2.56		16¢		5905
	2.57		2.72		17¢		5906
	2.73		2.88		18¢		5907
	2.89		3.04		19¢		5908
	3.05		3.20		20¢		5909
	3.21		3.36		21¢		5910
	3.37		3.52		22¢		5911
	3.53		3.68		23¢		5912
	3.69		3.84		24¢		5913
	3.85		4.00		25¢		5914

If the price exceeds four dollars, the tax is twenty-five	5915
cents on each four dollars. If the price exceeds four dollars or a	5916
multiple thereof by not more than sixteen cents, the amount of tax	5917
is twenty-five cents for each four dollars plus one cent. If the	5918
price exceeds four dollars or a multiple thereof by more than	5919
sixteen cents, the amount of tax is twenty-five cents for each	5920
four dollars plus the amount of tax for prices seventeen cents	5921
through three dollars and ninety-nine cents in accordance with the	5922
schedule above.	5923

(2) When the combined rate of state and local tax is six and	5924
one-half per cent:	5925

If the price		The amount of			5926
is at least		But not more than		the tax is			5927
	$ .01		$ .15		No tax		5928
	.16		.30		2¢		5929
	.31		.46		3¢		5930
	.47		.61		4¢		5931
	.62		.76		5¢		5932
	.77		.92		6¢		5933
	.93		1.07		7¢		5934
	1.08		1.23		8¢		5935
	1.24		1.38		9¢		5936
	1.39		1.53		10¢		5937
	1.54		1.69		11¢		5938
	1.70		1.84		12¢		5939
	1.85		2.00		13¢		5940

If the price exceeds two dollars, the tax is thirteen cents	5941
on each two dollars. If the price exceeds two dollars or a	5942
multiple thereof by not more than fifteen cents, the amount of tax	5943
is thirteen cents for each two dollars plus one cent. If the price	5944
exceeds two dollars or a multiple thereof by more than fifteen	5945
cents, the amount of tax is thirteen cents for each two dollars	5946
plus the amount of tax for prices sixteen cents through one dollar	5947
and ninety-nine cents in accordance with the schedule above.	5948

(3) When the combined rate of state and local tax is six and	5949
three-fourths per cent:	5950

If the price		The amount of			5951
is at least		But not more than		the tax is			5952
	$ .01		$ .15		No tax		5953
	.16		.29		2¢		5954
	.30		.44		3¢		5955
	.45		.59		4¢		5956
	.60		.74		5¢		5957
	.75		.88		6¢		5958
	.89		1.03		7¢		5959
	1.04		1.18		8¢		5960
	1.19		1.33		9¢		5961
	1.34		1.48		10¢		5962
	1.49		1.62		11¢		5963
	1.63		1.77		12¢		5964
	1.78		1.92		13¢		5965
	1.93		2.07		14¢		5966
	2.08		2.22		15¢		5967
	2.23		2.37		16¢		5968
	2.38		2.51		17¢		5969
	2.52		2.66		18¢		5970
	2.67		2.81		19¢		5971
	2.82		2.96		20¢		5972
	2.97		3.11		21¢		5973
	3.12		3.25		22¢		5974
	3.26		3.40		23¢		5975
	3.41		3.55		24¢		5976
	3.56		3.70		25¢		5977
	3.71		3.85		26¢		5978
	3.86		4.00		27¢		5979

If the price exceeds four dollars, the tax is twenty-seven	5980
cents on each four dollars. If the price exceeds four dollars or a	5981
multiple thereof by not more than fourteen cents, the amount of	5982
tax is twenty-seven cents for each four dollars plus one cent. If	5983
the price exceeds four dollars or a multiple thereof by more than	5984
fourteen but by not more than twenty-nine cents, the amount of tax	5985
is twenty-seven cents for each four dollars plus two cents. If the	5986
price exceeds four dollars or a multiple thereof by more than	5987
twenty-nine cents the amount of tax is twenty-seven cents for each	5988
four dollars plus the amount of tax for prices thirty cents	5989
through three dollars and ninety-nine cents in accordance with the	5990
schedule above.	5991

(4) When the combined rate of state and local tax is seven	5992
per cent:	5993

If the price		The amount of			5994
is at least		But not more than		the tax is			5995
	$ .01		$ .15		No tax		5996
	.16		.28		2¢		5997
	.29		.42		3¢		5998
	.43		.57		4¢		5999
	.58		.71		5¢		6000
	.72		.85		6¢		6001
	.86		1.00		7¢		6002

If the price exceeds one dollar, the tax is seven cents on	6003
each one dollar. If the price exceeds one dollar or a multiple	6004
thereof by not more than fifteen cents, the amount of tax is seven	6005
cents for each one dollar plus one cent. If the price exceeds one	6006
dollar or a multiple thereof by more than fifteen cents, the	6007
amount of tax is seven cents for each one dollar plus the amount	6008
of tax for prices sixteen cents through ninety-nine cents in	6009
accordance with the schedule above.	6010

(5) When the combined rate of state and local tax is seven	6011
and one-fourth per cent:	6012

If the price		The amount of			6013
is at least		But not more than		the tax is			6014
	$ .01		$ .15		No tax		6015
	.16		.27		2¢		6016
	.28		.41		3¢		6017
	.42		.55		4¢		6018
	.56		.68		5¢		6019
	.69		.82		6¢		6020
	.83		.96		7¢		6021
	.97		1.10		8¢		6022
	1.11		1.24		9¢		6023
	1.25		1.37		10¢		6024
	1.38		1.51		11¢		6025
	1.52		1.65		12¢		6026
	1.66		1.79		13¢		6027
	1.80		1.93		14¢		6028
	1.94		2.06		15¢		6029
	2.07		2.20		16¢		6030
	2.21		2.34		17¢		6031
	2.35		2.48		18¢		6032
	2.49		2.62		19¢		6033
	2.63		2.75		20¢		6034
	2.76		2.89		21¢		6035
	2.90		3.03		22¢		6036
	3.04		3.17		23¢		6037
	3.18		3.31		24¢		6038
	3.32		3.44		25¢		6039
	3.45		3.58		26¢		6040
	3.59		3.72		27¢		6041
	3.73		3.86		28¢		6042
	3.87		4.00		29¢		6043

If the price exceeds four dollars, the tax is twenty-nine	6044
cents on each four dollars. If the price exceeds four dollars or a	6045
multiple thereof by not more than thirteen cents, the amount of	6046
tax is twenty-nine cents for each four dollars plus one cent. If	6047
the price exceeds four dollars or a multiple thereof by more than	6048
thirteen cents but by not more than twenty-seven cents, the amount	6049
of tax is twenty-nine cents for each four dollars plus two cents.	6050
If the price exceeds four dollars or a multiple thereof by more	6051
than twenty-seven cents, the amount of tax is twenty-nine cents	6052
for each four dollars plus the amount of tax for prices	6053
twenty-eight cents through three dollars and ninety-nine cents in	6054
accordance with the schedule above.	6055

(6) When the combined rate of state and local tax is seven	6056
and one-half per cent:	6057

If the price		The amount of			6058
is at least		But not more than		the tax is			6059
	$ .01		$ .15		No tax		6060
	.16		.26		2¢		6061
	.27		.40		3¢		6062
	.41		.53		4¢		6063
	.54		.65		5¢		6064
	.66		.80		6¢		6065
	.81		.93		7¢		6066
	.94		1.06		8¢		6067
	1.07		1.20		9¢		6068
	1.21		1.33		10¢		6069
	1.34		1.46		11¢		6070
	1.47		1.60		12¢		6071
	1.61		1.73		13¢		6072
	1.74		1.86		14¢		6073
	1.87		2.00		15¢		6074

If the price exceeds two dollars, the tax is fifteen cents on	6075
each two dollars. If the price exceeds two dollars or a multiple	6076
thereof by not more than fifteen cents, the amount of tax is	6077
fifteen cents for each two dollars plus one cent. If the price	6078
exceeds two dollars or a multiple thereof by more than fifteen	6079
cents, the amount of tax is fifteen cents for each two dollars	6080
plus the amount of tax for prices sixteen cents through one dollar	6081
and ninety-nine cents in accordance with the schedule above.	6082

(7) When the combined rate of state and local tax is seven	6083
and three-fourths per cent:	6084

If the price		The amount of			6085
is at least		But not more than		the tax is			6086
	$ .01		$ .15		No tax		6087
	.16		.25		2¢		6088
	.26		.38		3¢		6089
	.39		.51		4¢		6090
	.52		.64		5¢		6091
	.65		.77		6¢		6092
	.78		.90		7¢		6093
	.91		1.03		8¢		6094
	1.04		1.16		9¢		6095
	1.17		1.29		10¢		6096
	1.30		1.41		11¢		6097
	1.42		1.54		12¢		6098
	1.55		1.67		13¢		6099
	1.68		1.80		14¢		6100
	1.81		1.93		15¢		6101
	1.94		2.06		16¢		6102
	2.07		2.19		17¢		6103
	2.20		2.32		18¢		6104
	2.33		2.45		19¢		6105
	2.46		2.58		20¢		6106
	2.59		2.70		21¢		6107
	2.71		2.83		22¢		6108
	2.84		2.96		23¢		6109
	2.97		3.09		24¢		6110
	3.10		3.22		25¢		6111
	3.23		3.35		26¢		6112
	3.36		3.48		27¢		6113
	3.49		3.61		28¢		6114
	3.62		3.74		29¢		6115
	3.75		3.87		30¢		6116
	3.88		4.00		31¢		6117

If the price exceeds four dollars, the tax is thirty-one	6118
cents on each four dollars. If the price exceeds four dollars or a	6119
multiple thereof by not more than twelve cents, the amount of tax	6120
is thirty-one cents for each four dollars plus one cent. If the	6121
price exceeds four dollars or a multiple thereof by more than	6122
twelve cents but by not more than twenty-five cents, the amount of	6123
tax is thirty-one cents for each four dollars plus two cents. If	6124
the price exceeds four dollars or a multiple thereof by more than	6125
twenty-five cents, the amount of tax is thirty-one cents for each	6126
four dollars plus the amount of tax for prices twenty-six cents	6127
through three dollars and ninety-nine cents in accordance with the	6128
schedule above.	6129

(8) When the combined rate of state and local tax is eight	6130
per cent:	6131

If the price		The amount of			6132
is at least		But not more than		the tax is			6133
	$ .01		$ .15		No tax		6134
	.16		.25		2¢		6135
	.26		.37		3¢		6136
	.38		.50		4¢		6137
	.51		.62		5¢		6138
	.63		.75		6¢		6139
	.76		.87		7¢		6140
	.88		1.00		8¢		6141

If the price exceeds one dollar, the tax is eight cents on	6142
each one dollar. If the price exceeds one dollar or a multiple	6143
thereof by not more than twelve cents, the amount of tax is eight	6144
cents for each one dollar plus one cent. If the price exceeds one	6145
dollar or a multiple thereof by more than twelve cents but not	6146
more than twenty-five cents, the amount of tax is eight cents for	6147
each one dollar plus two cents. If the price exceeds one dollar or	6148
a multiple thereof by more than twenty-five cents, the amount of	6149
tax is eight cents for each one dollar plus the amount of tax for	6150
prices twenty-six cents through ninety-nine cents in accordance	6151
with the schedule above.	6152

(9) When the combined rate of state and local tax is eight	6153
and one-fourth per cent:	6154

If the price		The amount of			6155
is at least		But not more than		the tax is			6156
	$ .01		$ .15		No tax		6157
	.16		.24		2¢		6158
	.25		.36		3¢		6159
	.37		.48		4¢		6160
	.49		.60		5¢		6161
	.61		.72		6¢		6162
	.73		.84		7¢		6163
	.85		.96		8¢		6164
	.97		1.09		9¢		6165
	1.10		1.21		10¢		6166
	1.22		1.33		11¢		6167
	1.34		1.45		12¢		6168
	1.46		1.57		13¢		6169
	1.58		1.69		14¢		6170
	1.70		1.81		15¢		6171
	1.82		1.93		16¢		6172
	1.94		2.06		17¢		6173
	2.07		2.18		18¢		6174
	2.19		2.30		19¢		6175
	2.31		2.42		20¢		6176
	2.43		2.54		21¢		6177
	2.55		2.66		22¢		6178
	2.67		2.78		23¢		6179
	2.79		2.90		24¢		6180
	2.91		3.03		25¢		6181
	3.04		3.15		26¢		6182
	3.16		3.27		27¢		6183
	3.28		3.39		28¢		6184
	3.40		3.51		29¢		6185
	3.52		3.63		30¢		6186
	3.64		3.75		31¢		6187
	3.76		3.87		32¢		6188
	3.88		4.00		33¢		6189

If the price exceeds four dollars, the tax is thirty-three	6190
cents on each four dollars. If the price exceeds four dollars or a	6191
multiple thereof by not more than eleven cents, the amount of tax	6192
is thirty-three cents for each four dollars plus one cent. If the	6193
price exceeds four dollars or a multiple thereof by more than	6194
eleven cents but by not more than twenty-four cents, the amount of	6195
tax is thirty-three cents for each four dollars plus two cents. If	6196
the price exceeds four dollars or a multiple thereof by more than	6197
twenty-four cents, the amount of tax is thirty-three cents for	6198
each four dollars plus the amount of tax for prices twenty-six	6199
cents through three dollars and ninety-nine cents in accordance	6200
with the schedule above.	6201

(10) When the combined rate of state and local tax is eight	6202
and one-half per cent:	6203

If the price		The amount of			6204
is at least		But not more than		the tax is			6205
	$ .01		$ .15		No tax		6206
	.16		.23		2¢		6207
	.24		.35		3¢		6208
	.36		.47		4¢		6209
	.48		.58		5¢		6210
	.59		.70		6¢		6211
	.71		.82		7¢		6212
	.83		.94		8¢		6213
	.95		1.05		9¢		6214
	1.06		1.17		10¢		6215
	1.18		1.29		11¢		6216
	1.30		1.41		12¢		6217
	1.42		1.52		13¢		6218
	1.53		1.64		14¢		6219
	1.65		1.76		15¢		6220
	1.77		1.88		16¢		6221
	1.89		2.00		17¢		6222

If the price exceeds two dollars, the tax is seventeen cents	6223
on each two dollars. If the price exceeds two dollars or a	6224
multiple thereof by not more than eleven cents, the amount of tax	6225
is seventeen cents for each two dollars plus one cent. If the	6226
price exceeds two dollars or a multiple thereof by more than	6227
eleven cents but by not more than twenty-three cents, the amount	6228
of tax is seventeen cents for each two dollars plus two cents. If	6229
the price exceeds two dollars or a multiple thereof by more than	6230
twenty-three cents, the amount of tax is seventeen cents for each	6231
two dollars plus the amount of tax for prices twenty-four cents	6232
through one dollar and ninety-nine cents in accordance with the	6233
schedule above.	6234

(11) When the combined rate of state and local tax is eight	6235
and three-fourths per cent:	6236

If the price		The amount of			6237
is at least		But not more than		the tax is			6238
	$ .01		$ .15		No tax		6239
	.16		.22		2¢		6240
	.23		.34		3¢		6241
	.35		.45		4¢		6242
	.46		.57		5¢		6243
	.58		.68		6¢		6244
	.69		.80		7¢		6245
	.81		.91		8¢		6246
	.92		1.02		9¢		6247
	1.03		1.14		10¢		6248
	1.15		1.25		11¢		6249
	1.26		1.37		12¢		6250
	1.38		1.48		13¢		6251
	1.49		1.60		14¢		6252
	1.61		1.71		15¢		6253
	1.72		1.82		16¢		6254
	1.83		1.94		17¢		6255
	1.95		2.05		18¢		6256
	2.06		2.17		19¢		6257
	2.18		2.28		20¢		6258
	2.29		2.40		21¢		6259
	2.41		2.51		22¢		6260
	2.52		2.62		23¢		6261
	2.63		2.74		24¢		6262
	2.75		2.85		25¢		6263
	2.86		2.97		26¢		6264
	2.98		3.08		27¢		6265
	3.09		3.20		28¢		6266
	3.21		3.31		29¢		6267
	3.32		3.42		30¢		6268
	3.43		3.54		31¢		6269
	3.55		3.65		32¢		6270
	3.66		3.77		33¢		6271
	3.78		3.88		34¢		6272
	3.89		4.00		35¢		6273

If the price exceeds four dollars, the tax is thirty-five	6274
cents on each four dollars. If the price exceeds four dollars or a	6275
multiple thereof by not more than eleven cents, the amount of tax	6276
is thirty-five cents for each four dollars plus one cent. If the	6277
price exceeds four dollars or a multiple thereof by more than	6278
eleven cents but by not more than twenty-two cents, the amount of	6279
tax is thirty-five cents for each four dollars plus two cents. If	6280
the price exceeds four dollars or a multiple thereof by more than	6281
twenty-two cents, the amount of tax is thirty-five cents for each	6282
four dollars plus the amount of tax for prices twenty-three cents	6283
through three dollars and ninety-nine cents in accordance with the	6284
schedule above.	6285

(12) When the combined rate of state and local tax is nine	6286
per cent:	6287

If the price		The amount of			6288
is at least		But not more than		the tax is			6289
	$ .01		$ .15		No tax		6290
	.16		.22		2¢		6291
	.23		.33		3¢		6292
	.34		.44		4¢		6293
	.45		.55		5¢		6294
	.56		.66		6¢		6295
	.67		.77		7¢		6296
	.78		.88		8¢		6297
	.89		1.00		9¢		6298

If the price exceeds one dollar, the tax is nine cents on	6299
each one dollar. If the price exceeds one dollar or a multiple	6300
thereof by not more than eleven cents, the amount of tax is nine	6301
cents for each one dollar plus one cent. If the price exceeds one	6302
dollar or a multiple thereof by more than eleven cents but by not	6303
more than twenty-two cents, the amount of tax is nine cents for	6304
each one dollar plus two cents. If the price exceeds one dollar or	6305
a multiple thereof by more than twenty-two cents, the amount of	6306
tax is nine cents for each one dollar plus the amount of tax for	6307
prices twenty-three cents through ninety-nine cents in accordance	6308
with the schedule above.	6309

(C) On and after July 1, 2005, and on and before December 31,	6310
2005, the combined taxes levied by sections 5739.02 and 5741.02	6311
and pursuant to sections 5739.021, 5739.023, 5739.026, 5741.021,	6312
5741.022, and 5741.023 of the Revised Code shall be collected in	6313
accordance with the following schedules:	6314

(1) When the total rate of local tax is one-fourth per cent:

6315

	If the price		But not		The amount			6316
	is at least		more than		of the tax is			6317

	$ .01		$ .15		No tax			6318
	.16		.17		1¢			6319
	.18		.34		2¢			6320
	.35		.52		3¢			6321
	.53		.69		4¢			6322
	.70		.86		5¢			6323
	.87		1.04		6¢			6324
	1.05		1.21		7¢			6325
	1.22		1.39		8¢			6326
	1.40		1.56		9¢			6327
	1.57		1.73		10¢			6328
	1.74		1.91		11¢			6329
	1.92		2.08		12¢			6330
	2.09		2.26		13¢			6331
	2.27		2.43		14¢			6332
	2.44		2.60		15¢			6333
	2.61		2.78		16¢			6334
	2.79		2.95		17¢			6335
	2.96		3.13		18¢			6336
	3.14		3.30		19¢			6337
	3.31		3.47		20¢			6338
	3.48		3.65		21¢			6339
	3.66		3.82		22¢			6340
	3.83		4.00		23¢			6341

If the price exceeds four dollars, the tax is twenty-three	6342
cents on each four dollars. If the price exceeds four dollars or a	6343
multiple thereof by not more than seventeen cents, the amount of	6344
tax is twenty-three cents for each four dollars plus one cent. If	6345
the price exceeds four dollars or a multiple thereof by more than	6346
seventeen cents, the amount of tax is twenty-three cents for each	6347
four dollars plus the amount of tax for prices eighteen cents	6348
through three dollars and ninety-nine cents in accordance with the	6349
schedule above.	6350

(2) When the combined rate of local tax is one-half per cent:

6351

	If the price		But not		The amount			6352
	is at least		more than		of the tax is			6353

	$ .01		$ .15		No tax			6354
	.16		.17		1¢			6355
	.18		.34		2¢			6356
	.35		.50		3¢			6357
	.51		.67		4¢			6358
	.68		.83		5¢			6359
	.84		1.00		6¢			6360

If the price exceeds one dollar, the tax is six cents on each	6361
one dollar. If the price exceeds one dollar or a multiple thereof	6362
by not more than seventeen cents, the amount of tax is six cents	6363
for each one dollar plus one cent. If the price exceeds one dollar	6364
or a multiple thereof by more than seventeen cents, the amount of	6365
tax is six cents for each one dollar plus the amount of tax for	6366
prices eighteen cents through ninety-nine cents in accordance with	6367
the schedule above.	6368

(3) When the combined rate of local tax is three-fourths per	6369
cent:	6370

	If the price		But not		The amount			6371
	is at least		more than		of the tax is			6372

	$ .01		$ .15		No tax			6373
	.16		.16		1¢			6374
	.17		.32		2¢			6375
	.33		.48		3¢			6376
	.49		.64		4¢			6377
	.65		.80		5¢			6378
	.81		.96		6¢			6379
	.97		1.12		7¢			6380
	1.13		1.28		8¢			6381
	1.29		1.44		9¢			6382
	1.45		1.60		10¢			6383
	1.61		1.76		11¢			6384
	1.77		1.92		12¢			6385
	1.93		2.08		13¢			6386
	2.09		2.24		14¢			6387
	2.25		2.40		15¢			6388
	2.41		2.56		16¢			6389
	2.57		2.72		17¢			6390
	2.73		2.88		18¢			6391
	2.89		3.04		19¢			6392
	3.05		3.20		20¢			6393
	3.21		3.36		21¢			6394
	3.37		3.52		22¢			6395
	3.53		3.68		23¢			6396
	3.69		3.84		24¢			6397
	3.85		4.00		25¢			6398

If the price exceeds four dollars, the tax is twenty-five	6399
cents on each four dollars. If the price exceeds four dollars or a	6400
multiple thereof by not more than sixteen cents, the amount of tax	6401
is twenty-five cents for each four dollars plus one cent. If the	6402
price exceeds four dollars or a multiple thereof by more than	6403
sixteen cents, the amount of tax is twenty-five cents for each	6404
four dollars plus the amount of tax for prices seventeen cents	6405
through three dollars and ninety-nine cents in accordance with the	6406
schedule above.	6407

(4) When the combined rate of local tax is one per cent:

6408

	If the price		But not		The amount			6409
	is at least		more than		of the tax is			6410

	$ .01		$ .15		No tax			6411
	.16		.30		2¢			6412
	.31		.46		3¢			6413
	.47		.61		4¢			6414
	.62		.76		5¢			6415
	.77		.92		6¢			6416
	.93		1.07		7¢			6417
	1.08		1.23		8¢			6418
	1.24		1.38		9¢			6419
	1.39		1.53		10¢			6420
	1.54		1.69		11¢			6421
	1.70		1.84		12¢			6422
	1.85		2.00		13¢			6423

If the price exceeds two dollars, the tax is thirteen cents	6424
on each two dollars. If the price exceeds two dollars or a	6425
multiple thereof by not more than fifteen cents, the amount of tax	6426
is thirteen cents for each two dollars plus one cent. If the price	6427
exceeds two dollars or a multiple thereof by more than fifteen	6428
cents, the amount of tax is thirteen cents for each two dollars	6429
plus the amount of tax for prices sixteen cents through one dollar	6430
and ninety-nine cents in accordance with the schedule above.	6431

(5) When the combined rate of local tax is one and one-fourth	6432
per cent:	6433

	If the price		But not		The amount			6434
	is at least		more than		of the tax is			6435

	$ .01		$ .15		No tax			6436
	.16		.29		2¢			6437
	.30		.44		3¢			6438
	.45		.59		4¢			6439
	.60		.74		5¢			6440
	.75		.88		6¢			6441
	.89		1.03		7¢			6442
	1.04		1.18		8¢			6443
	1.19		1.33		9¢			6444
	1.34		1.48		10¢			6445
	1.49		1.62		11¢			6446
	1.63		1.77		12¢			6447
	1.78		1.92		13¢			6448
	1.93		2.07		14¢			6449
	2.08		2.22		15¢			6450
	2.23		2.37		16¢			6451
	2.38		2.51		17¢			6452
	2.52		2.66		18¢			6453
	2.67		2.81		19¢			6454
	2.82		2.96		20¢			6455
	2.97		3.11		21¢			6456
	3.12		3.25		22¢			6457
	3.26		3.40		23¢			6458
	3.41		3.55		24¢			6459
	3.56		3.70		25¢			6460
	3.71		3.85		26¢			6461
	3.86		4.00		27¢			6462

If the price exceeds four dollars, the tax is twenty-seven	6463
cents on each four dollars. If the price exceeds four dollars or a	6464
multiple thereof by not more than fourteen cents, the amount of	6465
tax is twenty-seven cents for each four dollars plus one cent. If	6466
the price exceeds four dollars or a multiple thereof by more than	6467
fourteen but by not more than twenty-nine cents, the amount of tax	6468
is twenty-seven cents for each four dollars plus two cents. If the	6469
price exceeds four dollars or a multiple thereof by more than	6470
twenty-nine cents the amount of tax is twenty-seven cents for each	6471
four dollars plus the amount of tax for prices thirty cents	6472
through three dollars and ninety-nine cents in accordance with the	6473
schedule above.	6474

(6) When the combined rate of local tax is one and one-half	6475
per cent:	6476

	If the price		But not		The amount			6477
	is at least		more than		of the tax is			6478

	$ .01		$ .15		No tax			6479
	.16		.28		2¢			6480
	.29		.42		3¢			6481
	.43		.57		4¢			6482
	.58		.71		5¢			6483
	.72		.85		6¢			6484
	.86		1.00		7¢			6485

If the price exceeds one dollar, the tax is seven cents on	6486
each one dollar. If the price exceeds one dollar or a multiple	6487
thereof by not more than fifteen cents, the amount of tax is seven	6488
cents for each one dollar plus one cent. If the price exceeds one	6489
dollar or a multiple thereof by more than fifteen cents, the	6490
amount of tax is seven cents for each one dollar plus the amount	6491
of tax for prices sixteen cents through ninety-nine cents in	6492
accordance with the schedule above.	6493

(7) When the combined rate of local tax is one and	6494
three-fourths per cent:	6495

	If the price		But not		The amount			6496
	is at least		more than		of the tax is			6497

	$ .01		$ .15		No tax			6498
	.16		.27		2¢			6499
	.28		.41		3¢			6500
	.42		.55		4¢			6501
	.56		.68		5¢			6502
	.69		.82		6¢			6503
	.83		.96		7¢			6504
	.97		1.10		8¢			6505
	1.11		1.24		9¢			6506
	1.25		1.37		10¢			6507
	1.38		1.51		11¢			6508
	1.52		1.65		12¢			6509
	1.66		1.79		13¢			6510
	1.80		1.93		14¢			6511
	1.94		2.06		15¢			6512
	2.07		2.20		16¢			6513
	2.21		2.34		17¢			6514
	2.35		2.48		18¢			6515
	2.49		2.62		19¢			6516
	2.63		2.75		20¢			6517
	2.76		2.89		21¢			6518
	2.90		3.03		22¢			6519
	3.04		3.17		23¢			6520
	3.18		3.31		24¢			6521
	3.32		3.44		25¢			6522
	3.45		3.58		26¢			6523
	3.59		3.72		27¢			6524
	3.73		3.86		28¢			6525
	3.87		4.00		29¢			6526

If the price exceeds four dollars, the tax is twenty-nine	6527
cents on each four dollars. If the price exceeds four dollars or a	6528
multiple thereof by not more than thirteen cents, the amount of	6529
tax is twenty-nine cents for each four dollars plus one cent. If	6530
the price exceeds four dollars or a multiple thereof by more than	6531
thirteen cents but by not more than twenty-seven cents, the amount	6532
of tax is twenty-nine cents for each four dollars plus two cents.	6533
If the price exceeds four dollars or a multiple thereof by more	6534
than twenty-seven cents, the amount of tax is twenty-nine cents	6535
for each four dollars plus the amount of tax for prices	6536
twenty-eight cents through three dollars and ninety-nine cents in	6537
accordance with the schedule above.	6538

(8) When the combined rate of local tax is two per cent:

6539

	If the price		But not		The amount			6540
	is at least		more than		of the tax is			6541

	$ .01		$ .15		No tax			6542
	.16		.26		2¢			6543
	.27		.40		3¢			6544
	.41		.53		4¢			6545
	.54		.65		5¢			6546
	.66		.80		6¢			6547
	.81		.93		7¢			6548
	.94		1.06		8¢			6549
	1.07		1.20		9¢			6550
	1.21		1.33		10¢			6551
	1.34		1.46		11¢			6552
	1.47		1.60		12¢			6553
	1.61		1.73		13¢			6554
	1.74		1.86		14¢			6555
	1.87		2.00		15¢			6556

If the price exceeds two dollars, the tax is fifteen cents on	6557
each two dollars. If the price exceeds two dollars or a multiple	6558
thereof by not more than fifteen cents, the amount of tax is	6559
fifteen cents for each two dollars plus one cent. If the price	6560
exceeds two dollars or a multiple thereof by more than fifteen	6561
cents, the amount of tax is fifteen cents for each two dollars	6562
plus the amount of tax for prices sixteen cents through one dollar	6563
and ninety-nine cents in accordance with the schedule above.	6564

(9) When the combined rate of local tax is two and one-fourth	6565
per cent:	6566

	If the price		But not		The amount			6567
	is at least		more than		of the tax is			6568

	$ .01		$ .15		No tax			6569
	.16		.25		2¢			6570
	.26		.38		3¢			6571
	.39		.51		4¢			6572
	.52		.64		5¢			6573
	.65		.77		6¢			6574
	.78		.90		7¢			6575
	.91		1.03		8¢			6576
	1.04		1.16		9¢			6577
	1.17		1.29		10¢			6578
	1.30		1.41		11¢			6579
	1.42		1.54		12¢			6580
	1.55		1.67		13¢			6581
	1.68		1.80		14¢			6582
	1.81		1.93		15¢			6583
	1.94		2.06		16¢			6584
	2.07		2.19		17¢			6585
	2.20		2.32		18¢			6586
	2.33		2.45		19¢			6587
	2.46		2.58		20¢			6588
	2.59		2.70		21¢			6589
	2.71		2.83		22¢			6590
	2.84		2.96		23¢			6591
	2.97		3.09		24¢			6592
	3.10		3.22		25¢			6593
	3.23		3.35		26¢			6594
	3.36		3.48		27¢			6595
	3.49		3.61		28¢			6596
	3.62		3.74		29¢			6597
	3.75		3.87		30¢			6598
	3.88		4.00		31¢			6599

If the price exceeds four dollars, the tax is thirty-one	6600
cents on each four dollars. If the price exceeds four dollars or a	6601
multiple thereof by not more than twelve cents, the amount of tax	6602
is thirty-one cents for each four dollars plus one cent. If the	6603
price exceeds four dollars or a multiple thereof by more than	6604
twelve cents but not more than twenty-five cents, the amount of	6605
tax is thirty-one cents for each four dollars plus two cents. If	6606
the price exceeds four dollars or a multiple thereof by more than	6607
twenty-five cents, the amount of tax is thirty-one cents for each	6608
four dollars plus the amount of tax for prices twenty-six cents	6609
through three dollars and ninety-nine cents in accordance with the	6610
schedule above.	6611

(10) When the combined rate of local tax is two and one-half	6612
per cent:	6613

	If the price		But not		The amount			6614
	is at least		more than		of the tax is			6615

	$ .01		$ .15		No tax			6616
	.16		.25		2¢			6617
	.26		.37		3¢			6618
	.38		.50		4¢			6619
	.51		.62		5¢			6620
	.63		.75		6¢			6621
	.76		.87		7¢			6622
	.88		1.00		8¢			6623

If the price exceeds one dollar, the tax is eight cents on	6624
each one dollar. If the price exceeds one dollar or a multiple	6625
thereof by not more than twelve cents, the amount of tax is eight	6626
cents for each one dollar plus one cent. If the price exceeds one	6627
dollar or a multiple thereof by more than twelve cents but not	6628
more than twenty-five cents, the amount of tax is eight cents for	6629
each one dollar plus two cents. If the price exceeds one dollar or	6630
a multiple thereof by more than twenty-five cents, the amount of	6631
tax is eight cents for each one dollar plus the amount of tax for	6632
prices twenty-six cents through ninety-nine cents in accordance	6633
with the schedule above.	6634

(11) When the combined rate of local tax is two and	6635
three-fourths per cent:	6636

	If the price		But not		The amount			6637
	is at least		more than		of the tax is			6638

	$ .01		$ .15		No tax			6639
	.16		.24		2¢			6640
	.25		.36		3¢			6641
	.37		.48		4¢			6642
	.49		.60		5¢			6643
	.61		.72		6¢			6644
	.73		.84		7¢			6645
	.85		.96		8¢			6646
	.97		1.09		9¢			6647
	1.10		1.21		10¢			6648
	1.22		1.33		11¢			6649
	1.34		1.45		12¢			6650
	1.46		1.57		13¢			6651
	1.58		1.69		14¢			6652
	1.70		1.81		15¢			6653
	1.82		1.93		16¢			6654
	1.94		2.06		17¢			6655
	2.07		2.18		18¢			6656
	2.19		2.30		19¢			6657
	2.31		2.42		20¢			6658
	2.43		2.54		21¢			6659
	2.55		2.66		22¢			6660
	2.67		2.78		23¢			6661
	2.79		2.90		24¢			6662
	2.91		3.03		25¢			6663
	3.04		3.15		26¢			6664
	3.16		3.27		27¢			6665
	3.28		3.39		28¢			6666
	3.40		3.51		29¢			6667
	3.52		3.63		30¢			6668
	3.64		3.75		31¢			6669
	3.76		3.87		32¢			6670
	3.88		4.00		33¢			6671

If the price exceeds four dollars, the tax is thirty-three	6672
cents on each four dollars. If the price exceeds four dollars or a	6673
multiple thereof by not more than eleven cents, the amount of tax	6674
is thirty-three cents for each four dollars plus one cent. If the	6675
price exceeds four dollars or a multiple thereof by more than	6676
eleven cents but not more than twenty-four cents, the amount of	6677
tax is thirty-three cents for each four dollars plus two cents. If	6678
the price exceeds four dollars or a multiple thereof by more than	6679
twenty-four cents, the amount of tax is thirty-three cents for	6680
each four dollars plus the amount of tax for prices twenty-six	6681
cents through three dollars and ninety-nine cents in accordance	6682
with the schedule above.	6683

(12) When the combined rate of local tax is three per cent:

6684

	If the price		But not		The amount			6685
	is at least		more than		of the tax is			6686

	$ .01		$ .15		No tax			6687
	.16		.23		2¢			6688
	.24		.35		3¢			6689
	.36		.47		4¢			6690
	.48		.58		5¢			6691
	.59		.70		6¢			6692
	.71		.82		7¢			6693
	.83		.94		8¢			6694
	.95		1.05		9¢			6695
	1.06		1.17		10¢			6696
	1.18		1.29		11¢			6697
	1.30		1.41		12¢			6698
	1.42		1.52		13¢			6699
	1.53		1.64		14¢			6700
	1.65		1.76		15¢			6701
	1.77		1.88		16¢			6702
	1.89		2.00		17¢			6703

If the price exceeds two dollars, the tax is seventeen cents	6704
on each two dollars. If the price exceeds two dollars or a	6705
multiple thereof by not more than eleven cents, the amount of tax	6706
is seventeen cents for each two dollars plus one cent. If the	6707
price exceeds two dollars or a multiple thereof by more than	6708
eleven cents but not more than twenty-three cents, the amount of	6709
tax is seventeen cents for each two dollars plus two cents. If the	6710
price exceeds two dollars or a multiple thereof by more than	6711
twenty-three cents, the amount of tax is seventeen cents for each	6712
two dollars plus the amount of tax for prices twenty-four cents	6713
through one dollar and ninety-nine cents in accordance with the	6714
schedule above.	6715

(D) In lieu of collecting the tax pursuant to the schedules	6716
set forth in divisions (A), (B), and (C) of this section, a vendor	6717
may compute the tax on each sale as follows:	6718

(1) On sales of fifteen cents or less, no tax shall apply.

6719

(2) On sales in excess of fifteen cents, multiply the price	6720
by the aggregate rate of taxes in effect under sections 5739.02	6721
and 5741.02 and sections 5739.021, 5739.023, 5739.026, 5741.021,	6722
5741.022, and 5741.023 of the Revised Code. The computation shall	6723
be carried out to six decimal places. If the result is a	6724
fractional amount of a cent, the calculated tax shall be increased	6725
to the next highest cent and that amount shall be collected by the	6726
vendor.	6727

(E) On and after January 1, 2006, a vendor shall compute the	6728
tax on each sale by multiplying the price by the aggregate rate of	6729
taxes in effect under sections 5739.02 and 5741.02, and sections	6730
5739.021, 5739.023, 5739.026, 5741.021, 5741.022, and 5741.023 of	6731
the Revised Code. The computation shall be carried out to three	6732
decimal places. If the result is a fractional amount of a cent,	6733
the calculated tax shall be rounded to a whole cent using a method	6734
that rounds up to the next cent whenever the third decimal place	6735
is greater than four. A vendor may elect to compute the tax due on	6736
a transaction on an item or an invoice basis.	6737

(F) In auditing a vendor, the tax commissioner shall consider	6738
the method prescribed by this section that was used by the vendor	6739
in determining and collecting the tax due under this chapter on	6740
taxable transactions. If the vendor correctly collects and remits	6741
the tax due under this chapter in accordance with the schedules in	6742
divisions (A), (B), and (C) of this section or in accordance with	6743
the computation prescribed in division (D) or (E) of this section,	6744
the commissioner shall not assess any additional tax on those	6745
transactions.	6746

(G)(1) With respect to a sale of a fractional ownership	6747
program aircraft used primarily in a fractional aircraft ownership	6748
program, including all accessories attached to such aircraft, the	6749
tax shall be calculated pursuant to divisions (A) to (E) of this	6750
section, provided that the tax commissioner shall modify those	6751
calculations so that the maximum tax on each program aircraft is	6752
eight hundred dollars. In the case of a sale of a fractional	6753
interest that is less than one hundred per cent of the program	6754
aircraft, the tax charged on the transaction shall be eight	6755
hundred dollars multiplied by a fraction, the numerator of which	6756
is the percentage of ownership or possession in the aircraft being	6757
purchased in the transaction, and the denominator of which is one	6758
hundred per cent.	6759

(2) Notwithstanding any other provision of law to the	6760
contrary, the tax calculated under division (G)(1) of this section	6761
and paid with respect to the sale of a fractional ownership	6762
program aircraft used primarily in a fractional aircraft ownership	6763
program shall be credited to the general revenue fund.	6764

Sec. 5739.03.  (A) Except as provided in section 5739.05 or	6765
section 5739.051 of the Revised Code, the tax imposed by or	6766
pursuant to section 5739.02, 5739.021, 5739.023, or 5739.026 of	6767
the Revised Code shall be paid by the consumer to the vendor, and	6768
each vendor shall collect from the consumer, as a trustee for the	6769
state of Ohio, the full and exact amount of the tax payable on	6770
each taxable sale, in the manner and at the times provided as	6771
follows:	6772

(1) If the price is, at or prior to the provision of the	6773
service or the delivery of possession of the thing sold to the	6774
consumer, paid in currency passed from hand to hand by the	6775
consumer or the consumer's agent to the vendor or the vendor's	6776
agent, the vendor or the vendor's agent shall collect the tax with	6777
and at the same time as the price;	6778

(2) If the price is otherwise paid or to be paid, the vendor	6779
or the vendor's agent shall, at or prior to the provision of the	6780
service or the delivery of possession of the thing sold to the	6781
consumer, charge the tax imposed by or pursuant to section	6782
5739.02, 5739.021, 5739.023, or 5739.026 of the Revised Code to	6783
the account of the consumer, which amount shall be collected by	6784
the vendor from the consumer in addition to the price. Such sale	6785
shall be reported on and the amount of the tax applicable thereto	6786
shall be remitted with the return for the period in which the sale	6787
is made, and the amount of the tax shall become a legal charge in	6788
favor of the vendor and against the consumer.	6789

(B)(1)(a) If any sale is claimed to be exempt under division	6790
(E) of section 5739.01 of the Revised Code or under section	6791
5739.02 of the Revised Code, with the exception of divisions	6792
(B)(1) to (3), (5) to (11), or (28) of section 5739.02 of the	6793
Revised Code, the consumer must provide to the vendor, and the	6794
vendor must obtain from the consumer, a certificate specifying the	6795
reason that the sale is not legally subject to the tax. The	6796
certificate shall be in such form, and shall be provided either in	6797
a hard copy form or electronic form, as the tax commissioner	6798
prescribes.	6799

(b) A vendor that obtains a fully completed exemption	6800
certificate from a consumer is relieved of liability for	6801
collecting and remitting tax on any sale covered by that	6802
certificate. If it is determined the exemption was improperly	6803
claimed, the consumer shall be liable for any tax due on that sale	6804
under section 5739.02, 5739.021, 5739.023, or 5739.026 or Chapter	6805
5741. of the Revised Code. Relief under this division from	6806
liability does not apply to any of the following:	6807

(i) A vendor that fraudulently fails to collect tax;

6808

(ii) A vendor that solicits consumers to participate in the	6809
unlawful claim of an exemption;	6810

(iii) A vendor that accepts an exemption certificate from a	6811
consumer that claims an exemption based on who purchases or who	6812
sells property or a service, when the subject of the transaction	6813
sought to be covered by the exemption certificate is actually	6814
received by the consumer at a location operated by the vendor in	6815
this state, and this state has posted to its web site an exemption	6816
certificate form that clearly and affirmatively indicates that the	6817
claimed exemption is not available in this state;	6818

(iv) A vendor that accepts an exemption certificate from a	6819
consumer who claims a multiple points of use exemption under	6820
division (D) of section 5739.033 of the Revised Code, if the item	6821
purchased is tangible personal property, other than prewritten	6822
computer software.	6823

(2) The vendor shall maintain records, including exemption	6824
certificates, of all sales on which a consumer has claimed an	6825
exemption, and provide them to the tax commissioner on request.	6826

(3) The tax commissioner may establish an identification	6827
system whereby the commissioner issues an identification number to	6828
a consumer that is exempt from payment of the tax. The consumer	6829
must present the number to the vendor, if any sale is claimed to	6830
be exempt as provided in this section.	6831

(4) If no certificate is provided or obtained within ninety	6832
days after the date on which such sale is consummated, it shall be	6833
presumed that the tax applies. Failure to have so provided or	6834
obtained a certificate shall not preclude a vendor, within one	6835
hundred twenty days after the tax commissioner gives written	6836
notice of intent to levy an assessment, from either establishing	6837
that the sale is not subject to the tax, or obtaining, in good	6838
faith, a fully completed exemption certificate.	6839

(5) Certificates need not be obtained nor provided where the	6840
identity of the consumer is such that the transaction is never	6841
subject to the tax imposed or where the item of tangible personal	6842
property sold or the service provided is never subject to the tax	6843
imposed, regardless of use, or when the sale is in interstate	6844
commerce.	6845

(6) If a transaction is claimed to be exempt under division	6846
(B)(13) of section 5739.02 of the Revised Code, the contractor	6847
shall obtain certification of the claimed exemption from the	6848
contractee. This certification shall be in addition to an	6849
exemption certificate provided by the contractor to the vendor. A	6850
contractee that provides a certification under this division shall	6851
be deemed to be the consumer of all items purchased by the	6852
contractor under the claim of exemption, if it is subsequently	6853
determined that the exemption is not properly claimed. The	6854
certification shall be in such form as the tax commissioner	6855
prescribes.	6856

(C) As used in this division, "contractee" means a person who	6857
seeks to enter or enters into a contract or agreement with a	6858
contractor or vendor for the construction of real property or for	6859
the sale and installation onto real property of tangible personal	6860
property.	6861

Any contractor or vendor may request from any contractee a	6862
certification of what portion of the property to be transferred	6863
under such contract or agreement is to be incorporated into the	6864
realty and what portion will retain its status as tangible	6865
personal property after installation is completed. The contractor	6866
or vendor shall request the certification by certified mail	6867
delivered to the contractee, return receipt requested. Upon	6868
receipt of such request and prior to entering into the contract or	6869
agreement, the contractee shall provide to the contractor or	6870
vendor a certification sufficiently detailed to enable the	6871
contractor or vendor to ascertain the resulting classification of	6872
all materials purchased or fabricated by the contractor or vendor	6873
and transferred to the contractee. This requirement applies to a	6874
contractee regardless of whether the contractee holds a direct	6875
payment permit under section 5739.031 of the Revised Code or	6876
provides to the contractor or vendor an exemption certificate as	6877
provided under this section.	6878

For the purposes of the taxes levied by this chapter and	6879
Chapter 5741. of the Revised Code, the contractor or vendor may in	6880
good faith rely on the contractee's certification. Notwithstanding	6881
division (B) of section 5739.01 of the Revised Code, if the tax	6882
commissioner determines that certain property certified by the	6883
contractee as tangible personal property pursuant to this division	6884
is, in fact, real property, the contractee shall be considered to	6885
be the consumer of all materials so incorporated into that real	6886
property and shall be liable for the applicable tax, and the	6887
contractor or vendor shall be excused from any liability on those	6888
materials.	6889

If a contractee fails to provide such certification upon the	6890
request of the contractor or vendor, the contractor or vendor	6891
shall comply with the provisions of this chapter and Chapter 5741.	6892
of the Revised Code without the certification. If the tax	6893
commissioner determines that such compliance has been performed in	6894
good faith and that certain property treated as tangible personal	6895
property by the contractor or vendor is, in fact, real property,	6896
the contractee shall be considered to be the consumer of all	6897
materials so incorporated into that real property and shall be	6898
liable for the applicable tax, and the construction contractor or	6899
vendor shall be excused from any liability on those materials.	6900

This division does not apply to any contract or agreement	6901
where the tax commissioner determines as a fact that a	6902
certification under this division was made solely on the decision	6903
or advice of the contractor or vendor.	6904

(D) Notwithstanding division (B) of section 5739.01 of the	6905
Revised Code, whenever the total rate of tax imposed under this	6906
chapter is increased after the date after a construction contract	6907
is entered into, the contractee shall reimburse the construction	6908
contractor for any additional tax paid on tangible property	6909
consumed or services received pursuant to the contract.	6910

(E) A vendor who files a petition for reassessment contesting	6911
the assessment of tax on sales for which the vendor obtained no	6912
valid exemption certificates and for which the vendor failed to	6913
establish that the sales were properly not subject to the tax	6914
during the one-hundred-twenty-day period allowed under division	6915
(B) of this section, may present to the tax commissioner	6916
additional evidence to prove that the sales were properly subject	6917
to a claim of exception or exemption. The vendor shall file such	6918
evidence within ninety days of the receipt by the vendor of the	6919
notice of assessment, except that, upon application and for	6920
reasonable cause, the period for submitting such evidence shall be	6921
extended thirty days.	6922

The commissioner shall consider such additional evidence in	6923
reaching the final determination on the assessment and petition	6924
for reassessment.	6925

(F) Whenever a vendor refunds the price, minus any separately	6926
stated delivery charge, of an item of tangible personal property	6927
on which the tax imposed under this chapter has been paid, the	6928
vendor shall also refund the amount of tax paid, minus the amount	6929
of tax attributable to the delivery charge.	6930

Sec. 5741.02.  (A)(1) For the use of the general revenue fund	6931
of the state, an excise tax is hereby levied on the storage, use,	6932
or other consumption in this state of tangible personal property	6933
or the benefit realized in this state of any service provided. The	6934
tax shall be collected as provided in section 5739.025 of the	6935
Revised Code, provided that on and after July 1, 2003, and on or	6936
before June 30, 2005, the rate of the tax shall be six per cent.	6937
On and after July 1, 2005, the rate of the tax shall be five and	6938
one-half per cent.	6939

(2) In the case of the lease or rental, with a fixed term of	6940
more than thirty days or an indefinite term with a minimum period	6941
of more than thirty days, of any motor vehicles designed by the	6942
manufacturer to carry a load of not more than one ton, watercraft,	6943
outboard motor, or aircraft, or of any tangible personal property,	6944
other than motor vehicles designed by the manufacturer to carry a	6945
load of more than one ton, to be used by the lessee or renter	6946
primarily for business purposes, the tax shall be collected by the	6947
seller at the time the lease or rental is consummated and shall be	6948
calculated by the seller on the basis of the total amount to be	6949
paid by the lessee or renter under the lease or rental agreement.	6950
If the total amount of the consideration for the lease or rental	6951
includes amounts that are not calculated at the time the lease or	6952
rental is executed, the tax shall be calculated and collected by	6953
the seller at the time such amounts are billed to the lessee or	6954
renter. In the case of an open-end lease or rental, the tax shall	6955
be calculated by the seller on the basis of the total amount to be	6956
paid during the initial fixed term of the lease or rental, and for	6957
each subsequent renewal period as it comes due. As used in this	6958
division, "motor vehicle" has the same meaning as in section	6959
4501.01 of the Revised Code, and "watercraft" includes an outdrive	6960
unit attached to the watercraft.	6961

(3) Except as provided in division (A)(2) of this section, in	6962
the case of a transaction, the price of which consists in whole or	6963
part of the lease or rental of tangible personal property, the tax	6964
shall be measured by the installments of those leases or rentals.	6965

(B) Each consumer, storing, using, or otherwise consuming in	6966
this state tangible personal property or realizing in this state	6967
the benefit of any service provided, shall be liable for the tax,	6968
and such liability shall not be extinguished until the tax has	6969
been paid to this state; provided, that the consumer shall be	6970
relieved from further liability for the tax if the tax has been	6971
paid to a seller in accordance with section 5741.04 of the Revised	6972
Code or prepaid by the seller in accordance with section 5741.06	6973
of the Revised Code.	6974

(C) The tax does not apply to the storage, use, or	6975
consumption in this state of the following described tangible	6976
personal property or services, nor to the storage, use, or	6977
consumption or benefit in this state of tangible personal property	6978
or services purchased under the following described circumstances:	6979

(1) When the sale of property or service in this state is	6980
subject to the excise tax imposed by sections 5739.01 to 5739.31	6981
of the Revised Code, provided said tax has been paid;	6982

(2) Except as provided in division (D) of this section,	6983
tangible personal property or services, the acquisition of which,	6984
if made in Ohio, would be a sale not subject to the tax imposed by	6985
sections 5739.01 to 5739.31 of the Revised Code;	6986

(3) Property or services, the storage, use, or other	6987
consumption of or benefit from which this state is prohibited from	6988
taxing by the Constitution of the United States, laws of the	6989
United States, or the Constitution of this state. This exemption	6990
shall not exempt from the application of the tax imposed by this	6991
section the storage, use, or consumption of tangible personal	6992
property that was purchased in interstate commerce, but that has	6993
come to rest in this state, provided that fuel to be used or	6994
transported in carrying on interstate commerce that is stopped	6995
within this state pending transfer from one conveyance to another	6996
is exempt from the excise tax imposed by this section and section	6997
5739.02 of the Revised Code;	6998

(4) Transient use of tangible personal property in this state	6999
by a nonresident tourist or vacationer, or a nonbusiness use	7000
within this state by a nonresident of this state, if the property	7001
so used was purchased outside this state for use outside this	7002
state and is not required to be registered or licensed under the	7003
laws of this state;	7004

(5) Tangible personal property or services rendered, upon	7005
which taxes have been paid to another jurisdiction to the extent	7006
of the amount of the tax paid to such other jurisdiction. Where	7007
the amount of the tax imposed by this section and imposed pursuant	7008
to section 5741.021, 5741.022, or 5741.023 of the Revised Code	7009
exceeds the amount paid to another jurisdiction, the difference	7010
shall be allocated between the tax imposed by this section and any	7011
tax imposed by a county or a transit authority pursuant to section	7012
5741.021, 5741.022, or 5741.023 of the Revised Code, in proportion	7013
to the respective rates of such taxes.	7014

As used in this subdivision, "taxes paid to another	7015
jurisdiction" means the total amount of retail sales or use tax or	7016
similar tax based upon the sale, purchase, or use of tangible	7017
personal property or services rendered legally, levied by and paid	7018
to another state or political subdivision thereof, or to the	7019
District of Columbia, where the payment of such tax does not	7020
entitle the taxpayer to any refund or credit for such payment.	7021

(6) The transfer of a used manufactured home or used mobile	7022
home, as defined by section 5739.0210 of the Revised Code, made on	7023
or after January 1, 2000;	7024

(7) Drugs that are or are intended to be distributed free of	7025
charge to a practitioner licensed to prescribe, dispense, and	7026
administer drugs to a human being in the course of a professional	7027
practice and that by law may be dispensed only by or upon the	7028
order of such a practitioner.	7029

(8) Computer equipment and related software leased from a	7030
lessor located outside this state and initially received in this	7031
state on behalf of the consumer by a third party that will retain	7032
possession of such property for not more than ninety days and that	7033
will, within that ninety-day period, deliver such property to the	7034
consumer at a location outside this state. Division (C)(8) of this	7035
section does not provide exemption from taxation for any otherwise	7036
taxable charges associated with such property while it is in this	7037
state or for any subsequent storage, use, or consumption of such	7038
property in this state by or on behalf of the consumer.	7039

(9) Tangible personal property held for sale by a person but	7040
not for that person's own use and donated by that person, without	7041
charge or other compensation, to either of the following:	7042

(a) A nonprofit organization operated exclusively for	7043
charitable purposes in this state, no part of the net income of	7044
which inures to the benefit of any private shareholder or	7045
individual and no substantial part of the activities of which	7046
consists of carrying on propaganda or otherwise attempting to	7047
influence legislation; or	7048

(b) This state or any political subdivision of this state,	7049
but only if donated for exclusively public purposes.	7050

For the purposes of division (C)(10) of this section,	7051
"charitable purposes" has the same meaning as in division (B)(12)	7052
of section 5739.02 of the Revised Code.	7053

(D) The tax applies to the storage, use, or other consumption	7054
in this state of tangible personal property or services, the	7055
acquisition of which at the time of sale was excepted under	7056
division (E) of section 5739.01 of the Revised Code from the tax	7057
imposed by section 5739.02 of the Revised Code, but which has	7058
subsequently been temporarily or permanently stored, used, or	7059
otherwise consumed in a taxable manner.	7060

(E)(1)(a) If any transaction is claimed to be exempt under	7061
division (E) of section 5739.01 of the Revised Code or under	7062
section 5739.02 of the Revised Code, with the exception of	7063
divisions (B)(1) to (3), (5) to (11), or (28) of section 5739.02	7064
of the Revised Code, the consumer shall provide to the seller, and	7065
the seller shall obtain from the consumer, a certificate	7066
specifying the reason that the transaction is not subject to the	7067
tax. The certificate shall be in such form, and shall be provided	7068
either in a hard copy form or electronic form, as the tax	7069
commissioner prescribes.	7070

(b) A seller that obtains a fully completed exemption	7071
certificate from a consumer is relieved of liability for	7072
collecting and remitting tax on any sale covered by that	7073
certificate. If it is determined the exemption was improperly	7074
claimed, the consumer shall be liable for any tax due on that sale	7075
under this chapter. Relief under this division from liability does	7076
not apply to any of the following:	7077

(i) A seller that fraudulently fails to collect tax;

7078

(ii) A seller that solicits consumers to participate in the	7079
unlawful claim of an exemption;	7080

(iii) A seller that accepts an exemption certificate from a	7081
consumer that claims an exemption based on who purchases or who	7082
sells property or a service, when the subject of the transaction	7083
sought to be covered by the exemption certificate is actually	7084
received by the consumer at a location operated by the seller in	7085
this state, and this state has posted to its web site an exemption	7086
certificate form that clearly and affirmatively indicates that the	7087
claimed exemption is not available in this state;	7088

(iv) A seller that accepts an exemption certificate from a	7089
consumer who claims a multiple points of use exemption under	7090
division (D) of section 5739.033 of the Revised Code, if the item	7091
purchased is tangible personal property, other than prewritten	7092
computer software.	7093

(2) The seller shall maintain records, including exemption	7094
certificates, of all sales on which a consumer has claimed an	7095
exemption, and provide them to the tax commissioner on request.	7096

(3) If no certificate is provided or obtained within ninety	7097
days after the date on which the transaction is consummated, it	7098
shall be presumed that the tax applies. Failure to have so	7099
provided or obtained a certificate shall not preclude a seller,	7100
within one hundred twenty days after the tax commissioner gives	7101
written notice of intent to levy an assessment, from either	7102
establishing that the transaction is not subject to the tax, or	7103
obtaining, in good faith, a fully completed exemption certificate.	7104

(4) If a transaction is claimed to be exempt under division	7105
(B)(13) of section 5739.02 of the Revised Code, the contractor	7106
shall obtain certification of the claimed exemption from the	7107
contractee. This certification shall be in addition to an	7108
exemption certificate provided by the contractor to the seller. A	7109
contractee that provides a certification under this division shall	7110
be deemed to be the consumer of all items purchased by the	7111
contractor under the claim of exemption, if it is subsequently	7112
determined that the exemption is not properly claimed. The	7113
certification shall be in such form as the tax commissioner	7114
prescribes.	7115

(F) A seller who files a petition for reassessment contesting	7116
the assessment of tax on transactions for which the seller	7117
obtained no valid exemption certificates, and for which the seller	7118
failed to establish that the transactions were not subject to the	7119
tax during the one-hundred-twenty-day period allowed under	7120
division (E) of this section, may present to the tax commissioner	7121
additional evidence to prove that the transactions were exempt.	7122
The seller shall file such evidence within ninety days of the	7123
receipt by the seller of the notice of assessment, except that,	7124
upon application and for reasonable cause, the tax commissioner	7125
may extend the period for submitting such evidence thirty days.	7126

(G) For the purpose of the proper administration of sections	7127
5741.01 to 5741.22 of the Revised Code, and to prevent the evasion	7128
of the tax hereby levied, it shall be presumed that any use,	7129
storage, or other consumption of tangible personal property in	7130
this state is subject to the tax until the contrary is	7131
established.	7132

(H) The tax collected by the seller from the consumer under	7133
this chapter is not part of the price, but is a tax collection for	7134
the benefit of the state, and of counties levying an additional	7135
use tax pursuant to section 5741.021 or 5741.023 of the Revised	7136
Code and of transit authorities levying an additional use tax	7137
pursuant to section 5741.022 of the Revised Code. Except for the	7138
discount authorized under section 5741.12 of the Revised Code and	7139
the effects of any rounding pursuant to section 5703.055 of the	7140
Revised Code, no person other than the state or such a county or	7141
transit authority shall derive any benefit from the collection of	7142
such tax.	7143

Sec. 5747.01.  Except as otherwise expressly provided or	7144
clearly appearing from the context, any term used in this chapter	7145
that is not otherwise defined in this section has the same meaning	7146
as when used in a comparable context in the laws of the United	7147
States relating to federal income taxes or if not used in a	7148
comparable context in those laws, has the same meaning as in	7149
section 5733.40 of the Revised Code. Any reference in this chapter	7150
to the Internal Revenue Code includes other laws of the United	7151
States relating to federal income taxes.	7152

As used in this chapter:

7153

(A) "Adjusted gross income" or "Ohio adjusted gross income"	7154
means federal adjusted gross income, as defined and used in the	7155
Internal Revenue Code, adjusted as provided in this section:	7156

(1) Add interest or dividends on obligations or securities of	7157
any state or of any political subdivision or authority of any	7158
state, other than this state and its subdivisions and authorities.	7159

(2) Add interest or dividends on obligations of any	7160
authority, commission, instrumentality, territory, or possession	7161
of the United States to the extent that the interest or dividends	7162
are exempt from federal income taxes but not from state income	7163
taxes.	7164

(3) Deduct interest or dividends on obligations of the United	7165
States and its territories and possessions or of any authority,	7166
commission, or instrumentality of the United States to the extent	7167
that the interest or dividends are included in federal adjusted	7168
gross income but exempt from state income taxes under the laws of	7169
the United States.	7170

(4) Deduct disability and survivor's benefits to the extent	7171
included in federal adjusted gross income.	7172

(5) Deduct benefits under Title II of the Social Security Act	7173
and tier 1 railroad retirement benefits to the extent included in	7174
federal adjusted gross income under section 86 of the Internal	7175
Revenue Code.	7176

(6) In the case of a taxpayer who is a beneficiary of a trust	7177
that makes an accumulation distribution as defined in section 665	7178
of the Internal Revenue Code, add, for the beneficiary's taxable	7179
years beginning before 2002, the portion, if any, of such	7180
distribution that does not exceed the undistributed net income of	7181
the trust for the three taxable years preceding the taxable year	7182
in which the distribution is made to the extent that the portion	7183
was not included in the trust's taxable income for any of the	7184
trust's taxable years beginning in 2002 or thereafter.	7185
"Undistributed net income of a trust" means the taxable income of	7186
the trust increased by (a)(i) the additions to adjusted gross	7187
income required under division (A) of this section and (ii) the	7188
personal exemptions allowed to the trust pursuant to section	7189
642(b) of the Internal Revenue Code, and decreased by (b)(i) the	7190
deductions to adjusted gross income required under division (A) of	7191
this section, (ii) the amount of federal income taxes attributable	7192
to such income, and (iii) the amount of taxable income that has	7193
been included in the adjusted gross income of a beneficiary by	7194
reason of a prior accumulation distribution. Any undistributed net	7195
income included in the adjusted gross income of a beneficiary	7196
shall reduce the undistributed net income of the trust commencing	7197
with the earliest years of the accumulation period.	7198

(7) Deduct the amount of wages and salaries, if any, not	7199
otherwise allowable as a deduction but that would have been	7200
allowable as a deduction in computing federal adjusted gross	7201
income for the taxable year, had the targeted jobs credit allowed	7202
and determined under sections 38, 51, and 52 of the Internal	7203
Revenue Code not been in effect.	7204

(8) Deduct any interest or interest equivalent on public	7205
obligations and purchase obligations to the extent that the	7206
interest or interest equivalent is included in federal adjusted	7207
gross income.	7208

(9) Add any loss or deduct any gain resulting from the sale,	7209
exchange, or other disposition of public obligations to the extent	7210
that the loss has been deducted or the gain has been included in	7211
computing federal adjusted gross income.	7212

(10) Deduct or add amounts, as provided under section 5747.70	7213
of the Revised Code, related to contributions to variable college	7214
savings program accounts made or tuition units purchased pursuant	7215
to Chapter 3334. of the Revised CodeFor a taxpayer that provides	7216
broadband service, deduct the taxpayer's net profits from	7217
providing broadband service in this state multiplied by a	7218
fraction, the numerator of which is the original cost of tangible	7219
personal property necessary for the provision of broadband service	7220
in rural areas of this state installed on or after the effective	7221
date of this amendment, and the denominator of which is the	7222
original cost of tangible personal property necessary for the	7223
provision of broadband service in this state and installed on or	7224
after that date. A taxpayer that is an equity owner of a	7225
pass-through entity that provides broadband service may deduct the	7226
taxpayer's distributive or proportionate share of the entity's net	7227
profits from providing such service multiplied by that fraction. A	7228
deduction is not allowed under this division if the taxpayer	7229
claims the exclusion under division (F)(2)(ll) of section 5751.01	7230
of the Revised Code for any tax period that is included partly or	7231
wholly in the taxable year. For the purposes of this division,	7232
"broadband service" and "rural area" have the same meanings as in	7233
7 U.S.C. 950bb.	7234

(11)(a) Deduct, to the extent not otherwise allowable as a	7235
deduction or exclusion in computing federal or Ohio adjusted gross	7236
income for the taxable year, the amount the taxpayer paid during	7237
the taxable year for medical care insurance and qualified	7238
long-term care insurance for the taxpayer, the taxpayer's spouse,	7239
and dependents. No deduction for medical care insurance under	7240
division (A)(11) of this section shall be allowed either to any	7241
taxpayer who is eligible to participate in any subsidized health	7242
plan maintained by any employer of the taxpayer or of the	7243
taxpayer's spouse, or to any taxpayer who is entitled to, or on	7244
application would be entitled to, benefits under part A of Title	7245
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.	7246
301, as amended. For the purposes of division (A)(11)(a) of this	7247
section, "subsidized health plan" means a health plan for which	7248
the employer pays any portion of the plan's cost. The deduction	7249
allowed under division (A)(11)(a) of this section shall be the net	7250
of any related premium refunds, related premium reimbursements, or	7251
related insurance premium dividends received during the taxable	7252
year.	7253

(b) Deduct, to the extent not otherwise deducted or excluded	7254
in computing federal or Ohio adjusted gross income during the	7255
taxable year, the amount the taxpayer paid during the taxable	7256
year, not compensated for by any insurance or otherwise, for	7257
medical care of the taxpayer, the taxpayer's spouse, and	7258
dependents, to the extent the expenses exceed seven and one-half	7259
per cent of the taxpayer's federal adjusted gross income.	7260

(c) Deduct, to the extent not otherwise deducted or excluded	7261
in computing federal or Ohio adjusted gross income, any amount	7262
included in federal adjusted gross income under section 105 or not	7263
excluded under section 106 of the Internal Revenue Code solely	7264
because it relates to an accident and health plan for a person who	7265
otherwise would be a "qualifying relative" and thus a "dependent"	7266
under section 152 of the Internal Revenue Code but for the fact	7267
that the person fails to meet the income and support limitations	7268
under section 152(d)(1)(B) and (C) of the Internal Revenue Code.	7269

(d) For purposes of division (A)(11) of this section,	7270
"medical care" has the meaning given in section 213 of the	7271
Internal Revenue Code, subject to the special rules, limitations,	7272
and exclusions set forth therein, and "qualified long-term care"	7273
has the same meaning given in section 7702B(c) of the Internal	7274
Revenue Code. Solely for purposes of divisions (A)(11)(a) and (c)	7275
of this section, "dependent" includes a person who otherwise would	7276
be a "qualifying relative" and thus a "dependent" under section	7277
152 of the Internal Revenue Code but for the fact that the person	7278
fails to meet the income and support limitations under section	7279
152(d)(1)(B) and (C) of the Internal Revenue Code.	7280

(12)(a) Deduct any amount included in federal adjusted gross	7281
income solely because the amount represents a reimbursement or	7282
refund of expenses that in any year the taxpayer had deducted as	7283
an itemized deduction pursuant to section 63 of the Internal	7284
Revenue Code and applicable United States department of the	7285
treasury regulations. The deduction otherwise allowed under	7286
division (A)(12)(a) of this section shall be reduced to the extent	7287
the reimbursement is attributable to an amount the taxpayer	7288
deducted under this section in any taxable year.	7289

(b) Add any amount not otherwise included in Ohio adjusted	7290
gross income for any taxable year to the extent that the amount is	7291
attributable to the recovery during the taxable year of any amount	7292
deducted or excluded in computing federal or Ohio adjusted gross	7293
income in any taxable year.	7294

(13) Deduct any portion of the deduction described in section	7295
1341(a)(2) of the Internal Revenue Code, for repaying previously	7296
reported income received under a claim of right, that meets both	7297
of the following requirements:	7298

(a) It is allowable for repayment of an item that was	7299
included in the taxpayer's adjusted gross income for a prior	7300
taxable year and did not qualify for a credit under division (A)	7301
or (B) of section 5747.05 of the Revised Code for that year;	7302

(b) It does not otherwise reduce the taxpayer's adjusted	7303
gross income for the current or any other taxable year.	7304

(14) Deduct an amount equal to the deposits made to, and net	7305
investment earnings of, a medical savings account during the	7306
taxable year, in accordance with section 3924.66 of the Revised	7307
Code. The deduction allowed by division (A)(14) of this section	7308
does not apply to medical savings account deposits and earnings	7309
otherwise deducted or excluded for the current or any other	7310
taxable year from the taxpayer's federal adjusted gross income.	7311

(15)(a) Add an amount equal to the funds withdrawn from a	7312
medical savings account during the taxable year, and the net	7313
investment earnings on those funds, when the funds withdrawn were	7314
used for any purpose other than to reimburse an account holder	7315
for, or to pay, eligible medical expenses, in accordance with	7316
section 3924.66 of the Revised Code;	7317

(b) Add the amounts distributed from a medical savings	7318
account under division (A)(2) of section 3924.68 of the Revised	7319
Code during the taxable year.	7320

(16) Add any amount claimed as a credit under section	7321
5747.059 of the Revised Code to the extent that such amount	7322
satisfies either of the following:	7323

(a) The amount was deducted or excluded from the computation	7324
of the taxpayer's federal adjusted gross income as required to be	7325
reported for the taxpayer's taxable year under the Internal	7326
Revenue Code;	7327

(b) The amount resulted in a reduction of the taxpayer's	7328
federal adjusted gross income as required to be reported for any	7329
of the taxpayer's taxable years under the Internal Revenue Code.	7330

(17) Deduct the amount contributed by the taxpayer to an	7331
individual development account program established by a county	7332
department of job and family services pursuant to sections 329.11	7333
to 329.14 of the Revised Code for the purpose of matching funds	7334
deposited by program participants. On request of the tax	7335
commissioner, the taxpayer shall provide any information that, in	7336
the tax commissioner's opinion, is necessary to establish the	7337
amount deducted under division (A)(17) of this section.	7338

(18) Beginning in taxable year 2001 but not for any taxable	7339
year beginning after December 31, 2005, if the taxpayer is married	7340
and files a joint return and the combined federal adjusted gross	7341
income of the taxpayer and the taxpayer's spouse for the taxable	7342
year does not exceed one hundred thousand dollars, or if the	7343
taxpayer is single and has a federal adjusted gross income for the	7344
taxable year not exceeding fifty thousand dollars, deduct amounts	7345
paid during the taxable year for qualified tuition and fees paid	7346
to an eligible institution for the taxpayer, the taxpayer's	7347
spouse, or any dependent of the taxpayer, who is a resident of	7348
this state and is enrolled in or attending a program that	7349
culminates in a degree or diploma at an eligible institution. The	7350
deduction may be claimed only to the extent that qualified tuition	7351
and fees are not otherwise deducted or excluded for any taxable	7352
year from federal or Ohio adjusted gross income. The deduction may	7353
not be claimed for educational expenses for which the taxpayer	7354
claims a credit under section 5747.27 of the Revised Code.	7355

(19) Add any reimbursement received during the taxable year	7356
of any amount the taxpayer deducted under division (A)(18) of this	7357
section in any previous taxable year to the extent the amount is	7358
not otherwise included in Ohio adjusted gross income.	7359

(20)(a)(i) Add five-sixths of the amount of depreciation	7360
expense allowed by subsection (k) of section 168 of the Internal	7361
Revenue Code, including the taxpayer's proportionate or	7362
distributive share of the amount of depreciation expense allowed	7363
by that subsection to a pass-through entity in which the taxpayer	7364
has a direct or indirect ownership interest.	7365

(ii) Add five-sixths of the amount of qualifying section 179	7366
depreciation expense, including a person's proportionate or	7367
distributive share of the amount of qualifying section 179	7368
depreciation expense allowed to any pass-through entity in which	7369
the person has a direct or indirect ownership. For the purposes of	7370
this division, "qualifying section 179 depreciation expense" means	7371
the difference between (I) the amount of depreciation expense	7372
directly or indirectly allowed to the taxpayer under section 179	7373
of the Internal Revenue Code, and (II) the amount of depreciation	7374
expense directly or indirectly allowed to the taxpayer under	7375
section 179 of the Internal Revenue Code as that section existed	7376
on December 31, 2002.	7377

The tax commissioner, under procedures established by the	7378
commissioner, may waive the add-backs related to a pass-through	7379
entity if the taxpayer owns, directly or indirectly, less than	7380
five per cent of the pass-through entity.	7381

(b) Nothing in division (A)(20) of this section shall be	7382
construed to adjust or modify the adjusted basis of any asset.	7383

(c) To the extent the add-back required under division	7384
(A)(20)(a) of this section is attributable to property generating	7385
nonbusiness income or loss allocated under section 5747.20 of the	7386
Revised Code, the add-back shall be sitused to the same location	7387
as the nonbusiness income or loss generated by the property for	7388
the purpose of determining the credit under division (A) of	7389
section 5747.05 of the Revised Code. Otherwise, the add-back shall	7390
be apportioned, subject to one or more of the four alternative	7391
methods of apportionment enumerated in section 5747.21 of the	7392
Revised Code.	7393

(d) For the purposes of division (A) of this section, net	7394
operating loss carryback and carryforward shall not include	7395
five-sixths of the allowance of any net operating loss deduction	7396
carryback or carryforward to the taxable year to the extent such	7397
loss resulted from depreciation allowed by section 168(k) of the	7398
Internal Revenue Code and by the qualifying section 179	7399
depreciation expense amount.	7400

(21)(a) If the taxpayer was required to add an amount under	7401
division (A)(20)(a) of this section for a taxable year, deduct	7402
one-fifth of the amount so added for each of the five succeeding	7403
taxable years.	7404

(b) If the amount deducted under division (A)(21)(a) of this	7405
section is attributable to an add-back allocated under division	7406
(A)(20)(c) of this section, the amount deducted shall be sitused	7407
to the same location. Otherwise, the add-back shall be apportioned	7408
using the apportionment factors for the taxable year in which the	7409
deduction is taken, subject to one or more of the four alternative	7410
methods of apportionment enumerated in section 5747.21 of the	7411
Revised Code.	7412

(c) No deduction is available under division (A)(21)(a) of	7413
this section with regard to any depreciation allowed by section	7414
168(k) of the Internal Revenue Code and by the qualifying section	7415
179 depreciation expense amount to the extent that such	7416
depreciation resulted in or increased a federal net operating loss	7417
carryback or carryforward to a taxable year to which division	7418
(A)(20)(d) of this section does not apply.	7419

(22) Deduct, to the extent not otherwise deducted or excluded	7420
in computing federal or Ohio adjusted gross income for the taxable	7421
year, the amount the taxpayer received during the taxable year as	7422
reimbursement for life insurance premiums under section 5919.31 of	7423
the Revised Code.	7424

(23) Deduct, to the extent not otherwise deducted or excluded	7425
in computing federal or Ohio adjusted gross income for the taxable	7426
year, the amount the taxpayer received during the taxable year as	7427
a death benefit paid by the adjutant general under section 5919.33	7428
of the Revised Code.	7429

(24) Deduct, to the extent included in federal adjusted gross	7430
income and not otherwise allowable as a deduction or exclusion in	7431
computing federal or Ohio adjusted gross income for the taxable	7432
year, military pay and allowances received by the taxpayer during	7433
the taxable year for active duty service in the United States	7434
army, air force, navy, marine corps, or coast guard or reserve	7435
components thereof or the national guard. The deduction may not be	7436
claimed for military pay and allowances received by the taxpayer	7437
while the taxpayer is stationed in this state.	7438

(25) Deduct, to the extent not otherwise allowable as a	7439
deduction or exclusion in computing federal or Ohio adjusted gross	7440
income for the taxable year and not otherwise compensated for by	7441
any other source, the amount of qualified organ donation expenses	7442
incurred by the taxpayer during the taxable year, not to exceed	7443
ten thousand dollars. A taxpayer may deduct qualified organ	7444
donation expenses only once for all taxable years beginning with	7445
taxable years beginning in 2007.	7446

For the purposes of division (A)(25) of this section:

7447

(a) "Human organ" means all or any portion of a human liver,	7448
pancreas, kidney, intestine, or lung, and any portion of human	7449
bone marrow.	7450

(b) "Qualified organ donation expenses" means travel	7451
expenses, lodging expenses, and wages and salary forgone by a	7452
taxpayer in connection with the taxpayer's donation, while living,	7453
of one or more of the taxpayer's human organs to another human	7454
being.	7455

(26) Deduct, to the extent not otherwise deducted or excluded	7456
in computing federal or Ohio adjusted gross income for the taxable	7457
year, amounts received by the taxpayer as retired military	7458
personnel pay for service in the United States army, navy, air	7459
force, coast guard, or marine corps or reserve components thereof,	7460
or the national guard, or received by the surviving spouse or	7461
former spouse of such a taxpayer under the survivor benefit plan	7462
on account of such a taxpayer's death. If the taxpayer receives	7463
income on account of retirement paid under the federal civil	7464
service retirement system or federal employees retirement system,	7465
or under any successor retirement program enacted by the congress	7466
of the United States that is established and maintained for	7467
retired employees of the United States government, and such	7468
retirement income is based, in whole or in part, on credit for the	7469
taxpayer's military service, the deduction allowed under this	7470
division shall include only that portion of such retirement income	7471
that is attributable to the taxpayer's military service, to the	7472
extent that portion of such retirement income is otherwise	7473
included in federal adjusted gross income and is not otherwise	7474
deducted under this section. Any amount deducted under division	7475
(A)(26) of this section is not included in a taxpayer's adjusted	7476
gross income for the purposes of section 5747.055 of the Revised	7477
Code. No amount may be deducted under division (A)(26) of this	7478
section on the basis of which a credit was claimed under section	7479
5747.055 of the Revised Code.	7480

(27) Deduct, to the extent not otherwise deducted or excluded	7481
in computing federal or Ohio adjusted gross income for the taxable	7482
year, the amount the taxpayer received during the taxable year	7483
from the military injury relief fund created in section 5101.98 of	7484
the Revised Code.	7485

(28) Deduct, to the extent not otherwise deducted or excluded	7486
in computing federal or Ohio adjusted gross income for the taxable	7487
year, the amount the taxpayer received as a veterans bonus during	7488
the taxable year from the Ohio department of veterans services as	7489
authorized by Section 2r of Article VIII, Ohio Constitution.	7490

(29) Deduct, to the extent not otherwise deducted or excluded	7491
in computing federal or Ohio adjusted gross income for the taxable	7492
year, any loss from wagering transactions that is allowed as an	7493
itemized deduction under section 165 of the Internal Revenue Code	7494
and that the taxpayer deducted in computing federal taxable	7495
income.	7496

(30) Deduct, to the extent not otherwise deducted or excluded	7497
in computing federal or Ohio adjusted gross income for the taxable	7498
year, any income derived from providing public services under a	7499
contract through a project owned by the state, as described in	7500
section 126.604 of the Revised Code or derived from a transfer	7501
agreement or from the enterprise transferred under that agreement	7502
under section 4313.02 of the Revised Code.	7503

(31) Deduct, to the extent not otherwise deducted or excluded	7504
in computing federal or Ohio adjusted gross income for the taxable	7505
year, income a qualifying landlord received from the lease or	7506
rental of qualifying residential rental property during the first	7507
taxable year in which the qualifying landlord received rental	7508
income from the property and during the four succeeding years.	7509

For purposes of division (A)(31) of this section:

7510

(a) "Distressed property" means real property that is vacant,	7511
abandoned, foreclosed-upon, or located in a blighted area and that	7512
is not currently in use as residential rental property.	7513

(b) "Blighted area" has the same meaning as in section 1.08	7514
of the Revised Code.	7515

(c) "Residential rental property" means real property on	7516
which is located one or more dwelling units leased or otherwise	7517
rented to tenants solely for residential use by those tenants.	7518

(d) "Qualifying residential rental property" means	7519
residential rental property that is leased or otherwise rented	7520
exclusively to individuals or families whose annual incomes do not	7521
exceed one hundred twenty per cent of the median income for the	7522
county in which they live, as determined by the department of	7523
development under section 174.04 of the Revised Code.	7524

(e) "Qualifying landlord" means a taxpayer that converts	7525
distressed property into qualifying residential rental property.	7526

(B) "Business income" means income, including gain or loss,	7527
arising from transactions, activities, and sources in the regular	7528
course of a trade or business and includes income, gain, or loss	7529
from real property, tangible property, and intangible property if	7530
the acquisition, rental, management, and disposition of the	7531
property constitute integral parts of the regular course of a	7532
trade or business operation. "Business income" includes income,	7533
including gain or loss, from a partial or complete liquidation of	7534
a business, including, but not limited to, gain or loss from the	7535
sale or other disposition of goodwill.	7536

(C) "Nonbusiness income" means all income other than business	7537
income and may include, but is not limited to, compensation, rents	7538
and royalties from real or tangible personal property, capital	7539
gains, interest, dividends and distributions, patent or copyright	7540
royalties, or lottery winnings, prizes, and awards.	7541

(D) "Compensation" means any form of remuneration paid to an	7542
employee for personal services.	7543

(E) "Fiduciary" means a guardian, trustee, executor,	7544
administrator, receiver, conservator, or any other person acting	7545
in any fiduciary capacity for any individual, trust, or estate.	7546

(F) "Fiscal year" means an accounting period of twelve months	7547
ending on the last day of any month other than December.	7548

(G) "Individual" means any natural person.

7549

(H) "Internal Revenue Code" means the "Internal Revenue Code	7550
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	7551

(I) "Resident" means any of the following, provided that	7552
division (I)(3) of this section applies only to taxable years of a	7553
trust beginning in 2002 or thereafter:	7554

(1) An individual who is domiciled in this state, subject to	7555
section 5747.24 of the Revised Code;	7556

(2) The estate of a decedent who at the time of death was	7557
domiciled in this state. The domicile tests of section 5747.24 of	7558
the Revised Code are not controlling for purposes of division	7559
(I)(2) of this section.	7560

(3) A trust that, in whole or part, resides in this state. If	7561
only part of a trust resides in this state, the trust is a	7562
resident only with respect to that part.	7563

For the purposes of division (I)(3) of this section:

7564

(a) A trust resides in this state for the trust's current	7565
taxable year to the extent, as described in division (I)(3)(d) of	7566
this section, that the trust consists directly or indirectly, in	7567
whole or in part, of assets, net of any related liabilities, that	7568
were transferred, or caused to be transferred, directly or	7569
indirectly, to the trust by any of the following:	7570

(i) A person, a court, or a governmental entity or	7571
instrumentality on account of the death of a decedent, but only if	7572
the trust is described in division (I)(3)(e)(i) or (ii) of this	7573
section;	7574

(ii) A person who was domiciled in this state for the	7575
purposes of this chapter when the person directly or indirectly	7576
transferred assets to an irrevocable trust, but only if at least	7577
one of the trust's qualifying beneficiaries is domiciled in this	7578
state for the purposes of this chapter during all or some portion	7579
of the trust's current taxable year;	7580

(iii) A person who was domiciled in this state for the	7581
purposes of this chapter when the trust document or instrument or	7582
part of the trust document or instrument became irrevocable, but	7583
only if at least one of the trust's qualifying beneficiaries is a	7584
resident domiciled in this state for the purposes of this chapter	7585
during all or some portion of the trust's current taxable year. If	7586
a trust document or instrument became irrevocable upon the death	7587
of a person who at the time of death was domiciled in this state	7588
for purposes of this chapter, that person is a person described in	7589
division (I)(3)(a)(iii) of this section.	7590

(b) A trust is irrevocable to the extent that the transferor	7591
is not considered to be the owner of the net assets of the trust	7592
under sections 671 to 678 of the Internal Revenue Code.	7593

(c) With respect to a trust other than a charitable lead	7594
trust, "qualifying beneficiary" has the same meaning as "potential	7595
current beneficiary" as defined in section 1361(e)(2) of the	7596
Internal Revenue Code, and with respect to a charitable lead trust	7597
"qualifying beneficiary" is any current, future, or contingent	7598
beneficiary, but with respect to any trust "qualifying	7599
beneficiary" excludes a person or a governmental entity or	7600
instrumentality to any of which a contribution would qualify for	7601
the charitable deduction under section 170 of the Internal Revenue	7602
Code.	7603

(d) For the purposes of division (I)(3)(a) of this section,	7604
the extent to which a trust consists directly or indirectly, in	7605
whole or in part, of assets, net of any related liabilities, that	7606
were transferred directly or indirectly, in whole or part, to the	7607
trust by any of the sources enumerated in that division shall be	7608
ascertained by multiplying the fair market value of the trust's	7609
assets, net of related liabilities, by the qualifying ratio, which	7610
shall be computed as follows:	7611

(i) The first time the trust receives assets, the numerator	7612
of the qualifying ratio is the fair market value of those assets	7613
at that time, net of any related liabilities, from sources	7614
enumerated in division (I)(3)(a) of this section. The denominator	7615
of the qualifying ratio is the fair market value of all the	7616
trust's assets at that time, net of any related liabilities.	7617

(ii) Each subsequent time the trust receives assets, a	7618
revised qualifying ratio shall be computed. The numerator of the	7619
revised qualifying ratio is the sum of (1) the fair market value	7620
of the trust's assets immediately prior to the subsequent	7621
transfer, net of any related liabilities, multiplied by the	7622
qualifying ratio last computed without regard to the subsequent	7623
transfer, and (2) the fair market value of the subsequently	7624
transferred assets at the time transferred, net of any related	7625
liabilities, from sources enumerated in division (I)(3)(a) of this	7626
section. The denominator of the revised qualifying ratio is the	7627
fair market value of all the trust's assets immediately after the	7628
subsequent transfer, net of any related liabilities.	7629

(iii) Whether a transfer to the trust is by or from any of	7630
the sources enumerated in division (I)(3)(a) of this section shall	7631
be ascertained without regard to the domicile of the trust's	7632
beneficiaries.	7633

(e) For the purposes of division (I)(3)(a)(i) of this	7634
section:	7635

(i) A trust is described in division (I)(3)(e)(i) of this	7636
section if the trust is a testamentary trust and the testator of	7637
that testamentary trust was domiciled in this state at the time of	7638
the testator's death for purposes of the taxes levied under	7639
Chapter 5731. of the Revised Code.	7640

(ii) A trust is described in division (I)(3)(e)(ii) of this	7641
section if the transfer is a qualifying transfer described in any	7642
of divisions (I)(3)(f)(i) to (vi) of this section, the trust is an	7643
irrevocable inter vivos trust, and at least one of the trust's	7644
qualifying beneficiaries is domiciled in this state for purposes	7645
of this chapter during all or some portion of the trust's current	7646
taxable year.	7647

(f) For the purposes of division (I)(3)(e)(ii) of this	7648
section, a "qualifying transfer" is a transfer of assets, net of	7649
any related liabilities, directly or indirectly to a trust, if the	7650
transfer is described in any of the following:	7651

(i) The transfer is made to a trust, created by the decedent	7652
before the decedent's death and while the decedent was domiciled	7653
in this state for the purposes of this chapter, and, prior to the	7654
death of the decedent, the trust became irrevocable while the	7655
decedent was domiciled in this state for the purposes of this	7656
chapter.	7657

(ii) The transfer is made to a trust to which the decedent,	7658
prior to the decedent's death, had directly or indirectly	7659
transferred assets, net of any related liabilities, while the	7660
decedent was domiciled in this state for the purposes of this	7661
chapter, and prior to the death of the decedent the trust became	7662
irrevocable while the decedent was domiciled in this state for the	7663
purposes of this chapter.	7664

(iii) The transfer is made on account of a contractual	7665
relationship existing directly or indirectly between the	7666
transferor and either the decedent or the estate of the decedent	7667
at any time prior to the date of the decedent's death, and the	7668
decedent was domiciled in this state at the time of death for	7669
purposes of the taxes levied under Chapter 5731. of the Revised	7670
Code.	7671

(iv) The transfer is made to a trust on account of a	7672
contractual relationship existing directly or indirectly between	7673
the transferor and another person who at the time of the	7674
decedent's death was domiciled in this state for purposes of this	7675
chapter.	7676

(v) The transfer is made to a trust on account of the will of	7677
a testator who was domiciled in this state at the time of the	7678
testator's death for purposes of the taxes levied under Chapter	7679
5731. of the Revised Code.	7680

(vi) The transfer is made to a trust created by or caused to	7681
be created by a court, and the trust was directly or indirectly	7682
created in connection with or as a result of the death of an	7683
individual who, for purposes of the taxes levied under Chapter	7684
5731. of the Revised Code, was domiciled in this state at the time	7685
of the individual's death.	7686

(g) The tax commissioner may adopt rules to ascertain the	7687
part of a trust residing in this state.	7688

(J) "Nonresident" means an individual or estate that is not a	7689
resident. An individual who is a resident for only part of a	7690
taxable year is a nonresident for the remainder of that taxable	7691
year.	7692

(K) "Pass-through entity" has the same meaning as in section	7693
5733.04 of the Revised Code.	7694

(L) "Return" means the notifications and reports required to	7695
be filed pursuant to this chapter for the purpose of reporting the	7696
tax due and includes declarations of estimated tax when so	7697
required.	7698

(M) "Taxable year" means the calendar year or the taxpayer's	7699
fiscal year ending during the calendar year, or fractional part	7700
thereof, upon which the adjusted gross income is calculated	7701
pursuant to this chapter.	7702

(N) "Taxpayer" means any person subject to the tax imposed by	7703
section 5747.02 of the Revised Code or any pass-through entity	7704
that makes the election under division (D) of section 5747.08 of	7705
the Revised Code.	7706

(O) "Dependents" means dependents as defined in the Internal	7707
Revenue Code and as claimed in the taxpayer's federal income tax	7708
return for the taxable year or which the taxpayer would have been	7709
permitted to claim had the taxpayer filed a federal income tax	7710
return.	7711

(P) "Principal county of employment" means, in the case of a	7712
nonresident, the county within the state in which a taxpayer	7713
performs services for an employer or, if those services are	7714
performed in more than one county, the county in which the major	7715
portion of the services are performed.	7716

(Q) As used in sections 5747.50 to 5747.55 of the Revised	7717
Code:	7718

(1) "Subdivision" means any county, municipal corporation,	7719
park district, or township.	7720

(2) "Essential local government purposes" includes all	7721
functions that any subdivision is required by general law to	7722
exercise, including like functions that are exercised under a	7723
charter adopted pursuant to the Ohio Constitution.	7724

(R) "Overpayment" means any amount already paid that exceeds	7725
the figure determined to be the correct amount of the tax.	7726

(S) "Taxable income" or "Ohio taxable income" applies only to	7727
estates and trusts, and means federal taxable income, as defined	7728
and used in the Internal Revenue Code, adjusted as follows:	7729

(1) Add interest or dividends, net of ordinary, necessary,	7730
and reasonable expenses not deducted in computing federal taxable	7731
income, on obligations or securities of any state or of any	7732
political subdivision or authority of any state, other than this	7733
state and its subdivisions and authorities, but only to the extent	7734
that such net amount is not otherwise includible in Ohio taxable	7735
income and is described in either division (S)(1)(a) or (b) of	7736
this section:	7737

(a) The net amount is not attributable to the S portion of an	7738
electing small business trust and has not been distributed to	7739
beneficiaries for the taxable year;	7740

(b) The net amount is attributable to the S portion of an	7741
electing small business trust for the taxable year.	7742

(2) Add interest or dividends, net of ordinary, necessary,	7743
and reasonable expenses not deducted in computing federal taxable	7744
income, on obligations of any authority, commission,	7745
instrumentality, territory, or possession of the United States to	7746
the extent that the interest or dividends are exempt from federal	7747
income taxes but not from state income taxes, but only to the	7748
extent that such net amount is not otherwise includible in Ohio	7749
taxable income and is described in either division (S)(1)(a) or	7750
(b) of this section;	7751

(3) Add the amount of personal exemption allowed to the	7752
estate pursuant to section 642(b) of the Internal Revenue Code;	7753

(4) Deduct interest or dividends, net of related expenses	7754
deducted in computing federal taxable income, on obligations of	7755
the United States and its territories and possessions or of any	7756
authority, commission, or instrumentality of the United States to	7757
the extent that the interest or dividends are exempt from state	7758
taxes under the laws of the United States, but only to the extent	7759
that such amount is included in federal taxable income and is	7760
described in either division (S)(1)(a) or (b) of this section;	7761

(5) Deduct the amount of wages and salaries, if any, not	7762
otherwise allowable as a deduction but that would have been	7763
allowable as a deduction in computing federal taxable income for	7764
the taxable year, had the targeted jobs credit allowed under	7765
sections 38, 51, and 52 of the Internal Revenue Code not been in	7766
effect, but only to the extent such amount relates either to	7767
income included in federal taxable income for the taxable year or	7768
to income of the S portion of an electing small business trust for	7769
the taxable year;	7770

(6) Deduct any interest or interest equivalent, net of	7771
related expenses deducted in computing federal taxable income, on	7772
public obligations and purchase obligations, but only to the	7773
extent that such net amount relates either to income included in	7774
federal taxable income for the taxable year or to income of the S	7775
portion of an electing small business trust for the taxable year;	7776

(7) Add any loss or deduct any gain resulting from sale,	7777
exchange, or other disposition of public obligations to the extent	7778
that such loss has been deducted or such gain has been included in	7779
computing either federal taxable income or income of the S portion	7780
of an electing small business trust for the taxable year;	7781

(8) Except in the case of the final return of an estate, add	7782
any amount deducted by the taxpayer on both its Ohio estate tax	7783
return pursuant to section 5731.14 of the Revised Code, and on its	7784
federal income tax return in determining federal taxable income;	7785

(9)(a) Deduct any amount included in federal taxable income	7786
solely because the amount represents a reimbursement or refund of	7787
expenses that in a previous year the decedent had deducted as an	7788
itemized deduction pursuant to section 63 of the Internal Revenue	7789
Code and applicable treasury regulations. The deduction otherwise	7790
allowed under division (S)(9)(a) of this section shall be reduced	7791
to the extent the reimbursement is attributable to an amount the	7792
taxpayer or decedent deducted under this section in any taxable	7793
year.	7794

(b) Add any amount not otherwise included in Ohio taxable	7795
income for any taxable year to the extent that the amount is	7796
attributable to the recovery during the taxable year of any amount	7797
deducted or excluded in computing federal or Ohio taxable income	7798
in any taxable year, but only to the extent such amount has not	7799
been distributed to beneficiaries for the taxable year.	7800

(10) Deduct any portion of the deduction described in section	7801
1341(a)(2) of the Internal Revenue Code, for repaying previously	7802
reported income received under a claim of right, that meets both	7803
of the following requirements:	7804

(a) It is allowable for repayment of an item that was	7805
included in the taxpayer's taxable income or the decedent's	7806
adjusted gross income for a prior taxable year and did not qualify	7807
for a credit under division (A) or (B) of section 5747.05 of the	7808
Revised Code for that year.	7809

(b) It does not otherwise reduce the taxpayer's taxable	7810
income or the decedent's adjusted gross income for the current or	7811
any other taxable year.	7812

(11) Add any amount claimed as a credit under section	7813
5747.059 of the Revised Code to the extent that the amount	7814
satisfies either of the following:	7815

(a) The amount was deducted or excluded from the computation	7816
of the taxpayer's federal taxable income as required to be	7817
reported for the taxpayer's taxable year under the Internal	7818
Revenue Code;	7819

(b) The amount resulted in a reduction in the taxpayer's	7820
federal taxable income as required to be reported for any of the	7821
taxpayer's taxable years under the Internal Revenue Code.	7822

(12) Deduct any amount, net of related expenses deducted in	7823
computing federal taxable income, that a trust is required to	7824
report as farm income on its federal income tax return, but only	7825
if the assets of the trust include at least ten acres of land	7826
satisfying the definition of "land devoted exclusively to	7827
agricultural use" under section 5713.30 of the Revised Code,	7828
regardless of whether the land is valued for tax purposes as such	7829
land under sections 5713.30 to 5713.38 of the Revised Code. If the	7830
trust is a pass-through entity investor, section 5747.231 of the	7831
Revised Code applies in ascertaining if the trust is eligible to	7832
claim the deduction provided by division (S)(12) of this section	7833
in connection with the pass-through entity's farm income.	7834

Except for farm income attributable to the S portion of an	7835
electing small business trust, the deduction provided by division	7836
(S)(12) of this section is allowed only to the extent that the	7837
trust has not distributed such farm income. Division (S)(12) of	7838
this section applies only to taxable years of a trust beginning in	7839
2002 or thereafter.	7840

(13) Add the net amount of income described in section 641(c)	7841
of the Internal Revenue Code to the extent that amount is not	7842
included in federal taxable income.	7843

(14) Add or deduct the amount the taxpayer would be required	7844
to add or deduct under division (A)(20) or (21) of this section if	7845
the taxpayer's Ohio taxable income were computed in the same	7846
manner as an individual's Ohio adjusted gross income is computed	7847
under this section. In the case of a trust, division (S)(14) of	7848
this section applies only to any of the trust's taxable years	7849
beginning in 2002 or thereafter.	7850

(15) Deduct, to the extent not otherwise deducted or excluded	7851
in computing federal or Ohio taxable income for the taxable year,	7852
income a qualifying landlord received from the lease or rental of	7853
qualifying residential rental property during the first taxable	7854
year in which the qualifying landlord received rental income from	7855
the property and during the four succeeding years. As used in this	7856
division, "qualifying landlord" and "qualifying residential rental	7857
property" have the same meanings as in division (A)(31) of this	7858
section.	7859

(16) For a taxpayer that provides broadband service, deduct	7860
the taxpayer's net profits from providing broadband service in	7861
this state multiplied by a fraction, the numerator of which is the	7862
original cost of tangible personal property necessary for the	7863
provision of broadband service in rural areas of this state	7864
installed on or after the effective date of this amendment, and	7865
the denominator of which is the original cost of tangible personal	7866
property necessary for the provision of broadband service in this	7867
state and installed on or after that date. A taxpayer that is an	7868
equity owner of a pass-through entity that provides broadband	7869
service may deduct the taxpayer's distributive or proportionate	7870
share of the entity's net profits from providing such service	7871
multiplied by that fraction. A deduction is not allowed under this	7872
division if the taxpayer claims the exclusion under division	7873
(F)(2)(ll) of section 5751.01 of the Revised Code for any tax	7874
period that is included partly or wholly in the taxable year. For	7875
the purposes of this division, "broadband service" and "rural	7876
area" have the same meanings as in 7 U.S.C. 950bb.	7877

(T) "School district income" and "school district income tax"	7878
have the same meanings as in section 5748.01 of the Revised Code.	7879

(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7)	7880
of this section, "public obligations," "purchase obligations," and	7881
"interest or interest equivalent" have the same meanings as in	7882
section 5709.76 of the Revised Code.	7883

(V) "Limited liability company" means any limited liability	7884
company formed under Chapter 1705. of the Revised Code or under	7885
the laws of any other state.	7886

(W) "Pass-through entity investor" means any person who,	7887
during any portion of a taxable year of a pass-through entity, is	7888
a partner, member, shareholder, or equity investor in that	7889
pass-through entity.	7890

(X) "Banking day" has the same meaning as in section 1304.01	7891
of the Revised Code.	7892

(Y) "Month" means a calendar month.

7893

(Z) "Quarter" means the first three months, the second three	7894
months, the third three months, or the last three months of the	7895
taxpayer's taxable year.	7896

(AA)(1) "Eligible institution" means a state university or	7897
state institution of higher education as defined in section	7898
3345.011 of the Revised Code, or a private, nonprofit college,	7899
university, or other post-secondary institution located in this	7900
state that possesses a certificate of authorization issued by the	7901
Ohio board of regents pursuant to Chapter 1713. of the Revised	7902
Code or a certificate of registration issued by the state board of	7903
career colleges and schools under Chapter 3332. of the Revised	7904
Code.	7905

(2) "Qualified tuition and fees" means tuition and fees	7906
imposed by an eligible institution as a condition of enrollment or	7907
attendance, not exceeding two thousand five hundred dollars in	7908
each of the individual's first two years of post-secondary	7909
education. If the individual is a part-time student, "qualified	7910
tuition and fees" includes tuition and fees paid for the academic	7911
equivalent of the first two years of post-secondary education	7912
during a maximum of five taxable years, not exceeding a total of	7913
five thousand dollars. "Qualified tuition and fees" does not	7914
include:	7915

(a) Expenses for any course or activity involving sports,	7916
games, or hobbies unless the course or activity is part of the	7917
individual's degree or diploma program;	7918

(b) The cost of books, room and board, student activity fees,	7919
athletic fees, insurance expenses, or other expenses unrelated to	7920
the individual's academic course of instruction;	7921

(c) Tuition, fees, or other expenses paid or reimbursed	7922
through an employer, scholarship, grant in aid, or other	7923
educational benefit program.	7924

(BB)(1) "Modified business income" means the business income	7925
included in a trust's Ohio taxable income after such taxable	7926
income is first reduced by the qualifying trust amount, if any.	7927

(2) "Qualifying trust amount" of a trust means capital gains	7928
and losses from the sale, exchange, or other disposition of equity	7929
or ownership interests in, or debt obligations of, a qualifying	7930
investee to the extent included in the trust's Ohio taxable	7931
income, but only if the following requirements are satisfied:	7932

(a) The book value of the qualifying investee's physical	7933
assets in this state and everywhere, as of the last day of the	7934
qualifying investee's fiscal or calendar year ending immediately	7935
prior to the date on which the trust recognizes the gain or loss,	7936
is available to the trust.	7937

(b) The requirements of section 5747.011 of the Revised Code	7938
are satisfied for the trust's taxable year in which the trust	7939
recognizes the gain or loss.	7940

Any gain or loss that is not a qualifying trust amount is	7941
modified business income, qualifying investment income, or	7942
modified nonbusiness income, as the case may be.	7943

(3) "Modified nonbusiness income" means a trust's Ohio	7944
taxable income other than modified business income, other than the	7945
qualifying trust amount, and other than qualifying investment	7946
income, as defined in section 5747.012 of the Revised Code, to the	7947
extent such qualifying investment income is not otherwise part of	7948
modified business income.	7949

(4) "Modified Ohio taxable income" applies only to trusts,	7950
and means the sum of the amounts described in divisions (BB)(4)(a)	7951
to (c) of this section:	7952

(a) The fraction, calculated under section 5747.013, and	7953
applying section 5747.231 of the Revised Code, multiplied by the	7954
sum of the following amounts:	7955

(i) The trust's modified business income;

7956

(ii) The trust's qualifying investment income, as defined in	7957
section 5747.012 of the Revised Code, but only to the extent the	7958
qualifying investment income does not otherwise constitute	7959
modified business income and does not otherwise constitute a	7960
qualifying trust amount.	7961

(b) The qualifying trust amount multiplied by a fraction, the	7962
numerator of which is the sum of the book value of the qualifying	7963
investee's physical assets in this state on the last day of the	7964
qualifying investee's fiscal or calendar year ending immediately	7965
prior to the day on which the trust recognizes the qualifying	7966
trust amount, and the denominator of which is the sum of the book	7967
value of the qualifying investee's total physical assets	7968
everywhere on the last day of the qualifying investee's fiscal or	7969
calendar year ending immediately prior to the day on which the	7970
trust recognizes the qualifying trust amount. If, for a taxable	7971
year, the trust recognizes a qualifying trust amount with respect	7972
to more than one qualifying investee, the amount described in	7973
division (BB)(4)(b) of this section shall equal the sum of the	7974
products so computed for each such qualifying investee.	7975

(c)(i) With respect to a trust or portion of a trust that is	7976
a resident as ascertained in accordance with division (I)(3)(d) of	7977
this section, its modified nonbusiness income.	7978

(ii) With respect to a trust or portion of a trust that is	7979
not a resident as ascertained in accordance with division	7980
(I)(3)(d) of this section, the amount of its modified nonbusiness	7981
income satisfying the descriptions in divisions (B)(2) to (5) of	7982
section 5747.20 of the Revised Code, except as otherwise provided	7983
in division (BB)(4)(c)(ii) of this section. With respect to a	7984
trust or portion of a trust that is not a resident as ascertained	7985
in accordance with division (I)(3)(d) of this section, the trust's	7986
portion of modified nonbusiness income recognized from the sale,	7987
exchange, or other disposition of a debt interest in or equity	7988
interest in a section 5747.212 entity, as defined in section	7989
5747.212 of the Revised Code, without regard to division (A) of	7990
that section, shall not be allocated to this state in accordance	7991
with section 5747.20 of the Revised Code but shall be apportioned	7992
to this state in accordance with division (B) of section 5747.212	7993
of the Revised Code without regard to division (A) of that	7994
section.	7995

If the allocation and apportionment of a trust's income under	7996
divisions (BB)(4)(a) and (c) of this section do not fairly	7997
represent the modified Ohio taxable income of the trust in this	7998
state, the alternative methods described in division (C) of	7999
section 5747.21 of the Revised Code may be applied in the manner	8000
and to the same extent provided in that section.	8001

(5)(a) Except as set forth in division (BB)(5)(b) of this	8002
section, "qualifying investee" means a person in which a trust has	8003
an equity or ownership interest, or a person or unit of government	8004
the debt obligations of either of which are owned by a trust. For	8005
the purposes of division (BB)(2)(a) of this section and for the	8006
purpose of computing the fraction described in division (BB)(4)(b)	8007
of this section, all of the following apply:	8008

(i) If the qualifying investee is a member of a qualifying	8009
controlled group on the last day of the qualifying investee's	8010
fiscal or calendar year ending immediately prior to the date on	8011
which the trust recognizes the gain or loss, then "qualifying	8012
investee" includes all persons in the qualifying controlled group	8013
on such last day.	8014

(ii) If the qualifying investee, or if the qualifying	8015
investee and any members of the qualifying controlled group of	8016
which the qualifying investee is a member on the last day of the	8017
qualifying investee's fiscal or calendar year ending immediately	8018
prior to the date on which the trust recognizes the gain or loss,	8019
separately or cumulatively own, directly or indirectly, on the	8020
last day of the qualifying investee's fiscal or calendar year	8021
ending immediately prior to the date on which the trust recognizes	8022
the qualifying trust amount, more than fifty per cent of the	8023
equity of a pass-through entity, then the qualifying investee and	8024
the other members are deemed to own the proportionate share of the	8025
pass-through entity's physical assets which the pass-through	8026
entity directly or indirectly owns on the last day of the	8027
pass-through entity's calendar or fiscal year ending within or	8028
with the last day of the qualifying investee's fiscal or calendar	8029
year ending immediately prior to the date on which the trust	8030
recognizes the qualifying trust amount.	8031

(iii) For the purposes of division (BB)(5)(a)(iii) of this	8032
section, "upper level pass-through entity" means a pass-through	8033
entity directly or indirectly owning any equity of another	8034
pass-through entity, and "lower level pass-through entity" means	8035
that other pass-through entity.	8036

An upper level pass-through entity, whether or not it is also	8037
a qualifying investee, is deemed to own, on the last day of the	8038
upper level pass-through entity's calendar or fiscal year, the	8039
proportionate share of the lower level pass-through entity's	8040
physical assets that the lower level pass-through entity directly	8041
or indirectly owns on the last day of the lower level pass-through	8042
entity's calendar or fiscal year ending within or with the last	8043
day of the upper level pass-through entity's fiscal or calendar	8044
year. If the upper level pass-through entity directly and	8045
indirectly owns less than fifty per cent of the equity of the	8046
lower level pass-through entity on each day of the upper level	8047
pass-through entity's calendar or fiscal year in which or with	8048
which ends the calendar or fiscal year of the lower level	8049
pass-through entity and if, based upon clear and convincing	8050
evidence, complete information about the location and cost of the	8051
physical assets of the lower pass-through entity is not available	8052
to the upper level pass-through entity, then solely for purposes	8053
of ascertaining if a gain or loss constitutes a qualifying trust	8054
amount, the upper level pass-through entity shall be deemed as	8055
owning no equity of the lower level pass-through entity for each	8056
day during the upper level pass-through entity's calendar or	8057
fiscal year in which or with which ends the lower level	8058
pass-through entity's calendar or fiscal year. Nothing in division	8059
(BB)(5)(a)(iii) of this section shall be construed to provide for	8060
any deduction or exclusion in computing any trust's Ohio taxable	8061
income.	8062

(b) With respect to a trust that is not a resident for the	8063
taxable year and with respect to a part of a trust that is not a	8064
resident for the taxable year, "qualifying investee" for that	8065
taxable year does not include a C corporation if both of the	8066
following apply:	8067

(i) During the taxable year the trust or part of the trust	8068
recognizes a gain or loss from the sale, exchange, or other	8069
disposition of equity or ownership interests in, or debt	8070
obligations of, the C corporation.	8071

(ii) Such gain or loss constitutes nonbusiness income.

8072

(6) "Available" means information is such that a person is	8073
able to learn of the information by the due date plus extensions,	8074
if any, for filing the return for the taxable year in which the	8075
trust recognizes the gain or loss.	8076

(CC) "Qualifying controlled group" has the same meaning as in	8077
section 5733.04 of the Revised Code.	8078

(DD) "Related member" has the same meaning as in section	8079
5733.042 of the Revised Code.	8080

(EE)(1) For the purposes of division (EE) of this section:

8081

(a) "Qualifying person" means any person other than a	8082
qualifying corporation.	8083

(b) "Qualifying corporation" means any person classified for	8084
federal income tax purposes as an association taxable as a	8085
corporation, except either of the following:	8086

(i) A corporation that has made an election under subchapter	8087
S, chapter one, subtitle A, of the Internal Revenue Code for its	8088
taxable year ending within, or on the last day of, the investor's	8089
taxable year;	8090

(ii) A subsidiary that is wholly owned by any corporation	8091
that has made an election under subchapter S, chapter one,	8092
subtitle A of the Internal Revenue Code for its taxable year	8093
ending within, or on the last day of, the investor's taxable year.	8094

(2) For the purposes of this chapter, unless expressly stated	8095
otherwise, no qualifying person indirectly owns any asset directly	8096
or indirectly owned by any qualifying corporation.	8097

(FF) For purposes of this chapter and Chapter 5751. of the	8098
Revised Code:	8099

(1) "Trust" does not include a qualified pre-income tax	8100
trust.	8101

(2) A "qualified pre-income tax trust" is any pre-income tax	8102
trust that makes a qualifying pre-income tax trust election as	8103
described in division (FF)(3) of this section.	8104

(3) A "qualifying pre-income tax trust election" is an	8105
election by a pre-income tax trust to subject to the tax imposed	8106
by section 5751.02 of the Revised Code the pre-income tax trust	8107
and all pass-through entities of which the trust owns or controls,	8108
directly, indirectly, or constructively through related interests,	8109
five per cent or more of the ownership or equity interests. The	8110
trustee shall notify the tax commissioner in writing of the	8111
election on or before April 15, 2006. The election, if timely	8112
made, shall be effective on and after January 1, 2006, and shall	8113
apply for all tax periods and tax years until revoked by the	8114
trustee of the trust.	8115

(4) A "pre-income tax trust" is a trust that satisfies all of	8116
the following requirements:	8117

(a) The document or instrument creating the trust was	8118
executed by the grantor before January 1, 1972;	8119

(b) The trust became irrevocable upon the creation of the	8120
trust; and	8121

(c) The grantor was domiciled in this state at the time the	8122
trust was created.	8123

Sec. 5747.61.  (A) As used in this section:

8124

(1) "Qualified unemployed individual" means an individual who	8125
was not a student for at least six months during the one-year	8126
period preceding the date the employer hired the individual and	8127
who was unemployed for at least six months during that one-year	8128
period.	8129

(2) "Qualified unemployed veteran" means a veteran who was	8130
unemployed for at least six months during the one-year period	8131
ending on the date the employer hired the veteran.	8132

(3) "Qualified unemployed disabled veteran" means a disabled	8133
veteran who was unemployed for at least six months during the	8134
one-year period ending on the date the employer hired the disabled	8135
veteran.	8136

(4) "Student" means an individual enrolled at least half-time	8137
in a program that leads to a degree, certificate, or other	8138
recognized educational credential.	8139

(5) "Veteran" means an individual who was not serving	8140
extended active duty in the armed forces of the United States at	8141
any time during the sixty-day period ending on the day the	8142
individual was hired and who either (a) served on active military	8143
duty in the armed forces for more than one hundred eighty days and	8144
has not received a discharge or separation under dishonorable	8145
conditions, or (b) is a former member of the armed forces who has	8146
been discharged or released from active duty in the armed forces	8147
for a service-connected disability.	8148

(6) "Disabled veteran" means a veteran who is entitled to	8149
compensation for a service-connected disability.	8150

(7) "Extended active duty" has the same meaning as in section	8151
51 of the Internal Revenue Code.	8152

(8) "Compensation" means a monthly payment made by the United	8153
States secretary of veterans affairs to a veteran.	8154

(9) "Service-connected disability" means a disability that	8155
was incurred or aggravated in line of duty in the active service	8156
to the armed forces of the United States.	8157

(B) There is hereby allowed a nonrefundable credit against	8158
the tax imposed by section 5747.02 of the Revised Code for a	8159
taxpayer who is an employer required to deduct and withhold income	8160
tax from an employee's compensation and remit such amounts under	8161
sections 5747.06 and 5747.07 of the Revised Code and who hires a	8162
qualified unemployed individual, a qualified unemployed veteran,	8163
or a qualified unemployed disabled veteran. The amount of the	8164
credit shall be as follows:	8165

(1) For the hiring of a qualified unemployed individual, four	8166
thousand dollars.	8167

(2) For the hiring of a qualified unemployed veteran, five	8168
thousand six hundred dollars.	8169

(3) For the hiring of a qualified unemployed disabled	8170
veteran, nine thousand six hundred dollars.	8171

The credit shall be claimed for the taxable year in which the	8172
qualified unemployed individual, qualified unemployed veteran, or	8173
qualified unemployed disabled veteran is hired. The credit shall	8174
be claimed in the order required under section 5747.98 of the	8175
Revised Code. The amount of credit claimed may not exceed the tax	8176
otherwise due after allowing for all preceding credits in that	8177
order.	8178

A credit may be claimed under this section only once for any	8179
individual employee. A person that claims the credit under section	8180
5751.55 of the Revised Code may not claim the credit under this	8181
section for the same qualified unemployed individual, qualified	8182
unemployed veteran, or qualified unemployed disabled veteran.	8183

Nothing in this section limits or disallows pass-through	8184
treatment of the credit.	8185

Sec. 5747.98.  (A) To provide a uniform procedure for	8186
calculating the amount of tax due under section 5747.02 of the	8187
Revised Code, a taxpayer shall claim any credits to which the	8188
taxpayer is entitled in the following order:	8189

(1) The retirement income credit under division (B) of	8190
section 5747.055 of the Revised Code;	8191

(2) The senior citizen credit under division (C) of section	8192
5747.05 of the Revised Code;	8193

(3) The lump sum distribution credit under division (D) of	8194
section 5747.05 of the Revised Code;	8195

(4) The dependent care credit under section 5747.054 of the	8196
Revised Code;	8197

(5) The lump sum retirement income credit under division (C)	8198
of section 5747.055 of the Revised Code;	8199

(6) The lump sum retirement income credit under division (D)	8200
of section 5747.055 of the Revised Code;	8201

(7) The lump sum retirement income credit under division (E)	8202
of section 5747.055 of the Revised Code;	8203

(8) The low-income credit under section 5747.056 of the	8204
Revised Code;	8205

(9) The credit for displaced workers who pay for job training	8206
under section 5747.27 of the Revised Code;	8207

(10) The campaign contribution credit under section 5747.29	8208
of the Revised Code;	8209

(11) The twenty-dollar personal exemption credit under	8210
section 5747.022 of the Revised Code;	8211

(12)(11) The joint filing credit under division (G) of	8212
section 5747.05 of the Revised Code;	8213

(13)(12) The nonresident credit under division (A) of section	8214
5747.05 of the Revised Code;	8215

(14)(13) The credit for a resident's out-of-state income	8216
under division (B) of section 5747.05 of the Revised Code;	8217

(15)(14) The credit for employers that enter into agreements	8218
with child day-care centers under section 5747.34 of the Revised	8219
Code;	8220

(16)(15) The credit for employers that reimburse employee	8221
child care expenses under section 5747.36 of the Revised Code;	8222

(17)(16) The credit for adoption of a minor child under	8223
section 5747.37 of the Revised Code;	8224

(18)(17) The credit for purchases of lights and reflectors	8225
under section 5747.38 of the Revised Code;	8226

(19)(18) The nonrefundable job retention credit under	8227
division (B) of section 5747.058 of the Revised Code;	8228

(20) The credit for selling alternative fuel under section	8229
5747.77 of the Revised Code;	8230

(21)(19) The nonrefundable credit for hiring a qualified	8231
unemployed individual, qualified unemployed veteran, or qualified	8232
unemployed disabled veteran under section 5747.61 of the Revised	8233
Code;	8234

(20) The second credit for purchases of new manufacturing	8235
machinery and equipment and the credit for using Ohio coal under	8236
section 5747.31 of the Revised Code;	8237

(22)(21) The job training credit under section 5747.39 of the	8238
Revised Code;	8239

(23)(22) The enterprise zone credit under section 5709.66 of	8240
the Revised Code;	8241

(24)(23) The credit for the eligible costs associated with a	8242
voluntary action under section 5747.32 of the Revised Code;	8243

(25)(24) The credit for employers that establish on-site	8244
child day-care centers under section 5747.35 of the Revised Code;	8245

(26) The ethanol plant investment credit under section	8246
5747.75 of the Revised Code;	8247

(27) The credit for purchases of qualifying grape production	8248
property under section 5747.28 of the Revised Code;	8249

(28)(25) The small business investment credit under section	8250
5747.81 of the Revised Code;	8251

(29)(26) The credit for research and development and	8252
technology transfer investors under section 5747.33 of the Revised	8253
Code;	8254

(30)(27) The enterprise zone credits under section 5709.65 of	8255
the Revised Code;	8256

(31)(28) The research and development credit under section	8257
5747.331 of the Revised Code;	8258

(32)(29) The credit for rehabilitating a historic building	8259
under section 5747.76 of the Revised Code;	8260

(33)(30) The refundable credit for rehabilitating a historic	8261
building under section 5747.76 of the Revised Code;	8262

(34)(31) The refundable jobs creation credit or job retention	8263
credit under division (A) of section 5747.058 of the Revised Code;	8264

(35)(32) The refundable credit for taxes paid by a qualifying	8265
entity granted under section 5747.059 of the Revised Code;	8266

(36)(33) The refundable credits for taxes paid by a	8267
qualifying pass-through entity granted under division (J) of	8268
section 5747.08 of the Revised Code;	8269

(37)(34) The refundable credit for tax withheld under	8270
division (B)(1) of section 5747.062 of the Revised Code;	8271

(38)(35) The refundable credit for tax withheld under section	8272
5747.063 of the Revised Code;	8273

(39)(36) The refundable credit under section 5747.80 of the	8274
Revised Code for losses on loans made to the Ohio venture capital	8275
program under sections 150.01 to 150.10 of the Revised Code;	8276

(40)(37) The refundable motion picture production credit	8277
under section 5747.66 of the Revised Code.	8278

(B) For any credit, except the refundable credits enumerated	8279
in this section and the credit granted under division (I) of	8280
section 5747.08 of the Revised Code, the amount of the credit for	8281
a taxable year shall not exceed the tax due after allowing for any	8282
other credit that precedes it in the order required under this	8283
section. Any excess amount of a particular credit may be carried	8284
forward if authorized under the section creating that credit.	8285
Nothing in this chapter shall be construed to allow a taxpayer to	8286
claim, directly or indirectly, a credit more than once for a	8287
taxable year.	8288

Sec. 5751.01.  As used in this chapter:

8289

(A) "Person" means, but is not limited to, individuals,	8290
combinations of individuals of any form, receivers, assignees,	8291
trustees in bankruptcy, firms, companies, joint-stock companies,	8292
business trusts, estates, partnerships, limited liability	8293
partnerships, limited liability companies, associations, joint	8294
ventures, clubs, societies, for-profit corporations, S	8295
corporations, qualified subchapter S subsidiaries, qualified	8296
subchapter S trusts, trusts, entities that are disregarded for	8297
federal income tax purposes, and any other entities.	8298

(B) "Consolidated elected taxpayer" means a group of two or	8299
more persons treated as a single taxpayer for purposes of this	8300
chapter as the result of an election made under section 5751.011	8301
of the Revised Code.	8302

(C) "Combined taxpayer" means a group of two or more persons	8303
treated as a single taxpayer for purposes of this chapter under	8304
section 5751.012 of the Revised Code.	8305

(D) "Taxpayer" means any person, or any group of persons in	8306
the case of a consolidated elected taxpayer or combined taxpayer	8307
treated as one taxpayer, required to register or pay tax under	8308
this chapter. "Taxpayer" does not include excluded persons.	8309

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

8310

(1) Any person with not more than one hundred fifty thousand	8311
dollars of taxable gross receipts during the calendar year.	8312
Division (E)(1) of this section does not apply to a person that is	8313
a member of a consolidated elected taxpayer;	8314

(2) A public utility that paid the excise tax imposed by	8315
section 5727.24 or 5727.30 of the Revised Code based on one or	8316
more measurement periods that include the entire tax period under	8317
this chapter, except that a public utility that is a combined	8318
company is a taxpayer with regard to the following gross receipts:	8319

(a) Taxable gross receipts directly attributed to a public	8320
utility activity, but not directly attributed to an activity that	8321
is subject to the excise tax imposed by section 5727.24 or 5727.30	8322
of the Revised Code;	8323

(b) Taxable gross receipts that cannot be directly attributed	8324
to any activity, multiplied by a fraction whose numerator is the	8325
taxable gross receipts described in division (E)(2)(a) of this	8326
section and whose denominator is the total taxable gross receipts	8327
that can be directly attributed to any activity;	8328

(c) Except for any differences resulting from the use of an	8329
accrual basis method of accounting for purposes of determining	8330
gross receipts under this chapter and the use of the cash basis	8331
method of accounting for purposes of determining gross receipts	8332
under section 5727.24 of the Revised Code, the gross receipts	8333
directly attributed to the activity of a natural gas company shall	8334
be determined in a manner consistent with division (D) of section	8335
5727.03 of the Revised Code.	8336

As used in division (E)(2) of this section, "combined	8337
company" and "public utility" have the same meanings as in section	8338
5727.01 of the Revised Code.	8339

(3) A financial institution, as defined in section 5725.01 of	8340
the Revised Code, that paid the corporation franchise tax charged	8341
by division (D) of section 5733.06 of the Revised Code based on	8342
one or more taxable years that include the entire tax period under	8343
this chapter;	8344

(4) A dealer in intangibles, as defined in section 5725.01 of	8345
the Revised Code, that paid the dealer in intangibles tax levied	8346
by division (D) of section 5707.03 of the Revised Code based on	8347
one or more measurement periods that include the entire tax period	8348
under this chapter;	8349

(5) A financial holding company as defined in the "Bank	8350
Holding Company Act," 12 U.S.C. 1841(p);	8351

(6) A bank holding company as defined in the "Bank Holding	8352
Company Act," 12 U.S.C. 1841(a);	8353

(7) A savings and loan holding company as defined in the	8354
"Home Owners Loan Act," 12 U.S.C. 1467a(a)(1)(D) that is engaging	8355
only in activities or investments permissible for a financial	8356
holding company under 12 U.S.C. 1843(k);	8357

(8) A person directly or indirectly owned by one or more	8358
financial institutions, financial holding companies, bank holding	8359
companies, or savings and loan holding companies described in	8360
division (E)(3), (5), (6), or (7) of this section that is engaged	8361
in activities permissible for a financial holding company under 12	8362
U.S.C. 1843(k), except that any such person held pursuant to	8363
merchant banking authority under 12 U.S.C. 1843(k)(4)(H) or 12	8364
U.S.C. 1843(k)(4)(I) is not an excluded person, or a person	8365
directly or indirectly owned by one or more insurance companies	8366
described in division (E)(9) of this section that is authorized to	8367
do the business of insurance in this state.	8368

For the purposes of division (E)(8) of this section, a person	8369
owns another person under the following circumstances:	8370

(a) In the case of corporations issuing capital stock, one	8371
corporation owns another corporation if it owns fifty per cent or	8372
more of the other corporation's capital stock with current voting	8373
rights;	8374

(b) In the case of a limited liability company, one person	8375
owns the company if that person's membership interest, as defined	8376
in section 1705.01 of the Revised Code, is fifty per cent or more	8377
of the combined membership interests of all persons owning such	8378
interests in the company;	8379

(c) In the case of a partnership, trust, or other	8380
unincorporated business organization other than a limited	8381
liability company, one person owns the organization if, under the	8382
articles of organization or other instrument governing the affairs	8383
of the organization, that person has a beneficial interest in the	8384
organization's profits, surpluses, losses, or distributions of	8385
fifty per cent or more of the combined beneficial interests of all	8386
persons having such an interest in the organization;	8387

(d) In the case of multiple ownership, the ownership	8388
interests of more than one person may be aggregated to meet the	8389
fifty per cent ownership tests in this division only when each	8390
such owner is described in division (E)(3), (5), (6), or (7) of	8391
this section and is engaged in activities permissible for a	8392
financial holding company under 12 U.S.C. 1843(k) or is a person	8393
directly or indirectly owned by one or more insurance companies	8394
described in division (E)(9) of this section that is authorized to	8395
do the business of insurance in this state.	8396

(9) A domestic insurance company or foreign insurance	8397
company, as defined in section 5725.01 of the Revised Code, that	8398
paid the insurance company premiums tax imposed by section 5725.18	8399
or Chapter 5729. of the Revised Code based on one or more	8400
measurement periods that include the entire tax period under this	8401
chapter;	8402

(10) A person that solely facilitates or services one or more	8403
securitizations or similar transactions for any person described	8404
in division (E)(3), (5), (6), (7), (8), or (9) of this section.	8405
For purposes of this division, "securitization" means transferring	8406
one or more assets to one or more persons and then issuing	8407
securities backed by the right to receive payment from the asset	8408
or assets so transferred.	8409

(11) Except as otherwise provided in this division, a	8410
pre-income tax trust as defined in division (FF)(4) of section	8411
5747.01 of the Revised Code and any pass-through entity of which	8412
such pre-income tax trust owns or controls, directly, indirectly,	8413
or constructively through related interests, more than five per	8414
cent of the ownership or equity interests. If the pre-income tax	8415
trust has made a qualifying pre-income tax trust election under	8416
division (FF)(3) of section 5747.01 of the Revised Code, then the	8417
trust and the pass-through entities of which it owns or controls,	8418
directly, indirectly, or constructively through related interests,	8419
more than five per cent of the ownership or equity interests,	8420
shall not be excluded persons for purposes of the tax imposed	8421
under section 5751.02 of the Revised Code.	8422

(12) Nonprofit organizations or the state and its agencies,	8423
instrumentalities, or political subdivisions.	8424

(F) Except as otherwise provided in divisions (F)(2), (3),	8425
and (4) of this section, "gross receipts" means the total amount	8426
realized by a person, without deduction for the cost of goods sold	8427
or other expenses incurred, that contributes to the production of	8428
gross income of the person, including the fair market value of any	8429
property and any services received, and any debt transferred or	8430
forgiven as consideration.	8431

(1) The following are examples of gross receipts:

8432

(a) Amounts realized from the sale, exchange, or other	8433
disposition of the taxpayer's property to or with another;	8434

(b) Amounts realized from the taxpayer's performance of	8435
services for another;	8436

(c) Amounts realized from another's use or possession of the	8437
taxpayer's property or capital;	8438

(d) Any combination of the foregoing amounts.

8439

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

8440

(a) Interest income except interest on credit sales;

8441

(b) Dividends and distributions from corporations, and	8442
distributive or proportionate shares of receipts and income from a	8443
pass-through entity as defined under section 5733.04 of the	8444
Revised Code;	8445

(c) Receipts from the sale, exchange, or other disposition of	8446
an asset described in section 1221 or 1231 of the Internal Revenue	8447
Code, without regard to the length of time the person held the	8448
asset. Notwithstanding section 1221 of the Internal Revenue Code,	8449
receipts from hedging transactions also are excluded to the extent	8450
the transactions are entered into primarily to protect a financial	8451
position, such as managing the risk of exposure to (i) foreign	8452
currency fluctuations that affect assets, liabilities, profits,	8453
losses, equity, or investments in foreign operations; (ii)	8454
interest rate fluctuations; or (iii) commodity price fluctuations.	8455
As used in division (F)(2)(c) of this section, "hedging	8456
transaction" has the same meaning as used in section 1221 of the	8457
Internal Revenue Code and also includes transactions accorded	8458
hedge accounting treatment under statement of financial accounting	8459
standards number 133 of the financial accounting standards board.	8460
For the purposes of division (F)(2)(c) of this section, the actual	8461
transfer of title of real or tangible personal property to another	8462
entity is not a hedging transaction.	8463

(d) Proceeds received attributable to the repayment,	8464
maturity, or redemption of the principal of a loan, bond, mutual	8465
fund, certificate of deposit, or marketable instrument;	8466

(e) The principal amount received under a repurchase	8467
agreement or on account of any transaction properly characterized	8468
as a loan to the person;	8469

(f) Contributions received by a trust, plan, or other	8470
arrangement, any of which is described in section 501(a) of the	8471
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter	8472
1, Subchapter (D) of the Internal Revenue Code applies;	8473

(g) Compensation, whether current or deferred, and whether in	8474
cash or in kind, received or to be received by an employee, former	8475
employee, or the employee's legal successor for services rendered	8476
to or for an employer, including reimbursements received by or for	8477
an individual for medical or education expenses, health insurance	8478
premiums, or employee expenses, or on account of a dependent care	8479
spending account, legal services plan, any cafeteria plan	8480
described in section 125 of the Internal Revenue Code, or any	8481
similar employee reimbursement;	8482

(h) Proceeds received from the issuance of the taxpayer's own	8483
stock, options, warrants, puts, or calls, or from the sale of the	8484
taxpayer's treasury stock;	8485

(i) Proceeds received on the account of payments from	8486
insurance policies, except those proceeds received for the loss of	8487
business revenue;	8488

(j) Gifts or charitable contributions received; membership	8489
dues received by trade, professional, homeowners', or condominium	8490
associations; and payments received for educational courses,	8491
meetings, meals, or similar payments to a trade, professional, or	8492
other similar association; and fundraising receipts received by	8493
any person when any excess receipts are donated or used	8494
exclusively for charitable purposes;	8495

(k) Damages received as the result of litigation in excess of	8496
amounts that, if received without litigation, would be gross	8497
receipts;	8498

(l) Property, money, and other amounts received or acquired	8499
by an agent on behalf of another in excess of the agent's	8500
commission, fee, or other remuneration;	8501

(m) Tax refunds, other tax benefit recoveries, and	8502
reimbursements for the tax imposed under this chapter made by	8503
entities that are part of the same combined taxpayer or	8504
consolidated elected taxpayer group, and reimbursements made by	8505
entities that are not members of a combined taxpayer or	8506
consolidated elected taxpayer group that are required to be made	8507
for economic parity among multiple owners of an entity whose tax	8508
obligation under this chapter is required to be reported and paid	8509
entirely by one owner, pursuant to the requirements of sections	8510
5751.011 and 5751.012 of the Revised Code;	8511

(n) Pension reversions;

8512

(o) Contributions to capital;

8513

(p) Sales or use taxes collected as a vendor or an	8514
out-of-state seller on behalf of the taxing jurisdiction from a	8515
consumer or other taxes the taxpayer is required by law to collect	8516
directly from a purchaser and remit to a local, state, or federal	8517
tax authority;	8518

(q) In the case of receipts from the sale of cigarettes or	8519
tobacco products by a wholesale dealer, retail dealer,	8520
distributor, manufacturer, or seller, all as defined in section	8521
5743.01 of the Revised Code, an amount equal to the federal and	8522
state excise taxes paid by any person on or for such cigarettes or	8523
tobacco products under subtitle E of the Internal Revenue Code or	8524
Chapter 5743. of the Revised Code;	8525

(r) In the case of receipts from the sale of motor fuel by a	8526
licensed motor fuel dealer, licensed retail dealer, or licensed	8527
permissive motor fuel dealer, all as defined in section 5735.01 of	8528
the Revised Code, an amount equal to federal and state excise	8529
taxes paid by any person on such motor fuel under section 4081 of	8530
the Internal Revenue Code or Chapter 5735. of the Revised Code;	8531

(s) In the case of receipts from the sale of beer or	8532
intoxicating liquor, as defined in section 4301.01 of the Revised	8533
Code, by a person holding a permit issued under Chapter 4301. or	8534
4303. of the Revised Code, an amount equal to federal and state	8535
excise taxes paid by any person on or for such beer or	8536
intoxicating liquor under subtitle E of the Internal Revenue Code	8537
or Chapter 4301. or 4305. of the Revised Code;	8538

(t) Receipts realized by a new motor vehicle dealer or used	8539
motor vehicle dealer, as defined in section 4517.01 of the Revised	8540
Code, from the sale or other transfer of a motor vehicle, as	8541
defined in that section, to another motor vehicle dealer for the	8542
purpose of resale by the transferee motor vehicle dealer, but only	8543
if the sale or other transfer was based upon the transferee's need	8544
to meet a specific customer's preference for a motor vehicle;	8545

(u) Receipts from a financial institution described in	8546
division (E)(3) of this section for services provided to the	8547
financial institution in connection with the issuance, processing,	8548
servicing, and management of loans or credit accounts, if such	8549
financial institution and the recipient of such receipts have at	8550
least fifty per cent of their ownership interests owned or	8551
controlled, directly or constructively through related interests,	8552
by common owners;	8553

(v) Receipts realized from administering anti-neoplastic	8554
drugs and other cancer chemotherapy, biologicals, therapeutic	8555
agents, and supportive drugs in a physician's office to patients	8556
with cancer;	8557

(w) Funds received or used by a mortgage broker that is not a	8558
dealer in intangibles, other than fees or other consideration,	8559
pursuant to a table-funding mortgage loan or warehouse-lending	8560
mortgage loan. Terms used in division (F)(2)(w) of this section	8561
have the same meanings as in section 1322.01 of the Revised Code,	8562
except "mortgage broker" means a person assisting a buyer in	8563
obtaining a mortgage loan for a fee or other consideration paid by	8564
the buyer or a lender, or a person engaged in table-funding or	8565
warehouse-lending mortgage loans that are first lien mortgage	8566
loans.	8567

(x) Property, money, and other amounts received by a	8568
professional employer organization, as defined in section 4125.01	8569
of the Revised Code, from a client employer, as defined in that	8570
section, in excess of the administrative fee charged by the	8571
professional employer organization to the client employer;	8572

(y) In the case of amounts retained as commissions by a	8573
permit holder under Chapter 3769. of the Revised Code, an amount	8574
equal to the amounts specified under that chapter that must be	8575
paid to or collected by the tax commissioner as a tax and the	8576
amounts specified under that chapter to be used as purse money;	8577

(z) Qualifying distribution center receipts.

8578

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

8579

(I) "Qualifying distribution center receipts" means receipts	8580
of a supplier from qualified property that is delivered to a	8581
qualified distribution center, multiplied by a quantity that	8582
equals one minus the Ohio delivery percentage.	8583

(II) "Qualified property" means tangible personal property	8584
delivered to a qualified distribution center that is shipped to	8585
that qualified distribution center solely for further shipping by	8586
the qualified distribution center to another location in this	8587
state or elsewhere. "Further shipping" includes storing and	8588
repackaging such property into smaller or larger bundles, so long	8589
as such property is not subject to further manufacturing or	8590
processing.	8591

(III) "Qualified distribution center" means a warehouse or	8592
other similar facility in this state that, for the qualifying	8593
year, is operated by a person that is not part of a combined	8594
taxpayer group and that has a qualifying certificate. However, all	8595
warehouses or other similar facilities that are operated by	8596
persons in the same taxpayer group and that are located within one	8597
mile of each other shall be treated as one qualified distribution	8598
center.	8599

(IV) "Qualifying year" means the calendar year to which the	8600
qualifying certificate applies.	8601

(V) "Qualifying period" means the period of the first day of	8602
July of the second year preceding the qualifying year through the	8603
thirtieth day of June of the year preceding the qualifying year.	8604

(VI) "Qualifying certificate" means the certificate issued by	8605
the tax commissioner after the operator of a distribution center	8606
files an annual application with the commissioner. The application	8607
and annual fee shall be filed and paid for each qualified	8608
distribution center on or before the first day of September before	8609
the qualifying year or within forty-five days after the	8610
distribution center opens, whichever is later.	8611

The applicant must substantiate to the commissioner's	8612
satisfaction that, for the qualifying period, all persons	8613
operating the distribution center have more than fifty per cent of	8614
the cost of the qualified property shipped to a location such that	8615
it would be sitused outside this state under the provisions of	8616
division (E) of section 5751.033 of the Revised Code. The	8617
applicant must also substantiate that the distribution center	8618
cumulatively had costs from its suppliers equal to or exceeding	8619
five hundred million dollars during the qualifying period. (For	8620
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"	8621
excludes any person that is part of the consolidated elected	8622
taxpayer group, if applicable, of the operator of the qualified	8623
distribution center.) The commissioner may require the applicant	8624
to have an independent certified public accountant certify that	8625
the calculation of the minimum thresholds required for a qualified	8626
distribution center by the operator of a distribution center has	8627
been made in accordance with generally accepted accounting	8628
principles. The commissioner shall issue or deny the issuance of a	8629
certificate within sixty days after the receipt of the	8630
application. A denial is subject to appeal under section 5717.02	8631
of the Revised Code. If the operator files a timely appeal under	8632
section 5717.02 of the Revised Code, the operator shall be granted	8633
a qualifying certificate, provided that the operator is liable for	8634
any tax, interest, or penalty upon amounts claimed as qualifying	8635
distribution center receipts, other than those receipts exempt	8636
under division (C)(1) of section 5751.011 of the Revised Code,	8637
that would have otherwise not been owed by its suppliers if the	8638
qualifying certificate was valid.	8639

(VII) "Ohio delivery percentage" means the proportion of the	8640
total property delivered to a destination inside Ohio from the	8641
qualified distribution center during the qualifying period	8642
compared with total deliveries from such distribution center	8643
everywhere during the qualifying period.	8644

(ii) If the distribution center is new and was not open for	8645
the entire qualifying period, the operator of the distribution	8646
center may request that the commissioner grant a qualifying	8647
certificate. If the certificate is granted and it is later	8648
determined that more than fifty per cent of the qualified property	8649
during that year was not shipped to a location such that it would	8650
be sitused outside of this state under the provisions of division	8651
(E) of section 5751.033 of the Revised Code or if it is later	8652
determined that the person that operates the distribution center	8653
had average monthly costs from its suppliers of less than forty	8654
million dollars during that year, then the operator of the	8655
distribution center shall be liable for any tax, interest, or	8656
penalty upon amounts claimed as qualifying distribution center	8657
receipts, other than those receipts exempt under division (C)(1)	8658
of section 5751.011 of the Revised Code, that would have not	8659
otherwise been owed by its suppliers during the qualifying year if	8660
the qualifying certificate was valid. (For purposes of division	8661
(F)(2)(z)(ii) of this section, "supplier" excludes any person that	8662
is part of the consolidated elected taxpayer group, if applicable,	8663
of the operator of the qualified distribution center.)	8664

(iii) When filing an application for a qualifying certificate	8665
under division (F)(2)(z)(i)(VI) of this section, the operator of a	8666
qualified distribution center also shall provide documentation, as	8667
the commissioner requires, for the commissioner to ascertain the	8668
Ohio delivery percentage. The commissioner, upon issuing the	8669
qualifying certificate, also shall certify the Ohio delivery	8670
percentage. The operator of the qualified distribution center may	8671
appeal the commissioner's certification of the Ohio delivery	8672
percentage in the same manner as an appeal is taken from the	8673
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)	8674
of this section.	8675

Within thirty days after all appeals have been exhausted, the	8676
operator of the qualified distribution center shall notify the	8677
affected suppliers of qualified property that such suppliers are	8678
required to file, within sixty days after receiving notice from	8679
the operator of the qualified distribution center, amended reports	8680
for the impacted calendar quarter or quarters or calendar year,	8681
whichever the case may be. Any additional tax liability or tax	8682
overpayment shall be subject to interest but shall not be subject	8683
to the imposition of any penalty so long as the amended returns	8684
are timely filed. The supplier of tangible personal property	8685
delivered to the qualified distribution center shall include in	8686
its report of taxable gross receipts the receipts from the total	8687
sales of property delivered to the qualified distribution center	8688
for the calendar quarter or calendar year, whichever the case may	8689
be, multiplied by the Ohio delivery percentage for the qualifying	8690
year. Nothing in division (F)(2)(z)(iii) of this section shall be	8691
construed as imposing liability on the operator of a qualified	8692
distribution center for the tax imposed by this chapter arising	8693
from any change to the Ohio delivery percentage.	8694

(iv) In the case where the distribution center is new and not	8695
open for the entire qualifying period, the operator shall make a	8696
good faith estimate of an Ohio delivery percentage for use by	8697
suppliers in their reports of taxable gross receipts for the	8698
remainder of the qualifying period. The operator of the facility	8699
shall disclose to the suppliers that such Ohio delivery percentage	8700
is an estimate and is subject to recalculation. By the due date of	8701
the next application for a qualifying certificate, the operator	8702
shall determine the actual Ohio delivery percentage for the	8703
estimated qualifying period and proceed as provided in division	8704
(F)(2)(z)(iii) of this section with respect to the calculation and	8705
recalculation of the Ohio delivery percentage. The supplier is	8706
required to file, within sixty days after receiving notice from	8707
the operator of the qualified distribution center, amended reports	8708
for the impacted calendar quarter or quarters or calendar year,	8709
whichever the case may be. Any additional tax liability or tax	8710
overpayment shall be subject to interest but shall not be subject	8711
to the imposition of any penalty so long as the amended returns	8712
are timely filed.	8713

(v) Qualifying certificates and Ohio delivery percentages	8714
issued by the commissioner shall be open to public inspection and	8715
shall be timely published by the commissioner. A supplier relying	8716
in good faith on a certificate issued under this division shall	8717
not be subject to tax on the qualifying distribution center	8718
receipts under division (F)(2)(z) of this section. A person	8719
receiving a qualifying certificate is responsible for paying the	8720
tax, interest, and penalty upon amounts claimed as qualifying	8721
distribution center receipts that would not otherwise have been	8722
owed by the supplier if the qualifying certificate were available	8723
when it is later determined that the qualifying certificate should	8724
not have been issued because the statutory requirements were in	8725
fact not met.	8726

(vi) The annual fee for a qualifying certificate shall be one	8727
hundred thousand dollars for each qualified distribution center.	8728
If a qualifying certificate is not issued, the annual fee is	8729
subject to refund after the exhaustion of all appeals provided for	8730
in division (F)(2)(z)(i)(VI) of this section. The fee imposed	8731
under this division may be assessed in the same manner as the tax	8732
imposed under this chapter. The first one hundred thousand dollars	8733
of the annual application fees collected each calendar year shall	8734
be credited to the commercial activity tax administrative fund.	8735
The remainder of the annual application fees collected shall be	8736
distributed in the same manner required under section 5751.20 of	8737
the Revised Code.	8738

(vii) The tax commissioner may require that adequate security	8739
be posted by the operator of the distribution center on appeal	8740
when the commissioner disagrees that the applicant has met the	8741
minimum thresholds for a qualified distribution center as set	8742
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this	8743
section.	8744

(aa) Receipts of an employer from payroll deductions relating	8745
to the reimbursement of the employer for advancing moneys to an	8746
unrelated third party on an employee's behalf;	8747

(bb) Cash discounts allowed and taken;

8748

(cc) Returns and allowances;

8749

(dd) Bad debts from receipts on the basis of which the tax	8750
imposed by this chapter was paid in a prior quarterly tax payment	8751
period. For the purpose of this division, "bad debts" means any	8752
debts that have become worthless or uncollectible between the	8753
preceding and current quarterly tax payment periods, have been	8754
uncollected for at least six months, and that may be claimed as a	8755
deduction under section 166 of the Internal Revenue Code and the	8756
regulations adopted under that section, or that could be claimed	8757
as such if the taxpayer kept its accounts on the accrual basis.	8758
"Bad debts" does not include repossessed property, uncollectible	8759
amounts on property that remains in the possession of the taxpayer	8760
until the full purchase price is paid, or expenses in attempting	8761
to collect any account receivable or for any portion of the debt	8762
recovered;	8763

(ee) Any amount realized from the sale of an account	8764
receivable to the extent the receipts from the underlying	8765
transaction giving rise to the account receivable were included in	8766
the gross receipts of the taxpayer;	8767

(ff) Any receipts directly attributed to providing public	8768
services pursuant to sections 126.60 to 126.605 of the Revised	8769
Code, or any receipts directly attributed to a transfer agreement	8770
or to the enterprise transferred under that agreement under	8771
section 4313.02 of the Revised Code.	8772

(gg) Any receipts for which the tax imposed by this chapter	8773
is prohibited by the Constitution or laws of the United States or	8774
the Constitution of Ohio.	8775

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

8776

(I) "Qualified uranium receipts" means receipts from the	8777
sale, exchange, lease, loan, production, processing, or other	8778
disposition of uranium within a uranium enrichment zone certified	8779
by the tax commissioner under division (F)(2)(hh)(ii) of this	8780
section. "Qualified uranium receipts" does not include any	8781
receipts with a situs in this state outside a uranium enrichment	8782
zone certified by the tax commissioner under division	8783
(F)(2)(hh)(ii) of this section.	8784

(II) "Uranium enrichment zone" means all real property that	8785
is part of a uranium enrichment facility licensed by the United	8786
States nuclear regulatory commission and that was or is owned or	8787
controlled by the United States department of energy or its	8788
successor.	8789

(ii) Any person that owns, leases, or operates real or	8790
tangible personal property constituting or located within a	8791
uranium enrichment zone may apply to the tax commissioner to have	8792
the uranium enrichment zone certified for the purpose of excluding	8793
qualified uranium receipts under division (F)(2)(hh) of this	8794
section. The application shall include such information that the	8795
tax commissioner prescribes. Within sixty days after receiving the	8796
application, the tax commissioner shall certify the zone for that	8797
purpose if the commissioner determines that the property qualifies	8798
as a uranium enrichment zone as defined in division (F)(2)(hh) of	8799
this section, or, if the tax commissioner determines that the	8800
property does not qualify, the commissioner shall deny the	8801
application or request additional information from the applicant.	8802
If the tax commissioner denies an application, the commissioner	8803
shall state the reasons for the denial. The applicant may appeal	8804
the denial of an application to the board of tax appeals pursuant	8805
to section 5717.02 of the Revised Code. If the applicant files a	8806
timely appeal, the tax commissioner shall conditionally certify	8807
the applicant's property. The conditional certification shall	8808
expire when all of the applicant's appeals are exhausted. Until	8809
final resolution of the appeal, the applicant shall retain the	8810
applicant's records in accordance with section 5751.12 of the	8811
Revised Code, notwithstanding any time limit on the preservation	8812
of records under that section.	8813

(ii) Amounts realized by licensed motor fuel dealers or	8814
licensed permissive motor fuel dealers from the exchange of	8815
petroleum products, including motor fuel, between such dealers,	8816
provided that delivery of the petroleum products occurs at a	8817
refinery, terminal, pipeline, or marine vessel and that the	8818
exchanging dealers agree neither dealer shall require monetary	8819
compensation from the other for the value of the exchanged	8820
petroleum products other than such compensation for differences in	8821
product location or grade. Division (F)(2)(ii) of this section	8822
does not apply to amounts realized as a result of differences in	8823
location or grade of exchanged petroleum products or from	8824
handling, lubricity, dye, or other additive injections fees,	8825
pipeline security fees, or similar fees. As used in this division,	8826
"motor fuel," "licensed motor fuel dealer," "licensed permissive	8827
motor fuel dealer," and "terminal" have the same meanings as in	8828
section 5735.01 of the Revised Code.	8829

(hh)(jj) In the case of amounts collected by a licensed	8830
casino operator from casino gaming, amounts in excess of the	8831
casino operator's gross casino revenue. In this division, "casino	8832
operator" and "casino gaming" have the meanings defined in section	8833
3772.01 of the Revised Code, and "gross casino revenue" has the	8834
meaning defined in section 5753.01 of the Revised Code.	8835

(kk) Receipts realized by a qualifying landlord from the	8836
lease or rental of qualifying residential rental property during	8837
the first tax period in which the qualifying landlord received	8838
rental income from the property and, if the qualifying landlord is	8839
a calendar quarter taxpayer, during the nineteen succeeding tax	8840
periods or, if the qualifying landlord is a calendar year	8841
taxpayer, during the four succeeding tax periods. As used in this	8842
division, "qualifying landlord" and "qualifying residential rental	8843
property" have the same meanings as in division (A)(31) of section	8844
5747.01 of the Revised Code.	8845

(ll) Receipts realized from providing broadband service	8846
multiplied by a fraction, the numerator of which is the original	8847
cost of tangible personal property necessary for the provision of	8848
broadband service in rural areas of this state installed on or	8849
after the effective date of this amendment, and the denominator of	8850
which is the original cost of tangible personal property necessary	8851
for the provision of broadband service in this state on or after	8852
that date. An exclusion is not allowed under this division if the	8853
taxpayer claims a deduction under division (A)(10) or (S)(16) of	8854
section 5747.01 of the Revised Code for a taxable year that	8855
includes all or any part of the tax period. For the purposes of	8856
this division, "broadband service" and "rural area" have the same	8857
meanings as in 7 U.S.C. 950bb.	8858

(3) In the case of a taxpayer when acting as a real estate	8859
broker, "gross receipts" includes only the portion of any fee for	8860
the service of a real estate broker, or service of a real estate	8861
salesperson associated with that broker, that is retained by the	8862
broker and not paid to an associated real estate salesperson or	8863
another real estate broker. For the purposes of this division,	8864
"real estate broker" and "real estate salesperson" have the same	8865
meanings as in section 4735.01 of the Revised Code.	8866

(4) A taxpayer's method of accounting for gross receipts for	8867
a tax period shall be the same as the taxpayer's method of	8868
accounting for federal income tax purposes for the taxpayer's	8869
federal taxable year that includes the tax period. If a taxpayer's	8870
method of accounting for federal income tax purposes changes, its	8871
method of accounting for gross receipts under this chapter shall	8872
be changed accordingly.	8873

(G) "Taxable gross receipts" means gross receipts sitused to	8874
this state under section 5751.033 of the Revised Code.	8875

(H) A person has "substantial nexus with this state" if any	8876
of the following applies. The person:	8877

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

8878

(2) Holds a certificate of compliance with the laws of this	8879
state authorizing the person to do business in this state;	8880

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

8881

(4) Otherwise has nexus with this state to an extent that the	8882
person can be required to remit the tax imposed under this chapter	8883
under the Constitution of the United States.	8884

(I) A person has "bright-line presence" in this state for a	8885
reporting period and for the remaining portion of the calendar	8886
year if any of the following applies. The person:	8887

(1) Has at any time during the calendar year property in this	8888
state with an aggregate value of at least fifty thousand dollars.	8889
For the purpose of division (I)(1) of this section, owned property	8890
is valued at original cost and rented property is valued at eight	8891
times the net annual rental charge.	8892

(2) Has during the calendar year payroll in this state of at	8893
least fifty thousand dollars. Payroll in this state includes all	8894
of the following:	8895

(a) Any amount subject to withholding by the person under	8896
section 5747.06 of the Revised Code;	8897

(b) Any other amount the person pays as compensation to an	8898
individual under the supervision or control of the person for work	8899
done in this state; and	8900

(c) Any amount the person pays for services performed in this	8901
state on its behalf by another.	8902

(3) Has during the calendar year taxable gross receipts of at	8903
least five hundred thousand dollars.	8904

(4) Has at any time during the calendar year within this	8905
state at least twenty-five per cent of the person's total	8906
property, total payroll, or total gross receipts.	8907

(5) Is domiciled in this state as an individual or for	8908
corporate, commercial, or other business purposes.	8909

(J) "Tangible personal property" has the same meaning as in	8910
section 5739.01 of the Revised Code.	8911

(K) "Internal Revenue Code" means the Internal Revenue Code	8912
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in	8913
this chapter that is not otherwise defined has the same meaning as	8914
when used in a comparable context in the laws of the United States	8915
relating to federal income taxes unless a different meaning is	8916
clearly required. Any reference in this chapter to the Internal	8917
Revenue Code includes other laws of the United States relating to	8918
federal income taxes.	8919

(L) "Calendar quarter" means a three-month period ending on	8920
the thirty-first day of March, the thirtieth day of June, the	8921
thirtieth day of September, or the thirty-first day of December.	8922

(M) "Tax period" means the calendar quarter or calendar year	8923
on the basis of which a taxpayer is required to pay the tax	8924
imposed under this chapter.	8925

(N) "Calendar year taxpayer" means a taxpayer for which the	8926
tax period is a calendar year.	8927

(O) "Calendar quarter taxpayer" means a taxpayer for which	8928
the tax period is a calendar quarter.	8929

(P) "Agent" means a person authorized by another person to	8930
act on its behalf to undertake a transaction for the other,	8931
including any of the following:	8932

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

8933

(2) A person retaining only a commission from a transaction	8934
with the other proceeds from the transaction being remitted to	8935
another person;	8936

(3) A person issuing licenses and permits under section	8937
1533.13 of the Revised Code;	8938

(4) A lottery sales agent holding a valid license issued	8939
under section 3770.05 of the Revised Code;	8940

(5) A person acting as an agent of the division of liquor	8941
control under section 4301.17 of the Revised Code.	8942

(Q) "Received" includes amounts accrued under the accrual	8943
method of accounting.	8944

(R) "Reporting person" means a person in a consolidated	8945
elected taxpayer or combined taxpayer group that is designated by	8946
that group to legally bind the group for all filings and tax	8947
liabilities and to receive all legal notices with respect to	8948
matters under this chapter, or, for the purposes of section	8949
5751.04 of the Revised Code, a separate taxpayer that is not a	8950
member of such a group.	8951

Sec. 5751.55.  (A) As used in this section, "qualified	8952
unemployed individual," "qualified unemployed veteran," and	8953
"qualified unemployed disabled veteran" have the same meanings as	8954
in section 5747.61 of the Revised Code.	8955

(B) There is hereby allowed a nonrefundable credit against	8956
the tax imposed by section 5751.02 of the Revised Code for a	8957
taxpayer that is an employer required to deduct and withhold	8958
income tax from an employee's compensation and remit such amounts	8959
under sections 5747.06 and 5747.07 of the Revised Code and who	8960
hires a qualified unemployed individual, a qualified unemployed	8961
veteran, or a qualified unemployed disabled veteran. The amount of	8962
the credit shall be as follows:	8963

(1) For the hiring of a qualified unemployed individual, four	8964
thousand dollars.	8965

(2) For the hiring of a qualified unemployed veteran, five	8966
thousand six hundred dollars.	8967

(3) For the hiring of a qualified unemployed disabled	8968
veteran, nine thousand six hundred dollars.	8969

The credit shall be claimed with the annual return required	8970
under section 5751.051 of the Revised Code for the calendar year	8971
that includes the hiring date of the qualified unemployed	8972
individual, qualified unemployed veteran, or qualified unemployed	8973
disabled veteran. The credit shall be claimed in the order	8974
required under section 5751.98 of the Revised Code. The amount of	8975
credit claimed may not exceed the tax otherwise due after allowing	8976
for all preceding credits in that order.	8977

A credit may be claimed under this section only once for any	8978
individual employee. A person that claims the credit under section	8979
5747.61 of the Revised Code may not claim the credit under this	8980
section for the same qualified unemployed individual, qualified	8981
unemployed veteran, or qualified unemployed disabled veteran.	8982

Nothing in this section limits or disallows pass-through	8983
treatment of the credit.	8984

Sec. 5751.98.  (A) To provide a uniform procedure for	8985
calculating the amount of tax due under this chapter, a taxpayer	8986
shall claim any credits to which it is entitled in the following	8987
order:	8988

(1) The nonrefundable jobs retention credit under division	8989
(B) of section 5751.50 of the Revised Code;	8990

(2) The nonrefundable credit for hiring a qualified	8991
unemployed individual, qualified unemployed veteran, or qualified	8992
unemployed disabled veteran under section 5751.55 of the Revised	8993
Code;	8994

(3) The nonrefundable credit for qualified research expenses	8995
under division (B) of section 5751.51 of the Revised Code;	8996

(3)(4) The nonrefundable credit for a borrower's qualified	8997
research and development loan payments under division (B) of	8998
section 5751.52 of the Revised Code;	8999

(4) The nonrefundable credit for calendar years 2010 to 2029	9000
for unused net operating losses under division (B) of section	9001
5751.53 of the Revised Code;	9002

(5) The refundable credit for calendar year 2030 for unused	9003
net operating losses under division (C) of section 5751.53 of the	9004
Revised Code;	9005

(6) The refundable jobs creation credit or job retention	9006
credit under division (A) of section 5751.50 of the Revised Code.	9007

(B) For any credit except the refundable credits enumerated	9008
in this section, the amount of the credit for a tax period shall	9009
not exceed the tax due after allowing for any other credit that	9010
precedes it in the order required under this section. Any excess	9011
amount of a particular credit may be carried forward if authorized	9012
under the section creating the credit.	9013

Sec. 6301.021.  The office of workforce development, under	9014
the department of job and family services, shall provide	9015
assistance to local workforce policy boards to do all of the	9016
following:	9017

(A) Work with entities as necessary to identify and track	9018
local skill shortages;	9019

(B) Work with community colleges and other educational	9020
agencies in the local area served by the board to develop	9021
curricula and programs to meet workforce demands, including	9022
industry-recognized credentialing;	9023

(C) Regularly and systematically interview employers in	9024
industries experiencing skill shortages to do both of the	9025
following:	9026

(1) Determine what skills are necessary for an individual to	9027
gain employment in the industry;	9028

(2) Quantify and describe those necessary skills to the	9029
extent possible.	9030

Sec. 6301.06.  (A) The chief elected officials of a local	9031
area shall create a workforce policy board, which shall consist of	9032
the following individuals:	9033

(1) The chief elected official from the municipal corporation	9034
with the largest population in the local area, except that if the	9035
municipal corporation is a local area as defined in division	9036
(A)(1) of section 6301.01 of the Revised Code, the chief elected	9037
official of that municipal corporation may determine whether to be	9038
a member of the board. Notwithstanding division (B) of section	9039
6301.01 of the Revised Code, as used in division (A)(1) of this	9040
section, "municipal corporation" means any municipal corporation.	9041

(2) The following individuals appointed to the board by the	9042
chief elected officials of the local area, who shall make those	9043
appointments according to all of the following specifications:	9044

(a) At least five members of the board shall be	9045
representatives of private sector businesses in the general labor	9046
market area that includes that local area, and shall be appointed	9047
from among individuals nominated by local business organizations	9048
and business trade associations. Among these members, at least one	9049
shall represent small businesses, at least one shall represent	9050
medium-sized businesses, and at least one shall represent large	9051
businesses. When determining what constitutes small, medium-sized,	9052
and large businesses for purposes of this division, the chief	9053
elected officials of the local area shall define those sizes as	9054
those sizes are generally understood within the labor market area	9055
that includes that local area. A majority of the members of the	9056
board shall be representatives of private sector businesses.	9057

(b) At least two members of the board shall represent	9058
organized labor and shall be appointed from nominations submitted	9059
by local federations of labor representing workers employed in the	9060
local area.	9061

(c) At least two members of the board shall be	9062
representatives of local educational entities. For purposes of	9063
this division, "local educational entities" includes local	9064
educational agencies, school district boards of education,	9065
entities providing educational and literacy activities, and	9066
post-secondary educational institutions.	9067

(d)(i) At least one member shall be a representative of a	9068
community college or university branch that is located within the	9069
local area served by the board.	9070

(ii) A chief elected official is exempted from the	9071
requirement of division (A)(2)(d)(i) of this section if no	9072
community college or university branch is located within the local	9073
area served by the board.	9074

(e) At least one member of the board shall be a	9075
representative of consumers of workforce development activities.	9076

(e)(f) Any other individuals the chief elected officials of	9077
the local area determine are necessary.	9078

(B) Members of the board serve at the pleasure of the chief	9079
elected officials of the local area. Members shall not be	9080
compensated but may be reimbursed for actual, reasonable, and	9081
necessary expenses incurred in the performance of their duties as	9082
board members. Those expenses shall be paid from funds allocated	9083
pursuant to section 6301.03 of the Revised Code.	9084

The chief elected officials of a local area may provide	9085
office space, staff, or other administrative support as needed to	9086
the board. For purposes of section 102.02 of the Revised Code,	9087
members of the board are not public officials or employees.	9088

(C) The chief elected officials of a local area other than a	9089
local area as defined in division (A)(1) of section 6301.01 of the	9090
Revised Code, shall coordinate the workforce development	9091
activities of the county family services planning committees and	9092
the workforce policy boards in the local area in any manner that	9093
is efficient and effective to meet the needs of the local area.	9094
The chief elected officials of the local area may, but are not	9095
required to, consolidate all boards and committees as they	9096
determine appropriate into a single board for purposes of	9097
workforce development activities. A majority of the members of	9098
that consolidated board shall represent private sector businesses.	9099
The membership of that consolidated board shall include a	9100
representative from each group granted representation as described	9101
in division (A) of this section and also a member who represents	9102
consumers of family services and a member who represents the	9103
county department of job and family services. The membership of	9104
that consolidated board may include a representative of one or	9105
more groups and entities that may be represented on a county	9106
family services planning committee, as specified in section 329.06	9107
of the Revised Code.	9108

Sec. 6303.01.  (A) As used in this section:

9109

(1) "Eligible youth" means an individual aged eighteen to	9110
twenty-four who fulfills either of the following:	9111

(a) The individual is not enrolled in secondary or	9112
post-secondary school.	9113

(b) The individual is or has been subject to any stage of the	9114
criminal justice process.	9115

(2) "Recidivism" means a tendency to return to criminal	9116
behavior.	9117

(3) "Unsubsidized job" means an employment position with an	9118
employer who fulfills both of the following:	9119

(a) The employer pays the wages for the position.

9120

(b) The employer does not receive public funds for the	9121
creation and maintenance of the employment position.	9122

(B) The director of job and family services may adopt rules	9123
to make grants, on a competitive basis, to nonprofit organizations	9124
for the purpose of carrying out urban jobs programs that provide a	9125
comprehensive set of services to eligible youth in urban	9126
communities to provide such youth with a pathway to employment, or	9127
education leading to employment.	9128

(C) To be eligible to receive a grant under this section, a	9129
nonprofit organization shall submit an application at such time,	9130
in such manner, and accompanied by such information as the	9131
director may require in rules the director adopts under division	9132
(B) of this section.	9133

(D) The director shall require, in the rules the director	9134
adopts pursuant to division (B) of this section, that the	9135
application contain all of the following:	9136

(1) A request for the grant, specifying the amount of the	9137
grant requested and proposed uses of the grant funds;	9138

(2) A description of how the nonprofit organization will	9139
fulfill, for participants in the urban jobs program, goals	9140
consisting of all of the following:	9141

(a) Increased long-term employment in unsubsidized jobs;

9142

(b) Reduced recidivism;

9143

(c) Increased attainment of a certificate of high school	9144
equivalence or other recognized equivalent of a high school	9145
diploma;	9146

(d) Improved literacy and numeracy;

9147

(e) Increased attainment of industry-recognized certificates	9148
or credentials, or preparation for entry into an institution of	9149
higher education without need for further remediation.	9150

(3) A description of underlying supports for the program,	9151
including all of the following:	9152

(a) Engaged community partners;

9153

(b) Staff expertise in youth development;

9154

(c) Demonstrated understanding of youth characteristics.

9155

(4) A description of how the program will enable program	9156
participants to achieve outcomes consisting of all of the	9157
following:	9158

(a) Creation of caring relationships with peers and staff;

9159

(b) Creation of goals, such as the attainment described in	9160
division (D)(2)(c) of this section, attainment of employment,	9161
admission to or completion of a degree at an institution of higher	9162
education, attainment of industry-recognized certificates or	9163
credentials, or preparation for entry into an institution of	9164
higher education without need for further remediation;	9165

(c) Participation in opportunities to contribute to the	9166
community through service or volunteerism;	9167

(d) Development of twenty-first century workplace skills,	9168
including critical thinking and collaboration;	9169

(e) Development of a sense of responsibility for the future	9170
of an individual;	9171

(f) Development of plans or strategies to meet the goals of	9172
an individual;	9173

(g) Reduction of risk-taking behaviors;

9174

(h) Achievement of improved educational outcomes, such as	9175
numeracy, literacy, or the attainment described in division	9176
(D)(2)(b) of this section;	9177

(i) Achievement of improved employment outcomes;

9178

(j) Reduction of recidivism.

9179

(5) A description of activities to be provided through the	9180
urban jobs program that lead to the attainment of	9181
industry-recognized certificates or credentials described in	9182
division (E) of this section.	9183

(E) A nonprofit organization that receives a grant under this	9184
section shall use the funds made available through the grant to	9185
carry out an urban jobs program, which shall include the following	9186
comprehensive set of services:	9187

(1) Case management, through an individual responsible for	9188
helping participants navigate the urban jobs program activities;	9189

(2) Educational services, including skill assessment, reading	9190
and math remediation, educational enrichment, services involving	9191
preparation for and opportunities for attainment of the recognized	9192
equivalent of a high school diploma, services that connect to	9193
career pathways such as opportunities for attainment of	9194
industry-recognized certificates or credentials or for preparation	9195
for entry into an institution of higher education without the need	9196
for further remediation, and postsecondary education;	9197

(3) Employment and job readiness activities, including	9198
mentoring, community service opportunities, internships,	9199
on-the-job training, occupational skills training, personal	9200
development, and unsubsidized jobs;	9201

(4) Support services, health and nutrition service referral,	9202
substance abuse counseling and treatment, and provision of housing	9203
assistance, interpersonal and basic living skills, and	9204
transportation, child care, clothing, and other assistance as	9205
needed.	9206

Sec. 6303.02.  (A) As used in this section, "eligible youth"	9207
means an individual who is at least sixteen years of age but not	9208
more than twenty-one years of age and who resides in an area of	9209
high poverty.	9210

(B) The director of job and family services shall adopt rules	9211
to create a program to award competitive grants to nonprofit or	9212
for-profit organizations, or coalitions thereof, to fund programs	9213
that provide summer employment opportunities for eligible youth in	9214
this state. The director shall require any recipient of a grant	9215
under this section to provide matching funds in an amount equal to	9216
at least twenty per cent of the amount of the grant.	9217

Section 2. That existing sections 122.075, 122.71, 122.72,	9218
122.74, 122.75, 122.88, 122.89, 122.90, 125.831, 169.05, 4141.01,	9219
4141.241, 4141.29, 4301.20, 4719.01, 5733.01, 5733.98, 5739.01,	9220
5739.02, 5739.025, 5739.03, 5741.02, 5747.01, 5747.98, 5751.01,	9221
5751.98, and 6301.06 and sections 901.13, 5733.46, 5733.48,	9222
5747.28, 5747.29, 5747.70, 5747.75, 5747.77, and 5751.53 of the	9223
Revised Code are hereby repealed.	9224

Section 3.  Except as otherwise provided by this act, all	9225
appropriation items in this act are hereby appropriated as	9226
designated out of any moneys in the state treasury to the credit	9227
of the General Revenue Fund and the State Special Revenue Fund	9228
Group. For all appropriations made in this act, those in the first	9229
column are for fiscal year 2012 and those in the second column are	9230
for fiscal year 2013. The appropriations made in Sections 4 to 7	9231
of this act are in addition to any other appropriations made for	9232
the FY 2012-FY 2013 biennium.	9233

Section 4.

9234

Appropriations

DEV DEPARTMENT OF DEVELOPMENT	9235

General Revenue Fund	9236

GRF	195529		Neighborhood Revitalization Block Grants		$	70,000,000		$	0		9237
TOTAL GRF General Revenue Fund					$	70,000,000		$	0		9238

State Special Revenue Fund Group	9239

5KS0	195666		Small Business Revolving Microloans		$	40,000,000		$	0		9240
TOTAL SSR State Special Revenue Fund Group					$	40,000,000		$	0		9241
TOTAL ALL BUDGET FUND GROUPS					$	110,000,000		$	0		9242

NEIGHBORHOOD REVITALIZATION BLOCK GRANTS

9243

The foregoing appropriation item 195529, Neighborhood	9244
Revitalization Block Grants, shall be used to provide block grants	9245
to counties for eligible revitalization purposes as set forth in	9246
this section. A county receiving funds shall make awards to	9247
political subdivisions, nonprofit organizations, or for-profit	9248
organizations for the following purposes:	9249

(A) Providing capital infusions to county land banks;

9250

(B) Rehabilitating, rebuilding, or repurposing distressed	9251
commercial and residential real estate, with special emphasis on	9252
using local sources of labor;	9253

(C) Creating property maintenance programs to mitigate	9254
visible scars left by foreclosure and abandonment, with special	9255
emphasis on using local sources of labor and providing youth	9256
employment.	9257

SMALL BUSINESS REVOLVING MICROLOANS

9258

On the effective date of this section, or as soon as possible	9259
thereafter, the Director of Budget and Management shall transfer	9260
$40,000,000 cash from the General Revenue Fund to the Microloan	9261
Revolving Fund (Fund 5KS0). The foregoing appropriation item	9262
195666, Small Business Revolving Microloans, shall be used for the	9263
purposes of section 122.084 of the Revised Code.	9264

Section 5. Notwithstanding section 122.658 of the Revised	9265
Code, on the effective date of this section, or as soon as	9266
possible thereafter, the Director of Budget and Management shall	9267
transfer $30,000,000 cash from the General Revenue Fund to the	9268
Clean Ohio Revitalization Fund (Fund 7003). The amount transferred	9269
is hereby appropriated for fiscal year 2012 in appropriation item	9270
C19500, Clean Ohio Revitalization, for the purposes of the Clean	9271
Ohio Revitalization Program.	9272

Section 6.

9273

Appropriations

PWC PUBLIC WORKS COMMISSION	9274

State Special Revenue Fund Group	9275

5KV0	150601		Infrastructure Development Loans		$	40,000,000		$	0		9276
TOTAL SSR State Special Revenue Fund Group					$	40,000,000		$	0		9277
TOTAL ALL BUDGET FUND GROUPS					$	40,000,000		$	0		9278

INFRASTRUCTURE DEVELOPMENT LOANS

9279

On the effective date of this section, or as soon as possible	9280
thereafter, the Director of Budget and Management shall transfer	9281
$40,000,000 cash from the General Revenue Fund to the	9282
Infrastructure Development Loan Fund (Fund 5KV0), which is hereby	9283
created in the state treasury. The foregoing appropriation item	9284
150601, Infrastructure Development Loans, shall be used in	9285
accordance with the remainder of this section.	9286

As used in the following paragraph, "local subdivision,"	9287
"capital improvement project," and "costs of capital improvement	9288
project" have the same meanings as in section 164.01 of the	9289
Revised Code.	9290

Money to the credit of the Infrastructure Development Loan	9291
Fund (Fund 5KV0) shall be provided as loans or grants to local	9292
subdivisions solely for the costs of capital improvement projects	9293
undertaken within the territory of the subdivision. Loans or	9294
grants shall be made by the Public Works Commission on a	9295
competitive basis and upon application by local subdivisions in a	9296
manner to be prescribed by the Commission. A local subdivision	9297
receiving a loan or grant under this section may use the proceeds	9298
of its loan or grant to satisfy any requirement to provide a	9299
matching contribution to draw federal funds either directly or	9300
through the state. Loans shall be made according to terms	9301
established by the Commission. All loan repayments, including	9302
principal and interest, shall be credited to the Infrastructure	9303
Development Loan Fund (Fund 5KV0) and made available for further	9304
lending under this section. Any county, township, or municipal	9305
corporation receiving a loan under this division shall agree, as a	9306
condition for receiving a loan, to adopt one or more resolutions	9307
or ordinances under section 5709.40, 5709.73, or 5709.78 of the	9308
Revised Code declaring improvements that benefit from the projects	9309
financed by the loan to be exempted from taxation under that	9310
section, and requiring the owners of such improvements to make	9311
payments in lieu of taxes as provided in section 5709.42, 5709.74,	9312
or 5709.79 of the Revised Code. The payments in lieu of taxes	9313
shall be used to repay the loan to the extent of the loan amount,	9314
notwithstanding those sections.	9315

Section 7. Within the limits set forth in this act, the	9316
Director of Budget and Management shall establish accounts	9317
indicating the source and amount of funds for each appropriation	9318
made in this act, and shall determine the form and manner in which	9319
appropriation accounts shall be maintained. Expenditures from	9320
appropriations contained in this act shall be accounted for as	9321
though made in Am. Sub. H.B. 153 of the 129th General Assembly.	9322

The appropriations made in this act are subject to all	9323
provisions of Am. Sub. H.B. 153 of the 129th General Assembly that	9324
are generally applicable to such appropriations.	9325

Section 8. That Sections 267.10, 267.30.30, 309.10, 309.60,	9326
371.10, 371.40.50, 371.50.20, 379.10, 387.10, 387.20, and 757.10	9327
of Am. Sub. H.B. 153 of the 129th General Assembly be amended to	9328
read as follows:	9329

Sec. 267.10. EDU DEPARTMENT OF EDUCATION

9330

General Revenue Fund	9331

GRF	200100		Personal Services		$	8,579,178		$	8,579,178		9332
GRF	200320		Maintenance and Equipment		$	2,830,407		$	2,830,407		9333
GRF	200408		Early Childhood Education		$	23,268,341		$	23,268,341		9334
GRF	200416		Career-Technical Education Match		$	2,233,195		$	2,233,195		9335
GRF	200420		Computer/Application/ Network Development		$	4,241,296		$	4,241,296		9336
GRF	200421		Alternative Education Programs		$	7,403,998		$	7,403,998		9337
GRF	200422		School Management Assistance		$	2,842,812		$	3,000,000		9338
GRF	200424		Policy Analysis		$	328,558		$	328,558		9339
GRF	200425		Tech Prep Consortia Support		$	260,542		$	260,542		9340
GRF	200426		Ohio Educational Computer Network		$	17,974,489		$	17,974,489		9341
GRF	200427		Academic Standards		$	4,346,060		$	3,700,000		9342
GRF	200437		Student Assessment		$	55,002,167		$	55,002,167		9343
GRF	200439		Accountability/Report Cards		$	3,579,279		$	3,579,279		9344
GRF	200442		Child Care Licensing		$	827,140		$	827,140		9345
GRF	200446		Education Management Information System		$	6,833,070		$	6,833,070		9346
GRF	200447		GED Testing		$	879,551		$	879,551		9347
GRF	200448		Educator Preparation		$	786,737		$	786,737		9348
GRF	200455		Community Schools and Choice Programs		$	2,200,000		$	2,200,000		9349
GRF	200502		Pupil Transportation		$	438,248,936		$	442,113,527		9350
GRF	200505		School Lunch Match		$	9,100,000		$	9,100,000		9351
GRF	200511		Auxiliary Services		$	124,194,099		$	126,194,099		9352
GRF	200532		Nonpublic Administrative Cost Reimbursement		$	56,164,384		$	57,006,850		9353
GRF	200540		Special Education Enhancements		$	135,820,668		$	135,820,668		9354
GRF	200545		Career-Technical Education Enhancements		$	8,802,699 27,802,699		$	8,802,699		9355
GRF	200550		Foundation Funding		$	5,536,347,861 5,586,347,861		$	5,610,290,686		9356
GRF	200901		Property Tax Allocation - Education		$	1,086,500,000		$	1,095,000,000		9357
TOTAL GRF General Revenue Fund					$	7,539,595,467 7,608,595,467		$	7,628,256,477		9358

General Services Fund Group	9359

1380	200606		Computer Services-Operational Support		$	7,600,090		$	7,600,090		9360
4520	200638		Miscellaneous Educational Services		$	300,000		$	300,000		9361
4L20	200681		Teacher Certification and Licensure		$	8,147,756		$	8,147,756		9362
5960	200656		Ohio Career Information System		$	529,761		$	529,761		9363
5H30	200687		School District Solvency Assistance		$	25,000,000		$	25,000,000		9364
TOTAL GSF General Services											9365
Fund Group					$	41,577,607		$	41,577,607		9366

Federal Special Revenue Fund Group	9367

3090	200601		Neglected and Delinquent Education		$	2,168,642		$	2,168,642		9368
3670	200607		School Food Services		$	6,803,472		$	6,959,906		9369
3690	200616		Career-Technical Education Federal Enhancement		$	5,000,000		$	5,000,000		9370
3700	200624		Education of Exceptional Children		$	1,905,000		$	0		9371
3780	200660		Learn and Serve		$	619,211		$	619,211		9372
3AF0	200603		Schools Medicaid Administrative Claims		$	639,000		$	639,000		9373
3AN0	200671		School Improvement Grants		$	20,400,000		$	20,400,000		9374
3AX0	200698		Improving Health and Educational Outcomes of Young People		$	630,954		$	630,954		9375
3BK0	200628		Longitudinal Data Systems		$	500,000		$	250,000		9376
3C50	200661		Early Childhood Education		$	14,554,749		$	14,554,749		9377
3CG0	200646		Teacher Incentive Fund		$	1,925,881		$	0		9378
3D10	200664		Drug Free Schools		$	1,500,000		$	0		9379
3D20	200667		Math Science Partnerships		$	9,500,001		$	9,500,001		9380
3DG0	200630		Federal Stimulus - McKinney Vento Grants		$	330,512		$	0		9381
3DJ0	200699		IDEA Part B - Federal Stimulus		$	21,886,803		$	0		9382
3DK0	200642		Title 1A - Federal Stimulus		$	18,633,673		$	0		9383
3DL0	200650		IDEA Preschool - Federal Stimulus		$	670,000		$	0		9384
3DM0	200651		Title IID Technology - Federal Stimulus		$	1,195,100		$	0		9385
3DP0	200652		Title I School Improvement - Federal Stimulus		$	48,500,000		$	30,000,000		9386
3EC0	200653		Teacher Incentive - Federal Stimulus		$	7,500,000		$	7,500,000		9387
3EH0	200620		Migrant Education		$	2,645,905		$	2,645,905		9388
3EJ0	200622		Homeless Children Education		$	1,759,782		$	1,759,782		9389
3EN0	200655		State Data Systems - Federal Stimulus		$	2,500,000		$	2,500,000		9390
3ES0	200657		General Supervisory Enhancement Grant		$	500,000		$	500,000		9391
3ET0	200658		Education Jobs Fund		$	300,000,000		$	50,000,000		9392
3FD0	200665		Race to the Top		$	100,000,000		$	100,000,000		9393
3FE0	200669		Striving Readers		$	180,000		$	100,000		9394
3H90	200605		Head Start Collaboration Project		$	225,000		$	225,000		9395
3L60	200617		Federal School Lunch		$	327,516,539		$	337,323,792		9396
3L70	200618		Federal School Breakfast		$	87,596,850		$	90,224,756		9397
3L80	200619		Child/Adult Food Programs		$	100,850,833		$	103,876,359		9398
3L90	200621		Career-Technical Education Basic Grant		$	48,466,864		$	48,466,864		9399
3M00	200623		ESEA Title 1A		$	530,010,000		$	530,010,000		9400
3M20	200680		Individuals with Disabilities Education Act		$	443,170,050		$	443,170,050		9401
3S20	200641		Education Technology		$	9,487,397		$	9,487,397		9402
3T40	200613		Public Charter Schools		$	14,291,353		$	14,291,353		9403
3Y20	200688		21st Century Community Learning Centers		$	43,720,462		$	45,906,485		9404
3Y60	200635		Improving Teacher Quality		$	101,900,000		$	101,900,000		9405
3Y70	200689		English Language Acquisition		$	8,373,995		$	8,373,995		9406
3Y80	200639		Rural and Low Income Technical Assistance		$	1,500,000		$	1,500,000		9407
3Z20	200690		State Assessments		$	11,882,258		$	11,882,258		9408
3Z30	200645		Consolidated Federal Grant Administration		$	8,949,280		$	8,949,280		9409
TOTAL FED Federal Special											9410
Revenue Fund Group					$	2,310,389,566		$	2,011,315,739		9411

State Special Revenue Fund Group	9412

4540	200610		Guidance and Testing		$	1,050,000		$	1,050,000		9413
4550	200608		Commodity Foods		$	24,000,000		$	24,000,000		9414
4R70	200695		Indirect Operational Support		$	6,500,000		$	6,600,000		9415
4V70	200633		Interagency Operational Support		$	1,117,725		$	1,117,725		9416
5980	200659		Auxiliary Services Reimbursement		$	1,328,910		$	1,328,910		9417
5BB0	200696		State Action for Education Leadership		$	231,300		$	0		9418
5BJ0	200626		Half-Mill Maintenance Equalization		$	17,300,000		$	18,000,000		9419
5U20	200685		National Education Statistics		$	300,000		$	300,000		9420
6200	200615		Educational Improvement Grants		$	3,000,000		$	3,000,000		9421
TOTAL SSR State Special Revenue											9422
Fund Group					$	54,827,935		$	55,396,635		9423

Lottery Profits Education Fund Group	9424

7017	200612		Foundation Funding		$	717,500,000		$	680,500,000		9425
TOTAL LPE Lottery Profits											9426
Education Fund Group					$	717,500,000		$	680,500,000		9427

Revenue Distribution Fund Group	9428

7047	200909		School District Property Tax Replacement-Business		$	722,000,000		$	475,000,000		9429
7053	200900		School District Property Tax Replacement-Utility		$	34,000,000		$	30,000,000		9430
TOTAL RDF Revenue Distribution											9431
Fund Group					$	756,000,000		$	505,000,000		9432
TOTAL ALL BUDGET FUND GROUPS					$	11,419,890,575 11,488,890,575		$	10,922,046,458		9433

Sec. 267.30.30. CAREER-TECHNICAL EDUCATION ENHANCEMENTS

9435

Of the foregoing appropriation item 200545, Career-Technical	9436
Education Enhancements, up to $2,563,568 in each fiscal year shall	9437
be used to fund secondary career-technical education at	9438
institutions using a grant-based methodology, notwithstanding	9439
sections 3317.05, 3317.052, and 3317.053 of the Revised Code.	9440

Of the foregoing appropriation item 200545, Career-Technical	9441
Education Enhancements, up to $2,838,281 in each fiscal year shall	9442
be used by the Department of Education to fund competitive grants	9443
to tech prep consortia that expand the number of students enrolled	9444
in tech prep programs. These grant funds shall be used to directly	9445
support expanded tech prep programs provided to students enrolled	9446
in school districts, including joint vocational school districts,	9447
and affiliated higher education institutions. This support may	9448
include the purchase of equipment.	9449

Of the foregoing appropriation item 200545, Career-Technical	9450
Education Enhancements, up to $3,100,850 in each fiscal year shall	9451
be used by the Department of Education to support existing High	9452
Schools That Work (HSTW) sites, develop and support new sites,	9453
fund technical assistance, and support regional centers and middle	9454
school programs. The purpose of HSTW is to combine challenging	9455
academic courses and modern career-technical studies to raise the	9456
academic achievement of students. HSTW provides intensive	9457
technical assistance, focused staff development, targeted	9458
assessment services, and ongoing communications and networking	9459
opportunities.	9460

Of the foregoing appropriation item 200545, Career-Technical	9461
Education Enhancements, up to $300,000 in each fiscal year shall	9462
be used by the Department of Education to enable students in	9463
agricultural programs to enroll in a fifth quarter of instruction	9464
based on the agricultural education model of delivering work-based	9465
learning through supervised agricultural experience. The	9466
Department of Education shall determine eligibility criteria and	9467
the reporting process for the Agriculture 5th Quarter Project and	9468
shall fund as many programs as possible given the set aside.	9469

Of the foregoing appropriation item 200545, Career-Technical	9470
Education Enhancements, $19,000,000 in fiscal year 2012 shall be	9471
used to support the High School Job Training Grants Program. The	9472
High School Job Training Grants Program shall provide grants to	9473
school districts and community colleges partnering with sponsoring	9474
local employers to create or strengthen 11th and 12th grade	9475
career-technical job training programs. Sponsoring employers shall	9476
be involved in the design of the career-technical job training	9477
curricula and classroom education. Sponsoring employers and school	9478
district administrators shall ensure that the career-technical job	9479
training curricula includes the development of skills that are	9480
transferable to the workplace and on the job experience with the	9481
sponsoring employer. The Superintendent of Public Instruction	9482
shall administer the High School Job Training Grants Program and	9483
shall establish a method of awarding grants to school districts	9484
and community colleges. Sponsoring employers must match at least	9485
25 per cent of awarded grant amounts.	9486

Sec. 309.10. JFS DEPARTMENT OF JOB AND FAMILY SERVICES

9487

General Revenue Fund	9488

GRF	600321		Support Services								9489
			State		$	34,801,760		$	31,932,117		9490
			Federal		$	9,322,222		$	9,207,441		9491
			Support Services Total		$	44,123,982		$	41,139,558		9492
GRF	600410		TANF State		$	151,386,934		$	151,386,934		9493
GRF	600413		Child Care Match/Maintenance of Effort		$	84,732,730		$	84,732,730		9494
GRF	600416		Computer Projects								9495
			State		$	67,955,340		$	69,263,506		9496
			Federal		$	13,105,167		$	12,937,222		9497
			Computer Projects Total		$	81,060,507		$	82,200,728		9498
GRF	600417		Medicaid Provider Audits		$	1,312,992		$	1,312,992		9499
GRF	600420		Child Support Administration		$	6,163,534		$	6,065,588		9500
GRF	600421		Office of Family Stability		$	3,768,929		$	3,757,493		9501
GRF	600423		Office of Children and Families		$	5,123,406		$	4,978,756		9502
GRF	600425		Office of Ohio Health Plans								9503
			State		$	13,149,582		$	15,740,987		9504
			Federal		$	12,556,921		$	12,286,234		9505
			Office of Ohio Health Plans Total		$	25,706,503		$	28,027,221		9506
GRF	600502		Administration - Local		$	23,814,103		$	23,814,103		9507
GRF	600511		Disability Financial Assistance		$	26,599,666		$	27,108,734		9508
GRF	600521		Entitlement Administration - Local		$	72,200,721		$	72,200,721		9509
GRF	600523		Children and Families Services		$	53,605,323		$	53,105,323		9510
GRF	600525		Health Care/Medicaid								9511
			State		$	4,313,761,372		$	4,689,051,017		9512
			Federal		$	7,530,008,024		$	8,429,762,527		9513
			Health Care Total		$	11,843,769,396		$	13,118,813,544		9514
GRF	600526		Medicare Part D		$	277,996,490		$	296,964,743		9515
GRF	600528		Adoption Services								9516
			State		$	29,257,932		$	29,257,932		9517
			Federal		$	41,085,169		$	41,085,169		9518
			Adoption Services Total		$	70,343,101		$	70,343,101		9519
GRF	600533		Child, Family, and Adult Community & Protective Services		$	13,500,000		$	13,500,000		9520
GRF	600534		Adult Protective Services		$	366,003		$	366,003		9521
GRF	600535		Early Care and Education		$	123,596,474		$	123,596,474		9522
GRF	600536		Youth Employment Programs		$	17,000,000		$	0		9523
GRF	600537		Children's Hospital		$	6,000,000		$	6,000,000		9524
GRF	600540		Second Harvest Food Banks		$	4,000,000		$	4,000,000		9525
GRF	600541		Kinship Permanency Incentive Program		$	2,500,000		$	3,500,000		9526
TOTAL GRF General Revenue Fund											9527
			State		$	5,315,593,291 5,332,593,291		$	5,711,636,153		9528
			Federal		$	7,606,077,503		$	8,505,278,593		9529
			GRF Total		$	12,921,670,794 12,938,670,794		$	14,216,914,746		9530

General Services Fund Group	9531

4A80	600658		Public Assistance Activities		$	34,000,000		$	34,000,000		9532
5C90	600671		Medicaid Program Support		$	85,800,878		$	82,839,266		9533
5DL0	600639		Medicaid Revenue and Collections		$	89,256,974		$	84,156,974		9534
5DM0	600633		Administration & Operating		$	20,392,173		$	19,858,928		9535
5FX0	600638		Medicaid Payment Withholding		$	5,000,000		$	6,000,000		9536
5HL0	600602		State and County Shared services		$	3,020,000		$	3,020,000		9537
5P50	600692		Prescription Drug Rebate - State		$	220,600,000		$	242,600,000		9538
6130	600645		Training Activities		$	500,000		$	500,000		9539
TOTAL GSF General Services											9540
Fund Group					$	458,570,025		$	472,975,168		9541

Federal Special Revenue Fund Group	9542

3270	600606		Child Welfare		$	29,769,865		$	29,769,866		9543
3310	600686		Federal Operating		$	49,128,140		$	48,203,023		9544
3840	600610		Food Assistance and State Administration		$	180,381,394		$	180,381,394		9545
3850	600614		Refugee Services		$	11,582,440		$	12,564,952		9546
3950	600616		Special Activities/Child and Family Services		$	2,259,264		$	2,259,264		9547
3960	600620		Social Services Block Grant		$	64,999,999		$	64,999,998		9548
3970	600626		Child Support		$	255,812,837		$	255,813,528		9549
3980	600627		Adoption Maintenance/ Administration		$	352,183,862		$	352,184,253		9550
3A20	600641		Emergency Food Distribution		$	5,000,000		$	5,000,000		9551
3AW0	600675		Faith Based Initiatives		$	544,140		$	544,140		9552
3D30	600648		Children's Trust Fund Federal		$	2,040,524		$	2,040,524		9553
3ER0	600603		Health Information Technology		$	411,661,286		$	416,395,286		9554
3F00	600623		Health Care Federal		$	2,637,061,505		$	2,720,724,869		9555
3F00	600650		Hospital Care Assurance Match		$	372,784,046		$	380,645,627		9556
3FA0	600680		Ohio Health Care Grants		$	9,405,000		$	20,000,000		9557
3G50	600655		Interagency Reimbursement		$	1,621,305,787		$	1,380,391,478		9558
3H70	600617		Child Care Federal		$	208,290,036		$	204,813,731		9559
3N00	600628		IV-E Foster Care Maintenance		$	133,963,142		$	133,963,142		9560
3S50	600622		Child Support Projects		$	534,050		$	534,050		9561
3V00	600688		Workforce Investment Act		$	176,496,250		$	172,805,562		9562
3V40	600678		Federal Unemployment Programs		$	188,680,096		$	186,723,415		9563
3V40	600679		Unemployment Compensation Review Commission - Federal		$	4,166,988		$	4,068,758		9564
3V60	600689		TANF Block Grant		$	727,968,260		$	727,968,260		9565
TOTAL FED Federal Special Revenue											9566
Fund Group					$	7,446,018,911		$	7,302,795,120		9567

State Special Revenue Fund Group	9568

1980	600647		Children's Trust Fund		$	5,873,637		$	5,873,848		9569
4A90	600607		Unemployment Compensation Administration Fund		$	21,924,998		$	21,424,998		9570
4A90	600694		Unemployment Compensation Review Commission		$	2,173,167		$	2,117,031		9571
4E30	600605		Nursing Home Assessments		$	2,878,320		$	2,878,319		9572
4E70	600604		Child and Family Services Collections		$	400,000		$	400,000		9573
4F10	600609		Children and Family Services Activities		$	683,359		$	683,549		9574
4K10	600621		ICF/MR Bed Assessments		$	41,405,596		$	44,372,874		9575
4Z10	600625		HealthCare Compliance		$	11,551,076		$	14,582,000		9576
5AJ0	600631		Money Follows the Person		$	5,483,080		$	4,733,080		9577
5DB0	600637		Military Injury Grants		$	2,000,000		$	2,000,000		9578
5DP0	600634		Adoption Assistance Loan		$	500,000		$	500,000		9579
5ES0	600630		Food Assistance		$	500,000		$	500,000		9580
5GF0	600656		Medicaid - Hospital		$	436,000,000		$	436,000,000		9581
5KC0	600682		Health Care Special Activities		$	10,000,000		$	10,000,000		9582
5R20	600608		Medicaid-Nursing Facilities		$	402,489,308		$	407,100,746		9583
5S30	600629		MR/DD Medicaid Administration and Oversight		$	9,252,738		$	9,147,791		9584
5U30	600654		Health Care Services Administration		$	24,400,000		$	24,400,000		9585
5U60	600663		Children and Family Support		$	4,000,000		$	4,000,000		9586
6510	600649		Hospital Care Assurance Program Fund		$	212,526,123		$	217,008,050		9587
TOTAL SSR State Special Revenue											9588
Fund Group					$	1,194,041,402		$	1,207,722,286		9589

Agency Fund Group	9590

1920	600646		Support Intercept - Federal		$	130,000,000		$	130,000,000		9591
5830	600642		Support Intercept - State		$	16,000,000		$	16,000,000		9592
5B60	600601		Food Assistance Intercept		$	2,000,000		$	2,000,000		9593
TOTAL AGY Agency Fund Group					$	148,000,000		$	148,000,000		9594

Holding Account Redistribution Fund Group	9595

R012	600643		Refunds and Audit Settlements		$	2,200,000		$	2,200,000		9596
R013	600644		Forgery Collections		$	10,000		$	10,000		9597
TOTAL 090 Holding Account Redistribution Fund Group					$	2,210,000		$	2,210,000		9598
TOTAL ALL BUDGET FUND GROUPS					$	22,170,511,132 22,187,511,132		$	23,350,617,320		9599

Sec. 309.60. WORKFORCE DEVELOPMENT AND UNEMPLOYMENT	9601
COMPENSATION	9602

YOUTH EMPLOYMENT PROGRAMS

9603

Of the foregoing appropriation item 600536, Youth Employment	9604
Programs, $12,000,000 in fiscal year 2012 shall be used to provide	9605
services to urban youth in accordance with section 6303.01 of the	9606
Revised Code and $5,000,000 in fiscal year 2012 shall be used to	9607
provide summer employment opportunities for youth in accordance	9608
with section 6303.02 of the Revised Code.	9609

Sec. 371.10. BOR BOARD OF REGENTS

9610

General Revenue Fund	9611

GRF	235321		Operating Expenses		$	2,300,000		$	2,300,000		9612
GRF	235401		Lease Rental Payments		$	83,151,600		$	57,634,400		9613
GRF	235402		Sea Grants		$	285,000		$	285,000		9614
GRF	235406		Articulation and Transfer		$	2,000,000		$	2,000,000		9615
GRF	235408		Midwest Higher Education Compact		$	95,000		$	95,000		9616
GRF	235409		Information System		$	800,000		$	800,000		9617
GRF	235414		State Grants and Scholarship Administration		$	1,230,000		$	1,230,000		9618
GRF	235417		Ohio Learning Network		$	2,532,688		$	2,532,688		9619
GRF	235428		Appalachian New Economy Partnership		$	737,366		$	737,366		9620
GRF	235433		Economic Growth Challenge		$	440,000		$	440,000		9621
GRF	235438		Choose Ohio First Scholarship		$	15,750,085		$	15,750,085		9622
GRF	235443		Adult Basic and Literacy Education - State		$	7,302,416		$	7,302,416		9623
GRF	235444		Post-Secondary Adult Career-Technical Education		$	15,317,547		$	15,317,547		9624
GRF	235474		Area Health Education Centers Program Support		$	900,000		$	900,000		9625
GRF	235501		State Share of Instruction		$	1,735,530,031		$	1,751,225,497		9626
GRF	235502		Student Support Services		$	632,974		$	632,974		9627
GRF	235504		War Orphans Scholarships		$	4,787,833		$	4,787,833		9628
GRF	235507		OhioLINK		$	6,100,000		$	6,100,000		9629
GRF	235508		Air Force Institute of Technology		$	1,740,803		$	1,740,803		9630
GRF	235510		Ohio Supercomputer Center		$	3,347,418		$	3,347,418		9631
GRF	235511		Cooperative Extension Service		$	22,220,910		$	22,220,910		9632
GRF	235514		Central State Supplement		$	11,503,651		$	10,928,468		9633
GRF	235515		Case Western Reserve University School of Medicine		$	2,146,253		$	2,146,253		9634
GRF	235519		Family Practice		$	3,166,185		$	3,166,185		9635
GRF	235520		Shawnee State Supplement		$	2,448,523		$	2,326,097		9636
GRF	235524		Police and Fire Protection		$	107,814		$	107,814		9637
GRF	235525		Geriatric Medicine		$	522,151		$	522,151		9638
GRF	235526		Primary Care Residencies		$	1,500,000		$	1,500,000		9639
GRF	235535		Ohio Agricultural Research and Development Center		$	33,100,000		$	33,100,000		9640
GRF	235536		The Ohio State University Clinical Teaching		$	9,668,941		$	9,668,941		9641
GRF	235537		University of Cincinnati Clinical Teaching		$	7,952,573		$	7,952,573		9642
GRF	235538		University of Toledo Clinical Teaching		$	6,198,600		$	6,198,600		9643
GRF	235539		Wright State University Clinical Teaching		$	3,011,400		$	3,011,400		9644
GRF	235540		Ohio University Clinical Teaching		$	2,911,212		$	2,911,212		9645
GRF	235541		Northeast Ohio Medical University Clinical Teaching		$	2,994,178		$	2,994,178		9646
GRF	235551		Workforce Realignment Program		$	45,000,000		$	0		9647
GRF	235552		Capital Component		$	20,638,274		$	20,638,274		9648
GRF	235555		Library Depositories		$	1,440,342		$	1,440,342		9649
GRF	235556		Ohio Academic Resources Network		$	3,172,519		$	3,172,519		9650
GRF	235558		Long-term Care Research		$	195,300		$	195,300		9651
GRF	235563		Ohio College Opportunity Grant		$	80,284,265		$	80,284,265		9652
GRF	235572		The Ohio State University Clinic Support		$	766,533		$	766,533		9653
GRF	235598		Ohio Skills Bank Grant		$	9,000,000		$	0		9654
GRF	235599		National Guard Scholarship Program		$	16,912,271		$	18,143,293		9655
GRF	235909		Higher Education General Obligation Debt Service		$	108,262,500		$	201,555,000		9656
TOTAL GRF General Revenue Fund					$	2,226,105,156 2,280,105,156		$	2,310,109,335		9657

General Services Fund Group	9658

2200	235614		Program Approval and Reauthorization		$	1,311,567		$	1,457,959		9659
4560	235603		Sales and Services		$	199,250		$	199,250		9660
5JC0	235649		Co-op Internship Program		$	12,000,000		$	12,000,000		9661
5JC0	235667		Ohio College Opportunity Grant-Proprietary		$	6,000,000		$	6,000,000		9662
5JC0	235668		Air Force Institute of Technology - Defense/Aerospace Graduate Studies Institute		$	4,000,000		$	4,000,000		9663
TOTAL GSF General Services											9664
Fund Group					$	23,510,817		$	23,657,209		9665

Federal Special Revenue Fund Group	9666

3120	235609		Tech Prep		$	183,850		$	183,850		9667
3120	235611		Gear-up Grant		$	3,900,000		$	3,900,000		9668
3120	235612		Carl D. Perkins Grant/Plan Administration		$	912,961		$	912,961		9669
3120	235617		Improving Teacher Quality Grant		$	3,200,000		$	3,200,000		9670
3120	235641		Adult Basic and Literacy Education - Federal		$	14,835,671		$	14,835,671		9671
3120	235659		Race to the Top Scholarship Program		$	2,400,000		$	3,780,000		9672
3120	235660		Race to the Top Educator Preparation Reform Initiative		$	448,000		$	1,120,000		9673
3120	235661		Americorps Grant		$	260,000		$	260,000		9674
3H20	235608		Human Services Project		$	3,500,000		$	3,500,000		9675
3N60	235638		College Access Challenge Grant		$	4,381,431		$	4,381,431		9676
TOTAL FED Federal Special Revenue											9677
Fund Group					$	34,021,913		$	36,073,913		9678

State Special Revenue Fund Group	9679

4E80	235602		Higher Educational Facility Commission Administration		$	29,100		$	29,100		9680
5FR0	235640		Joyce Foundation Grant		$	919,719		$	919,719		9681
5FR0	235647		Developmental Education Initiatives		$	135,000		$	135,000		9682
5FR0	235657		Win-Win Grant		$	37,000		$	15,000		9683
5P30	235663		Variable Savings Plan		$	8,946,994		$	9,072,136		9684
6450	235664		Guaranteed Savings Plan		$	900,293		$	907,514		9685
6820	235606		Nursing Loan Program		$	891,320		$	891,320		9686
TOTAL SSR State Special Revenue											9687
Fund Group					$	11,859,426		$	11,969,789		9688

Third Frontier Research & Development Fund Group	9689

7011	235634		Research Incentive Third Frontier Fund		$	8,000,000		$	8,000,000		9690
TOTAL 011 Third Frontier Research & Development Fund Group					$	8,000,000		$	8,000,000		9691
TOTAL ALL BUDGET FUND GROUPS					$	2,303,497,312 2,357,497,312		$	2,389,810,246		9692

Sec. 371.40.50. STATE UNIVERSITY CLINICAL TEACHING

9694

The foregoing appropriation items 235536, The Ohio State	9695
University Clinical Teaching; 235537, University of Cincinnati	9696
Clinical Teaching; 235538, University of Toledo Clinical Teaching;	9697
235539, Wright State University Clinical Teaching; 235540, Ohio	9698
University Clinical Teaching; and 235541, Northeast Ohio Medical	9699
University Clinical Teaching, shall be distributed through the	9700
Chancellor of the Board of Regents.	9701

WORKFORCE REALIGNMENT PROGRAM

9702

The foregoing appropriation item, 235551, Workforce	9703
Realignment Program, shall be used to support the Workforce	9704
Realignment Program in fiscal year 2012. The Workforce Realignment	9705
Program shall provide scholarships and grants that assist	9706
unemployed individuals in obtaining the necessary	9707
industry-recognized credentials to find employment in high-growth	9708
fields. The Chancellor of the Board of Regents shall administer	9709
the Workforce Realignment Program and shall establish a method of	9710
awarding scholarships to individuals who have remained unemployed	9711
for six consecutive months or longer. The Chancellor's method of	9712
awarding scholarships shall target community colleges,	9713
career-technical schools, and other institutions that offer	9714
degrees or certificates in two years or fewer.	9715

Sec. 371.50.20. THE OHIO STATE UNIVERSITY CLINIC SUPPORT

9716

The foregoing appropriation item 235572, The Ohio State	9717
University Clinic Support, shall be distributed through the	9718
Chancellor of the Board of Regents to The Ohio State University	9719
for support of dental and veterinary medicine clinics.	9720

OHIO SKILLS BANK GRANT

9721

The foregoing appropriation item, 235598, Ohio Skills Bank	9722
Grant, shall be used to support the activities of the Ohio Skills	9723
Bank Grant Program in fiscal year 2012. The Ohio Skills Bank Grant	9724
Program shall provide competitive grants to partnerships and	9725
coalitions between institutions of higher education and industry	9726
actors. The Chancellor of the Board of Regents shall establish a	9727
method of awarding grants to partnerships and coalitions that	9728
identify and mitigate critical skill shortages within targeted	9729
industries and facilitate worker training opportunities. Recipient	9730
partnerships and coalitions shall obtain matching private sector	9731
funding equal to 25% of grant amounts.	9732

Sec. 379.10. RDF REVENUE DISTRIBUTION FUNDS

9733

Volunteer Firefighters' Dependents Fund	9734

7085	800985		Volunteer Firemen's Dependents Fund		$	300,000		$	300,000		9735
TOTAL 085 Volunteer Firefighters'											9736
Dependents Fund					$	300,000		$	300,000		9737
Agency Fund Group											9738
4P80	001698		Cash Management Improvement Fund		$	3,100,000		$	3,100,000		9739
5JG0	110633		Gross Casino Revenue County Fund		$	5,778,617		$	138,882,294		9740
5JH0	110634		Gross Casino Revenue County Student Fund		$	3,852,412		$	92,588,196		9741
5JJ0	110636		Gross Casino Revenue Host City Fund		$	566,531		$	13,615,911		9742
5JK0	875610		Ohio State Racing Commission Fund		$	339,919		$	8,169,547		9743
5JL0	038629		Problem Casino Gambling and Addictions Fund		$	226,612		$	5,446,364		9744
5JN0	055654		Ohio Law Enforcement Training Fund		$	226,612		$	5,446,364		9745
6080	001699		Investment Earnings		$	50,000,000		$	150,000,000		9746
7062	110962		Resort Area Excise Tax		$	1,000,000		$	1,000,000		9747
7063	110963		Permissive Tax Distribution		$	1,904,500,000		$	1,980,700,000		9748
7067	110967		School District Income Tax		$	317,000,000		$	330,000,000		9749
TOTAL AGY Agency Fund Group					$	2,286,590,703		$	2,728,948,676		9750

Holding Account Redistribution	9751

R045	110617		International Fuel Tax Distribution		$	40,000,000		$	40,000,000		9752
TOTAL 090 Holding Account Redistribution Fund											9753
Revenue Distribution Fund Group					$	40,000,000		$	40,000,000		9754
7049	038900		Indigent Drivers Alcohol Treatment		$	2,200,000		$	2,200,000		9755
7050	762900		International Registration Plan Distribution		$	30,000,000		$	30,000,000		9756
7051	762901		Auto Registration Distribution		$	539,000,000		$	539,000,000		9757
7054	110954		Local Government Property Tax Replacement - Utility		$	16,000,000		$	11,000,000		9758
7060	110960		Gasoline Excise Tax Fund		$	393,000,000		$	395,000,000		9759
7065	110965		Public Library Fund		$	354,000,000		$	345,000,000		9760
7066	800966		Undivided Liquor Permits		$	14,100,000		$	14,100,000		9761
7068	110968		State and Local Government Highway Distribution		$	193,000,000		$	196,000,000		9762
7069	110969		Local Government Fund		$	577,000,000 627,000,000		$	348,000,000		9763
7081	110981		Local Government Property Tax Replacement-Business		$	291,000,000		$	181,000,000		9764
7082	110982		Horse Racing Tax		$	100,000		$	100,000		9765
7083	700900		Ohio Fairs Fund		$	1,400,000		$	1,400,000		9766
TOTAL RDF Revenue Distribution											9767
Fund Group					$	2,410,800,000 2,460,800,000		$	2,062,800,000		9768
TOTAL ALL BUDGET FUND GROUPS					$	4,737,690,703 4,787,690,703		$	4,832,048,676		9769

ADDITIONAL APPROPRIATIONS

9770

Appropriation items in this section shall be used for the	9771
purpose of administering and distributing the designated revenue	9772
distribution funds according to the Revised Code. If it is	9773
determined that additional appropriations are necessary for this	9774
purpose, such amounts are hereby appropriated.	9775

GENERAL REVENUE FUND TRANSFERS

9776

Notwithstanding any provision of law to the contrary, in	9777
fiscal year 2012 and fiscal year 2013, the Director of Budget and	9778
Management may transfer from the General Revenue Fund to the Local	9779
Government Tangible Property Tax Replacement Fund (Fund 7081) in	9780
the Revenue Distribution Fund Group, those amounts necessary to	9781
reimburse local taxing units under section 5751.22 of the Revised	9782
Code. Also, in fiscal year 2012 and fiscal year 2013, the Director	9783
of Budget and Management may make temporary transfers from the	9784
General Revenue Fund to ensure sufficient balances in the Local	9785
Government Tangible Property Tax Replacement Fund (Fund 7081) and	9786
to replenish the General Revenue Fund for such transfers.	9787

Sec. 387.10. SFC SCHOOL FACILITIES COMMISSION

9788

General Revenue Fund	9789

GRF	230525		Energy Efficiency Grants		$	30,000,000		$	0		9790
GRF	230908		Common Schools General Obligation Debt Service		$	150,604,900		$	341,919,400		9791
TOTAL GRF General Revenue Fund					$	150,604,900 180,604,900		$	341,919,400		9792

State Special Revenue Fund Group	9793

5E30	230644		Operating Expenses		$	8,950,000		$	8,550,000		9794
TOTAL SSR State Special Revenue											9795
Fund Group					$	8,950,000		$	8,550,000		9796
TOTAL ALL BUDGET FUND GROUPS					$	159,554,900 189,554,900		$	350,469,400		9797

Sec. 387.20. ENERGY EFFICIENCY GRANTS

9799

The foregoing appropriation item 230525, Energy Efficiency	9800
Grants, shall be used for grants to assist schools in becoming	9801
more energy efficient.	9802

COMMON SCHOOLS GENERAL OBLIGATION DEBT SERVICE

9803

The foregoing appropriation item 230908, Common Schools	9804
General Obligation Debt Service, shall be used to pay all debt	9805
service and related financing costs at the times they are required	9806
to be made during the period from July 1, 2011, through June 30,	9807
2013, for obligations issued under sections 151.01 and 151.03 of	9808
the Revised Code.	9809

OPERATING EXPENSES

9810

The foregoing appropriation item 230644, Operating Expenses,	9811
shall be used by the Ohio School Facilities Commission to carry	9812
out its responsibilities under this section and Chapter 3318. of	9813
the Revised Code.	9814

In both fiscal years 2012 and 2013, the Executive Director of	9815
the Ohio School Facilities Commission shall certify on a quarterly	9816
basis to the Director of Budget and Management the amount of cash	9817
from interest earnings to be transferred from the School Building	9818
Assistance Fund (Fund 7032), the Public School Building Fund (Fund	9819
7021), and the Educational Facilities Trust Fund (Fund N087) to	9820
the Ohio School Facilities Commission Fund (Fund 5E30). The amount	9821
transferred from the School Building Assistance Fund (Fund 7032)	9822
may not exceed investment earnings credited to the fund, less any	9823
amount required to be paid for federal arbitrage rebate purposes.	9824

If the Executive Director of the Ohio School Facilities	9825
Commission determines that transferring cash from interest	9826
earnings is insufficient to support operations and carry out its	9827
responsibilities under this section and Chapter 3318. of the	9828
Revised Code, the Commission may, with the approval of the	9829
Controlling Board, transfer cash not generated from interest from	9830
the Public School Building Fund (Fund 7021) and the Educational	9831
Trust Fund (Fund N087) to the Ohio School Facilities Commission	9832
Fund (Fund 5E30).	9833

SCHOOL FACILITIES ENCUMBRANCES AND REAPPROPRIATION

9834

At the request of the Executive Director of the Ohio School	9835
Facilities Commission, the Director of Budget and Management may	9836
cancel encumbrances for school district projects from a previous	9837
biennium if the district has not raised its local share of project	9838
costs within thirteen months of receiving Controlling Board	9839
approval under section 3318.05 or 3318.41 of the Revised Code. The	9840
Executive Director of the Ohio School Facilities Commission shall	9841
certify the amounts of the canceled encumbrances to the Director	9842
of Budget and Management on a quarterly basis. The amounts of the	9843
canceled encumbrances are hereby appropriated.	9844

Sec. 757.10.  ADJUSTMENT TO LOCAL GOVERNMENT DISTRIBUTIONS

9845

(A) On or before the tenth day of each month of the period	9846
beginning August 1, 2011, and ending June 30, 2013, the Tax	9847
Commissioner shall determine and certify to the Director of Budget	9848
and Management the amount to be credited during that month to the	9849
Local Government Fund and Public Library Fund pursuant to	9850
divisions (B) to (D) of this section.	9851

(B) Notwithstanding any provision of section 131.51 of the	9852
Revised Code to the contrary, for each month in the period	9853
beginning August 1, 2011, and ending June 30, 2013:	9854

(1) The amount credited first to the Local Government Fund	9855
shall be as provided in division (C) of this section;	9856

(2) The amount credited next to the Public Library Fund shall	9857
be according to the schedule in division (D) of this section.	9858

(C) Pursuant to division (B)(1) of this section, amounts	9859
shall be credited from revenue arising from the personal income	9860
tax levied under Chapter 5747. of the Revised Code to the Local	9861
Government Fund as follows:	9862

(1)(a) In August 2011, seventy-five per cent of the amount	9863
credited in August 2010; in August 2012, fifty per cent of the	9864
amount credited in August 2010;	9865

(b) In September 2011, seventy-five per cent of the amount	9866
credited in September 2010; in September 2012, fifty per cent of	9867
the amount credited in September 2010;	9868

(c) In October 2011, seventy-five per cent of the amount	9869
credited in October 2010; in October 2012, fifty per cent of the	9870
amount credited in October 2010;	9871

(d) In November 2011, seventy-five per cent of the amount	9872
credited in November 2010; in November 2012, fifty per cent of the	9873
amount credited in November 2010;	9874

(e) In December 2011, seventy-five per cent of the amount	9875
credited in December 2010; in December 2012, fifty per cent of the	9876
amount credited in December 2010;	9877

(f) In January 2012, seventy-five per cent of the amount	9878
credited in January 2011; in January 2013, fifty per cent of the	9879
amount credited in January 2011;	9880

(g) In February 2012, seventy-five per cent of the amount	9881
credited in February 2011; in February 2013, fifty per cent of the	9882
amount credited in February 2011;	9883

(h) In March 2012, seventy-five per cent of the amount	9884
credited in March 2011; in March 2013, fifty per cent of the	9885
amount credited in March 2011;	9886

(i) In April 2012, seventy-five per cent of the amount	9887
credited in April 2011; in April 2013, fifty per cent of the	9888
amount credited in April 2011;	9889

(j) In May 2012, seventy-five per cent of the amount credited	9890
in May 2011; in May 2013, fifty per cent of the amount credited in	9891
May 2011;	9892

(k) In June 2012, seventy-five per cent of the amount	9893
credited in June 2011; in June 2013, fifty per cent of the amount	9894
credited in June 2011;	9895

(l) In July 2012, fifty per cent of the amount credited in	9896
July 2010.	9897

(2) For each month in the period beginning August 1, 2011,	9898
and ending June 30, 2013, an amount sufficient to make the	9899
distributions required for that month under divisions (E)(2)(a),	9900
(b), and (c) of this section.	9901

(3) For each month in the period beginning August 1, 2011,	9902
and ending June 30, 2012, an amount equal to one-eleventh of	9903
forty-nine million two hundred seventy thousand dollars.	9904

(D) Pursuant to division (B)(2) of this section, amounts	9905
shall be credited from revenue arising from the kilowatt-hour tax	9906
and sales tax levied under section 5727.81 or 5739.02 of the	9907
Revised Code, respectively, to the Public Library Fund as follows:	9908

(1) In August 2011 and in August 2012, ninety-five per cent	9909
of the amount credited in August 2010;	9910

(2) In September 2011 and in September 2012, ninety-five per	9911
cent of the amount credited in September 2010;	9912

(3) In October 2011 and in October 2012, ninety-five per cent	9913
of the amount credited in October 2010;	9914

(4) In November 2011 and in November 2012, ninety-five per	9915
cent of the amount credited in November 2010;	9916

(5) In December 2011 and in December 2012, ninety-five per	9917
cent of the amount credited in December 2010;	9918

(6) In January 2012 and in January 2013, ninety-five per cent	9919
of the amount credited in January 2011;	9920

(7) In February 2012 and in February 2013, ninety-five per	9921
cent of the amount credited in February 2011;	9922

(8) In March 2012 and in March 2013, ninety-five per cent of	9923
the amount credited in March 2011;	9924

(9) In April 2012 and in April 2013, ninety-five per cent of	9925
the amount credited in April 2011;	9926

(10) In May 2012 and in May 2013, ninety-five per cent of the	9927
amount credited in May 2011;	9928

(11) In June 2012 and in June 2013, ninety-five per cent of	9929
the amount credited in June 2011;	9930

(12) In July 2012, ninety-five per cent of the amount	9931
credited in July 2010.	9932

(E) Notwithstanding any other provision of the Revised Code	9933
to the contrary, the total amount credited to the Local Government	9934
Fund in each month shall be distributed by the tenth day of that	9935
month in the following manner:	9936

(1) The total amount credited to the Local Government Fund in	9937
each month for the period beginning August 1, 2011, and ending	9938
June 30, 2013, pursuant to division (C)(1) of this section shall	9939
be distributed as follows:	9940

(a) Each county undivided local government fund shall receive	9941
a distribution from the Local Government Fund based on its	9942
proportionate share of the total amount received from the fund in	9943
that respective month in fiscal year 2011. As used in this	9944
section, "total amount received" does not include payments	9945
received in fiscal year 2011 under division (C) of section 5725.24	9946
of the Revised Code.	9947

(b) Each municipal corporation that received a direct	9948
distribution in fiscal year 2011 from the Local Government Fund	9949
under division (C) of section 5747.50 of the Revised Code shall	9950
receive a distribution based on its proportionate share of the	9951
total amount of direct distributions made to municipal	9952
corporations from the fund in that respective month in fiscal year	9953
2011.	9954

(2) The total amount credited to the Local Government Fund in	9955
each month for the period beginning August 1, 2011, and ending	9956
June 30, 2013, pursuant to division (C)(2) of this section shall	9957
be distributed as follows:	9958

(a) If a county undivided local government fund's total	9959
distribution in fiscal year 2011 was equal to or less than seven	9960
hundred fifty thousand dollars, the fund shall receive a	9961
distribution equal to the difference between the amount	9962
distributed to the fund in that respective month in fiscal year	9963
2011 and the amount allocated to the fund for the month under	9964
divisions (E)(1)(a) and (3) of this section during fiscal year	9965
2012, and division (E)(1)(a) of this section during fiscal year	9966
2013.	9967

(b) For each month in the period beginning August 1, 2011,	9968
and ending June 30, 2012, if a county undivided local government	9969
fund's total distribution in fiscal year 2011 exceeded seven	9970
hundred fifty thousand dollars and if the sum of the amount	9971
allocated to the fund in July 2011 and the amounts to be allocated	9972
to the fund between August 1, 2011, and June 30, 2012, under	9973
divisions (E)(1)(a) and (3) of this section is less than seven	9974
hundred fifty thousand dollars, the fund shall receive a	9975
distribution equal to one-eleventh of the difference between seven	9976
hundred fifty thousand dollars and that sum.	9977

(c) For each month in the period beginning July 1, 2012, and	9978
ending June 30, 2013, if a county undivided local government	9979
fund's total distribution in fiscal year 2011 exceeded seven	9980
hundred fifty thousand dollars and if the total amount to be	9981
allocated to the fund in fiscal year 2013 under division (E)(1)(a)	9982
of this section is less than seven hundred fifty thousand dollars,	9983
the fund shall receive a distribution equal to one-twelfth of the	9984
difference between seven hundred fifty thousand dollars and the	9985
total amount to be allocated to the fund in fiscal year 2013 under	9986
division (E)(1)(a) of this section.	9987

(3) The total amount credited to the Local Government Fund in	9988
each month for the period beginning August 1, 2011, and ending	9989
June 30, 2012, pursuant to division (C)(3) of this section shall	9990
be distributed to each county undivided local government fund	9991
based on each fund's proportionate share of the total amount	9992
received from the Local Government Fund in that respective month	9993
in fiscal year 2011. As used in this section, "total amount	9994
received" does not include payments received in fiscal year 2011	9995
under division (C) of section 5725.24 of the Revised Code.	9996

(F) Notwithstanding any other provision of the Revised Code	9997
to the contrary, by the tenth day of each month of the period	9998
beginning July 1, 2011, and ending December 31, 2011, each county	9999
undivided public library fund shall receive a distribution from	10000
the Public Library Fund equal to the product derived by	10001
multiplying the following amounts:	10002

(1) The total amount credited to the Public Library Fund in	10003
that month;	10004

(2) A percentage calculated by multiplying one hundred by the	10005
quotient obtained by dividing the sum of the county's	10006
distributions from the Public Library Fund during calendar year	10007
2010 by the sum of distributions made to all counties from the	10008
Public Library Fund during calendar year 2010.	10009

(G) Notwithstanding any other provision of the Revised Code	10010
to the contrary, by the tenth day of each month of the period	10011
beginning January 1, 2012, and ending June 30, 2013, each county	10012
undivided public library fund shall receive a distribution from	10013
the Public Library Fund equal to the product derived by	10014
multiplying the following amounts:	10015

(1) The total amount credited to the Public Library Fund in	10016
that month;	10017

(2) A percentage calculated by multiplying one hundred by the	10018
quotient obtained by dividing the sum of the county's	10019
distributions from the Public Library Fund during calendar year	10020
2011 by the sum of distributions made to all counties from the	10021
Public Library Fund during calendar year 2011.	10022

(H) For the 2012 and 2013 distribution years, the Tax	10023
Commissioner is not required to issue the certifications otherwise	10024
required by sections 5747.47, 5747.501, and 5747.51 of the Revised	10025
Code, but shall provide to each county auditor by July 20, 2011,	10026
and July 20, 2012, an estimate of the amounts to be received by	10027
the county in the ensuing year from the Public Library Fund and	10028
the Local Government Fund pursuant to this section and any other	10029
section of the Revised Code. The Tax Commissioner may report to	10030
each county auditor additional revised estimates of the 2011,	10031
2012, or 2013 distributions at any time during fiscal years 2012	10032
and 2013.	10033

(I) In addition to the amounts credited to the Local	10034
Government Fund pursuant to division (C) of this section, the	10035
Director of Budget and Management shall transfer, in fiscal year	10036
2012, $50,000,000 cash from the General Revenue Fund to the Local	10037
Government Fund. The transfer shall take place on the effective	10038
date of this section, or as soon as possible thereafter.	10039
Notwithstanding any provision of the Revised Code to the contrary,	10040
the amounts transferred to the Local Government Fund under this	10041
division shall be distributed in the manner described in division	10042
(E)(1) of this section as if the amounts transferred were credited	10043
pursuant to division (C)(1) of this section.	10044

Section 9. That existing Sections 267.10, 267.30.30, 309.10,	10045
309.60, 371.10, 371.40.50, 371.50.20, 379.10, 387.10, 387.20, and	10046
757.10 of Am. Sub. H.B. 153 of the 129th General Assembly are	10047
hereby repealed.	10048

Section 10.  Sections 3 to 9 of this act, and the items of	10049
law of which they are composed, are not subject to the referendum	10050
because they are or relate to an appropriation for current	10051
expenses within the meaning of Ohio Constitution, Article II,	10052
Section 1d and section 1.471 of the Revised Code and, therefore,	10053
go into immediate effect when this act becomes law.	10054

Section 11. (A) TRANSFER TO GRF FROM BUDGET STABILIZATION	10055
FUND	10056

Notwithstanding sections 131.43 and 131.44 of the Revised	10057
Code, on the effective date of this section, or as soon as	10058
possible thereafter, the Director of Budget and Management shall	10059
transfer $68,500,000 cash from the Budget Stabilization Fund (Fund	10060
7013) to the General Revenue Fund.	10061

(B) CASH TRANSFER FROM THE ECONOMIC DEVELOPMENT PROGRAMS FUND	10062
TO THE GRF	10063

As soon as possible in fiscal year 2012, the Director of	10064
Budget and Management shall transfer up to $100,000,000 in cash	10065
from the Economic Development Programs Fund (Fund 5JC0) created in	10066
section 3772.17 of the Revised Code to the GRF. Amounts	10067
transferred to the GRF shall be used for various workforce	10068
development initiatives in this act.	10069

(C) TRANSFERS OF UNCLAIMED FUNDS TO GRF

10070

Notwithstanding division (A) of section 169.05 of the Revised	10071
Code, prior to June 30, 2012, and upon the request of the Director	10072
of Budget and Management, the Director of Commerce shall transfer	10073
to the General Revenue Fund $12,100,000 of unclaimed funds that	10074
have been reported by holders of unclaimed funds under section	10075
169.05 of the Revised Code, irrespective of the allocation of the	10076
unclaimed funds under that section.	10077

Notwithstanding division (A) of section 169.05 of the Revised	10078
Code, prior to June 30, 2013, and upon the request of the Director	10079
of Budget and Management, the Director of Commerce shall transfer	10080
to the General Revenue Fund $63,000,000 of unclaimed funds that	10081
have been reported by holders of unclaimed funds under section	10082
169.05 of the Revised Code, irrespective of the allocation of the	10083
unclaimed funds under that section.	10084

The transfers of unclaimed funds made pursuant to this act	10085
are in addition to any other transfers of unclaimed funds	10086
authorized for the FY 2012-FY 2013 biennium.	10087

Section 12.01.  As used in this section:

10088

(A) "Local chief elected official" means the chief elected	10089
executive officer of a unit of local government in a local	10090
workforce investment area or in the case where there is more than	10091
one unit of general government, the individuals designated under	10092
an agreement described in section 117(c)(1)(B) of the "Workforce	10093
Investment Act of 1998," 112 Stat. 936, 29 U.S.C. 2801, as	10094
amended.	10095

(B) "Local workforce investment area" means such area	10096
designated under section 116 of the "Workforce Investment Act of	10097
1998," 112 Stat. 936, 29 U.S.C. 2801, as amended.	10098

(C) "Local workforce investment board" means such board	10099
established under section 117 of the "Workforce Investment Act of	10100
1998," 112 Stat. 936, 29 U.S.C. 2801, as amended.	10101

(D) "Low-income youth" means an individual who is aged	10102
sixteen through twenty-four, is in one or more of the categories	10103
specified in section 101(13)(C) of the "Workforce Investment Act	10104
of 1998," 112 Stat. 936, 29 U.S.C. 2801, as amended, and meets the	10105
definition of a low-income individual provided in section 101(25)	10106
of the "Workforce Investment Act of 1998," 112 Stat. 936, 29	10107
U.S.C. 2801, as amended, except that local workforce investment	10108
areas and eligible entities subject to approval in the applicable	10109
local plans and applications for funds may increase the income	10110
level specified in subparagraph (B)(i) of that section to an	10111
amount not in excess of two hundred per cent of the poverty line	10112
for purposes of determining eligibility for participation in	10113
activities under Sections 12.05 and 12.06 of this act.	10114

(E) "Unemployed, low-income adult" means an individual who	10115
fulfills all of the following:	10116

(1) Is age eighteen or older;

10117

(2) Is without employment and is seeking assistance under	10118
this chapter to obtain employment;	10119

(3) Meets the definition of a "low-income individual" under	10120
section 101(25) of the "Workforce Investment Act of 1998," 112	10121
Stat. 936, 29 U.S.C. 2801, as amended, except that for local	10122
entities and eligible entities, subject to approval in the	10123
applicable local plans and applications for funds, may increase	10124
the income level specified in subparagraph (B)(i) of that section	10125
to an amount not in excess of two hundred per cent of the poverty	10126
line for purposes of determining eligibility for participation in	10127
activities under Sections 12.04 and 12.06 of this act.	10128

Section 12.02.  There is hereby created in the state treasury	10129
the Pathways Back to Work Fund. All moneys that are deposited or	10130
paid into this fund are available to the Director of Job and	10131
Family Services only for the administration of Sections 12.01 to	10132
12.07 of this act. All moneys in this fund that are received from	10133
the United States or any agency thereof or that are appropriated	10134
by this state shall be expended solely for the purposes of the	10135
proper and efficient administration of those sections. The fund	10136
shall consist of all moneys appropriated by this state, and all	10137
moneys received from the United States or any agency thereof for	10138
such purpose. All moneys in this fund shall be deposited,	10139
administered, and disbursed in the same manner and under the same	10140
conditions and requirements as are other special funds in the	10141
state treasury. The Treasurer of State is liable on the Treasurer	10142
of State's official bond for the faithful performance of the	10143
Treasurer of State's duties in connection with this fund. Any	10144
balances in this fund shall not lapse at any time, but shall be	10145
continuously available to the Director for expenditure.	10146

Section 12.03.  Of the funds available in the Pathways Back	10147
to Work Fund under Section 12.02 of this act, the Director of Job	10148
and Family Services shall do all of the following:	10149

(A) Provide subsidized employment to unemployed and	10150
low-income adults under Section 12.04 of this act;	10151

(B) Provide summer and year-round employment opportunities to	10152
low-income youth under Section 12.05 of this act;	10153

(C) Provide competitive grants to local entities to carry out	10154
work-based training and other work-related and educational	10155
strategies and activities of demonstrated effectiveness to	10156
unemployed, low-income adults and low-income youth to provide the	10157
skills and assistance needed to obtain employment under Section	10158
12.06 of this act.	10159

Section 12.04.  (A) From the Pathways Back to Work Fund, the	10160
Director of Job and Family Services shall make a grant to each	10161
local workforce investment board that has a plan approved under	10162
division (C) of this section for the purpose of providing	10163
subsidized employment opportunities to unemployed, low-income	10164
adults.	10165

(B) Not later than thirty days after the effective date of	10166
this section, the Director shall adopt rules regarding the	10167
implementation of this section. The rules shall, consistent with	10168
this section, include procedures for the submission and approval	10169
of plans and the grant of funds that promote the expeditious and	10170
effective implementation of the activities authorized under this	10171
section.	10172

(C) For a board to be eligible to receive a grant of the	10173
funds under division (A) of this section, the board shall submit	10174
to the Director a plan in such form and containing such	10175
information as the Director may require. At a minimum, such plan	10176
shall include all of the following:	10177

(1) A description of the strategies and activities to be	10178
carried out by the board, in coordination with employers in the	10179
state, to provide subsidized employment opportunities to	10180
unemployed, low-income adults, including strategies relating to	10181
the level and duration of subsidies;	10182

(2) A description of the requirements the board will apply	10183
relating to the eligibility of unemployed, low-income adults for	10184
subsidized employment opportunities, which may include criteria to	10185
target assistance to particular categories of such adults, such as	10186
individuals with disabilities or individuals who have exhausted	10187
all rights to unemployment compensation;	10188

(3) A description of how the funds granted to provide	10189
subsidized employment opportunities will be administered by the	10190
board;	10191

(4) A description of the performance outcomes to be achieved	10192
by the board through the activities carried out under this section	10193
and the processes the board will use to track performance,	10194
consistent with rules adopted by the Director regarding such	10195
outcomes and processes;	10196

(5) A description of the coordination of activities to be	10197
carried out with the grant provided under this section with	10198
activities under Title I of the "Workforce Investment Act of	10199
1998," 112 Stat. 936, 29 U.S.C. 2801, as amended, the temporary	10200
assistance for needy families program under Part A of Title IV of	10201
the "Social Security Act," 110 Stat. 2113 (1996), 42 U.S.C. 601,	10202
as amended, and other appropriate federal and state programs that	10203
may assist unemployed, low-income adults in obtaining and	10204
retaining employment;	10205

(6) A description of the timelines for implementation of the	10206
activities and the number of unemployed, low-income adults	10207
expected to be placed in subsidized employment by quarter;	10208

(7) Assurances that the board will report such information as	10209
the Director may require relating to fiscal, performance, and	10210
other matters that the Director determines is necessary to	10211
effectively monitor the activities carried out under this section;	10212

(8) Assurances that the board will ensure compliance with the	10213
labor standards and protections described in Section 12.07 of this	10214
act.	10215

(D) The board shall submit a plan to the Director not later	10216
than thirty days after the effective date of this section and the	10217
Director shall make a determination regarding the approval or	10218
disapproval of such plans not later than thirty days after the	10219
submission of such plan. If the plan is disapproved, the Director	10220
may provide a reasonable period of time in which a disapproved	10221
plan may be amended and resubmitted for approval.	10222

(E) The Director shall approve a plan that the Director	10223
determines is consistent with requirements of this section and	10224
reasonably appropriate and adequate to carry out the purposes of	10225
this section. If the plan is approved, the Director shall grant	10226
funds to the board within thirty days after such approval.	10227

(F) The board may submit a modification to a plan consistent	10228
with the requirements of this section.	10229

(G) The funds granted under this section shall be used to	10230
provide subsidized employment for unemployed, low-income adults.	10231
The board may use a variety of strategies in recruiting employers	10232
and identifying appropriate employment opportunities, with a	10233
priority to be provided to employment opportunities likely to lead	10234
to unsubsidized employment in emerging or in-demand occupations in	10235
the local area. Funds under this section may be used to provide	10236
support services, such as transportation and child care, that are	10237
necessary to enable the participation of individuals in subsidized	10238
employment opportunities.	10239

(H) The board may determine the percentage of the wages and	10240
costs of employing a participant for which an employer may receive	10241
a subsidy with the funds provided under this section, and the	10242
duration of such subsidy, in accordance with guidance issued by	10243
the Director. The board may establish criteria for determining	10244
such percentage or duration using appropriate factors such as the	10245
size of the employer and types of employment.	10246

Section 12.05.  (A) From the Pathways Back to Work Fund, the	10247
Director of Job and Family Services shall make a grant to each	10248
local workforce investment board that has a plan that meets the	10249
requirements of this section for the purpose of providing summer	10250
employment and year-round employment opportunities to low-income	10251
youth.	10252

(B) Not later than twenty days after the effective date of	10253
this section, the Director shall adopt rules regarding the	10254
implementation of this section. The rules shall, consistent with	10255
this section, include procedures for the submission and approval	10256
of plans and the grant of funds that promote the expeditious and	10257
effective implementation of the activities authorized under this	10258
section.	10259

(C) For a board to be eligible to receive a grant of funds	10260
under division (A) of this section, the board shall submit to the	10261
Director a plan in such form and containing such information as	10262
the Director may require. At a minimum, such plan shall include	10263
all of the following:	10264

(1) A description of the strategies and activities to be	10265
carried out to provide summer employment opportunities and	10266
year-round employment opportunities, including the linkages to	10267
educational activities;	10268

(2) A description of the requirements the board will apply	10269
relating to the eligibility of low-income youth for summer	10270
employment opportunities and year-round employment opportunities,	10271
which may include criteria to target assistance to particular	10272
categories of such low-income youth, such as youth with	10273
disabilities;	10274

(3) A description of the performance outcomes to be achieved	10275
by the board through the activities carried out under this section	10276
and the processes the board will use to track performance,	10277
consistent with rules adopted by the Director regarding such	10278
outcomes and processes and with Section 12.07 of this act;	10279

(4) A description of the timelines for implementation of the	10280
activities described in division (C)(1) of this section, and the	10281
number of low-income youth expected to be placed in summer	10282
employment opportunities, and year-round employment opportunities,	10283
respectively, by quarter;	10284

(5) Assurances that the board will report such information as	10285
the Director may require relating to fiscal, performance, and	10286
other matters that the Director determines is necessary to	10287
effectively monitor the activities carried out under this section;	10288

(6) Assurances that the board will ensure compliance with the	10289
labor standards protections described in Section 12.07 of this	10290
act.	10291

(D) The board shall submit a plan described in rules adopted	10292
by the Director to the Director not later than thirty days after	10293
the rules are adopted. The plan required under this division may	10294
be submitted in conjunction with the plan required under Section	10295
12.04 of this act.	10296

(E) The Director shall approve the plan submitted under	10297
division (D) of this section within thirty days after submission,	10298
unless the Director determines that the plan is inconsistent with	10299
the requirements of this section. If the Director has not made a	10300
determination within thirty days, the plan shall be considered	10301
approved. If the plan is disapproved, the Director may provide a	10302
reasonable period of time in which a disapproved plan may be	10303
amended and resubmitted for approval. If the plan is approved, the	10304
Director shall grant funds to the board within thirty days after	10305
such approval.	10306

(F) The funds provided under this section shall be used for	10307
both of the following:	10308

(1) To provide summer employment opportunities for low-income	10309
youth, ages sixteen through twenty-four, with direct linkages to	10310
academic and occupational learning, and may include the provision	10311
of supportive services, such as transportation or child care,	10312
necessary to enable such youth to participate;	10313

(2) To provide year-round employment opportunities, which may	10314
be combined with other activities authorized under section 129 of	10315
the "Workforce Investment Act of 1998," 112 Stat. 936, 29 U.S.C.	10316
2801, as amended, to low-income youth, ages sixteen through	10317
twenty-four, with a priority to out-of-school youth who are high	10318
school dropouts or recipients of a high school diploma or	10319
certificate of high school equivalence but who are basic skills	10320
deficient and unemployed or underemployed.	10321

(G) In administering the funds under this section, the board	10322
shall give a priority to both of the following:	10323

(1) Identifying employment opportunities that are in emerging	10324
or in-demand occupations in the local workforce investment area or	10325
in the public or nonprofit sector that meet community needs;	10326

(2) Linking year-round program participants to training and	10327
educational activities that will provide such participants an	10328
industry-recognized certificate or credential.	10329

(H) For activities funded under this section, the board shall	10330
provide such reports as the Director may require regarding the	10331
performance outcomes described in Section 12.07 of this act.	10332

Section 12.06. (A) From the Pathways Back to Work Fund the	10333
Director of Job and Family services shall award grants on a	10334
competitive basis to eligible entities to carry out work-based	10335
strategies of demonstrated effectiveness.	10336

(B) The grants awarded under this section shall be used to	10337
support strategies and activities of demonstrated effectiveness	10338
that are designed to provide unemployed, low-income adults or	10339
low-income youth with the skills that will lead to employment as	10340
part of or upon completion of participation in such activities.	10341
Such strategies and activities may include any of the following:	10342

(1) On-the-job training, registered apprenticeship programs,	10343
or other programs that combine work with skills development;	10344

(2) Sector-based training programs that have been designed to	10345
meet the specific requirements of an employer or group of	10346
employers in that sector and where employers are committed to	10347
hiring individuals upon successful completion of the training;	10348

(3) Training that supports an industry sector or an	10349
employer-based or labor-management committee industry partnership	10350
which includes a significant work-experience component;	10351

(4) Acquisition of industry-recognized credentials in a field	10352
identified by the local workforce investment area as a growth	10353
sector or demand industry in which there are likely to be	10354
significant job opportunities in the short-term;	10355

(5) Connections to immediate work opportunities, including	10356
subsidized employment opportunities, or summer employment	10357
opportunities for youth, that include concurrent skills training	10358
and other supports;	10359

(6) Career academies that provide students with the academic	10360
preparation and training, including paid internships and	10361
concurrent enrollment in community colleges or other postsecondary	10362
institutions, needed to pursue a career pathway that leads to	10363
postsecondary credentials and high-demand jobs;	10364

(7) Adult basic education and integrated basic education and	10365
training models for low-skilled adults, hosted at community	10366
colleges or at other sites, to prepare individuals for jobs that	10367
are in demand in a local area.	10368

(C) An eligible entity shall include a local chief elected	10369
official, in collaboration with the local workforce investment	10370
board for the local workforce investment area involved, which may	10371
include a partnership with such officials and boards in the region	10372
and in the state, or an entity eligible to apply for an Indian and	10373
Native American grant under section 166 of the "Workforce	10374
Investment Act of 1998," 112 Stat. 936, 29 U.S.C. 2801, as	10375
amended, and may include, in partnership with such officials,	10376
boards, and entities, any of the following:	10377

(1) Employers or employer associations;

10378

(2) Adult education providers and postsecondary educational	10379
institutions, including community colleges;	10380

(3) Community-based organizations;

10381

(4) Joint labor-management committees;

10382

(5) Work-related intermediaries;

10383

(6) Other appropriate organizations.

10384

(D) An eligible entity seeking to receive a grant under this	10385
section shall submit to the Director an application at such time,	10386
in such manner, and containing such information as the Director	10387
may require. At a minimum, the application shall do all of the	10388
following:	10389

(1) Describe the strategies and activities of demonstrated	10390
effectiveness that the eligible entities will carry out to provide	10391
unemployed, low-income adults and low-income youth with the skills	10392
that will lead to employment upon completion of participation in	10393
such activities;	10394

(2) Describe the requirements that will apply relating to the	10395
eligibility of unemployed, low-income adults or low-income youth	10396
for activities carried out under this section, which may include	10397
criteria to target assistance to particular categories of such	10398
adults and youth, such as individuals with disabilities or	10399
individuals who have exhausted all rights to unemployment	10400
compensation;	10401

(3) Describe how the strategies and activities address the	10402
needs of the target populations identified in division (D)(2) of	10403
this section and the needs of employers in the local area;	10404

(4) Describe the expected outcomes to be achieved by	10405
implementing the strategies and activities;	10406

(5) Provide evidence that the funds provided may be expended	10407
expeditiously and efficiently to implement the strategies and	10408
activities;	10409

(6) Describe how the strategies and activities will be	10410
coordinated with other federal, state, and local programs	10411
providing employment, education, and supportive activities;	10412

(7) Provide evidence of employer commitment to participate in	10413
the activities funded under this section, including identification	10414
of anticipated occupational and skill needs;	10415

(8) Provide assurances that the grant recipient will report	10416
such information as the Director may require relating to fiscal,	10417
performance, and other matters that the Director determines is	10418
necessary to effectively monitor the activities carried out under	10419
this section;	10420

(9) Provide assurances that the use of the funds provided	10421
under this section will comply with the labor standards and	10422
protections described in Section 12.07 of this act.	10423

(E) In awarding grants under this section, the Director shall	10424
give a priority to applications submitted by eligible entities	10425
from areas of high poverty and high unemployment, as defined by	10426
the Director, such as public use microdata areas as designated by	10427
the United States census bureau.	10428

(F) The Director shall administer this section in	10429
coordination with other appropriate agency heads, to ensure the	10430
effective implementation of this section.	10431

Section 12.07. (A) Activities provided with funds under	10432
Sections 12.01 to 12.07 of this act shall be subject to the	10433
requirements and restrictions, including the labor standards,	10434
described in section 181 of the "Workforce Investment Act of	10435
1998," 112 Stat. 936, 29 U.S.C. 2801, as amended, and the	10436
nondiscrimination provisions of section 188 of that Act, in	10437
addition to other applicable laws.	10438

(B) The Director of Job and Family Services may require the	10439
reporting of information relating to fiscal, performance, and	10440
other matters that the Director determines is necessary to	10441
effectively monitor the activities carried out with funds provided	10442
under Sections 12.01 to 12.07 of this act. At a minimum, grantees	10443
and subgrantees shall provide information relating to all of the	10444
following:	10445

(1) The number of individuals participating in activities	10446
with funds provided under those sections and the number of such	10447
individuals who have completed such participation;	10448

(2) The expenditures of funds provided under those sections;

10449

(3) The number of jobs created pursuant to the activities	10450
carried out under those sections;	10451

(4) The demographic characteristics of individuals	10452
participating in activities under those sections;	10453

(5) The performance outcomes of individuals participating in	10454
activities under those sections for all of the following:	10455

(a) For adults participating in activities funded under those	10456
sections, entry in unsubsidized employment, retention in	10457
unsubsidized employment, and earnings in unsubsidized employment;	10458

(b) For low-income youth participating in summer employment	10459
activities, work readiness skill attainment using an employer	10460
validated checklist, placement in or return to secondary or	10461
postsecondary education or training, or entry into unsubsidized	10462
employment;	10463

(c) For low-income youth participating in year-round	10464
employment activities, placement in or return to post-secondary	10465
education, attainment of a high school diploma or a certificate of	10466
high school equivalence, attainment of an industry-recognized	10467
credential, and entry into unsubsidized employment, retention, and	10468
earnings;	10469

(d) For unemployed, low-income adults participating in	10470
activities under Section 12.06 of this act, entry into	10471
unsubsidized employment, retention, and earnings and the	10472
attainment of industry-recognized credentials.	10473

(C) Funds provided under Sections 12.01 to 12.07 of this act	10474
shall be used only for activities that are in addition to	10475
activities that would otherwise be available in the area in the	10476
absence of such funds.	10477

(D) The Director may establish such additional requirements	10478
as the Director determines may be necessary to ensure fiscal	10479
integrity, effective monitoring, and the appropriate and prompt	10480
implementation of the activities under Sections 12.01 to 12.07 of	10481
this act.	10482

(E) The Director shall provide to the appropriate committees	10483
of the General Assembly and make available to the public the	10484
information reported pursuant to division (B) of this section.	10485

Section 13.  The property tax exemption authorized by section	10486
5709.29 of the Revised Code as enacted by this act applies to tax	10487
years beginning on or after the effective date of this act.	10488

Section 14.  The amendment or repeal by this act of sections	10489
5733.46, 5733.48, 5747.01, 5747.28, 5747.29, 5747.70, 5747.75,	10490
5747.77, 5747.98, 5751.01, 5751.53, and 5751.98 of the Revised	10491
Code applies to taxable years or tax periods beginning on or after	10492
the effective date of this act.	10493

Section 15.  The amendment by this act of sections 5739.01,	10494
5739.02, 5739.025, 5739.033, 5739.051, and 5741.02 of the Revised	10495
Code applies on and after the first day of the first month that	10496
begins on or after the effective date of this act.	10497

Section 16. The General Assembly, applying the principle	10498
stated in division (B) of section 1.52 of the Revised Code that	10499
amendments are to be harmonized if reasonably capable of	10500
simultaneous operation, finds that the following sections,	10501
presented in this act as composites of the sections as amended by	10502
the acts indicated, are the resulting versions of the sections in	10503
effect prior to the effective date of the sections as presented in	10504
this act:	10505

Section 4301.20 of the Revised Code as amended by both Am.	10506
Sub. H.B. 114 and S.B. 73 of the 129th General Assembly.	10507

Section 5751.01 of the Revised Code as amended by both Am.	10508
Sub. H.B. 153 and Sub. H.B. 277 of the 129th General Assembly.	10509