As Introduced

129th General Assembly
Regular Session
2011-2012
S. B. No. 2


Senator Hughes 



A BILL
To amend sections 103.0511, 111.15, 117.20, 119.03, 1
121.39, 122.08, 122.081, 122.94, and 1710.02; to 2
enact sections 108.11, 108.12, 108.13, 108.21, 3
108.22, 108.23, 121.81, 121.82, 121.83, and 4
121.91; and to repeal section 121.24 of the 5
Revised Code to adopt a new small business rule 6
review procedure.7


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

       Section 1. That sections 103.0511, 111.15, 117.20, 119.03, 8
121.39, 122.08, 122.081, 122.94, and 1710.02 be amended and that 9
sections 108.11, 108.12, 108.13, 108.21, 108.22, 108.23, 121.81, 10
121.82, 121.83, and 121.91 of the Revised Code be enacted to read 11
as follows:12

       Sec. 103.0511.  The director of the legislative service 13
commission shall establish and maintain, and enhance and improve, 14
an electronic rule-filing system connecting:15

       (A) The legislative service commission, the joint committee 16
on agency rule review, and the secretary of state, and the office 17
of small business;18

       (B) The governor, the senate and house of representatives, 19
and the clerks of the senate and house of representatives;20

       (C) Each agency that files rules and other rule-making and 21
rule-related documents with the legislative service commission, 22
the joint committee on agency rule review, the governor, the 23
secretary of state, the office of small business, the general 24
assembly, or a committee of the senate or house of representatives 25
under section 111.15, 117.20, 119.03, 119.031, 119.032, 119.0311, 26
119.04, 121.24, 121.39, 127.18, 4141.14, 5117.02, or 5703.14 of 27
the Revised Code or any other statute;28

       (D) The several publishers of the Administrative Code; and29

       (E) The common sense initiative office; and30

       (F) Any other person or governmental officer or entity whose 31
inclusion in the system is required for the system to be a 32
complete electronic rule-filing system.33

       The electronic rule-filing system is to enable rules and 34
rule-making and rule-related documents to be filed, and official 35
responses to these filings to be made, exclusively by electronic 36
means.37

       Sec. 108.11. As used in sections 108.11 to 108.13 of the 38
Revised Code, "proposed rule" and "small business" have the 39
meanings defined in section 121.81 of the Revised Code.40

       Sections 108.11 to 108.13 and 108.21 to 108.23 of the Revised 41
Code are complementary to sections 121.81 to 121.83 of the Revised 42
Code.43

       Sec. 108.12. A proposed rule that affects small businesses 44
has an adverse impact on small businesses if a provision of the 45
proposed rule that applies to small businesses has any of the 46
following effects:47

       (A) It requires a license, permit, or any other prior 48
authorization to engage in or operate a line of business;49

       (B) It imposes a criminal penalty, a civil penalty, or 50
another sanction, or creates a cause of action, for failure to 51
comply with its terms;52

       (C) It requires the report of information as a condition of 53
compliance; or54

       (D) It otherwise requires a small business to spend time or 55
make expenditures that are not directly related to its business 56
operations.57

       Sec. 108.13. The common sense initiative office shall 58
develop, and as it becomes necessary or advisable shall improve, a 59
small business impact analysis instrument that shall be used as 60
required by law to evaluate proposed rules that might have an 61
adverse impact on small businesses. The instrument shall be in 62
writing, and shall include the following:63

       (A) Standards that encourage agencies to draft proposed 64
rules, and proposed revisions thereto, in such a manner that the 65
rules will be as easy to understand as their subject matter 66
permits;67

       (B) Performance measures that can be applied to evaluate the 68
likely efficiency and effectiveness of a proposed rule in 69
achieving its regulatory objectives;70

       (C) Standards for evaluating alternative means of regulation 71
that might reduce or eliminate the adverse impact a proposed rule 72
might have on small businesses;73

       (D) Standards that will promote transparency, predictability, 74
consistency, and flexibility in the implementation and operation 75
of a proposed rule, as well as an overall favorable balance in a 76
proposed rule between its regulatory objectives and the costs of 77
compliance it imposes on regulated persons;78

       (E) Standards that require an agency to encourage small 79
businesses that might be adversely impacted by a proposed rule to 80
participate in the rule-making process, beginning at the earliest 81
practicable stage, and that will encourage small businesses that 82
are or may be adversely impacted by a proposed rule to offer 83
advice and assistance to the agency when the proposed rule is 84
adopted and is being implemented and administered; and85

       (F) Any other standards or measures, or any other criteria, 86
the office concludes will reduce or eliminate adverse impacts on 87
small businesses and foster improved regulation and economic 88
development in the state.89

       Alternative means of regulation include, and are not limited 90
to, less stringent compliance or reporting requirements, less 91
stringent schedules or deadlines, consolidation or simplification 92
of requirements, establishment of performance standards to replace 93
operational standards, and exemption of small businesses.94

       The instrument does not need to be adopted as a rule. The 95
office shall publish the current instrument in the register of 96
Ohio.97

       Sec. 108.21. The common sense initiative office is 98
established within the office of the lieutenant governor. The 99
lieutenant governor shall organize, and as it becomes necessary or 100
advisable may re-organize, the office. The lieutenant governor 101
shall appoint professional, technical, and clerical personnel who 102
are necessary if the work of the office is to be carried out 103
efficiently and successfully. The employees are in the 104
unclassified service and serve at the pleasure of the lieutenant 105
governor. The lieutenant governor shall provide the office with 106
office space, and with furnishings, equipment, and resources, as 107
is necessary if the work of the office is to be carried out 108
efficiently and successfully. References in law authorizing or 109
requiring action by the "common sense initiative office" imply 110
action being taken by relevant personnel of the office.111

       Sec. 108.22. The common sense initiative office shall 112
establish a system through which any person may comment 113
concerning:114

       (A) The adverse impact on small businesses a proposed rule 115
might have;116

       (B) The adverse impact on small businesses that a rule 117
currently in effect is having; or118

       (C) The adverse impact on small businesses the implementation 119
or administration of a rule currently in effect is having.120

       The office shall prepare a plan for the comment system, and 121
shall revise or replace the plan to improve the comment system in 122
light of learning, experience, or technological development. The 123
office shall publish the current plan for the comment system in 124
the register of Ohio.125

       At a minimum, the plan for the comment system shall provide 126
for communication of comments as follows: The office shall accept 127
comments in writing that are delivered to the office personally, 128
by mail, or by express. The office shall establish a toll-free 129
telephone number that a person may call to offer comments. (The 130
telephone number shall be connected to a recording device at its 131
answering point.) And the office shall create a web site that 132
enables a person to offer comments electronically.133

       The office shall forward written, telephoned, and 134
electronically transmitted comments to the state agency having 135
jurisdiction over the rule. The office has no other duty with 136
regard to the comments.137

       Sec. 108.23. The common sense initiative office, in 138
consultation with the director of administrative services, shall 139
develop, and as it becomes necessary or advisable may improve, 140
customer service performance standards for state agencies and 141
their officers and employees. The office shall address the 142
standards specifically to the several state agencies as they 143
function as part of state government, and to the several positions 144
held by a state agency's officers and employees. The office shall 145
base the standards pertaining to officers and employees on the job 146
descriptions of the positions they hold in the state agency. The 147
office is not required to adopt the standards by rule.148

       The office shall reduce the standards to writing, and shall 149
transmit a copy of the standards that pertain to a state agency 150
and its officers and employees to the director or other head of 151
the state agency. The office also shall publish the current 152
standards in the register of Ohio.153

       Sec. 111.15.  (A) As used in this section:154

       (1) "Rule" includes any rule, regulation, bylaw, or standard 155
having a general and uniform operation adopted by an agency under 156
the authority of the laws governing the agency; any appendix to a 157
rule; and any internal management rule. "Rule" does not include 158
any guideline adopted pursuant to section 3301.0714 of the Revised 159
Code, any order respecting the duties of employees, any finding, 160
any determination of a question of law or fact in a matter 161
presented to an agency, or any rule promulgated pursuant to 162
Chapter 119., section 4141.14, division (C)(1) or (2) of section 163
5117.02, or section 5703.14 of the Revised Code. "Rule" includes 164
any amendment or rescission of a rule.165

       (2) "Agency" means any governmental entity of the state and 166
includes, but is not limited to, any board, department, division, 167
commission, bureau, society, council, institution, state college 168
or university, community college district, technical college 169
district, or state community college. "Agency" does not include 170
the general assembly, the controlling board, the adjutant 171
general's department, or any court.172

       (3) "Internal management rule" means any rule, regulation, 173
bylaw, or standard governing the day-to-day staff procedures and 174
operations within an agency.175

       (4) "Substantive revision" has the same meaning as in 176
division (J) of section 119.01 of the Revised Code.177

       (B)(1) Any rule, other than a rule of an emergency nature, 178
adopted by any agency pursuant to this section shall be effective 179
on the tenth day after the day on which the rule in final form and 180
in compliance with division (B)(3) of this section is filed as 181
follows:182

       (a) The rule shall be filed in electronic form with both the 183
secretary of state and the director of the legislative service 184
commission;185

       (b) The rule shall be filed in electronic form with the joint 186
committee on agency rule review. Division (B)(1)(b) of this 187
section does not apply to any rule to which division (D) of this 188
section does not apply.189

       An agency that adopts or amends a rule that is subject to 190
division (D) of this section shall assign a review date to the 191
rule that is not later than five years after its effective date. 192
If no review date is assigned to a rule, or if a review date 193
assigned to a rule exceeds the five-year maximum, the review date 194
for the rule is five years after its effective date. A rule with a 195
review date is subject to review under section 119.032 of the 196
Revised Code. This paragraph does not apply to a rule of a state 197
college or university, community college district, technical 198
college district, or state community college.199

       If all filings are not completed on the same day, the rule 200
shall be effective on the tenth day after the day on which the 201
latest filing is completed. If an agency in adopting a rule 202
designates an effective date that is later than the effective date 203
provided for by division (B)(1) of this section, the rule if filed 204
as required by such division shall become effective on the later 205
date designated by the agency.206

       Any rule that is required to be filed under division (B)(1) 207
of this section is also subject to division (D) of this section if 208
not exempted by division (D)(1), (2), (3), (4), (5), (6), (7), or 209
(8) of this section.210

       If a rule incorporates a text or other material by reference, 211
the agency shall comply with sections 121.71 to 121.76 of the 212
Revised Code.213

       (2) A rule of an emergency nature necessary for the immediate 214
preservation of the public peace, health, or safety shall state 215
the reasons for the necessity. The emergency rule, in final form 216
and in compliance with division (B)(3) of this section, shall be 217
filed in electronic form with the secretary of state, the director 218
of the legislative service commission, and the joint committee on 219
agency rule review. The emergency rule is effective immediately 220
upon completion of the latest filing, except that if the agency in 221
adopting the emergency rule designates an effective date, or date 222
and time of day, that is later than the effective date and time 223
provided for by division (B)(2) of this section, the emergency 224
rule if filed as required by such division shall become effective 225
at the later date, or later date and time of day, designated by 226
the agency.227

       An emergency rule becomes invalid at the end of the ninetieth 228
day it is in effect. Prior to that date, the agency may file the 229
emergency rule as a nonemergency rule in compliance with division 230
(B)(1) of this section. The agency may not refile the emergency 231
rule in compliance with division (B)(2) of this section so that, 232
upon the emergency rule becoming invalid under such division, the 233
emergency rule will continue in effect without interruption for 234
another ninety-day period.235

       (3) An agency shall file a rule under division (B)(1) or (2) 236
of this section in compliance with the following standards and 237
procedures:238

       (a) The rule shall be numbered in accordance with the 239
numbering system devised by the director for the Ohio 240
administrative code.241

       (b) The rule shall be prepared and submitted in compliance 242
with the rules of the legislative service commission.243

       (c) The rule shall clearly state the date on which it is to 244
be effective and the date on which it will expire, if known.245

       (d) Each rule that amends or rescinds another rule shall 246
clearly refer to the rule that is amended or rescinded. Each 247
amendment shall fully restate the rule as amended.248

       If the director of the legislative service commission or the 249
director's designee gives an agency notice pursuant to section 250
103.05 of the Revised Code that a rule filed by the agency is not 251
in compliance with the rules of the legislative service 252
commission, the agency shall within thirty days after receipt of 253
the notice conform the rule to the rules of the commission as 254
directed in the notice.255

       (C) All rules filed pursuant to divisions (B)(1)(a) and (2) 256
of this section shall be recorded by the secretary of state and 257
the director under the title of the agency adopting the rule and 258
shall be numbered according to the numbering system devised by the 259
director. The secretary of state and the director shall preserve 260
the rules in an accessible manner. Each such rule shall be a 261
public record open to public inspection and may be transmitted to 262
any law publishing company that wishes to reproduce it.263

       (D) At least sixty-five days before a board, commission, 264
department, division, or bureau of the government of the state 265
files a rule under division (B)(1) of this section, it shall file 266
the full text of the proposed rule in electronic form with the 267
joint committee on agency rule review, and the proposed rule is 268
subject to legislative review and invalidation under division (I) 269
of section 119.03 of the Revised Code. If a state board, 270
commission, department, division, or bureau makes a substantive 271
revision in a proposed rule after it is filed with the joint 272
committee, the state board, commission, department, division, or 273
bureau shall promptly file the full text of the proposed rule in 274
its revised form in electronic form with the joint committee. The 275
latest version of a proposed rule as filed with the joint 276
committee supersedes each earlier version of the text of the same 277
proposed rule. Except as provided in division (F) of this section, 278
a state board, commission, department, division, or bureau shall 279
also file the rule summary and fiscal analysis prepared under 280
section 121.24 or 127.18 of the Revised Code, or both, in 281
electronic form along with a proposed rule, and along with a 282
proposed rule in revised form, that is filed under this division. 283
And, if a proposed rule has an adverse impact on small businesses, 284
the state board, commission, department, division, or bureau also 285
shall file the small business impact analysis in electronic form 286
along with the proposed rule, or the proposed rule in revised 287
form, that is filed under this division.288

       As used in this division, "commission" includes the public 289
utilities commission when adopting rules under a federal or state 290
statute.291

       This division does not apply to any of the following:292

       (1) A proposed rule of an emergency nature;293

       (2) A rule proposed under section 1121.05, 1121.06, 1155.18, 294
1163.22, 1349.33, 1707.201, 1733.412, 4123.29, 4123.34, 4123.341, 295
4123.342, 4123.40, 4123.411, 4123.44, or 4123.442 of the Revised 296
Code;297

       (3) A rule proposed by an agency other than a board, 298
commission, department, division, or bureau of the government of 299
the state;300

       (4) A proposed internal management rule of a board, 301
commission, department, division, or bureau of the government of 302
the state;303

       (5) Any proposed rule that must be adopted verbatim by an 304
agency pursuant to federal law or rule, to become effective within 305
sixty days of adoption, in order to continue the operation of a 306
federally reimbursed program in this state, so long as the 307
proposed rule contains both of the following:308

       (a) A statement that it is proposed for the purpose of 309
complying with a federal law or rule;310

       (b) A citation to the federal law or rule that requires 311
verbatim compliance.312

       (6) An initial rule proposed by the director of health to 313
impose safety standards and quality-of-care standards with respect 314
to a health service specified in section 3702.11 of the Revised 315
Code, or an initial rule proposed by the director to impose 316
quality standards on a facility listed in division (A)(4) of 317
section 3702.30 of the Revised Code, if section 3702.12 of the 318
Revised Code requires that the rule be adopted under this section;319

       (7) A rule of the state lottery commission pertaining to 320
instant game rules.321

       If a rule is exempt from legislative review under division 322
(D)(5) of this section, and if the federal law or rule pursuant to 323
which the rule was adopted expires, is repealed or rescinded, or 324
otherwise terminates, the rule is thereafter subject to 325
legislative review under division (D) of this section.326

       (E) Whenever a state board, commission, department, division, 327
or bureau files a proposed rule or a proposed rule in revised form 328
under division (D) of this section, it shall also file the full 329
text of the same proposed rule or proposed rule in revised form in 330
electronic form with the secretary of state and the director of 331
the legislative service commission. Except as provided in division 332
(F) of this section, a state board, commission, department, 333
division, or bureau shall file the rule summary and fiscal 334
analysis prepared under section 121.24 or 127.18 of the Revised 335
Code, or both, in electronic form along with a proposed rule or 336
proposed rule in revised form that is filed with the secretary of 337
state or the director of the legislative service commission.338

       (F) Except as otherwise provided in this division, the 339
auditor of state or the auditor of state's designee is not 340
required to file a rule summary and fiscal analysis along with a 341
proposed rule, or proposed rule in revised form, that the auditor 342
of state proposes under section 117.12, 117.19, 117.38, or 117.43 343
of the Revised Code and files under division (D) or (E) of this 344
section. If, however, the auditor of state or the designee 345
prepares a rule summary and fiscal analysis of the original 346
version of such a proposed rule for purposes of complying with 347
section 121.24 of the Revised Code, the auditor of state or 348
designee shall file the rule summary and fiscal analysis in 349
electronic form along with the original version of the proposed 350
rule filed under division (D) or (E) of this section.351

       Sec. 117.20.  (A) In adopting rules pursuant to Chapter 117. 352
of the Revised Code, the auditor of state or the auditor of 353
state's designee shall do both of the following:354

       (1) Before adopting any such rule, except a rule of an 355
emergency nature, do each of the following:356

       (a) At least thirty-five days before any public hearing on 357
the proposed rule-making action, mail notice of the hearing to 358
each public office and to each statewide organization that the 359
auditor of state or designee determines will be affected or 360
represents persons who will be affected by the proposed 361
rule-making action;362

       (b) Mail a copy of the proposed rule to any person or 363
organization that requests a copy within five days after receipt 364
of the request;365

       (c) Consult with appropriate state and local government 366
agencies, or with persons representative of their interests, 367
including statewide organizations of local government officials, 368
and consult with accounting professionals and other interested 369
persons;370

       (d) Conduct, on the date and at the time and place designated 371
in the notice, a public hearing at which any person affected by 372
the proposed rule, including statewide organizations of local 373
government officials, may appear and be heard in person, by 374
attorney, or both, and may present the person's or organization's 375
position or contentions orally or in writing.376

       (2) Except as otherwise provided in division (A)(2) of this 377
section, comply with divisions (B) to (E) of section 111.15 of the 378
Revised Code. The auditor of state is not required to file a rule 379
summary and fiscal analysis along with any copy of a proposed 380
rule, or proposed rule in revised form, that is filed with the 381
joint committee on agency rule review, the secretary of state, or 382
the director of the legislative service commission under division 383
(D) or (E) of section 111.15 of the Revised Code; however, if the 384
auditor of state or the auditor of state's designee prepares a 385
rule summary and fiscal analysis of the original version of a 386
proposed rule for purposes of complying with section 121.24 of the 387
Revised Code, the auditor of state or designee shall file a copy 388
of the rule summary and fiscal analysis in electronic form along 389
with the original version of the proposed rule filed under 390
division (D) or (E) of section 111.15 of the Revised Code.391

       (B) The auditor of state shall diligently discharge the 392
duties imposed by divisions (A)(1)(a), (b), and (c) of this 393
section, but failure to mail any notice or copy of a proposed 394
rule, or to consult with any person or organization, shall not 395
invalidate any rule.396

       (C) Notwithstanding any contrary provision of the Revised 397
Code, the auditor of state may prepare and disseminate, to public 398
offices and other interested persons and organizations, advisory 399
bulletins, directives, and instructions relating to accounting and 400
financial reporting systems, budgeting procedures, fiscal 401
controls, and the constructions by the auditor of state of 402
constitutional and statutory provisions, court decisions, and 403
opinions of the attorney general. The bulletins, directives, and 404
instructions shall be of an advisory nature only.405

       (D) As used in this section, "rule" includes the adoption, 406
amendment, or rescission of a rule.407

       Sec. 119.03.  In the adoption, amendment, or rescission of 408
any rule, an agency shall comply with the following procedure:409

       (A) Reasonable public notice shall be given in the register 410
of Ohio at least thirty days prior to the date set for a hearing, 411
in the form the agency determines. The agency shall file copies of 412
the public notice under division (B) of this section. (The agency 413
gives public notice in the register of Ohio when the public notice 414
is published in the register under that division.)415

       The public notice shall include:416

       (1) A statement of the agency's intention to consider 417
adopting, amending, or rescinding a rule;418

       (2) A synopsis of the proposed rule, amendment, or rule to be 419
rescinded or a general statement of the subject matter to which 420
the proposed rule, amendment, or rescission relates;421

       (3) A statement of the reason or purpose for adopting, 422
amending, or rescinding the rule;423

       (4) The date, time, and place of a hearing on the proposed 424
action, which shall be not earlier than the thirty-first nor later 425
than the fortieth day after the proposed rule, amendment, or 426
rescission is filed under division (B) of this section.427

       In addition to public notice given in the register of Ohio, 428
the agency may give whatever other notice it reasonably considers 429
necessary to ensure notice constructively is given to all persons 430
who are subject to or affected by the proposed rule, amendment, or 431
rescission.432

       The agency shall provide a copy of the public notice required 433
under division (A) of this section to any person who requests it 434
and pays a reasonable fee, not to exceed the cost of copying and 435
mailing.436

       (B) The full text of the proposed rule, amendment, or rule to 437
be rescinded, accompanied by the public notice required under 438
division (A) of this section, shall be filed in electronic form 439
with the secretary of state and with the director of the 440
legislative service commission. (If in compliance with this 441
division an agency files more than one proposed rule, amendment, 442
or rescission at the same time, and has prepared a public notice 443
under division (A) of this section that applies to more than one 444
of the proposed rules, amendments, or rescissions, the agency 445
shall file only one notice with the secretary of state and with 446
the director for all of the proposed rules, amendments, or 447
rescissions to which the notice applies.) The proposed rule, 448
amendment, or rescission and public notice shall be filed as 449
required by this division at least sixty-five days prior to the 450
date on which the agency, in accordance with division (D) of this 451
section, issues an order adopting the proposed rule, amendment, or 452
rescission.453

       If the proposed rule, amendment, or rescission incorporates a 454
text or other material by reference, the agency shall comply with 455
sections 121.71 to 121.76 of the Revised Code.456

       The proposed rule, amendment, or rescission shall be 457
available for at least thirty days prior to the date of the 458
hearing at the office of the agency in printed or other legible 459
form without charge to any person affected by the proposal. 460
Failure to furnish such text to any person requesting it shall not 461
invalidate any action of the agency in connection therewith.462

       If the agency files a substantive revision in the text of the 463
proposed rule, amendment, or rescission under division (H) of this 464
section, it shall also promptly file the full text of the proposed 465
rule, amendment, or rescission in its revised form in electronic 466
form with the secretary of state and with the director of the 467
legislative service commission.468

       The agency shall file the rule summary and fiscal analysis 469
prepared under section 121.24 or 127.18 of the Revised Code, or 470
both, in electronic form along with a proposed rule, amendment, or 471
rescission or proposed rule, amendment, or rescission in revised 472
form that is filed with the secretary of state or the director of 473
the legislative service commission.474

       The director of the legislative service commission shall 475
publish in the register of Ohio the full text of the original and 476
each revised version of a proposed rule, amendment, or rescission; 477
the full text of a public notice; and the full text of a rule 478
summary and fiscal analysis that is filed with the director under 479
this division.480

       (C) On the date and at the time and place designated in the 481
notice, the agency shall conduct a public hearing at which any 482
person affected by the proposed action of the agency may appear 483
and be heard in person, by the person's attorney, or both, may 484
present the person's position, arguments, or contentions, orally 485
or in writing, offer and examine witnesses, and present evidence 486
tending to show that the proposed rule, amendment, or rescission, 487
if adopted or effectuated, will be unreasonable or unlawful. An 488
agency may permit persons affected by the proposed rule, 489
amendment, or rescission to present their positions, arguments, or 490
contentions in writing, not only at the hearing, but also for a 491
reasonable period before, after, or both before and after the 492
hearing. A person who presents a position or arguments or 493
contentions in writing before or after the hearing is not required 494
to appear at the hearing.495

       At the hearing, the testimony shall be recorded. Such record 496
shall be made at the expense of the agency. The agency is required 497
to transcribe a record that is not sight readable only if a person 498
requests transcription of all or part of the record and agrees to 499
reimburse the agency for the costs of the transcription. An agency 500
may require the person to pay in advance all or part of the cost 501
of the transcription.502

       In any hearing under this section the agency may administer 503
oaths or affirmations.504

       (D) After complying with divisions (A), (B), (C), and (H) of 505
this section, and when the time for legislative review and 506
invalidation under division (I) of this section has expired, the 507
agency may issue an order adopting the proposed rule or the 508
proposed amendment or rescission of the rule, consistent with the 509
synopsis or general statement included in the public notice. At 510
that time the agency shall designate the effective date of the 511
rule, amendment, or rescission, which shall not be earlier than 512
the tenth day after the rule, amendment, or rescission has been 513
filed in its final form as provided in section 119.04 of the 514
Revised Code.515

       (E) Prior to the effective date of a rule, amendment, or 516
rescission, the agency shall make a reasonable effort to inform 517
those affected by the rule, amendment, or rescission and to have 518
available for distribution to those requesting it the full text of 519
the rule as adopted or as amended.520

       (F) If the governor, upon the request of an agency, 521
determines that an emergency requires the immediate adoption, 522
amendment, or rescission of a rule, the governor shall issue an 523
order, the text of which shall be filed in electronic form with 524
the agency, the secretary of state, the director of the 525
legislative service commission, and the joint committee on agency 526
rule review, that the procedure prescribed by this section with 527
respect to the adoption, amendment, or rescission of a specified 528
rule is suspended. The agency may then adopt immediately the 529
emergency rule, amendment, or rescission and it becomes effective 530
on the date the rule, amendment, or rescission, in final form and 531
in compliance with division (A)(2) of section 119.04 of the 532
Revised Code, areis filed in electronic form with the secretary 533
of state, the director of the legislative service commission, and 534
the joint committee on agency rule review. If all filings are not 535
completed on the same day, the emergency rule, amendment, or 536
rescission shall be effective on the day on which the latest 537
filing is completed. The director shall publish the full text of 538
the emergency rule, amendment, or rescission in the register of 539
Ohio.540

       The emergency rule, amendment, or rescission shall become 541
invalid at the end of the ninetieth day it is in effect. Prior to 542
that date the agency may adopt the emergency rule, amendment, or 543
rescission as a nonemergency rule, amendment, or rescission by 544
complying with the procedure prescribed by this section for the 545
adoption, amendment, and rescission of nonemergency rules. The 546
agency shall not use the procedure of this division to readopt the 547
emergency rule, amendment, or rescission so that, upon the 548
emergency rule, amendment, or rescission becoming invalid under 549
this division, the emergency rule, amendment, or rescission will 550
continue in effect without interruption for another ninety-day 551
period, except when division (I)(2)(a) of this section prevents 552
the agency from adopting the emergency rule, amendment, or 553
rescission as a nonemergency rule, amendment, or rescission within 554
the ninety-day period.555

       This division does not apply to the adoption of any emergency 556
rule, amendment, or rescission by the tax commissioner under 557
division (C)(2) of section 5117.02 of the Revised Code.558

       (G) Rules adopted by an authority within the department of 559
job and family services for the administration or enforcement of 560
Chapter 4141. of the Revised Code or of the department of taxation 561
shall be effective without a hearing as provided by this section 562
if the statutes pertaining to such agency specifically give a 563
right of appeal to the board of tax appeals or to a higher 564
authority within the agency or to a court, and also give the 565
appellant a right to a hearing on such appeal. This division does 566
not apply to the adoption of any rule, amendment, or rescission by 567
the tax commissioner under division (C)(1) or (2) of section 568
5117.02 of the Revised Code, or deny the right to file an action 569
for declaratory judgment as provided in Chapter 2721. of the 570
Revised Code from the decision of the board of tax appeals or of 571
the higher authority within such agency.572

       (H) When any agency files a proposed rule, amendment, or 573
rescission under division (B) of this section, it shall also file 574
in electronic form with the joint committee on agency rule review 575
the full text of the proposed rule, amendment, or rule to be 576
rescinded in the same form and the public notice required under 577
division (A) of this section. (If in compliance with this division 578
an agency files more than one proposed rule, amendment, or 579
rescission at the same time, and has given a public notice under 580
division (A) of this section that applies to more than one of the 581
proposed rules, amendments, or rescissions, the agency shall file 582
only one notice with the joint committee for all of the proposed 583
rules, amendments, or rescissions to which the notice applies.) If 584
the agency makes a substantive revision in a proposed rule, 585
amendment, or rescission after it is filed with the joint 586
committee, the agency shall promptly file the full text of the 587
proposed rule, amendment, or rescission in its revised form in 588
electronic form with the joint committee. The latest version of a 589
proposed rule, amendment, or rescission as filed with the joint 590
committee supersedes each earlier version of the text of the same 591
proposed rule, amendment, or rescission. An agency shall file the 592
rule summary and fiscal analysis prepared under section 121.24 or593
127.18 of the Revised Code, or both, in electronic form along with 594
a proposed rule, amendment, or rescission, and along with a 595
proposed rule, amendment, or rescission in revised form, that is 596
filed under this division. And, if a proposed rule, amendment, or 597
rescission has an adverse impact on small businesses, the agency 598
also shall file the small business impact analysis in electronic 599
form along with the proposed rule, amendment, or rescission, or 600
along with the proposed rule, amendment, or rescission in revised 601
form, that is filed under this division.602

       This division does not apply to:603

       (1) An emergency rule, amendment, or rescission;604

       (2) Any proposed rule, amendment, or rescission that must be 605
adopted verbatim by an agency pursuant to federal law or rule, to 606
become effective within sixty days of adoption, in order to 607
continue the operation of a federally reimbursed program in this 608
state, so long as the proposed rule contains both of the 609
following:610

       (a) A statement that it is proposed for the purpose of 611
complying with a federal law or rule;612

       (b) A citation to the federal law or rule that requires 613
verbatim compliance.614

       If a rule or amendment is exempt from legislative review 615
under division (H)(2) of this section, and if the federal law or 616
rule pursuant to which the rule or amendment was adopted expires, 617
is repealed or rescinded, or otherwise terminates, the rule or 618
amendment, or its rescission, is thereafter subject to legislative 619
review under division (H) of this section.620

       (I)(1) The joint committee on agency rule review may 621
recommend the adoption of a concurrent resolution invalidating a 622
proposed rule, amendment, rescission, or part thereof if it finds 623
any of the following:624

       (a) That the rule-making agency has exceeded the scope of its 625
statutory authority in proposing the rule, amendment, or 626
rescission;627

       (b) That the proposed rule, amendment, or rescission 628
conflicts with another rule, amendment, or rescission adopted by 629
the same or a different rule-making agency;630

       (c) That the proposed rule, amendment, or rescission 631
conflicts with the legislative intent in enacting the statute 632
under which the rule-making agency proposed the rule, amendment, 633
or rescission;634

       (d) That the rule-making agency has failed to prepare a 635
complete and accurate rule summary and fiscal analysis of the 636
proposed rule, amendment, or rescission as required by section637
121.24 or 127.18 of the Revised Code, or both, or that;638

       (e) That the proposed rule, amendment, or rescission 639
incorporates a text or other material by reference and either the 640
rule-making agency has failed to file the text or other material 641
incorporated by reference as required by section 121.73 of the 642
Revised Code or, in the case of a proposed rule or amendment, the 643
incorporation by reference fails to meet the standards stated in 644
section 121.72, 121.75, or 121.76 of the Revised Code;645

       (f) That the rule-making agency has failed to demonstrate 646
that the regulatory intent of the proposed rule, amendment, or 647
rescission outweighs its adverse impact on small businesses in 648
this state.649

       The joint committee shall not hold its public hearing on a 650
proposed rule, amendment, or rescission earlier than the 651
forty-first day after the original version of the proposed rule, 652
amendment, or rescission was filed with the joint committee.653

       The house of representatives and senate may adopt a 654
concurrent resolution invalidating a proposed rule, amendment, 655
rescission, or part thereof. The concurrent resolution shall state 656
which of the specific rules, amendments, rescissions, or parts 657
thereof are invalidated. A concurrent resolution invalidating a 658
proposed rule, amendment, or rescission shall be adopted not later 659
than the sixty-fifth day after the original version of the text of 660
the proposed rule, amendment, or rescission is filed with the 661
joint committee, except that if more than thirty-five days after 662
the original version is filed the rule-making agency either files 663
a revised version of the text of the proposed rule, amendment, or 664
rescission, or revises the rule summary and fiscal analysis in 665
accordance with division (I)(4) of this section, a concurrent 666
resolution invalidating the proposed rule, amendment, or 667
rescission shall be adopted not later than the thirtieth day after 668
the revised version of the proposed rule or rule summary and 669
fiscal analysis is filed. If, after the joint committee on agency 670
rule review recommends the adoption of a concurrent resolution 671
invalidating a proposed rule, amendment, rescission, or part 672
thereof, the house of representatives or senate does not, within 673
the time remaining for adoption of the concurrent resolution, hold 674
five floor sessions at which its journal records a roll call vote 675
disclosing a sufficient number of members in attendance to pass a 676
bill, the time within which that house may adopt the concurrent 677
resolution is extended until it has held five such floor sessions.678

       Within five days after the adoption of a concurrent 679
resolution invalidating a proposed rule, amendment, rescission, or 680
part thereof, the clerk of the senate shall send the rule-making 681
agency, the secretary of state, and the director of the 682
legislative service commission in electronic form a certified text 683
of the resolution together with a certification stating the date 684
on which the resolution takes effect. The secretary of state and 685
the director of the legislative service commission shall each note 686
the invalidity of the proposed rule, amendment, rescission, or 687
part thereof, and shall each remove the invalid proposed rule, 688
amendment, rescission, or part thereof from the file of proposed 689
rules. The rule-making agency shall not proceed to adopt in 690
accordance with division (D) of this section, or to file in 691
accordance with division (B)(1) of section 111.15 of the Revised 692
Code, any version of a proposed rule, amendment, rescission, or 693
part thereof that has been invalidated by concurrent resolution.694

       Unless the house of representatives and senate adopt a 695
concurrent resolution invalidating a proposed rule, amendment, 696
rescission, or part thereof within the time specified by this 697
division, the rule-making agency may proceed to adopt in 698
accordance with division (D) of this section, or to file in 699
accordance with division (B)(1) of section 111.15 of the Revised 700
Code, the latest version of the proposed rule, amendment, or 701
rescission as filed with the joint committee. If by concurrent 702
resolution certain of the rules, amendments, rescissions, or parts 703
thereof are specifically invalidated, the rule-making agency may 704
proceed to adopt, in accordance with division (D) of this section, 705
or to file in accordance with division (B)(1) of section 111.15 of 706
the Revised Code, the latest version of the proposed rules, 707
amendments, rescissions, or parts thereof as filed with the joint 708
committee that are not specifically invalidated. The rule-making 709
agency may not revise or amend any proposed rule, amendment, 710
rescission, or part thereof that has not been invalidated except 711
as provided in this chapter or in section 111.15 of the Revised 712
Code.713

       (2)(a) A proposed rule, amendment, or rescission that is 714
filed with the joint committee under division (H) of this section 715
or division (D) of section 111.15 of the Revised Code shall be 716
carried over for legislative review to the next succeeding regular 717
session of the general assembly if the original or any revised 718
version of the proposed rule, amendment, or rescission is filed 719
with the joint committee on or after the first day of December of 720
any year.721

       (b) The latest version of any proposed rule, amendment, or 722
rescission that is subject to division (I)(2)(a) of this section, 723
as filed with the joint committee, is subject to legislative 724
review and invalidation in the next succeeding regular session of 725
the general assembly in the same manner as if it were the original 726
version of a proposed rule, amendment, or rescission that had been 727
filed with the joint committee for the first time on the first day 728
of the session. A rule-making agency shall not adopt in accordance 729
with division (D) of this section, or file in accordance with 730
division (B)(1) of section 111.15 of the Revised Code, any version 731
of a proposed rule, amendment, or rescission that is subject to 732
division (I)(2)(a) of this section until the time for legislative 733
review and invalidation, as contemplated by division (I)(2)(b) of 734
this section, has expired.735

       (3) Invalidation of any version of a proposed rule, 736
amendment, rescission, or part thereof by concurrent resolution 737
shall prevent the rule-making agency from instituting or 738
continuing proceedings to adopt any version of the same proposed 739
rule, amendment, rescission, or part thereof for the duration of 740
the general assembly that invalidated the proposed rule, 741
amendment, rescission, or part thereof unless the same general 742
assembly adopts a concurrent resolution permitting the rule-making 743
agency to institute or continue such proceedings.744

       The failure of the general assembly to invalidate a proposed 745
rule, amendment, rescission, or part thereof under this section 746
shall not be construed as a ratification of the lawfulness or 747
reasonableness of the proposed rule, amendment, rescission, or any 748
part thereof or of the validity of the procedure by which the 749
proposed rule, amendment, rescission, or any part thereof was 750
proposed or adopted.751

       (4) In lieu of recommending a concurrent resolution to 752
invalidate a proposed rule, amendment, rescission, or part thereof 753
because the rule-making agency has failed to prepare a complete 754
and accurate fiscal analysis, the joint committee on agency rule 755
review may issue, on a one-time basis, for rules, amendments, 756
rescissions, or parts thereof that have a fiscal effect on school 757
districts, counties, townships, or municipal corporations, a 758
finding that the rule summary and fiscal analysis is incomplete or 759
inaccurate and order the rule-making agency to revise the rule 760
summary and fiscal analysis and refile it with the proposed rule, 761
amendment, rescission, or part thereof. If an emergency rule is 762
filed as a nonemergency rule before the end of the ninetieth day 763
of the emergency rule's effectiveness, and the joint committee 764
issues a finding and orders the rule-making agency to refile under 765
division (I)(4) of this section, the governor may also issue an 766
order stating that the emergency rule shall remain in effect for 767
an additional sixty days after the ninetieth day of the emergency 768
rule's effectiveness. The governor's orders shall be filed in 769
accordance with division (F) of this section. The joint committee 770
shall send in electronic form to the rule-making agency, the 771
secretary of state, and the director of the legislative service 772
commission a certified text of the finding and order to revise the 773
rule summary and fiscal analysis, which shall take immediate 774
effect.775

       An order issued under division (I)(4) of this section shall 776
prevent the rule-making agency from instituting or continuing 777
proceedings to adopt any version of the proposed rule, amendment, 778
rescission, or part thereof until the rule-making agency revises 779
the rule summary and fiscal analysis and refiles it in electronic 780
form with the joint committee along with the proposed rule, 781
amendment, rescission, or part thereof. If the joint committee 782
finds the rule summary and fiscal analysis to be complete and 783
accurate, the joint committee shall issue a new order noting that 784
the rule-making agency has revised and refiled a complete and 785
accurate rule summary and fiscal analysis. The joint committee 786
shall send in electronic form to the rule-making agency, the 787
secretary of state, and the director of the legislative service 788
commission a certified text of this new order. The secretary of 789
state and the director of the legislative service commission shall 790
each link this order to the proposed rule, amendment, rescission, 791
or part thereof. The rule-making agency may then proceed to adopt 792
in accordance with division (D) of this section, or to file in 793
accordance with division (B)(1) of section 111.15 of the Revised 794
Code, the proposed rule, amendment, rescission, or part thereof 795
that was subject to the finding and order under division (I)(4) of 796
this section. If the joint committee determines that the revised 797
rule summary and fiscal analysis is still inaccurate or 798
incomplete, the joint committee shall recommend the adoption of a 799
concurrent resolution in accordance with division (I)(1) of this 800
section.801

       Sec. 121.39.  (A) As used in this section, "environmental 802
protection" means any of the following:803

       (1) Protection of human health or safety, biological 804
resources, or natural resources by preventing, reducing, or 805
remediating the pollution or degradation of air, land, or water 806
resources or by preventing or limiting the exposure of humans, 807
animals, or plants to pollution;808

       (2) Appropriation or regulation of privately owned property 809
to preserve air, land, or water resources in a natural state or to 810
wholly or partially restore them to a natural state;811

       (3) Regulation of the collection, management, treatment, 812
reduction, storage, or disposal of solid, hazardous, radioactive, 813
or other wastes;814

       (4) Plans or programs to promote or regulate the 815
conservation, recycling, or reuse of energy, materials, or wastes.816

       (B) Except as otherwise provided in division (E) of this 817
section, when proposed legislation dealing with environmental 818
protection or containing a component dealing with environmental 819
protection is referred to a committee of the general assembly, 820
other than a committee on rules or reference, the sponsor of the 821
legislation, at the time of the first hearing of the legislation 822
before the committee, shall submit to the members of the committee 823
a written statement identifying either the documentation that is 824
the basis of the legislation or the federal requirement or 825
requirements with which the legislation is intended to comply. If 826
the legislation is not based on documentation or has not been 827
introduced to comply with a federal requirement or requirements, 828
the written statement from the sponsor shall so indicate.829

       Also at the time of the first hearing of the legislation 830
before the committee, a statewide organization that represents 831
businesses in this state and that elects its board of directors 832
may submit to the members of the committee a written estimate of 833
the costs to the regulated community in this state of complying 834
with the legislation if it is enacted.835

       At any hearing of the legislation before the committee, a 836
representative of any state agency, environmental advocacy 837
organization, or consumer advocacy organization or any private 838
citizen may present documentation containing an estimate of the 839
monetary and other costs to public health and safety and the 840
environment and to consumers and residential utility customers, 841
and the effects on property values, if the legislation is not 842
enacted.843

       (C) Until such time as the statement required under division 844
(B) of this section is submitted to the committee to which 845
proposed legislation dealing with environmental protection or 846
containing a component dealing with environmental protection was 847
referred, the legislation shall not be reported by that committee. 848
This requirement does not apply if the component dealing with 849
environmental protection is removed from the legislation or if 850
two-thirds of the members of the committee vote in favor of a 851
motion to report the proposed legislation.852

       (D) Except as otherwise provided in division (E) of this 853
section, prior to adopting a rule or an amendment proposed to a 854
rule dealing with environmental protection or containing a 855
component dealing with environmental protection, a state agency 856
shall do all of the following:857

       (1) Consult with organizations that represent political 858
subdivisions, environmental interests, business interests, and 859
other persons affected by the proposed rule or amendment;860

       (2) Consider documentation relevant to the need for, the 861
environmental benefits or consequences of, other benefits of, and 862
the technological feasibility of the proposed rule or amendment;863

       (3) Specifically identify whether the proposed rule or 864
amendment is being adopted or amended to enable the state to 865
obtain or maintain approval to administer and enforce a federal 866
environmental law or to participate in a federal environmental 867
program, whether the proposed rule or amendment is more stringent 868
than its federal counterpart, and, if the proposed rule or 869
amendment is more stringent, the rationale for not incorporating 870
its federal counterpart;871

       (4) Include with the proposed rule or amendment and the rule 872
summary and fiscal analysis required under sections 121.24 and873
section 127.18 of the Revised Code, when they are filed with the 874
joint committee on agency rule review in accordance with division 875
(D) of section 111.15 or division (H) of section 119.03 of the 876
Revised Code, one of the following in electronic form, as 877
applicable:878

       (a) The information identified under division (D)(3) of this 879
section and, if the proposed rule or amendment is more stringent 880
than its federal counterpart, as identified in that division, the 881
documentation considered under division (D)(2) of this section;882

       (b) If an amendment proposed to a rule is being adopted or 883
amended under a state statute that establishes standards with 884
which the amendment shall comply, and the proposed amendment is 885
more stringent than the rule that it is proposing to amend, the 886
documentation considered under division (D)(2) of this section;887

       (c) If division (D)(4)(a) or (b) of this section is not 888
applicable, the documentation considered under division (D)(2) of 889
this section.890

       If the agency subsequently files a revision of such a 891
proposed rule or amendment in accordance with division (D) of 892
section 111.15 or division (H) of section 119.03 of the Revised 893
Code, the revision shall be accompanied in electronic form by the 894
applicable information or documentation.895

       Division (D) of this section does not apply to any emergency 896
rule adopted under division (B)(2) of section 111.15 or division 897
(F) of section 119.03 of the Revised Code, but does apply to any 898
such rule that subsequently is adopted as a nonemergency rule 899
under either of those divisions.900

       The information or documentation submitted under division 901
(D)(4) of this section may be in the form of a summary or index of 902
available knowledge or information and shall consist of or be 903
based upon the best available generally accepted knowledge or 904
information in the appropriate fields, as determined by the agency 905
that prepared the documentation.906

       (E) The statement required under division (B) and the 907
information or documentation required under division (D) of this 908
section need not be prepared or submitted with regard to a 909
proposed statute or rule, or an amendment to a rule, if the 910
statute, rule, or amendment is procedural or budgetary in nature, 911
or governs the organization or operation of a state agency, and 912
will not affect the substantive rights or obligations of any 913
person other than a state agency or an employee or contractor of a 914
state agency.915

       (F) The insufficiency, incompleteness, or inadequacy of a 916
statement, information, documentation, or a summary of information 917
or documentation provided in accordance with division (B) or (D) 918
of this section shall not be grounds for invalidation of any 919
statute, rule, or amendment to a rule.920

       (G) This section applies only to the following:921

       (1) Legislation and components of legislation dealing with 922
environmental protection that are introduced in the general 923
assembly after March 5, 1996;924

       (2) Rules and rule amendments dealing with environmental 925
protection that are filed with the joint committee on agency rule 926
review in accordance with division (D) of section 111.15 or 927
division (H) of section 119.03 of the Revised Code after March 5, 928
1996.929

       Sec. 121.81. As used in sections 121.81 to 121.83 of the 930
Revised Code:931

       (A) "Agency" means a state agency that is required to file 932
proposed rules for legislative review under division (D) of 933
section 111.15 or division (H) of section 119.03 of the Revised 934
Code.935

       (B) "Proposed rule" means a proposed amendment, adoption, or 936
rescission of a rule, and includes a proposed amendment, adoption, 937
or rescission of a rule in both its original and any revised form. 938
"Proposed rule" does not include an emergency rule adopted under 939
division (B)(2) of section 111.15 or division (F) of section 940
119.03 of the Revised Code, but does include a rule that is 941
proposed to replace an emergency rule that expires under those 942
divisions.943

       (C) "Small business" means an independently owned and 944
operated business entity, including affiliates, that has fewer 945
than five hundred full time employees or gross annual sales of 946
less than six million dollars, and the principal location of which 947
is located in the state.948

       Sections 121.81 to 121.83 and 121.91 of the Revised Code are 949
complementary to sections 108.11 to 108.13 and 108.21 to 108.23 of 950
the Revised Code.951

       Sec. 121.82.  In the course of developing a rule that is 952
intended to be proposed under division (D) of section 111.15 or 953
division (H) of section 119.03 of the Revised Code, an agency 954
shall:955

       (A) Evaluate the proposed rule against the small business 956
impact analysis instrument and incorporate features into the 957
proposed rule that will eliminate or adequately reduce any adverse 958
impact the proposed rule might have on small businesses; and959

       (B) Prepare a small business impact analysis that describes 960
its evaluation of the proposed rule against the small business 961
impact analysis instrument, that identifies any features that were 962
incorporated into the proposed rule as a result of the evaluation, 963
and that explains how those features, if there were any, eliminate 964
or adequately reduce any adverse impact the proposed rule might 965
have on small businesses.966

       Sec. 121.83.  (A) When an agency files a proposed rule for 967
legislative review under division (D) of section 111.15 of the 968
Revised Code or division (H) of section 119.03 of the Revised 969
Code, the agency electronically shall file one copy of the small 970
business impact analysis along with the proposed rule.971

       The joint committee on agency rule review does not have 972
jurisdiction to review, and shall reject, the filing of a proposed 973
rule if, at any time while the proposed rule is in its possession, 974
it discovers that the proposed rule might have an adverse impact 975
on small businesses and the agency has not included with the 976
filing a small business impact analysis or has included a small 977
business impact analysis that is inadequately prepared. The joint 978
committee electronically shall return a filing that is rejected to 979
the agency. Such a rejection does not preclude the agency from 980
refiling the proposed rule after complying with section 121.82 of 981
the Revised Code. When a filing is rejected under this division, 982
it is as if the filing had not been made.983

       Sec. 121.91.  A state agency, and its officers and employees, 984
shall comply with the customer service performance standards that 985
have been developed by the common sense initiative office and that 986
apply to the state agency and its officers and employees. A state 987
agency's compliance with the standards shall be evaluated, by the 988
director of budget and management and the committees of the senate 989
and house of representatives having jurisdiction over the state 990
operating budget, as part of the consideration of its biennial 991
budget. (If the evaluation is of the office of budget and 992
management, evaluation by the committees is sufficient.) An 993
officer's or employee's compliance with the standards shall be 994
evaluated as part of the officer's or employee's periodic 995
performance reviews. And a state agency's and its officer's and 996
employee's compliance with the standards may be evaluated as part 997
of any performance audit of the state agency. 998

       Sec. 122.08.  (A) There is hereby created within the 999
department of development an office to be known as the office of 1000
small business. The office shall be under the supervision of a 1001
manager appointed by the director of development.1002

       (B) The office shall do all of the following:1003

       (1) Act as liaison between the small business community and 1004
state governmental agencies;1005

       (2) Furnish information and technical assistance to persons 1006
and small businesses concerning the establishment and maintenance 1007
of a small business, and concerning state laws and rules relevant 1008
to the operation of a small business. In conjunction with these 1009
duties, the office shall keep a record of all proposed and 1010
currently effective state agency rules affecting individuals,1011
small businesses, or small organizations, as defined in section 1012
121.24 of the Revised Code, and may testify before the joint 1013
committee on agency rule review concerning any proposed rule 1014
affecting individuals, small businesses, or small organizations.1015

       (3) Prepare and publish the small business register under 1016
section 122.081 of the Revised Code;1017

       (4) Receive complaints from small businesses concerning 1018
governmental activity, compile and analyze those complaints, and 1019
periodically make recommendations to the governor and the general 1020
assembly on changes in state laws or agency rules needed to 1021
eliminate burdensome and unproductive governmental regulation to 1022
improve the economic climate within which small businesses 1023
operate;1024

       (5) Receive complaints or questions from small businesses and 1025
direct those businesses to the appropriate governmental agency. 1026
If, within a reasonable period of time, a complaint is not 1027
satisfactorily resolved or a question is not satisfactorily 1028
answered, the office shall, on behalf of the small business, make 1029
every effort to secure a satisfactory result. For this purpose, 1030
the office may consult with any state governmental agency and may 1031
make any suggestion or request that seems appropriate.1032

       (6) Utilize, to the maximum extent possible, the printed and 1033
electronic media to disseminate information of current concern and 1034
interest to the small business community and to make known to 1035
small businesses the services available through the office. The 1036
office shall publish such books, pamphlets, and other printed 1037
materials, and shall participate in such trade association 1038
meetings, conventions, fairs, and other meetings involving the 1039
small business community, as the manager considers appropriate.1040

       (7) Prepare for inclusion in the department of development's 1041
annual report to the governor and general assembly, a description 1042
of the activities of the office and a report of the number of 1043
rules affecting individuals, small businesses, and small 1044
organizations that were filed withrecorded by the office under 1045
division (B)(2) of section 121.24 of the Revised Code, during the 1046
preceding calendar year;1047

       (8) Operate the Ohio first-stop business connection to assist 1048
individuals in identifying and preparing applications for business 1049
licenses, permits, and certificates and to serve as the central 1050
public distributor for all forms, applications, and other 1051
information related to business licensing. Each state agency, 1052
board, and commission shall cooperate in providing assistance, 1053
information, and materials to enable the connection to perform its 1054
duties under this division.1055

       (C) The office may, upon the request of a state agency, 1056
assist the agency with the preparation of any rule that will 1057
affect individuals, small businesses, or small organizations.1058

       (D) The director of development shall assign employees and 1059
furnish equipment and supplies to the office as the director 1060
considers necessary for the proper performance of the duties 1061
assigned to the office.1062

       Sec. 122.081.  (A) The office of small business in the 1063
department of development shall prepare and publish a "small 1064
business register" or contract with any person as provided in this 1065
section to prepare and publish the register. The small business 1066
register shall contain the following information regarding each 1067
proposed rule filed withrecorded by the office of small business 1068
under division (B)(2) of section 121.24 of the Revised Code:1069

       (1) The title and administrative code rule number of the 1070
proposed rule;1071

       (2) A brief summary of the proposed rule;1072

       (3) The date on which the proposed rule was filed with1073
recorded by the office of small business under division (B)(2) of 1074
section 121.24 of the Revised Code; and1075

       (4) The name, address, and telephone number of thean1076
individual or office within the agency that proposed the rule who1077
has been designated as being responsible for complying with 1078
division (E) of section 121.24 of the Revised Code with regard to1079
can provide information about the proposed rule.1080

       (B) The small business register shall be published on a 1081
weekly basis. The information required under division (A) of this 1082
section shall be published in the register no later than two weeks 1083
after the proposed rule to which the information relates is filed 1084
withrecorded by the office of small business under division 1085
(B)(2) of section 121.24 of the Revised Code. The office of small 1086
business shall furnish the small business register, on a single 1087
copy or subscription basis, to any person who requests it and pays 1088
a single copy price or subscription rate fixed by the office. The 1089
office shall furnish the chairmenchairpersons of the standing 1090
committees of the senate and house of representatives having 1091
jurisdiction over individuals, small businesses, and small 1092
organizations with free subscriptions to the small business 1093
register.1094

       (C) Upon the request of the office of small business, the 1095
director of administrative services shall, in accordance with the 1096
competitive selection procedure of Chapter 125. of the Revised 1097
Code, let a contract for the compilation, printing, and 1098
distribution of the small business register.1099

       (D) The office of small business shall adopt, and may amend 1100
or rescind, in accordance with Chapter 119. of the Revised Code, 1101
such rules as are necessary to enable it to properly carry out 1102
this section.1103

       Sec. 122.94.  The director of the department of development 1104
shall:1105

       (A) Promulgate rules in accordance with Chapter 119. of the 1106
Revised Code for the conduct of the minority business development 1107
division's business and for carrying out the purposes of sections 1108
122.92 to 122.94 of the Revised Code;1109

       (B) Prepare an annual report to the governor and the general 1110
assembly on or before the first day of February of its activities 1111
for the preceding calendar year. In addition to the submissions 1112
required by section 101.68 of the Revised Code, the director shall 1113
submit copies of the annual report to the chairmen of the standing 1114
committees of the senate and house of representatives having 1115
jurisdiction over individuals, small businesses, and small 1116
organizations, as those terms are defined in section 121.24 of the 1117
Revised Code.1118

       Sec. 1710.02.  (A) A special improvement district may be 1119
created within the boundaries of any one municipal corporation, 1120
any one township, or any combination of contiguous municipal 1121
corporations and townships for the purpose of developing and 1122
implementing plans for public improvements and public services 1123
that benefit the district. A district may be created by petition 1124
of the owners of real property within the proposed district, or by 1125
an existing qualified nonprofit corporation. If the district is 1126
created by an existing qualified nonprofit corporation, the 1127
purposes for which the district is created may be supplemental to 1128
the other purposes for which the corporation is organized. All 1129
territory in a special improvement district shall be contiguous; 1130
except that the territory in a special improvement district may be 1131
noncontiguous if at least one special energy improvement project 1132
is designated for each parcel of real property included within the 1133
special improvement district. Additional territory may be added to 1134
a special improvement district created under this chapter for the 1135
purpose of developing and implementing plans for special energy 1136
improvement projects if at least one special energy improvement 1137
project is designated for each parcel of real property included 1138
within such additional territory and the addition of territory is 1139
authorized by the initial plan proposed under division (F) of this 1140
section or a plan adopted by the board of directors of the special 1141
improvement district under section 1710.06 of the Revised Code. 1142

       The district shall be governed by the board of trustees of a 1143
nonprofit corporation. This board shall be known as the board of 1144
directors of the special improvement district. No special 1145
improvement district shall include any church property, or 1146
property of the federal or state government or a county, township, 1147
or municipal corporation, unless the church or the county, 1148
township, or municipal corporation specifically requests in 1149
writing that the property be included within the district, or 1150
unless the church is a member of the existing qualified nonprofit 1151
corporation creating the district at the time the district is 1152
created. More than one district may be created within a 1153
participating political subdivision, but no real property may be 1154
included within more than one district unless the owner of the 1155
property files a written consent with the clerk of the legislative 1156
authority, the township fiscal officer, or the village clerk, as 1157
appropriate. The area of each district shall be contiguous; except 1158
that the area of a special improvement district may be 1159
noncontiguous if all parcels of real property included within such 1160
area contain at least one special energy improvement thereon. 1161

       (B) Except as provided in division (C) of this section, a 1162
district created under this chapter is not a political 1163
subdivision. A district created under this chapter shall be 1164
considered a public agency under section 102.01 and a public 1165
authority under section 4115.03 of the Revised Code. Each member 1166
of the board of directors of a district, each member's designee or 1167
proxy, and each officer and employee of a district shall be 1168
considered a public official or employee under section 102.01 of 1169
the Revised Code and a public official and public servant under 1170
section 2921.42 of the Revised Code. Districts created under this 1171
chapter are not subject to section 121.251sections 121.81 to 1172
121.83 of the Revised Code. Districts created under this chapter 1173
are subject to sections 121.22 and 121.23 of the Revised Code. 1174

       (C) Each district created under this chapter shall be 1175
considered a political subdivision for purposes of section 4905.34 1176
of the Revised Code. 1177

       Membership on the board of directors of the district shall 1178
not be considered as holding a public office. Directors and their 1179
designees shall be entitled to the immunities provided by Chapter 1180
1702. and to the same immunity as an employee under division 1181
(A)(6) of section 2744.03 of the Revised Code, except that 1182
directors and their designees shall not be entitled to the 1183
indemnification provided in section 2744.07 of the Revised Code 1184
unless the director or designee is an employee or official of a 1185
participating political subdivision of the district and is acting 1186
within the scope of the director's or designee's employment or 1187
official responsibilities. 1188

       District officers and district members and directors and 1189
their designees or proxies shall not be required to file a 1190
statement with the Ohio ethics commission under section 102.02 of 1191
the Revised Code. All records of the district shall be treated as 1192
public records under section 149.43 of the Revised Code, except 1193
that records of organizations contracting with a district shall 1194
not be considered to be public records under section 149.43 or 1195
section 149.431 of the Revised Code solely by reason of any 1196
contract with a district. 1197

       (D) Except as otherwise provided in this section, the 1198
nonprofit corporation that governs a district shall be organized 1199
in the manner described in Chapter 1702. of the Revised Code. 1200
Except in the case of a district created by an existing qualified 1201
nonprofit corporation, the corporation's articles of incorporation 1202
are required to be approved, as provided in division (E) of this 1203
section, by resolution of the legislative authority of each 1204
participating political subdivision of the district. A copy of 1205
that resolution shall be filed along with the articles of 1206
incorporation in the secretary of state's office. 1207

       In addition to meeting the requirements for articles of 1208
incorporation set forth in Chapter 1702. of the Revised Code, the 1209
articles of incorporation for the nonprofit corporation governing 1210
a district formed under this chapter shall provide all the 1211
following: 1212

       (1) The name for the district, which shall include the name 1213
of each participating political subdivision of the district; 1214

       (2) A description of the territory within the district, which 1215
may be all or part of each participating political subdivision. 1216
The description shall be specific enough to enable real property 1217
owners to determine if their property is located within the 1218
district. 1219

       (3) A description of the procedure by which the articles of 1220
incorporation may be amended. The procedure shall include 1221
receiving approval of the amendment, by resolution, from the 1222
legislative authority of each participating political subdivision 1223
and filing the approved amendment and resolution with the 1224
secretary of state. 1225

       (4) The reasons for creating the district, plus an 1226
explanation of how the district will be conducive to the public 1227
health, safety, peace, convenience, and welfare of the district. 1228

       (E) The articles of incorporation for a nonprofit corporation 1229
governing a district created under this chapter and amendments to 1230
them shall be submitted to the municipal executive, if any, and 1231
the legislative authority of each municipal corporation or 1232
township in which the proposed district is to be located. Except 1233
in the case of a district created by an existing qualified 1234
nonprofit corporation, the articles or amendments shall be 1235
accompanied by a petition signed either by the owners of at least 1236
sixty per cent of the front footage of all real property located 1237
in the proposed district that abuts upon any street, alley, public 1238
road, place, boulevard, parkway, park entrance, easement, or other 1239
existing public improvement within the proposed district, 1240
excluding church property or property owned by the state, county, 1241
township, municipal, or federal government, unless a church, 1242
county, township, or municipal corporation has specifically 1243
requested in writing that the property be included in the 1244
district, or by the owners of at least seventy-five per cent of 1245
the area of all real property located within the proposed 1246
district, excluding church property or property owned by the 1247
state, county, township, municipal, or federal government, unless 1248
a church, county, township, or municipal corporation has 1249
specifically requested in writing that the property be included in 1250
the district. Pursuant to Section 2o of Article VIII, Ohio 1251
Constitution, the petition required under this division may be for 1252
the purpose of developing and implementing plans for special 1253
energy improvement projects, and, in such case, is determined to 1254
be in furtherance of the purposes set forth in Section 2o of 1255
Article VIII, Ohio Constitution. If a special improvement district 1256
is being created under this chapter for the purpose of developing 1257
and implementing plans for special energy improvement projects, 1258
the petition required under this division shall be signed by one 1259
hundred per cent of the owners of the area of all real property 1260
located within the proposed special improvement district, at least 1261
one special energy improvement project shall be designated for 1262
each parcel of real property within the special improvement 1263
district, and the special improvement district may include any 1264
number of parcels of real property as determined by the 1265
legislative authority of each participating political subdivision 1266
in which the proposed special improvement district is to be 1267
located. For purposes of determining compliance with these 1268
requirements, the area of the district, or the front footage and 1269
ownership of property, shall be as shown in the most current 1270
records available at the county recorder's office and the county 1271
engineer's office sixty days prior to the date on which the 1272
petition is filed. 1273

       Each municipal corporation or township with which the 1274
petition is filed has sixty days to approve or disapprove, by 1275
resolution, the petition, including the articles of incorporation. 1276
In the case of a district created by an existing qualified 1277
nonprofit corporation, each municipal corporation or township has 1278
sixty days to approve or disapprove the creation of the district 1279
after the corporation submits the articles of incorporation or 1280
amendments thereto. This chapter does not prohibit or restrict the 1281
rights of municipal corporations under Article XVIII of the Ohio 1282
Constitution or the right of the municipal legislative authority 1283
to impose reasonable conditions in a resolution of approval. The 1284
acquisition, installation, equipping, and improvement of a special 1285
energy improvement project under this chapter shall not supersede 1286
any local zoning, environmental, or similar law or regulation. 1287

       (F) Persons proposing creation and operation of the district 1288
may propose an initial plan for public services or public 1289
improvements that benefit all or any part of the district. Any 1290
initial plan shall be submitted as part of the petition proposing 1291
creation of the district or, in the case of a district created by 1292
an existing qualified nonprofit corporation, shall be submitted 1293
with the articles of incorporation or amendments thereto. 1294

       An initial plan may include provisions for the following: 1295

       (1) Creation and operation of the district and of the 1296
nonprofit corporation to govern the district under this chapter; 1297

       (2) Hiring employees and professional services; 1298

       (3) Contracting for insurance; 1299

       (4) Purchasing or leasing office space and office equipment; 1300

       (5) Other actions necessary initially to form, operate, or 1301
organize the district and the nonprofit corporation to govern the 1302
district; 1303

       (6) A plan for public improvements or public services that 1304
benefit all or part of the district, which plan shall comply with 1305
the requirements of division (A) of section 1710.06 of the Revised 1306
Code and may include, but is not limited to, any of the permissive 1307
provisions described in the fourth sentence of that division or 1308
listed in divisions (A)(1) to (7) of that section; 1309

       (7) If the special improvement district is being created 1310
under this chapter for the purpose of developing and implementing 1311
plans for special energy improvement projects, provision for the 1312
addition of territory to the special improvement district. 1313

       After the initial plan is approved by all municipal 1314
corporations and townships to which it is submitted for approval 1315
and the district is created, each participating subdivision shall 1316
levy a special assessment within its boundaries to pay for the 1317
costs of the initial plan. The levy shall be for no more than ten 1318
years from the date of the approval of the initial plan; except 1319
that if the proceeds of the levy are to be used to pay the costs 1320
of a special energy improvement project, the levy of a special 1321
assessment shall be for no more than thirty years from the date of 1322
approval of the initial plan. In the event that additional 1323
territory is added to a special improvement district, the special 1324
assessment to be levied with respect to such additional territory 1325
shall commence not earlier than the date such territory is added 1326
and shall be for no more than thirty years from such date. For 1327
purposes of levying an assessment for this initial plan, the 1328
services or improvements included in the initial plan shall be 1329
deemed a special benefit to property owners within the district. 1330

       (G) Each nonprofit corporation governing a district under 1331
this chapter may do the following: 1332

       (1) Exercise all powers of nonprofit corporations granted 1333
under Chapter 1702. of the Revised Code that do not conflict with 1334
this chapter; 1335

       (2) Develop, adopt, revise, implement, and repeal plans for 1336
public improvements and public services for all or any part of the 1337
district; 1338

       (3) Contract with any person, political subdivision as 1339
defined in section 2744.01 of the Revised Code, or state agency as 1340
defined in section 1.60 of the Revised Code to develop and 1341
implement plans for public improvements or public services within 1342
the district; 1343

       (4) Contract and pay for insurance for the district and for 1344
directors, officers, agents, contractors, employees, or members of 1345
the district for any consequences of the implementation of any 1346
plan adopted by the district or any actions of the district. 1347

       The board of directors of a special improvement district may, 1348
acting as agent and on behalf of a participating political 1349
subdivision, sell, transfer, lease, or convey any special energy 1350
improvement project owned by the participating political 1351
subdivision upon a determination by the legislative authority 1352
thereof that the project is not required to be owned exclusively 1353
by the participating political subdivision for its purposes, for 1354
uses determined by the legislative authority thereof as those that 1355
will promote the welfare of the people of such participating 1356
political subdivision; to improve the quality of life and the 1357
general and economic well-being of the people of the participating 1358
political subdivision; better ensure the public health, safety, 1359
and welfare; protect water and other natural resources; provide 1360
for the conservation and preservation of natural and open areas 1361
and farmlands, including by making urban areas more desirable or 1362
suitable for development and revitalization; control, prevent, 1363
minimize, clean up, or mediate certain contamination of or 1364
pollution from lands in the state and water contamination or 1365
pollution; or provide for safe and natural areas and resources. 1366
The legislative authority of each participating political 1367
subdivision shall specify the consideration for such sale, 1368
transfer, lease, or conveyance and any other terms thereof. Any 1369
determinations made by a legislative authority of a participating 1370
political subdivision under this division shall be conclusive. 1371

       Any sale, transfer, lease, or conveyance of a special energy 1372
improvement project by a participating political subdivision or 1373
the board of directors of the special improvement district may be 1374
made without advertising, receipt of bids, or other competitive 1375
bidding procedures applicable to the participating political 1376
subdivision or the special improvement district under Chapter 153. 1377
or 735. or section 1710.11 of the Revised Code or other 1378
representative provisions of the Revised Code. 1379

       Section 2. That existing sections 103.0511, 111.15, 117.20, 1380
119.03, 121.39, 122.08, 122.081, 122.94, and 1710.02 of the 1381
Revised Code are repealed.1382

       Section 3. That section 121.24 of the Revised Code is 1383
repealed, effective January 1, 2012.1384

       Section 4. The amendments by this act to sections 103.0511, 1385
111.15, 117.20, 119.03, 121.39, 122.08, 122.081, 122.94, and 1386
1710.02 of the Revised Code take effect on January 1, 2012.1387

       Section 5. The enactment by this act of sections 108.11 to 1388
108.13 and 121.81 to 121.83 of the Revised Code first applies to a 1389
proposed rule, the original and any revised version of which is 1390
filed with the Joint Committee on Agency Rule Review on or after 1391
January 1, 2012. If rule-making proceedings are commenced and 1392
completed before January 1, 2012, sections 108.11 to 108.13 and 1393
121.81 to 121.83 of the Revised Code do not apply to the 1394
proceedings, and section 121.24 of the Revised Code applies to the 1395
proceedings instead. If rule-making proceedings are commenced but 1396
not completed before January 1, 2012, section 121.24 of the 1397
Revised Code applies to the original version of the proposed rule 1398
if it is filed with the Joint Committee before that date, and 1399
sections 108.11 to 108.13 and 121.81 to 121.83 of the Revised Code 1400
apply to any revised version of the proposed rule that is filed on 1401
or after that date.1402

       Section 121.24 and sections 108.11 to 108.13 and 121.81 to 1403
121.83 of the Revised Code do not apply to a proposed rule that is 1404
deemed the original version of a proposed rule by the carry-over 1405
provisions in division (I)(2) of section 119.03 of the Revised 1406
Code. Whether section 121.24 or sections 108.11 to 108.13 and 1407
121.81 to 121.83 of the Revised Code applied to such a proposed 1408
rule before its carry over, the results of that application are 1409
carried over with the proposed rule.1410

       Section 6. The Common Sense Initiative Office shall publish 1411
the first edition of the Small Business Impact Analysis Instrument 1412
in the Register of Ohio as soon as practicable after the effective 1413
date of this act but not later than October 3, 2011.1414

       Section 7. Notwithstanding the delayed effective date 1415
applying to the amendments by this act to section 103.0511 of the 1416
Revised Code, the electronic rule-filing system shall be modified 1417
to connect the Common Sense Initiative Office into the system as 1418
soon as practicable after the effective date of this act but not 1419
later than August 15, 2011.1420

       Section 8. The Lieutenant Governor shall set up the Common 1421
Sense Initiative Office and have it in operation as soon as 1422
practicable after the effective date of this act but not later 1423
than August 15, 2011.1424