As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 347

Representatives Phillips, Driehaus 

Cosponsors: Representatives Barborak, Clyde, Foley, Hagan, R., Heard, Lundy, Mallory, Ramos, Sheehy, Strahorn 

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A BILL

To amend sections 121.083, 1349.61, 4111.02, 4111.14,

1

4113.15, 4115.03, 4121.01, 4123.01, 4123.026,

2

4141.01, and 5747.01 and to enact sections 4175.01

3

to 4175.18 and 4175.99 of the Revised Code to

4

create a generally uniform definition of employee

5

for specified labor laws and to create a uniform

6

standard to determine whether an individual

7

performing services for an employer is an employee

8

of that employer.

9

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

Section 1. That sections 121.083, 1349.61, 4111.02, 4111.14,	10
4113.15, 4115.03, 4121.01, 4123.01, 4123.026, 4141.01, and 5747.01	11
be amended and sections 4175.01, 4175.02, 4175.03, 4175.04,	12
4175.05, 4175.06, 4175.07, 4175.08, 4175.09, 4175.10, 4175.11,	13
4175.12, 4175.13, 4175.14, 4175.15, 4175.16, 4175.17, 4175.18, and	14
4175.99 of the Revised Code be enacted to read as follows:	15

Sec. 121.083.  The superintendent of industrial compliance in	16
the department of commerce shall do all of the following:	17

(A) Administer and enforce the general laws of this state	18
pertaining to buildings, pressure piping, boilers, bedding,	19
upholstered furniture, and stuffed toys, steam engineering,	20
elevators, plumbing, licensed occupations regulated by the	21
department, and travel agents, as they apply to plans review,	22
inspection, code enforcement, testing, licensing, registration,	23
and certification.	24

(B) Exercise the powers and perform the duties delegated to	25
the superintendent by the director of commerce under Chapters	26
4109., 4111., and 4115., and 4175. of the Revised Code.	27

(C) Collect and collate statistics as are necessary.

28

(D) Examine and license persons who desire to act as steam	29
engineers, to operate steam boilers, and to act as inspectors of	30
steam boilers, provide for the scope, conduct, and time of such	31
examinations, provide for, regulate, and enforce the renewal and	32
revocation of such licenses, inspect and examine steam boilers and	33
make, publish, and enforce rules and orders for the construction,	34
installation, inspection, and operation of steam boilers, and do,	35
require, and enforce all things necessary to make such	36
examination, inspection, and requirement efficient.	37

(E) Rent and furnish offices as needed in cities in this	38
state for the conduct of its affairs.	39

(F) Oversee a chief of construction and compliance, a chief	40
of operations and maintenance, a chief of licensing and	41
certification, a chief of worker protection, and other designees	42
appointed by the director to perform the duties described in this	43
section.	44

(G) Enforce the rules the board of building standards adopts	45
pursuant to division (A)(2) of section 4104.43 of the Revised Code	46
under the circumstances described in division (D) of that section.	47

(H) Accept submissions, establish a fee for submissions, and	48
review submissions of certified welding and brazing procedure	49
specifications, procedure qualification records, and performance	50
qualification records for building services piping as required by	51
section 4104.44 of the Revised Code.	52

Sec. 1349.61.  (A)(1) Subject to division (C) of this	53
section, no person or entity shall sell a gift card to a purchaser	54
containing an expiration date that is less than two years after	55
the date the gift card is issued.	56

(2) No person or entity, within two years after a gift card	57
is issued, shall charge service charges or fees relative to that	58
gift card, including dormancy fees, latency fees, or	59
administrative fees, that have the effect of reducing the total	60
amount for which the holder of the gift card may redeem the gift	61
card.	62

(B) A gift card sold without an expiration date is valid	63
until redeemed or replaced with a new gift card.	64

(C) Division (A) of this section does not apply to any of the	65
following gift cards:	66

(1) A gift card that is distributed by the issuer to a	67
consumer pursuant to an awards, loyalty, or promotional program	68
without any money or anything of value being given in exchange for	69
the gift card by the consumer;	70

(2) A gift card that is sold below face value at a volume	71
discount to employers or to nonprofit and charitable organizations	72
for fundraising purposes, if the expiration date on that gift card	73
is not more than thirty days after the date of sale;	74

(3) A gift card that is sold by a nonprofit or charitable	75
organization for fundraising purposes;	76

(4) A gift card that an employer gives to an employee if use	77
of the gift card is limited to the employer's business	78
establishment, which may include a group of merchants that are	79
affiliated with that business establishment;	80

(5) A gift certificate issued in accordance with section	81
1533.131 of the Revised Code that may be used to obtain hunting	82
and fishing licenses, fur taker, special deer, and special wild	83
turkey permits, and wetlands habitat stamps;	84

(6) A gift card that is usable with multiple, unaffiliated	85
sellers of goods or services;	86

(7) A gift card that an employer issues to an employee in	87
recognition of services performed by the employee.	88

(D) Whoever violates division (A)(2) of this section is	89
liable to the holder for any amount that the redemption value of	90
the gift card was reduced, any court costs incurred, and	91
reasonable attorney's fees.	92

(E) As used in this section:

93

(1) "Gift card" means a certificate, electronic card, or	94
other medium issued by a merchant that evidences the giving of	95
consideration in exchange for the right to redeem the certificate,	96
electronic card, or other medium for goods, food, services,	97
credit, or money of at least an equal value, including any	98
electronic card issued by a merchant with a monetary value where	99
the issuer has received payment for the full monetary value for	100
the future purchase or delivery of goods or services and any	101
certificate issued by a merchant where the issuer has received	102
payment for the full monetary face value of the certificate for	103
the future purchase or delivery of goods and services. "Gift card"	104
does not include a prepaid calling card used to make telephone	105
calls.	106

(2) "Employer" and "employee" havehas the same meanings	107
meaning as in section 4121.01 of the Revised Code.	108

(3) "Employee" means every person who may be required or	109
directed by any employer, in consideration of direct or indirect	110
gain or profit, to engage in any employment, or to go, or work, or	111
be at any time in any place of employment.	112

Sec. 4111.02.  Every employer, as defined in Section 34a of	113
Article II, Ohio Constitution, shall pay each of the employer's	114
employees at a wage rate of not less than the wage rate specified	115
in Section 34a of Article II, Ohio Constitution.	116

The director of commerce annually shall adjust the wage rate	117
as specified in Section 34a of Article II, Ohio Constitution.	118

As used in this section, "employee" has the same meaning as	119
in section 4111.144175.01 of the Revised Code.	120

Sec. 4111.14. (A) Pursuant to the general assembly's	121
authority to establish a minimum wage under Section 34 of Article	122
II, Ohio Constitution, this section is in implementation of	123
Section 34a of Article II, Ohio Constitution. In implementing	124
Section 34a of Article II, Ohio Constitution, the general assembly	125
hereby finds that the purpose of Section 34a of Article II, Ohio	126
Constitution, is to:	127

(1) Ensure that Ohio employees, as defined in division (B)(1)	128
of this section, are paid the wage rate required by Section 34a of	129
Article II, Ohio Constitution;	130

(2) Ensure that covered Ohio employers maintain certain	131
records that are directly related to the enforcement of the wage	132
rate requirements in Section 34a of Article II, Ohio Constitution;	133

(3) Ensure that Ohio employees who are paid the wage rate	134
required by Section 34a of Article II, Ohio Constitution, may	135
enforce their right to receive that wage rate in the manner set	136
forth in Section 34a of Article II, Ohio Constitution; and	137

(4) Protect the privacy of Ohio employees' pay and personal	138
information specified in Section 34a of Article II, Ohio	139
Constitution, by restricting an employee's access, and access by a	140
person acting on behalf of that employee, to the employee's own	141
pay and personal information.	142

(B) In accordance with Section 34a of Article II, Ohio	143
Constitution, the terms "employer," "employee," "employ," and	144
"person," and "independent contractor" have the same meanings as	145
in the "Fair Labor Standards Act of 1938," 52 Stat. 1060, 29	146
U.S.C. 203, as amended. In construing the meaning of these terms,	147
due consideration and great weight shall be given to the United	148
States department of labor's and federal courts' interpretations	149
of those terms under the Fair Labor Standards Act and its	150
regulations. As used in division (B) of this section:	151

(1), "Employeeemployee" means individuals employed in Ohio,	152
but does not mean individuals who are excluded from the definition	153
of "employee" under 29 U.S.C. 203(e) or individuals who are	154
exempted from the minimum wage requirements in 29 U.S.C. 213 and	155
from the definition of "employee" in this chapter.	156

(2) "Employ" and "employee" do not include any person acting	157
as a volunteer. In construing who is a volunteer, "volunteer"	158
shall have the same meaning as in sections 553.101 to 553.106 of	159
Title 29 of the Code of Federal Regulations, as amended, and due	160
consideration and great weight shall be given to the United States	161
department of labor's and federal courts' interpretations of the	162
term "volunteer" under the Fair Labor Standards Act and its	163
regulationshas the same meaning as in section 4175.01 of the	164
Revised Code.	165

(C) In accordance with Section 34a of Article II, Ohio	166
Constitution, the state may issue licenses to employers	167
authorizing payment of a wage below that required by Section 34a	168
of Article II, Ohio Constitution, to individuals with mental or	169
physical disabilities that may otherwise adversely affect their	170
opportunity for employment. In issuing such licenses, the state	171
shall abide by the rules adopted pursuant to section 4111.06 of	172
the Revised Code.	173

(D)(1) In accordance with Section 34a of Article II, Ohio	174
Constitution, individuals employed in or about the property of an	175
employer or an individual's residence on a casual basis are not	176
included within the coverage of Section 34a of Article II, Ohio	177
Constitution. As used in division (D) of this section:	178

(a) "Casual basis" means employment that is irregular or	179
intermittent and that is not performed by an individual whose	180
vocation is to be employed in or about the property of the	181
employer or individual's residence. In construing who is employed	182
on a "casual basis," due consideration and great weight shall be	183
given to the United States department of labor's and federal	184
courts' interpretations of the term "casual basis" under the Fair	185
Labor Standards Act and its regulations.	186

(b) "An individual employed in or about the property of an	187
employer or individual's residence" means an individual employed	188
on a casual basis or an individual employed in or about a	189
residence on a casual basis, respectively.	190

(2) In accordance with Section 34a of Article II, Ohio	191
Constitution, employees of a solely family-owned and operated	192
business who are family members of an owner are not included	193
within the coverage of Section 34a of Article II, Ohio	194
Constitution. As used in division (D)(2) of this section, "family	195
member" means a parent, spouse, child, stepchild, sibling,	196
grandparent, grandchild, or other member of an owner's immediate	197
family.	198

(E) In accordance with Section 34a of Article II, Ohio	199
Constitution, an employer shall at the time of hire provide an	200
employee with the employer's name, address, telephone number, and	201
other contact information and update such information when it	202
changes. As used in division (E) of this section:	203

(1) "Other contact information" may include, where	204
applicable, the address of the employer's internet site on the	205
world wide web, the employer's electronic mail address, fax	206
number, or the name, address, and telephone number of the	207
employer's statutory agent. "Other contact information" does not	208
include the name, address, telephone number, fax number, internet	209
site address, or electronic mail address of any employee,	210
shareholder, officer, director, supervisor, manager, or other	211
individual employed by or associated with an employer.	212

(2) "When it changes" means that the employer shall provide	213
its employees with the change in its name, address, telephone	214
number, or other contact information within sixty business days	215
after the change occurs. The employer shall provide the changed	216
information by using any of its usual methods of communicating	217
with its employees, including, but not limited to, listing the	218
change on the employer's internet site on the world wide web,	219
internal computer network, or a bulletin board where it commonly	220
posts employee communications or by insertion or inclusion with	221
employees' paychecks or pay stubs.	222

(F) In accordance with Section 34a of Article II, Ohio	223
Constitution, an employer shall maintain a record of the name,	224
address, occupation, pay rate, hours worked for each day worked,	225
and each amount paid an employee for a period of not less than	226
three years following the last date the employee was employed by	227
that employer. As used in division (F) of this section:	228

(1) "Address" means an employee's home address as maintained	229
in the employer's personnel file or personnel database for that	230
employee.	231

(2)(a) With respect to employees who are not exempt from the	232
overtime pay requirements of the Fair Labor Standards Act or this	233
chapter, "pay rate" means an employee's base rate of pay.	234

(b) With respect to employees who are exempt from the	235
overtime pay requirements of the Fair Labor Standards Act or this	236
chapter, "pay rate" means an employee's annual base salary or	237
other rate of pay by which the particular employee qualifies for	238
that exemption under the Fair Labor Standards Act or this chapter,	239
but does not include bonuses, stock options, incentives, deferred	240
compensation, or any other similar form of compensation.	241

(3) "Record" means the name, address, occupation, pay rate,	242
hours worked for each day worked, and each amount paid an employee	243
in one or more documents, databases, or other paper or electronic	244
forms of record-keeping maintained by an employer. No one	245
particular method or form of maintaining such a record or records	246
is required under this division. An employer is not required to	247
create or maintain a single record containing only the employee's	248
name, address, occupation, pay rate, hours worked for each day	249
worked, and each amount paid an employee. An employer shall	250
maintain a record or records from which the employee or person	251
acting on behalf of that employee could reasonably review the	252
information requested by the employee or person.	253

An employer is not required to maintain the records specified	254
in division (F)(3) of this section for any period before January	255
1, 2007. On and after January 1, 2007, the employer shall maintain	256
the records required by division (F)(3) of this section for three	257
years from the date the hours were worked by the employee and for	258
three years after the date the employee's employment ends.	259

(4)(a) Except for individuals specified in division (F)(4)(b)	260
of this section, "hours worked for each day worked" means the	261
total amount of time worked by an employee in whatever increments	262
the employer uses for its payroll purposes during a day worked by	263
the employee. An employer is not required to keep a record of the	264
time of day an employee begins and ends work on any given day. As	265
used in division (F)(4) of this section, "day" means a fixed	266
period of twenty-four consecutive hours during which an employee	267
performs work for an employer.	268

(b) An employer is not required to keep records of "hours	269
worked for each day worked" for individuals for whom the employer	270
is not required to keep those records under the Fair Labor	271
Standards Act and its regulations or individuals who are not	272
subject to the overtime pay requirements specified in section	273
4111.03 of the Revised Code.	274

(5) "Each amount paid an employee" means the total gross	275
wages paid to an employee for each pay period. As used in division	276
(F)(5) of this section, "pay period" means the period of time	277
designated by an employer to pay an employee the employee's gross	278
wages in accordance with the employer's payroll practices under	279
section 4113.15 of the Revised Code.	280

(G) In accordance with Section 34a of Article II, Ohio	281
Constitution, an employer must provide such information without	282
charge to an employee or person acting on behalf of an employee	283
upon request. As used in division (G) of this section:	284

(1) "Such information" means the name, address, occupation,	285
pay rate, hours worked for each day worked, and each amount paid	286
for the specific employee who has requested that specific	287
employee's own information and does not include the name, address,	288
occupation, pay rate, hours worked for each day worked, or each	289
amount paid of any other employee of the employer. "Such	290
information" does not include hours worked for each day worked by	291
individuals for whom an employer is not required to keep that	292
information under the Fair Labor Standards Act and its regulations	293
or individuals who are not subject to the overtime pay	294
requirements specified in section 4111.03 of the Revised Code.	295

(2) "Acting on behalf of an employee" means a person acting	296
on behalf of an employee as any of the following:	297

(a) The certified or legally recognized collective bargaining	298
representative for that employee under the applicable federal law	299
or Chapter 4117. of the Revised Code;	300

(b) The employee's attorney;

301

(c) The employee's parent, guardian, or legal custodian.

302

A person "acting on behalf of an employee" must be	303
specifically authorized by an employee in order to make a request	304
for that employee's own name, address, occupation, pay rate, hours	305
worked for each day worked, and each amount paid to that employee.	306

(3) "Provide" means that an employer shall provide the	307
requested information within thirty business days after the date	308
the employer receives the request, unless either of the following	309
occurs:	310

(a) The employer and the employee or person acting on behalf	311
of the employee agree to some alternative time period for	312
providing the information.	313

(b) The thirty-day period would cause a hardship on the	314
employer under the circumstances, in which case the employer must	315
provide the requested information as soon as practicable.	316

(4) A "request" made by an employee or a person acting on	317
behalf of an employee means a request by an employee or a person	318
acting on behalf of an employee for the employee's own	319
information. The employer may require that the employee provide	320
the employer with a written request that has been signed by the	321
employee and notarized and that reasonably specifies the	322
particular information being requested. The employer may require	323
that the person acting on behalf of an employee provide the	324
employer with a written request that has been signed by the	325
employee whose information is being requested and notarized and	326
that reasonably specifies the particular information being	327
requested.	328

(H) In accordance with Section 34a of Article II, Ohio	329
Constitution, an employee, person acting on behalf of one or more	330
employees, and any other interested party may file a complaint	331
with the state for a violation of any provision of Section 34a of	332
Article II, Ohio Constitution, or any law or regulation	333
implementing its provisions. Such complaint shall be promptly	334
investigated and resolved by the state. The employee's name shall	335
be kept confidential unless disclosure is necessary to resolution	336
of a complaint and the employee consents to disclosure. As used in	337
division (H) of this section:	338

(1) "Complaint" means a complaint of an alleged violation	339
pertaining to harm suffered by the employee filing the complaint,	340
by a person acting on behalf of one or more employees, or by an	341
interested party.	342

(2) "Acting on behalf of one or more employees" has the same	343
meaning as "acting on behalf of an employee" in division (G)(2) of	344
this section. Each employee must provide a separate written and	345
notarized authorization before the person acting on that	346
employee's or those employees' behalf may request the name,	347
address, occupation, pay rate, hours worked for each day worked,	348
and each amount paid for the particular employee.	349

(3) "Interested party" means a party who alleges to be	350
injured by the alleged violation and who has standing to file a	351
complaint under common law principles of standing.	352

(4) "Resolved by the state" means that the complaint has been	353
resolved to the satisfaction of the state.	354

(5) "Shall be kept confidential" means that the state shall	355
keep the name of the employee confidential as required by division	356
(H) of this section.	357

(I) In accordance with Section 34a of Article II, Ohio	358
Constitution, the state may on its own initiative investigate an	359
employer's compliance with Section 34a of Article II, Ohio	360
Constitution, and any law or regulation implementing Section 34a	361
of Article II, Ohio Constitution. The employer shall make	362
available to the state any records related to such investigation	363
and other information required for enforcement of Section 34a of	364
Article II, Ohio Constitution or any law or regulation	365
implementing Section 34a of Article II, Ohio Constitution. The	366
state shall investigate an employer's compliance with this section	367
in accordance with the procedures described in section 4111.04 of	368
the Revised Code. All records and information related to	369
investigations by the state are confidential and are not a public	370
record subject to section 149.43 of the Revised Code. This	371
division does not prevent the state from releasing to or	372
exchanging with other state and federal wage and hour regulatory	373
authorities information related to investigations.	374

(J) In accordance with Section 34a of Article II, Ohio	375
Constitution, damages shall be calculated as an additional two	376
times the amount of the back wages and in the case of a violation	377
of an anti-retaliation provision an amount set by the state or	378
court sufficient to compensate the employee and deter future	379
violations, but not less than one hundred fifty dollars for each	380
day that the violation continued. The "not less than one hundred	381
fifty dollar" penalty specified in division (J) of this section	382
shall be imposed only for violations of the anti-retaliation	383
provision in Section 34a of Article II, Ohio Constitution.	384

(K) In accordance with Section 34a of Article II, Ohio	385
Constitution, an action for equitable and monetary relief may be	386
brought against an employer by the attorney general and/or an	387
employee or person acting on behalf of an employee or all	388
similarly situated employees in any court of competent	389
jurisdiction, including the court of common pleas of an employee's	390
county of residence, for any violation of Section 34a of Article	391
II, Ohio Constitution, or any law or regulation implementing its	392
provisions within three years of the violation or of when the	393
violation ceased if it was of a continuing nature, or within one	394
year after notification to the employee of final disposition by	395
the state of a complaint for the same violation, whichever is	396
later.	397

(1) As used in division (K) of this section, "notification"	398
means the date on which the notice was sent to the employee by the	399
state.	400

(2) No employee shall join as a party plaintiff in any civil	401
action that is brought under division (K) of this section by an	402
employee, person acting on behalf of an employee, or person acting	403
on behalf of all similarly situated employees unless that employee	404
first gives written consent to become such a party plaintiff and	405
that consent is filed with the court in which the action is	406
brought.	407

(3) A civil action regarding an alleged violation of this	408
section shall be maintained only under division (K) of this	409
section. This division does not preclude the joinder in a single	410
civil action of an action under this division and an action under	411
section 4111.10 of the Revised Code.	412

(4) Any agreement between an employee and employer to work	413
for less than the wage rate specified in Section 34a of Article	414
II, Ohio Constitution, is no defense to an action under this	415
section.	416

(L) In accordance with Section 34a of Article II, Ohio	417
Constitution, there shall be no exhaustion requirement, no	418
procedural, pleading, or burden of proof requirements beyond those	419
that apply generally to civil suits in order to maintain such	420
action and no liability for costs or attorney's fees on an	421
employee except upon a finding that such action was frivolous in	422
accordance with the same standards that apply generally in civil	423
suits. Nothing in division (L) of this section affects the right	424
of an employer and employee to agree to submit a dispute under	425
this section to alternative dispute resolution, including, but not	426
limited to, arbitration, in lieu of maintaining the civil suit	427
specified in division (K) of this section. Nothing in this	428
division limits the state's ability to investigate or enforce this	429
section.	430

(M) An employer who provides such information specified in	431
Section 34a of Article II, Ohio Constitution, shall be immune from	432
any civil liability for injury, death, or loss to person or	433
property that otherwise might be incurred or imposed as a result	434
of providing that information to an employee or person acting on	435
behalf of an employee in response to a request by the employee or	436
person, and the employer shall not be subject to the provisions of	437
Chapters 1347. and 1349. of the Revised Code to the extent that	438
such provisions would otherwise apply. As used in division (M) of	439
this section, "such information," "acting on behalf of an	440
employee," and "request" have the same meanings as in division (G)	441
of this section.	442

(N) As used in this section, "the state" means the director	443
of commerce.	444

Sec. 4113.15.  (A) Every individual, firm, partnership,	445
association, or corporation doing business in this state shall, on	446
or before the first day of each month, pay all its employees the	447
wages earned by them during the first half of the preceding month	448
ending with the fifteenth day thereof, and shall, on or before the	449
fifteenth day of each month, pay such employees the wages earned	450
by them during the last half of the preceding calendar month. If	451
at any time of payment an employee is absent from histhe	452
employee's regular place of labor and does not receive histhe	453
employee's wages through an authorized representative, such person	454
shall be entitled to said payment at any time thereafter upon	455
demand upon the proper paymaster at the place where such wages are	456
usually paid and where such pay is due. This section does not	457
prohibit the daily or weekly payment of wages. Theor the use of a	458
longer time lapse that is customary to a given trade, profession	459
or occupation, or establishment of a different time lapse by	460
written contract or by operation of law.	461

(B) Where wages remain unpaid for thirty days beyond the	462
regularly scheduled payday or, in the case where no regularly	463
scheduled payday is applicable, for sixty days beyond the filing	464
by the employee of a claim or for sixty days beyond the date of	465
the agreement, award, or other act making wages payable and no	466
contest court order or dispute of any wage claim including the	467
assertion of a counterclaim exists accounting for nonpayment, the	468
employer, in addition, as liquidated damages, is liable to the	469
employee in an amount equal to six per cent of the amount of the	470
claim still unpaid and not in contest or disputed or two hundred	471
dollars, whichever is greater.	472

(C) In the absence of a contest, court order or dispute, an	473
employer who is party to an agreement to pay or provide fringe	474
benefits to an employee or to make any employee authorized	475
deduction becomes a trustee of any funds required by such	476
agreement to be paid to any person, organization, or governmental	477
agency from the time that the duty to make such payment arises. No	478
person shall, without reasonable justification or excuse for such	479
failure, knowingly fail or refuse to pay to the appropriate	480
person, organization, or governmental agency the amount necessary	481
to provide the benefits or accomplish the purpose of any employee	482
authorized deduction, within thirty days after the close of the	483
pay period during which the employee earned or had deducted the	484
amount of money necessary to pay for the fringe benefit or make	485
any employee authorized deduction. A failure or refusal to pay,	486
regardless of the number of employee pay accounts involved,	487
constitutes one offense for the first delinquency of thirty days	488
and a separate offense for each successive delinquency of thirty	489
days.	490

(D) As used in this section and section 4113.16 of the	491
Revised Code:	492

(1) "Wage" means the net amount of money payable to an	493
employee, including any guaranteed pay or reimbursement for	494
expenses, less any federal, state, or local taxes withheld; any	495
deductions made pursuant to a written agreement for the purpose of	496
providing the employee with any fringe benefits; and any employee	497
authorized deduction.	498

(2) "Fringe benefits" includes but is not limited to health,	499
welfare, or retirement benefits, whether paid for entirely by the	500
employer or on the basis of a joint employer-employee	501
contribution, or vacation, separation, or holiday pay.	502

(3) "Employee authorized deduction" includes but is not	503
limited to deductions for the purpose of any of the following: (a)	504
purchase	505

(a) Purchase of United States savings bonds or corporate	506
stocks or bonds, (b) a;	507

(b) A charitable contribution, (c) credit;

508

(c) Credit union savings or other regular savings program, or	509
(d) repayment;	510

(d) Repayment of a loan or other obligation.

511

(4) "Employee" has the same meaning as in section 4175.01 of	512
the Revised Code.	513

Sec. 4115.03.  As used in sections 4115.03 to 4115.16 of the	514
Revised Code:	515

(A) "Public authority" means any officer, board, or	516
commission of the state, or any political subdivision of the	517
state, authorized to enter into a contract for the construction of	518
a public improvement or to construct the same by the direct	519
employment of labor, or any institution supported in whole or in	520
part by public funds and said sections apply to expenditures of	521
such institutions made in whole or in part from public funds.	522

(B) "Construction" means any of the following:

523

(1) Except as provided in division (B)(3) of this section,	524
any new construction of a public improvement, the total overall	525
project cost of which is fairly estimated to be more than the	526
following amounts and performed by other than full-time employees	527
who have completed their probationary periods in the classified	528
service of a public authority:	529

(a) One hundred twenty-five thousand dollars, beginning on	530
the effective date of this amendmentSeptember 29, 2011, and	531
continuing for one year thereafter;	532

(b) Two hundred thousand dollars, beginning when the time	533
period described in division (B)(1)(a) of this section expires and	534
continuing for one year thereafter;	535

(c) Two hundred fifty thousand dollars, beginning when the	536
time period described in division (B)(1)(b) of this section	537
expires.	538

(2) Except as provided in division (B)(4) of this section,	539
any reconstruction, enlargement, alteration, repair, remodeling,	540
renovation, or painting of a public improvement, the total overall	541
project cost of which is fairly estimated to be more than the	542
following amounts and performed by other than full-time employees	543
who have completed their probationary period in the classified	544
civil service of a public authority:	545

(a) Thirty-eight thousand dollars, beginning on the effective	546
date of this amendmentSeptember 29, 2011, and continuing for one	547
year thereafter;	548

(b) Sixty thousand dollars, beginning when the time period	549
described in division (B)(2)(a) of this section expires and	550
continuing for one year thereafter;	551

(c) Seventy-five thousand dollars, beginning when the time	552
period described in division (B)(2)(b) of this section expires.	553

(3) Any new construction of a public improvement that	554
involves roads, streets, alleys, sewers, ditches, and other works	555
connected to road or bridge construction, the total overall	556
project cost of which is fairly estimated to be more than	557
seventy-eight thousand two hundred fifty-eight dollars adjusted	558
biennially by the director of commerce pursuant to section	559
4115.034 of the Revised Code and performed by other than full-time	560
employees who have completed their probationary periods in the	561
classified service of a public authority;	562

(4) Any reconstruction, enlargement, alteration, repair,	563
remodeling, renovation, or painting of a public improvement that	564
involves roads, streets, alleys, sewers, ditches, and other works	565
connected to road or bridge construction, the total overall	566
project cost of which is fairly estimated to be more than	567
twenty-three thousand four hundred forty-seven dollars adjusted	568
biennially by the director of commerce pursuant to section	569
4115.034 of the Revised codeCode and performed by other than	570
full-time employees who have completed their probationary periods	571
in the classified service of a public authority.	572

(C) "Public improvement" includes all buildings, roads,	573
streets, alleys, sewers, ditches, sewage disposal plants, water	574
works, and all other structures or works constructed by a public	575
authority of the state or any political subdivision thereof or by	576
any person who, pursuant to a contract with a public authority,	577
constructs any structure for a public authority of the state or a	578
political subdivision thereof. When a public authority rents or	579
leases a newly constructed structure within six months after	580
completion of such construction, all work performed on such	581
structure to suit it for occupancy by a public authority is a	582
"public improvement." "Public improvement" does not include an	583
improvement authorized by section 1515.08 of the Revised Code that	584
is constructed pursuant to a contract with a soil and water	585
conservation district, as defined in section 1515.01 of the	586
Revised Code, or performed as a result of a petition filed	587
pursuant to Chapter 6131., 6133., or 6135. of the Revised Code,	588
wherein no less than seventy-five per cent of the project is	589
located on private land and no less than seventy-five per cent of	590
the cost of the improvement is paid for by private property owners	591
pursuant to Chapter 1515., 6131., 6133., or 6135. of the Revised	592
Code.	593

(D) "Locality" means the county wherein the physical work	594
upon any public improvement is being performed.	595

(E) "Prevailing wages" means the sum of the following:

596

(1) The basic hourly rate of pay;

597

(2) The rate of contribution irrevocably made by a contractor	598
or subcontractor to a trustee or to a third person pursuant to a	599
fund, plan, or program;	600

(3) The rate of costs to the contractor or subcontractor	601
which may be reasonably anticipated in providing the following	602
fringe benefits to laborers and mechanics pursuant to an	603
enforceable commitment to carry out a financially responsible plan	604
or program which was communicated in writing to the laborers and	605
mechanics affected:	606

(a) Medical or hospital care or insurance to provide such;

607

(b) Pensions on retirement or death or insurance to provide	608
such;	609

(c) Compensation for injuries or illnesses resulting from	610
occupational activities if it is in addition to that coverage	611
required by Chapters 4121. and 4123. of the Revised Code;	612

(d) Supplemental unemployment benefits that are in addition	613
to those required by Chapter 4141. of the Revised Code;	614

(e) Life insurance;

615

(f) Disability and sickness insurance;

616

(g) Accident insurance;

617

(h) Vacation and holiday pay;

618

(i) Defraying of costs for apprenticeship or other similar	619
training programs which are beneficial only to the laborers and	620
mechanics affected;	621

(j) Other bona fide fringe benefits.

622

None of the benefits enumerated in division (E)(3) of this	623
section may be considered in the determination of prevailing wages	624
if federal, state, or local law requires contractors or	625
subcontractors to provide any of such benefits.	626

(F) "Interested party," with respect to a particular contract	627
for construction of a public improvement, means:	628

(1) Any person who submits a bid for the purpose of securing	629
the award of the contract;	630

(2) Any person acting as a subcontractor of a person	631
described in division (F)(1) of this section;	632

(3) Any bona fide organization of labor which has as members	633
or is authorized to represent employees of a person described in	634
division (F)(1) or (2) of this section and which exists, in whole	635
or in part, for the purpose of negotiating with employers	636
concerning the wages, hours, or terms and conditions of employment	637
of employees;	638

(4) Any association having as members any of the persons	639
described in division (F)(1) or (2) of this section.	640

(G) Except as used in division (A) of this section, "officer"	641
means an individual who has an ownership interest or holds an	642
office of trust, command, or authority in a corporation, business	643
trust, partnership, or association.	644

(H) "Employee" has the same meaning as in section 4175.01 of	645
the Revised Code.	646

Sec. 4121.01.  (A) As used in sections 4121.01 to 4121.29 of	647
the Revised Code:	648

(1) "Place of employment" means every place, whether indoors	649
or out, or underground, and the premises appurtenant thereto,	650
where either temporarily or permanently any industry, trade, or	651
business is carried on, or where any process or operation,	652
directly or indirectly related to any industry, trade, or	653
business, is carried on and where any person is directly or	654
indirectly employed by another for direct or indirect gain or	655
profit, but does not include any place where persons are employed	656
in private domestic service or agricultural pursuits which do not	657
involve the use of mechanical power.	658

(2) "Employment" means any trade, occupation, or process of	659
manufacture or any method of carrying on such trade, occupation,	660
or process of manufacture in which any person may be engaged,	661
except in such private domestic service or agricultural pursuits	662
as do not involve the use of mechanical power.	663

(3) "Employer" means every person, firm, corporation, agent,	664
manager, representative, or other person having control or custody	665
of any employment, place of employment, or employee.	666

(4) "Employee" means every person who may be required or	667
directed by any employer, in consideration of direct or indirect	668
gain or profit, to engage in any employment, or to go, or work, or	669
be at any time in any place of employmenthas the same meaning as	670
in section 4175.01 of the Revised Code.	671

(5) "Frequenter" means every person, other than an employee,	672
who may go in or be in a place of employment under circumstances	673
which render the person other than a trespasser.	674

(6) "Deputy" means any person employed by the industrial	675
commission or the bureau of workers' compensation, designated as a	676
deputy by the commission or the administrator of workers'	677
compensation, who possesses special, technical, scientific,	678
managerial, professional, or personal abilities or qualities in	679
matters within the jurisdiction of the commission or the bureau,	680
and who may be engaged in the performance of duties under the	681
direction of the commission or the bureau calling for the exercise	682
of such abilities or qualities.	683

(7) "Order" means any decision, rule, regulation, direction,	684
requirement, or standard, or any other determination or decision	685
that the bureau is empowered to and does make.	686

(8) "General order" means an order that applies generally	687
throughout the state to all persons, employments, or places of	688
employment, or all persons, employments, or places of employment	689
of a class under the jurisdiction of the bureau. All other orders	690
shall be considered special orders.	691

(9) "Local order" means any ordinance, order, rule, or	692
determination of the legislative authority of any municipal	693
corporation, or any trustees, or board or officers of any	694
municipal corporation upon any matter over which the bureau has	695
jurisdiction.	696

(10) "Welfare" means comfort, decency, and moral well-being.

697

(11) "Safe" or "safety," as applied to any employment or a	698
place of employment, means such freedom from danger to the life,	699
health, safety, or welfare of employees or frequenters as the	700
nature of the employment will reasonably permit, including	701
requirements as to the hours of labor with relation to the health	702
and welfare of employees.	703

(12) "Employee organization" means any labor or bona fide	704
organization in which employees participate and that exists for	705
the purpose, in whole or in part, of dealing with employers	706
concerning grievances, labor disputes, wages, hours, terms, and	707
other conditions of employment.	708

(B) As used in the Revised Code:

709

(1) "Industrial commission" means the chairperson of the	710
three-member industrial commission created pursuant to section	711
4121.02 of the Revised Code when the context refers to the	712
authority vested in the chairperson as the chief executive officer	713
of the three-member industrial commission pursuant to divisions	714
(A), (B), (C), and (D) of section 4121.03 of the Revised Code.	715

(2) "Industrial commission" means the three-member industrial	716
commission created pursuant to section 4121.02 of the Revised Code	717
when the context refers to the authority vested in the	718
three-member industrial commission pursuant to division (E) of	719
section 4121.03 of the Revised Code.	720

(3) "Industrial commission" means the industrial commission	721
as a state agency when the context refers to the authority vested	722
in the industrial commission as a state agency.	723

Sec. 4123.01.  As used in this chapter:

724

(A)(1) "Employee" means:

725

(a) Every person in the service of the state, or of any	726
county, municipal corporation, township, or school district	727
therein, including regular members of lawfully constituted police	728
and fire departments of municipal corporations and townships,	729
whether paid or volunteer, and wherever serving within the state	730
or on temporary assignment outside thereof, and executive officers	731
of boards of education, under any appointment or contract of hire,	732
express or implied, oral or written, including any elected	733
official of the state, or of any county, municipal corporation, or	734
township, or members of boards of education.	735

As used in division (A)(1)(a) of this section, the term	736
"employee"has the same meaning as in section 4175.01 of the	737
Revised Code, except that "employee" also includes the following	738
persons when responding to an inherently dangerous situation that	739
calls for an immediate response on the part of the person,	740
regardless of whether the person is within the limits of the	741
jurisdiction of the person's regular employment or voluntary	742
service when responding, on the condition that the person responds	743
to the situation as the person otherwise would if the person were	744
on duty in the person's jurisdiction:	745

(i)(a) Off-duty peace officers. As used in division	746
(A)(1)(a)(i) of this section, "peace officer" has the same meaning	747
as in section 2935.01 of the Revised Code.	748

(ii)(b) Off-duty firefighters, whether paid or volunteer, of	749
a lawfully constituted fire department.;	750

(iii)(c) Off-duty first responders, emergency medical	751
technicians-basic, emergency medical technicians-intermediate, or	752
emergency medical technicians-paramedic, whether paid or	753
volunteer, of an ambulance service organization or emergency	754
medical service organization pursuant to Chapter 4765. of the	755
Revised Code.	756

(b) Every person in the service of any person, firm, or	757
private corporation, including any public service corporation,	758
that (i) employs one or more persons regularly in the same	759
business or in or about the same establishment under any contract	760
of hire, express or implied, oral or written, including aliens and	761
minors, household workers who earn one hundred sixty dollars or	762
more in cash in any calendar quarter from a single household and	763
casual workers who earn one hundred sixty dollars or more in cash	764
in any calendar quarter from a single employer, or (ii) is bound	765
by any such contract of hire or by any other written contract, to	766
pay into the state insurance fund the premiums provided by this	767
chapter.	768

(c) Every person who performs labor or provides services	769
pursuant to a construction contract, as defined in section 4123.79	770
of the Revised Code, if at least ten of the following criteria	771
apply:	772

(i) The person is required to comply with instructions from	773
the other contracting party regarding the manner or method of	774
performing services;	775

(ii) The person is required by the other contracting party to	776
have particular training;	777

(iii) The person's services are integrated into the regular	778
functioning of the other contracting party;	779

(iv) The person is required to perform the work personally;

780

(v) The person is hired, supervised, or paid by the other	781
contracting party;	782

(vi) A continuing relationship exists between the person and	783
the other contracting party that contemplates continuing or	784
recurring work even if the work is not full time;	785

(vii) The person's hours of work are established by the other	786
contracting party;	787

(viii) The person is required to devote full time to the	788
business of the other contracting party;	789

(ix) The person is required to perform the work on the	790
premises of the other contracting party;	791

(x) The person is required to follow the order of work set by	792
the other contracting party;	793

(xi) The person is required to make oral or written reports	794
of progress to the other contracting party;	795

(xii) The person is paid for services on a regular basis such	796
as hourly, weekly, or monthly;	797

(xiii) The person's expenses are paid for by the other	798
contracting party;	799

(xiv) The person's tools and materials are furnished by the	800
other contracting party;	801

(xv) The person is provided with the facilities used to	802
perform services;	803

(xvi) The person does not realize a profit or suffer a loss	804
as a result of the services provided;	805

(xvii) The person is not performing services for a number of	806
employers at the same time;	807

(xviii) The person does not make the same services available	808
to the general public;	809

(xix) The other contracting party has a right to discharge	810
the person;	811

(xx) The person has the right to end the relationship with	812
the other contracting party without incurring liability pursuant	813
to an employment contract or agreement.	814

Every person in the service of any independent contractor or	815
subcontractor who has failed to pay into the state insurance fund	816
the amount of premium determined and fixed by the administrator of	817
workers' compensation for the person's employment or occupation or	818
if a self-insuring employer has failed to pay compensation and	819
benefits directly to the employer's injured and to the dependents	820
of the employer's killed employees as required by section 4123.35	821
of the Revised Code, shall be considered as the employee of the	822
person who has entered into a contract, whether written or verbal,	823
with such independent contractor unless such employees or their	824
legal representatives or beneficiaries elect, after injury or	825
death, to regard such independent contractor as the employer.	826

(d) Every person to whom all of the following apply:

827

(i) The person is a resident of a state other than this state	828
and is covered by that other state's workers' compensation law;	829

(ii) The person performs labor or provides services for that	830
person's employer while temporarily within this state;	831

(iii) The laws of that other state do not include the	832
provisions described in division (H)(4) of section 4123.54 of the	833
Revised Code.	834

(2) "Employee" does not mean any of the following:

835

(a) A duly ordained, commissioned, or licensed minister or	836
assistant or associate minister of a church in the exercise of	837
ministry;	838

(b) Any officer of a family farm corporation;

839

(c) An individual incorporated as a corporation; or

840

(d) An individual who otherwise is an employee of an employer	841
but who signs the waiver and affidavit specified in section	842
4123.15 of the Revised Code on the condition that the	843
administrator of workers' compensation has granted a waiver and	844
exception to the individual's employer under section 4123.15 of	845
the Revised Code.	846

Any employer may elect to include as an "employee" within	847
this chapter, any person excluded from the definition of	848
"employee" pursuant to division (A)(2) of this section. If an	849
employer is a partnership, sole proprietorship, individual	850
incorporated as a corporation, or family farm corporation, such	851
employer may elect to include as an "employee" within this	852
chapter, any member of such partnership, the owner of the sole	853
proprietorship, the individual incorporated as a corporation, or	854
the officers of the family farm corporation. In the event of an	855
election, the employer shall serve upon the bureau of workers'	856
compensation written notice naming the persons to be covered,	857
include such employee's remuneration for premium purposes in all	858
future payroll reports, and no person excluded from the definition	859
of "employee" pursuant to division (A)(2) of this section,	860
proprietor, individual incorporated as a corporation, or partner	861
shall be deemed an employee within this division until the	862
employer has served such notice.	863

For informational purposes only, the bureau shall prescribe	864
such language as it considers appropriate, on such of its forms as	865
it considers appropriate, to advise employers of their right to	866
elect to include as an "employee" within this chapter a sole	867
proprietor, any member of a partnership, an individual	868
incorporated as a corporation, the officers of a family farm	869
corporation, or a person excluded from the definition of	870
"employee" under division (A)(2) of this section, that they should	871
check any health and disability insurance policy, or other form of	872
health and disability plan or contract, presently covering them,	873
or the purchase of which they may be considering, to determine	874
whether such policy, plan, or contract excludes benefits for	875
illness or injury that they might have elected to have covered by	876
workers' compensation.	877

(B) "Employer" means:

878

(1) The state, including state hospitals, each county,	879
municipal corporation, township, school district, and hospital	880
owned by a political subdivision or subdivisions other than the	881
state;	882

(2) Every person, firm, professional employer organization as	883
defined in section 4125.01 of the Revised Code, and private	884
corporation, including any public service corporation, that (a)	885
has in service one or more employees or shared employees regularly	886
in the same business or in or about the same establishment under	887
any contract of hire, express or implied, oral or written, or (b)	888
is bound by any such contract of hire or by any other written	889
contract, to pay into the insurance fund the premiums provided by	890
this chapter.	891

All such employers are subject to this chapter. Any member of	892
a firm or association, who regularly performs manual labor in or	893
about a mine, factory, or other establishment, including a	894
household establishment, shall be considered an employee in	895
determining whether such person, firm, or private corporation, or	896
public service corporation, has in its service, one or more	897
employees and the employer shall report the income derived from	898
such labor to the bureau as part of the payroll of such employer,	899
and such member shall thereupon be entitled to all the benefits of	900
an employee.	901

(C) "Injury" includes any injury, whether caused by external	902
accidental means or accidental in character and result, received	903
in the course of, and arising out of, the injured employee's	904
employment. "Injury" does not include:	905

(1) Psychiatric conditions except where the claimant's	906
psychiatric conditions have arisen from an injury or occupational	907
disease sustained by that claimant or where the claimant's	908
psychiatric conditions have arisen from sexual conduct in which	909
the claimant was forced by threat of physical harm to engage or	910
participate;	911

(2) Injury or disability caused primarily by the natural	912
deterioration of tissue, an organ, or part of the body;	913

(3) Injury or disability incurred in voluntary participation	914
in an employer-sponsored recreation or fitness activity if the	915
employee signs a waiver of the employee's right to compensation or	916
benefits under this chapter prior to engaging in the recreation or	917
fitness activity;	918

(4) A condition that pre-existed an injury unless that	919
pre-existing condition is substantially aggravated by the injury.	920
Such a substantial aggravation must be documented by objective	921
diagnostic findings, objective clinical findings, or objective	922
test results. Subjective complaints may be evidence of such a	923
substantial aggravation. However, subjective complaints without	924
objective diagnostic findings, objective clinical findings, or	925
objective test results are insufficient to substantiate a	926
substantial aggravation.	927

(D) "Child" includes a posthumous child and a child legally	928
adopted prior to the injury.	929

(E) "Family farm corporation" means a corporation founded for	930
the purpose of farming agricultural land in which the majority of	931
the voting stock is held by and the majority of the stockholders	932
are persons or the spouse of persons related to each other within	933
the fourth degree of kinship, according to the rules of the civil	934
law, and at least one of the related persons is residing on or	935
actively operating the farm, and none of whose stockholders are a	936
corporation. A family farm corporation does not cease to qualify	937
under this division where, by reason of any devise, bequest, or	938
the operation of the laws of descent or distribution, the	939
ownership of shares of voting stock is transferred to another	940
person, as long as that person is within the degree of kinship	941
stipulated in this division.	942

(F) "Occupational disease" means a disease contracted in the	943
course of employment, which by its causes and the characteristics	944
of its manifestation or the condition of the employment results in	945
a hazard which distinguishes the employment in character from	946
employment generally, and the employment creates a risk of	947
contracting the disease in greater degree and in a different	948
manner from the public in general.	949

(G) "Self-insuring employer" means an employer who is granted	950
the privilege of paying compensation and benefits directly under	951
section 4123.35 of the Revised Code, including a board of county	952
commissioners for the sole purpose of constructing a sports	953
facility as defined in section 307.696 of the Revised Code,	954
provided that the electors of the county in which the sports	955
facility is to be built have approved construction of a sports	956
facility by ballot election no later than November 6, 1997.	957

(H) "Public employer" means an employer as defined in	958
division (B)(1) of this section.	959

(I) "Sexual conduct" means vaginal intercourse between a male	960
and female; anal intercourse, fellatio, and cunnilingus between	961
persons regardless of gender; and, without privilege to do so, the	962
insertion, however slight, of any part of the body or any	963
instrument, apparatus, or other object into the vaginal or anal	964
cavity of another. Penetration, however slight, is sufficient to	965
complete vaginal or anal intercourse.	966

(J) "Other-states' insurer" means an insurance company that	967
is authorized to provide workers' compensation insurance coverage	968
in any of the states that permit employers to obtain insurance for	969
workers' compensation claims through insurance companies.	970

(K) "Other-states' coverage" means insurance coverage	971
purchased by an employer for workers' compensation claims that	972
arise in a state or states other than this state and that are	973
filed by the employees of the employer or those employee's	974
dependents, as applicable, in that other state or those other	975
states.	976

Sec. 4123.026. (A) The administrator of workers'	977
compensation, or a self-insuring public employer for the peace	978
officers, firefighters, and emergency medical workers employed by	979
or volunteering for that self-insuring public employer, shall pay	980
the costs of conducting post-exposure medical diagnostic services,	981
consistent with the standards of medical care existing at the time	982
of the exposure, to investigate whether an injury or occupational	983
disease was sustained by a peace officer, firefighter, or	984
emergency medical worker when coming into contact with the blood	985
or other body fluid of another person in the course of and arising	986
out of the peace officer's, firefighter's, or emergency medical	987
worker's employment, or when responding to an inherently dangerous	988
situation in the manner described in, and in accordance with the	989
conditions specified under, division (A)(1)(a) of section 4123.01	990
of the Revised Code, through any of the following means:	991

(1) Splash or spatter in the eye or mouth, including when	992
received in the course of conducting mouth-to-mouth resuscitation;	993

(2) A puncture in the skin;

994

(3) A cut in the skin or another opening in the skin such as	995
an open sore, wound, lesion, abrasion, or ulcer.	996

(B) As used in this section:

997

(1) "Peace officer" has the same meaning as in section	998
2935.01 of the Revised Code.	999

(2) "Firefighter" means a firefighter, whether paid or	1000
volunteer, of a lawfully constituted fire department.	1001

(3) "Emergency medical worker" means a first responder,	1002
emergency medical technician-basic, emergency medical	1003
technician-intermediate, or emergency medical	1004
technician-paramedic, certified under Chapter 4765. of the Revised	1005
Code, whether paid or volunteer.	1006

Sec. 4141.01.  As used in this chapter, unless the context	1007
otherwise requires:	1008

(A)(1) "Employer" means the state, its instrumentalities, its	1009
political subdivisions and their instrumentalities, Indian tribes,	1010
and any individual or type of organization including any	1011
partnership, limited liability company, association, trust,	1012
estate, joint-stock company, insurance company, or corporation,	1013
whether domestic or foreign, or the receiver, trustee in	1014
bankruptcy, trustee, or the successor thereof, or the legal	1015
representative of a deceased person who subsequent to December 31,	1016
1971, or in the case of political subdivisions or their	1017
instrumentalities, subsequent to December 31, 1973:	1018

(a) Had in employment at least one individual, or in the case	1019
of a nonprofit organization, subsequent to December 31, 1973, had	1020
not less than four individuals in employment for some portion of a	1021
day in each of twenty different calendar weeks, in either the	1022
current or the preceding calendar year whether or not the same	1023
individual was in employment in each such day; or	1024

(b) Except for a nonprofit organization, had paid for service	1025
in employment wages of fifteen hundred dollars or more in any	1026
calendar quarter in either the current or preceding calendar year;	1027
or	1028

(c) Had paid, subsequent to December 31, 1977, for employment	1029
in domestic service in a local college club, or local chapter of a	1030
college fraternity or sorority, cash remuneration of one thousand	1031
dollars or more in any calendar quarter in the current calendar	1032
year or the preceding calendar year, or had paid subsequent to	1033
December 31, 1977, for employment in domestic service in a private	1034
home cash remuneration of one thousand dollars in any calendar	1035
quarter in the current calendar year or the preceding calendar	1036
year:	1037

(i) For the purposes of divisions (A)(1)(a) and (b) of this	1038
section, there shall not be taken into account any wages paid to,	1039
or employment of, an individual performing domestic service as	1040
described in this division.	1041

(ii) An employer under this division shall not be an employer	1042
with respect to wages paid for any services other than domestic	1043
service unless the employer is also found to be an employer under	1044
division (A)(1)(a), (b), or (d) of this section.	1045

(d) As a farm operator or a crew leader subsequent to	1046
December 31, 1977, had in employment individuals in agricultural	1047
labor; and	1048

(i) During any calendar quarter in the current calendar year	1049
or the preceding calendar year, paid cash remuneration of twenty	1050
thousand dollars or more for the agricultural labor; or	1051

(ii) Had at least ten individuals in employment in	1052
agricultural labor, not including agricultural workers who are	1053
aliens admitted to the United States to perform agricultural labor	1054
pursuant to sections 1184(c) and 1101(a)(15)(H) of the	1055
"Immigration and Nationality Act," 66 Stat. 163, 189, 8 U.S.C.A.	1056
1101(a)(15)(H)(ii)(a), 1184(c), for some portion of a day in each	1057
of the twenty different calendar weeks, in either the current or	1058
preceding calendar year whether or not the same individual was in	1059
employment in each day; or	1060

(e) Is not otherwise an employer as defined under division	1061
(A)(1)(a) or (b) of this section; and	1062

(i) For which, within either the current or preceding	1063
calendar year, service, except for domestic service in a private	1064
home not covered under division (A)(1)(c) of this section, is or	1065
was performed with respect to which such employer is liable for	1066
any federal tax against which credit may be taken for	1067
contributions required to be paid into a state unemployment fund;	1068

(ii) Which, as a condition for approval of this chapter for	1069
full tax credit against the tax imposed by the "Federal	1070
Unemployment Tax Act," 84 Stat. 713, 26 U.S.C.A. 3301 to 3311, is	1071
required, pursuant to such act to be an employer under this	1072
chapter; or	1073

(iii) Who became an employer by election under division	1074
(A)(4) or (5) of this section and for the duration of such	1075
election; or	1076

(f) In the case of the state, its instrumentalities, its	1077
political subdivisions, and their instrumentalities, and Indian	1078
tribes, had in employment, as defined in divisions (B)(2)(a) and	1079
(B)(2)(l) of this section, at least one individual;	1080

(g) For the purposes of division (A)(1)(a) of this section,	1081
if any week includes both the thirty-first day of December and the	1082
first day of January, the days of that week before the first day	1083
of January shall be considered one calendar week and the days	1084
beginning the first day of January another week.	1085

(2) Each individual employed to perform or to assist in	1086
performing the work of any agent or employee of an employer is	1087
employed by such employer for all the purposes of this chapter,	1088
whether such individual was hired or paid directly by such	1089
employer or by such agent or employee, provided the employer had	1090
actual or constructive knowledge of the work. All individuals	1091
performing services for an employer of any person in this state	1092
who maintains two or more establishments within this state are	1093
employed by a single employer for the purposes of this chapter.	1094

(3) An employer subject to this chapter within any calendar	1095
year is subject to this chapter during the whole of such year and	1096
during the next succeeding calendar year.	1097

(4) An employer not otherwise subject to this chapter who	1098
files with the director of job and family services a written	1099
election to become an employer subject to this chapter for not	1100
less than two calendar years shall, with the written approval of	1101
such election by the director, become an employer subject to this	1102
chapter to the same extent as all other employers as of the date	1103
stated in such approval, and shall cease to be subject to this	1104
chapter as of the first day of January of any calendar year	1105
subsequent to such two calendar years only if at least thirty days	1106
prior to such first day of January the employer has filed with the	1107
director a written notice to that effect.	1108

(5) Any employer for whom services that do not constitute	1109
employment are performed may file with the director a written	1110
election that all such services performed by individuals in the	1111
employer's employ in one or more distinct establishments or places	1112
of business shall be deemed to constitute employment for all the	1113
purposes of this chapter, for not less than two calendar years.	1114
Upon written approval of the election by the director, such	1115
services shall be deemed to constitute employment subject to this	1116
chapter from and after the date stated in such approval. Such	1117
services shall cease to be employment subject to this chapter as	1118
of the first day of January of any calendar year subsequent to	1119
such two calendar years only if at least thirty days prior to such	1120
first day of January such employer has filed with the director a	1121
written notice to that effect.	1122

(B)(1) "Employment" means service performed by an individual	1123
for remuneration under any contract of hire, written or oral,	1124
express or implied, including service performed in interstate	1125
commerce and service performed by an officer of a corporation,	1126
without regard to whether such service is executive, managerial,	1127
or manual in nature, and without regard to whether such officer is	1128
a stockholder or a member of the board of directors of the	1129
corporation, unless it is shown to the satisfaction of the	1130
director that such individual has been and will continue to be	1131
free from direction or control over the performance of such	1132
service, both under a contract of service and in fact. The	1133
director shall adopt rules to define "direction or control."	1134

(2) "Employment" includes:

1135

(a) Service performed after December 31, 1977, by an	1136
individual in the employ of the state or any of its	1137
instrumentalities, or any political subdivision thereof or any of	1138
its instrumentalities or any instrumentality of more than one of	1139
the foregoing or any instrumentality of any of the foregoing and	1140
one or more other states or political subdivisions and without	1141
regard to divisions (A)(1)(a) and (b) of this section, provided	1142
that such service is excluded from employment as defined in the	1143
"Federal Unemployment Tax Act," 53 Stat. 183, 26 U.S.C.A. 3301,	1144
3306(c)(7) and is not excluded under division (B)(3) of this	1145
section; or the services of employees covered by voluntary	1146
election, as provided under divisions (A)(4) and (5) of this	1147
section;	1148

(b) Service performed after December 31, 1971, by an	1149
individual in the employ of a religious, charitable, educational,	1150
or other organization which is excluded from the term "employment"	1151
as defined in the "Federal Unemployment Tax Act," 84 Stat. 713, 26	1152
U.S.C.A. 3301 to 3311, solely by reason of section 26 U.S.C.A.	1153
3306(c)(8) of that act and is not excluded under division (B)(3)	1154
of this section;	1155

(c) Domestic service performed after December 31, 1977, for	1156
an employer, as provided in division (A)(1)(c) of this section;	1157

(d) Agricultural labor performed after December 31, 1977, for	1158
a farm operator or a crew leader, as provided in division	1159
(A)(1)(d) of this section;	1160

(e) Service not covered under division (B)(1) of this section	1161
which is performed after December 31, 1971:	1162

(i) As an agent-driver or commission-drivera delivery driver	1163
engaged in distributing meat products, vegetable products, fruit	1164
products, bakery products, beverages other than milk, laundry, or	1165
parcels, freight, dry-cleaning services, for the individual's	1166
employer or principalsimilar products;	1167

(ii) As a traveling or city salesperson, other than as an	1168
agent-driver or commission-drivera delivery driver, engaged on a	1169
full-time basis in the solicitation on behalf of and in the	1170
transmission to the salesperson's employer or principal except for	1171
sideline sales activities on behalf of some other person of orders	1172
from wholesalers, retailers, contractors, or operators of hotels,	1173
restaurants, or other similar establishments for merchandise for	1174
resale, or supplies for use in their business operations, provided	1175
that for the purposes of division (B)(2)(e)(ii) of this section,	1176
the services shall be deemed employment if the contract of service	1177
contemplates that substantially all of the services are to be	1178
performed personally by the individual and that the individual	1179
does not have a substantial investment in facilities used in	1180
connection with the performance of the services other than in	1181
facilities for transportation, and the services are not in the	1182
nature of a single transaction that is not a part of a continuing	1183
relationship with the person for whom the services are performed.	1184

(f) An individual's entire service performed within or both	1185
within and without the state if:	1186

(i) The service is localized in this state.

1187

(ii) The service is not localized in any state, but some of	1188
the service is performed in this state and either the base of	1189
operations, or if there is no base of operations then the place	1190
from which such service is directed or controlled, is in this	1191
state or the base of operations or place from which such service	1192
is directed or controlled is not in any state in which some part	1193
of the service is performed but the individual's residence is in	1194
this state.	1195

(g) Service not covered under division (B)(2)(f)(ii) of this	1196
section and performed entirely without this state, with respect to	1197
no part of which contributions are required and paid under an	1198
unemployment compensation law of any other state, the Virgin	1199
Islands, Canada, or of the United States, if the individual	1200
performing such service is a resident of this state and the	1201
director approves the election of the employer for whom such	1202
services are performed; or, if the individual is not a resident of	1203
this state but the place from which the service is directed or	1204
controlled is in this state, the entire services of such	1205
individual shall be deemed to be employment subject to this	1206
chapter, provided service is deemed to be localized within this	1207
state if the service is performed entirely within this state or if	1208
the service is performed both within and without this state but	1209
the service performed without this state is incidental to the	1210
individual's service within the state, for example, is temporary	1211
or transitory in nature or consists of isolated transactions;	1212

(h) Service of an individual who is a citizen of the United	1213
States, performed outside the United States except in Canada after	1214
December 31, 1971, or the Virgin Islands, after December 31, 1971,	1215
and before the first day of January of the year following that in	1216
which the United States secretary of labor approves the Virgin	1217
Islands law for the first time, in the employ of an American	1218
employer, other than service which is "employment" under divisions	1219
(B)(2)(f) and (g) of this section or similar provisions of another	1220
state's law, if:	1221

(i) The employer's principal place of business in the United	1222
States is located in this state;	1223

(ii) The employer has no place of business in the United	1224
States, but the employer is an individual who is a resident of	1225
this state; or the employer is a corporation which is organized	1226
under the laws of this state, or the employer is a partnership or	1227
a trust and the number of partners or trustees who are residents	1228
of this state is greater than the number who are residents of any	1229
other state; or	1230

(iii) None of the criteria of divisions (B)(2)(f)(i) and (ii)	1231
of this section is met but the employer has elected coverage in	1232
this state or the employer having failed to elect coverage in any	1233
state, the individual has filed a claim for benefits, based on	1234
such service, under this chapter.	1235

(i) For the purposes of division (B)(2)(h) of this section,	1236
the term "American employer" means an employer who is an	1237
individual who is a resident of the United States; or a	1238
partnership, if two-thirds or more of the partners are residents	1239
of the United States; or a trust, if all of the trustees are	1240
residents of the United States; or a corporation organized under	1241
the laws of the United States or of any state, provided the term	1242
"United States" includes the states, the District of Columbia, the	1243
Commonwealth of Puerto Rico, and the Virgin Islands.	1244

(j) Notwithstanding any other provisions of divisions (B)(1)	1245
and (2) of this section, service, except for domestic service in a	1246
private home not covered under division (A)(1)(c) of this section,	1247
with respect to which a tax is required to be paid under any	1248
federal law imposing a tax against which credit may be taken for	1249
contributions required to be paid into a state unemployment fund,	1250
or service, except for domestic service in a private home not	1251
covered under division (A)(1)(c) of this section, which, as a	1252
condition for full tax credit against the tax imposed by the	1253
"Federal Unemployment Tax Act," 84 Stat. 713, 26 U.S.C.A. 3301 to	1254
3311, is required to be covered under this chapter.	1255

(k) Construction services performed by any individual under a	1256
construction contract, as defined in section 4141.39 of the	1257
Revised Code, if the director determines that the employer for	1258
whom services are performed has the right to direct or control the	1259
performance of the services and that the individuals who perform	1260
the services receive remuneration for the services performed. The	1261
director shall presume that the employer for whom services are	1262
performed has the right to direct or control the performance of	1263
the services if ten or more of the following criteria apply:	1264

(i) The employer directs or controls the manner or method by	1265
which instructions are given to the individual performing	1266
services;	1267

(ii) The employer requires particular training for the	1268
individual performing services;	1269

(iii) Services performed by the individual are integrated	1270
into the regular functioning of the employer;	1271

(iv) The employer requires that services be provided by a	1272
particular individual;	1273

(v) The employer hires, supervises, or pays the wages of the	1274
individual performing services;	1275

(vi) A continuing relationship between the employer and the	1276
individual performing services exists which contemplates	1277
continuing or recurring work, even if not full-time work;	1278

(vii) The employer requires the individual to perform	1279
services during established hours;	1280

(viii) The employer requires that the individual performing	1281
services be devoted on a full-time basis to the business of the	1282
employer;	1283

(ix) The employer requires the individual to perform services	1284
on the employer's premises;	1285

(x) The employer requires the individual performing services	1286
to follow the order of work established by the employer;	1287

(xi) The employer requires the individual performing services	1288
to make oral or written reports of progress;	1289

(xii) The employer makes payment to the individual for	1290
services on a regular basis, such as hourly, weekly, or monthly;	1291

(xiii) The employer pays expenses for the individual	1292
performing services;	1293

(xiv) The employer furnishes the tools and materials for use	1294
by the individual to perform services;	1295

(xv) The individual performing services has not invested in	1296
the facilities used to perform services;	1297

(xvi) The individual performing services does not realize a	1298
profit or suffer a loss as a result of the performance of the	1299
services;	1300

(xvii) The individual performing services is not performing	1301
services for more than two employers simultaneously;	1302

(xviii) The individual performing services does not make the	1303
services available to the general public;	1304

(xix) The employer has a right to discharge the individual	1305
performing services;	1306

(xx) The individual performing services has the right to end	1307
the individual's relationship with the employer without incurring	1308
liability pursuant to an employment contract or agreement.	1309

(l) Service performed by an individual in the employ of an	1310
Indian tribe as defined by section 4(e) of the "Indian	1311
Self-Determination and Education Assistance Act," 88 Stat. 2204	1312
(1975), 25 U.S.C.A. 450b(e), including any subdivision,	1313
subsidiary, or business enterprise wholly owned by an Indian tribe	1314
provided that the service is excluded from employment as defined	1315
in the "Federal Unemployment Tax Act," 53 Stat. 183 (1939), 26	1316
U.S.C.A. 3301 and 3306(c)(7) and is not excluded under division	1317
(B)(3) of this section.	1318

(3) "Employment" does not include the following services if	1319
they are found not subject to the "Federal Unemployment Tax Act,"	1320
84 Stat. 713 (1970), 26 U.S.C.A. 3301 to 3311, and if the services	1321
are not required to be included under division (B)(2)(j) of this	1322
section:	1323

(a) Service performed after December 31, 1977, in	1324
agricultural labor, except as provided in division (A)(1)(d) of	1325
this section;	1326

(b) Domestic service performed after December 31, 1977, in a	1327
private home, local college club, or local chapter of a college	1328
fraternity or sorority except as provided in division (A)(1)(c) of	1329
this section;	1330

(c) Service performed after December 31, 1977, for this state	1331
or a political subdivision as described in division (B)(2)(a) of	1332
this section when performed:	1333

(i) As a publicly elected official;

1334

(ii) As a member of a legislative body, or a member of the	1335
judiciary;	1336

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

1337

(iv) As an employee, not in the classified service as defined	1338
in section 124.11 of the Revised Code, serving on a temporary	1339
basis in case of fire, storm, snow, earthquake, flood, or similar	1340
emergency;	1341

(v) In a position which, under or pursuant to law, is	1342
designated as a major nontenured policymaking or advisory	1343
position, not in the classified service of the state, or a	1344
policymaking or advisory position the performance of the duties of	1345
which ordinarily does not require more than eight hours per week.	1346

(d) In the employ of any governmental unit or instrumentality	1347
of the United States;	1348

(e) Service performed after December 31, 1971:

1349

(i) Service in the employ of an educational institution or	1350
institution of higher education, including those operated by the	1351
state or a political subdivision, if such service is performed by	1352
a student who is enrolled and is regularly attending classes at	1353
the educational institution or institution of higher education; or	1354

(ii) By an individual who is enrolled at a nonprofit or	1355
public educational institution which normally maintains a regular	1356
faculty and curriculum and normally has a regularly organized body	1357
of students in attendance at the place where its educational	1358
activities are carried on as a student in a full-time program,	1359
taken for credit at the institution, which combines academic	1360
instruction with work experience, if the service is an integral	1361
part of the program, and the institution has so certified to the	1362
employer, provided that this subdivision shall not apply to	1363
service performed in a program established for or on behalf of an	1364
employer or group of employers.	1365

(f) Service performed by an individual in the employ of the	1366
individual's son, daughter, or spouse and service performed by a	1367
child under the age of eighteen in the employ of the child's	1368
father or mother;	1369

(g) Service performed for one or more principals by an	1370
individual who is compensated on a commission basis, who in the	1371
performance of the work is master of the individual's own time and	1372
efforts, and whose remuneration is wholly dependent on the amount	1373
of effort the individual chooses to expend, and which service is	1374
not subject to the "Federal Unemployment Tax Act," 53 Stat. 183	1375
(1939), 26 U.S.C.A. 3301 to 3311. Service performed after December	1376
31, 1971:	1377

(i) By an individual for an employer as an insurance agent or	1378
as an insurance solicitor, if all this service is performed for	1379
remuneration solely by way of commission;	1380

(ii) As a home worker performing work, according to	1381
specifications furnished by the employer for whom the services are	1382
performed, on materials or goods furnished by such employer which	1383
are required to be returned to the employer or to a person	1384
designated for that purpose.	1385

(h) Service performed after December 31, 1971:

1386

(i) In the employ of a church or convention or association of	1387
churches, or in an organization which is operated primarily for	1388
religious purposes and which is operated, supervised, controlled,	1389
or principally supported by a church or convention or association	1390
of churches;	1391

(ii) By a duly ordained, commissioned, or licensed minister	1392
of a church in the exercise of the individual's ministry or by a	1393
member of a religious order in the exercise of duties required by	1394
such order; or	1395

(iii) In a facility conducted for the purpose of carrying out	1396
a program of rehabilitation for individuals whose earning capacity	1397
is impaired by age or physical or mental deficiency or injury, or	1398
providing remunerative work for individuals who because of their	1399
impaired physical or mental capacity cannot be readily absorbed in	1400
the competitive labor market, by an individual receiving such	1401
rehabilitation or remunerative work.	1402

(i) Service performed after June 30, 1939, with respect to	1403
which unemployment compensation is payable under the "Railroad	1404
Unemployment Insurance Act," 52 Stat. 1094 (1938), 45 U.S.C. 351;	1405

(j) Service performed by an individual in the employ of any	1406
organization exempt from income tax under section 501 of the	1407
"Internal Revenue Code of 1954," if the remuneration for such	1408
service does not exceed fifty dollars in any calendar quarter, or	1409
if such service is in connection with the collection of dues or	1410
premiums for a fraternal beneficial society, order, or association	1411
and is performed away from the home office or is ritualistic	1412
service in connection with any such society, order, or	1413
association;	1414

(k) Casual labor not in the course of an employer's trade or	1415
business; incidental service performed by an officer, appraiser,	1416
or member of a finance committee of a bank, building and loan	1417
association, savings and loan association, or savings association	1418
when the remuneration for such incidental service exclusive of the	1419
amount paid or allotted for directors' fees does not exceed sixty	1420
dollars per calendar quarter is casual labor;	1421

(l) Service performed in the employ of a voluntary employees'	1422
beneficial association providing for the payment of life,	1423
sickness, accident, or other benefits to the members of such	1424
association or their dependents or their designated beneficiaries,	1425
if admission to a membership in such association is limited to	1426
individuals who are officers or employees of a municipal or public	1427
corporation, of a political subdivision of the state, or of the	1428
United States and no part of the net earnings of such association	1429
inures, other than through such payments, to the benefit of any	1430
private shareholder or individual;	1431

(m) Service performed by an individual in the employ of a	1432
foreign government, including service as a consular or other	1433
officer or employee or of a nondiplomatic representative;	1434

(n) Service performed in the employ of an instrumentality	1435
wholly owned by a foreign government if the service is of a	1436
character similar to that performed in foreign countries by	1437
employees of the United States or of an instrumentality thereof	1438
and if the director finds that the secretary of state of the	1439
United States has certified to the secretary of the treasury of	1440
the United States that the foreign government, with respect to	1441
whose instrumentality exemption is claimed, grants an equivalent	1442
exemption with respect to similar service performed in the foreign	1443
country by employees of the United States and of instrumentalities	1444
thereof;	1445

(o) Service with respect to which unemployment compensation	1446
is payable under an unemployment compensation system established	1447
by an act of congress;	1448

(p) Service performed as a student nurse in the employ of a	1449
hospital or a nurses' training school by an individual who is	1450
enrolled and is regularly attending classes in a nurses' training	1451
school chartered or approved pursuant to state law, and service	1452
performed as an intern in the employ of a hospital by an	1453
individual who has completed a four years' course in a medical	1454
school chartered or approved pursuant to state law;	1455

(q) Service performed by an individual under the age of	1456
eighteen in the delivery or distribution of newspapers or shopping	1457
news, not including delivery or distribution to any point for	1458
subsequent delivery or distribution;	1459

(r) Service performed in the employ of the United States or	1460
an instrumentality of the United States immune under the	1461
Constitution of the United States from the contributions imposed	1462
by this chapter, except that to the extent that congress permits	1463
states to require any instrumentalities of the United States to	1464
make payments into an unemployment fund under a state unemployment	1465
compensation act, this chapter shall be applicable to such	1466
instrumentalities and to services performed for such	1467
instrumentalities in the same manner, to the same extent, and on	1468
the same terms as to all other employers, individuals, and	1469
services, provided that if this state is not certified for any	1470
year by the proper agency of the United States under section 3304	1471
of the "Internal Revenue Code of 1954," the payments required of	1472
such instrumentalities with respect to such year shall be refunded	1473
by the director from the fund in the same manner and within the	1474
same period as is provided in division (E) of section 4141.09 of	1475
the Revised Code with respect to contributions erroneously	1476
collected;	1477

(s) Service performed by an individual as a member of a band	1478
or orchestra, provided such service does not represent the	1479
principal occupation of such individual, and which service is not	1480
subject to or required to be covered for full tax credit against	1481
the tax imposed by the "Federal Unemployment Tax Act," 53 Stat.	1482
183 (1939), 26 U.S.C.A. 3301 to 3311.	1483

(t) Service performed in the employ of a day camp whose	1484
camping season does not exceed twelve weeks in any calendar year,	1485
and which service is not subject to the "Federal Unemployment Tax	1486
Act," 53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311. Service	1487
performed after December 31, 1971:	1488

(i) In the employ of a hospital, if the service is performed	1489
by a patient of the hospital, as defined in division (W) of this	1490
section;	1491

(ii) For a prison or other correctional institution by an	1492
inmate of the prison or correctional institution;	1493

(iii) Service performed after December 31, 1977, by an inmate	1494
of a custodial institution operated by the state, a political	1495
subdivision, or a nonprofit organization.	1496

(u) Service that is performed by a nonresident alien	1497
individual for the period the individual temporarily is present in	1498
the United States as a nonimmigrant under division (F), (J), (M),	1499
or (Q) of section 101(a)(15) of the "Immigration and Nationality	1500
Act," 66 Stat. 163, 8 U.S.C.A. 1101, as amended, that is excluded	1501
under section 3306(c)(19) of the "Federal Unemployment Tax Act,"	1502
53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311.	1503

(v) Notwithstanding any other provisions of division (B)(3)	1504
of this section, services that are excluded under divisions	1505
(B)(3)(g), (j), (k), and (l) of this section shall not be excluded	1506
from employment when performed for a nonprofit organization, as	1507
defined in division (X) of this section, or for this state or its	1508
instrumentalities, or for a political subdivision or its	1509
instrumentalities or for Indian tribes;	1510

(w) Service that is performed by an individual working as an	1511
election official or election worker if the amount of remuneration	1512
received by the individual during the calendar year for services	1513
as an election official or election worker is less than one	1514
thousand dollars;	1515

(x) Service performed for an elementary or secondary school	1516
that is operated primarily for religious purposes, that is	1517
described in subsection 501(c)(3) and exempt from federal income	1518
taxation under subsection 501(a) of the Internal Revenue Code, 26	1519
U.S.C.A. 501;	1520

(y) Service performed by a person committed to a penal	1521
institution.	1522

(z) Service performed for an Indian tribe as described in	1523
division (B)(2)(l) of this section when performed in any of the	1524
following manners:	1525

(i) As a publicly elected official;

1526

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

1527

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

1528

(iv) In a position which, pursuant to Indian tribal law, is	1529
designated as a major nontenured policymaking or advisory	1530
position, or a policymaking or advisory position where the	1531
performance of the duties ordinarily does not require more than	1532
eight hours of time per week;	1533

(v) As an employee serving on a temporary basis in the case	1534
of a fire, storm, snow, earthquake, flood, or similar emergency.	1535

(aa) Service performed after December 31, 1971, for a	1536
nonprofit organization, this state or its instrumentalities, a	1537
political subdivision or its instrumentalities, or an Indian tribe	1538
as part of an unemployment work-relief or work-training program	1539
assisted or financed in whole or in part by any federal agency or	1540
an agency of a state or political subdivision, thereof, by an	1541
individual receiving the work-relief or work-training.	1542

(bb) Participation in a learn to earn program as defined in	1543
section 4141.293 of the Revised Code.	1544

(4) If the services performed during one half or more of any	1545
pay period by an employee for the person employing that employee	1546
constitute employment, all the services of such employee for such	1547
period shall be deemed to be employment; but if the services	1548
performed during more than one half of any such pay period by an	1549
employee for the person employing that employee do not constitute	1550
employment, then none of the services of such employee for such	1551
period shall be deemed to be employment. As used in division	1552
(B)(4) of this section, "pay period" means a period, of not more	1553
than thirty-one consecutive days, for which payment of	1554
remuneration is ordinarily made to the employee by the person	1555
employing that employee. Division (B)(4) of this section does not	1556
apply to services performed in a pay period by an employee for the	1557
person employing that employee, if any of such service is excepted	1558
by division (B)(3)(o) of this section.	1559

(C) "Benefits" means money payments payable to an individual	1560
who has established benefit rights, as provided in this chapter,	1561
for loss of remuneration due to the individual's unemployment.	1562

(D) "Benefit rights" means the weekly benefit amount and the	1563
maximum benefit amount that may become payable to an individual	1564
within the individual's benefit year as determined by the	1565
director.	1566

(E) "Claim for benefits" means a claim for waiting period or	1567
benefits for a designated week.	1568

(F) "Additional claim" means the first claim for benefits	1569
filed following any separation from employment during a benefit	1570
year; "continued claim" means any claim other than the first claim	1571
for benefits and other than an additional claim.	1572

(G)(1) "Wages" means remuneration paid to an employee by each	1573
of the employee's employers with respect to employment; except	1574
that wages shall not include that part of remuneration paid during	1575
any calendar year to an individual by an employer or such	1576
employer's predecessor in interest in the same business or	1577
enterprise, which in any calendar year is in excess of eight	1578
thousand two hundred fifty dollars on and after January 1, 1992;	1579
eight thousand five hundred dollars on and after January 1, 1993;	1580
eight thousand seven hundred fifty dollars on and after January 1,	1581
1994; and nine thousand dollars on and after January 1, 1995.	1582
Remuneration in excess of such amounts shall be deemed wages	1583
subject to contribution to the same extent that such remuneration	1584
is defined as wages under the "Federal Unemployment Tax Act," 84	1585
Stat. 714 (1970), 26 U.S.C.A. 3301 to 3311, as amended. The	1586
remuneration paid an employee by an employer with respect to	1587
employment in another state, upon which contributions were	1588
required and paid by such employer under the unemployment	1589
compensation act of such other state, shall be included as a part	1590
of remuneration in computing the amount specified in this	1591
division.	1592

(2) Notwithstanding division (G)(1) of this section, if, as	1593
of the computation date for any calendar year, the director	1594
determines that the level of the unemployment compensation fund is	1595
sixty per cent or more below the minimum safe level as defined in	1596
section 4141.25 of the Revised Code, then, effective the first day	1597
of January of the following calendar year, wages subject to this	1598
chapter shall not include that part of remuneration paid during	1599
any calendar year to an individual by an employer or such	1600
employer's predecessor in interest in the same business or	1601
enterprise which is in excess of nine thousand dollars. The	1602
increase in the dollar amount of wages subject to this chapter	1603
under this division shall remain in effect from the date of the	1604
director's determination pursuant to division (G)(2) of this	1605
section and thereafter notwithstanding the fact that the level in	1606
the fund may subsequently become less than sixty per cent below	1607
the minimum safe level.	1608

(H)(1) "Remuneration" means all compensation for personal	1609
services, including commissions and bonuses and the cash value of	1610
all compensation in any medium other than cash, except that in the	1611
case of agricultural or domestic service, "remuneration" includes	1612
only cash remuneration. Gratuities customarily received by an	1613
individual in the course of the individual's employment from	1614
persons other than the individual's employer and which are	1615
accounted for by such individual to the individual's employer are	1616
taxable wages.	1617

The reasonable cash value of compensation paid in any medium	1618
other than cash shall be estimated and determined in accordance	1619
with rules prescribed by the director, provided that	1620
"remuneration" does not include:	1621

(a) Payments as provided in divisions (b)(2) to (b)(16) of	1622
section 3306 of the "Federal Unemployment Tax Act," 84 Stat. 713,	1623
26 U.S.C.A. 3301 to 3311, as amended;	1624

(b) The payment by an employer, without deduction from the	1625
remuneration of the individual in the employer's employ, of the	1626
tax imposed upon an individual in the employer's employ under	1627
section 3101 of the "Internal Revenue Code of 1954," with respect	1628
to services performed after October 1, 1941.	1629

(2) "Cash remuneration" means all remuneration paid in cash,	1630
including commissions and bonuses, but not including the cash	1631
value of all compensation in any medium other than cash.	1632

(I) "Interested party" means the director and any party to	1633
whom notice of a determination of an application for benefit	1634
rights or a claim for benefits is required to be given under	1635
section 4141.28 of the Revised Code.	1636

(J) "Annual payroll" means the total amount of wages subject	1637
to contributions during a twelve-month period ending with the last	1638
day of the second calendar quarter of any calendar year.	1639

(K) "Average annual payroll" means the average of the last	1640
three annual payrolls of an employer, provided that if, as of any	1641
computation date, the employer has had less than three annual	1642
payrolls in such three-year period, such average shall be based on	1643
the annual payrolls which the employer has had as of such date.	1644

(L)(1) "Contributions" means the money payments to the state	1645
unemployment compensation fund required of employers by section	1646
4141.25 of the Revised Code and of the state and any of its	1647
political subdivisions electing to pay contributions under section	1648
4141.242 of the Revised Code. Employers paying contributions shall	1649
be described as "contributory employers."	1650

(2) "Payments in lieu of contributions" means the money	1651
payments to the state unemployment compensation fund required of	1652
reimbursing employers under sections 4141.241 and 4141.242 of the	1653
Revised Code.	1654

(M) An individual is "totally unemployed" in any week during	1655
which the individual performs no services and with respect to such	1656
week no remuneration is payable to the individual.	1657

(N) An individual is "partially unemployed" in any week if,	1658
due to involuntary loss of work, the total remuneration payable to	1659
the individual for such week is less than the individual's weekly	1660
benefit amount.	1661

(O) "Week" means the calendar week ending at midnight	1662
Saturday unless an equivalent week of seven consecutive calendar	1663
days is prescribed by the director.	1664

(1) "Qualifying week" means any calendar week in an	1665
individual's base period with respect to which the individual	1666
earns or is paid remuneration in employment subject to this	1667
chapter. A calendar week with respect to which an individual earns	1668
remuneration but for which payment was not made within the base	1669
period, when necessary to qualify for benefit rights, may be	1670
considered to be a qualifying week. The number of qualifying weeks	1671
which may be established in a calendar quarter shall not exceed	1672
the number of calendar weeks in the quarter.	1673

(2) "Average weekly wage" means the amount obtained by	1674
dividing an individual's total remuneration for all qualifying	1675
weeks during the base period by the number of such qualifying	1676
weeks, provided that if the computation results in an amount that	1677
is not a multiple of one dollar, such amount shall be rounded to	1678
the next lower multiple of one dollar.	1679

(P) "Weekly benefit amount" means the amount of benefits an	1680
individual would be entitled to receive for one week of total	1681
unemployment.	1682

(Q)(1) "Base period" means the first four of the last five	1683
completed calendar quarters immediately preceding the first day of	1684
an individual's benefit year, except as provided in division	1685
(Q)(2) of this section.	1686

(2) If an individual does not have sufficient qualifying	1687
weeks and wages in the base period to qualify for benefit rights,	1688
the individual's base period shall be the four most recently	1689
completed calendar quarters preceding the first day of the	1690
individual's benefit year. Such base period shall be known as the	1691
"alternate base period." If information as to weeks and wages for	1692
the most recent quarter of the alternate base period is not	1693
available to the director from the regular quarterly reports of	1694
wage information, which are systematically accessible, the	1695
director may, consistent with the provisions of section 4141.28 of	1696
the Revised Code, base the determination of eligibility for	1697
benefits on the affidavit of the claimant with respect to weeks	1698
and wages for that calendar quarter. The claimant shall furnish	1699
payroll documentation, where available, in support of the	1700
affidavit. The determination based upon the alternate base period	1701
as it relates to the claimant's benefit rights, shall be amended	1702
when the quarterly report of wage information from the employer is	1703
timely received and that information causes a change in the	1704
determination. As provided in division (B) of section 4141.28 of	1705
the Revised Code, any benefits paid and charged to an employer's	1706
account, based upon a claimant's affidavit, shall be adjusted	1707
effective as of the beginning of the claimant's benefit year. No	1708
calendar quarter in a base period or alternate base period shall	1709
be used to establish a subsequent benefit year.	1710

(3) The "base period" of a combined wage claim, as described	1711
in division (H) of section 4141.43 of the Revised Code, shall be	1712
the base period prescribed by the law of the state in which the	1713
claim is allowed.	1714

(4) For purposes of determining the weeks that comprise a	1715
completed calendar quarter under this division, only those weeks	1716
ending at midnight Saturday within the calendar quarter shall be	1717
utilized.	1718

(R)(1) "Benefit year" with respect to an individual means the	1719
fifty-two week period beginning with the first day of that week	1720
with respect to which the individual first files a valid	1721
application for determination of benefit rights, and thereafter	1722
the fifty-two week period beginning with the first day of that	1723
week with respect to which the individual next files a valid	1724
application for determination of benefit rights after the	1725
termination of the individual's last preceding benefit year,	1726
except that the application shall not be considered valid unless	1727
the individual has had employment in six weeks that is subject to	1728
this chapter or the unemployment compensation act of another	1729
state, or the United States, and has, since the beginning of the	1730
individual's previous benefit year, in the employment earned three	1731
times the average weekly wage determined for the previous benefit	1732
year. The "benefit year" of a combined wage claim, as described in	1733
division (H) of section 4141.43 of the Revised Code, shall be the	1734
benefit year prescribed by the law of the state in which the claim	1735
is allowed. Any application for determination of benefit rights	1736
made in accordance with section 4141.28 of the Revised Code is	1737
valid if the individual filing such application is unemployed, has	1738
been employed by an employer or employers subject to this chapter	1739
in at least twenty qualifying weeks within the individual's base	1740
period, and has earned or been paid remuneration at an average	1741
weekly wage of not less than twenty-seven and one-half per cent of	1742
the statewide average weekly wage for such weeks. For purposes of	1743
determining whether an individual has had sufficient employment	1744
since the beginning of the individual's previous benefit year to	1745
file a valid application, "employment" means the performance of	1746
services for which remuneration is payable.	1747

(2) Effective for benefit years beginning on and after	1748
December 26, 2004, any application for determination of benefit	1749
rights made in accordance with section 4141.28 of the Revised Code	1750
is valid if the individual satisfies the criteria described in	1751
division (R)(1) of this section, and if the reason for the	1752
individual's separation from employment is not disqualifying	1753
pursuant to division (D)(2) of section 4141.29 or section 4141.291	1754
of the Revised Code. A disqualification imposed pursuant to	1755
division (D)(2) of section 4141.29 or section 4141.291 of the	1756
Revised Code must be removed as provided in those sections as a	1757
requirement of establishing a valid application for benefit years	1758
beginning on and after December 26, 2004.	1759

(3) The statewide average weekly wage shall be calculated by	1760
the director once a year based on the twelve-month period ending	1761
the thirtieth day of June, as set forth in division (B)(3) of	1762
section 4141.30 of the Revised Code, rounded down to the nearest	1763
dollar. Increases or decreases in the amount of remuneration	1764
required to have been earned or paid in order for individuals to	1765
have filed valid applications shall become effective on Sunday of	1766
the calendar week in which the first day of January occurs that	1767
follows the twelve-month period ending the thirtieth day of June	1768
upon which the calculation of the statewide average weekly wage	1769
was based.	1770

(4) As used in this division, an individual is "unemployed"	1771
if, with respect to the calendar week in which such application is	1772
filed, the individual is "partially unemployed" or "totally	1773
unemployed" as defined in this section or if, prior to filing the	1774
application, the individual was separated from the individual's	1775
most recent work for any reason which terminated the individual's	1776
employee-employer relationship, or was laid off indefinitely or	1777
for a definite period of seven or more days.	1778

(S) "Calendar quarter" means the period of three consecutive	1779
calendar months ending on the thirty-first day of March, the	1780
thirtieth day of June, the thirtieth day of September, and the	1781
thirty-first day of December, or the equivalent thereof as the	1782
director prescribes by rule.	1783

(T) "Computation date" means the first day of the third	1784
calendar quarter of any calendar year.	1785

(U) "Contribution period" means the calendar year beginning	1786
on the first day of January of any year.	1787

(V) "Agricultural labor," for the purpose of this division,	1788
means any service performed prior to January 1, 1972, which was	1789
agricultural labor as defined in this division prior to that date,	1790
and service performed after December 31, 1971:	1791

(1) On a farm, in the employ of any person, in connection	1792
with cultivating the soil, or in connection with raising or	1793
harvesting any agricultural or horticultural commodity, including	1794
the raising, shearing, feeding, caring for, training, and	1795
management of livestock, bees, poultry, and fur-bearing animals	1796
and wildlife;	1797

(2) In the employ of the owner or tenant or other operator of	1798
a farm in connection with the operation, management, conservation,	1799
improvement, or maintenance of such farm and its tools and	1800
equipment, or in salvaging timber or clearing land of brush and	1801
other debris left by hurricane, if the major part of such service	1802
is performed on a farm;	1803

(3) In connection with the production or harvesting of any	1804
commodity defined as an agricultural commodity in section 15 (g)	1805
of the "Agricultural Marketing Act," 46 Stat. 1550 (1931), 12	1806
U.S.C. 1141j, as amended, or in connection with the ginning of	1807
cotton, or in connection with the operation or maintenance of	1808
ditches, canals, reservoirs, or waterways, not owned or operated	1809
for profit, used exclusively for supplying and storing water for	1810
farming purposes;	1811

(4) In the employ of the operator of a farm in handling,	1812
planting, drying, packing, packaging, processing, freezing,	1813
grading, storing, or delivering to storage or to market or to a	1814
carrier for transportation to market, in its unmanufactured state,	1815
any agricultural or horticultural commodity, but only if the	1816
operator produced more than one half of the commodity with respect	1817
to which such service is performed;	1818

(5) In the employ of a group of operators of farms, or a	1819
cooperative organization of which the operators are members, in	1820
the performance of service described in division (V)(4) of this	1821
section, but only if the operators produced more than one-half of	1822
the commodity with respect to which the service is performed;	1823

(6) Divisions (V)(4) and (5) of this section shall not be	1824
deemed to be applicable with respect to service performed:	1825

(a) In connection with commercial canning or commercial	1826
freezing or in connection with any agricultural or horticultural	1827
commodity after its delivery to a terminal market for distribution	1828
for consumption; or	1829

(b) On a farm operated for profit if the service is not in	1830
the course of the employer's trade or business.	1831

As used in division (V) of this section, "farm" includes	1832
stock, dairy, poultry, fruit, fur-bearing animal, and truck farms,	1833
plantations, ranches, nurseries, ranges, greenhouses, or other	1834
similar structures used primarily for the raising of agricultural	1835
or horticultural commodities and orchards.	1836

(W) "Hospital" means an institution which has been registered	1837
or licensed by the Ohio department of health as a hospital.	1838

(X) "Nonprofit organization" means an organization, or group	1839
of organizations, described in section 501(c)(3) of the "Internal	1840
Revenue Code of 1954," and exempt from income tax under section	1841
501(a) of that code.	1842

(Y) "Institution of higher education" means a public or	1843
nonprofit educational institution, including an educational	1844
institution operated by an Indian tribe, which:	1845

(1) Admits as regular students only individuals having a	1846
certificate of graduation from a high school, or the recognized	1847
equivalent;	1848

(2) Is legally authorized in this state or by the Indian	1849
tribe to provide a program of education beyond high school; and	1850

(3) Provides an educational program for which it awards a	1851
bachelor's or higher degree, or provides a program which is	1852
acceptable for full credit toward such a degree, a program of	1853
post-graduate or post-doctoral studies, or a program of training	1854
to prepare students for gainful employment in a recognized	1855
occupation.	1856

For the purposes of this division, all colleges and	1857
universities in this state are institutions of higher education.	1858

(Z) For the purposes of this chapter, "states" includes the	1859
District of Columbia, the Commonwealth of Puerto Rico, and the	1860
Virgin Islands.	1861

(AA) "Alien" means, for the purposes of division (A)(1)(d) of	1862
this section, an individual who is an alien admitted to the United	1863
States to perform service in agricultural labor pursuant to	1864
sections 214 (c) and 101 (a)(15)(H) of the "Immigration and	1865
Nationality Act," 66 Stat. 163, 8 U.S.C.A. 1101.	1866

(BB)(1) "Crew leader" means an individual who furnishes	1867
individuals to perform agricultural labor for any other employer	1868
or farm operator, and:	1869

(a) Pays, either on the individual's own behalf or on behalf	1870
of the other employer or farm operator, the individuals so	1871
furnished by the individual for the service in agricultural labor	1872
performed by them;	1873

(b) Has not entered into a written agreement with the other	1874
employer or farm operator under which the agricultural worker is	1875
designated as in the employ of the other employer or farm	1876
operator.	1877

(2) For the purposes of this chapter, any individual who is a	1878
member of a crew furnished by a crew leader to perform service in	1879
agricultural labor for any other employer or farm operator shall	1880
be treated as an employee of the crew leader if:	1881

(a) The crew leader holds a valid certificate of registration	1882
under the "Farm Labor Contractor Registration Act of 1963," 90	1883
Stat. 2668, 7 U.S.C. 2041; or	1884

(b) Substantially all the members of the crew operate or	1885
maintain tractors, mechanized harvesting or crop-dusting	1886
equipment, or any other mechanized equipment, which is provided by	1887
the crew leader; and	1888

(c) If the individual is not in the employment of the other	1889
employer or farm operator within the meaning of division (B)(1) of	1890
this section.	1891

(3) For the purposes of this division, any individual who is	1892
furnished by a crew leader to perform service in agricultural	1893
labor for any other employer or farm operator and who is not	1894
treated as in the employment of the crew leader under division	1895
(BB)(2) of this section shall be treated as the employee of the	1896
other employer or farm operator and not of the crew leader. The	1897
other employer or farm operator shall be treated as having paid	1898
cash remuneration to the individual in an amount equal to the	1899
amount of cash remuneration paid to the individual by the crew	1900
leader, either on the crew leader's own behalf or on behalf of the	1901
other employer or farm operator, for the service in agricultural	1902
labor performed for the other employer or farm operator.	1903

(CC) "Educational institution" means an institution other	1904
than an institution of higher education as defined in division (Y)	1905
of this section, including an educational institution operated by	1906
an Indian tribe, which:	1907

(1) Offers participants, trainees, or students an organized	1908
course of study or training designed to transfer to them	1909
knowledge, skills, information, doctrines, attitudes, or abilities	1910
from, by, or under the guidance of an instructor or teacher; and	1911

(2) Is approved, chartered, or issued a permit to operate as	1912
a school by the state board of education, other government agency,	1913
or Indian tribe that is authorized within the state to approve,	1914
charter, or issue a permit for the operation of a school.	1915

For the purposes of this division, the courses of study or	1916
training which the institution offers may be academic, technical,	1917
trade, or preparation for gainful employment in a recognized	1918
occupation.	1919

(DD) "Cost savings day" means any unpaid day off from work in	1920
which employees continue to accrue employee benefits which have a	1921
determinable value including, but not limited to, vacation,	1922
pension contribution, sick time, and life and health insurance.	1923

(EE) "Employee" has the same meaning as in section 4175.01 of	1924
the Revised Code, unless the services performed by the individual	1925
do not constitute "employment" as defined in division (B) of this	1926
section.	1927

Sec. 4175.01.  As used in this chapter:

1928

(A) "Aggrieved party" means any of the following entities	1929
that believes that the entity has been injured by an employer's	1930
alleged violation of section 4175.02 of the Revised Code:	1931

(1) An employee;

1932

(2) An employer association;

1933

(3) An interested party;

1934

(4) A labor organization.

1935

(B) "Construction" means any constructing, altering,	1936
reconstructing, repairing, rehabilitating, refinishing,	1937
refurbishing, remodeling, remediating, renovating, custom	1938
fabricating, maintenance, landscaping, improving, wrecking,	1939
painting, decorating, demolishing, and adding to or subtracting	1940
from any building, structure, highway, roadway, street, bridge,	1941
alley, sewer, ditch, sewage disposal plant, water works, parking	1942
facility, railroad, excavation, or other structure, project,	1943
development, real property or improvement, or to do any part	1944
thereof, regardless of whether the performance of the work	1945
involves the addition to or fabrication of any material or article	1946
of merchandise into any structure, project, development, real	1947
property, or improvement. "Construction" includes moving	1948
construction-related materials to the job site and removing	1949
construction-related materials from the job site.	1950

(C) "Contractor" means any sole proprietorship, partnership,	1951
firm, corporation, limited liability company, association, or	1952
other entity permitted by law to do business within this state	1953
that engages in construction. "Contractor" does not include either	1954
of the following:	1955

(1) The state or its officers, agencies, or political	1956
subdivisions;	1957

(2) The federal government.

1958

(D)(1) "Employee" means an individual who performs services	1959
for compensation for an employer.	1960

(2) "Employee" does not mean an individual who performs	1961
services for an employer and to whom all of the following	1962
conditions apply:	1963

(a) The individual has been and continues to be free from	1964
control and direction in connection with the performance of the	1965
service.	1966

(b) The individual customarily is engaged in an independently	1967
established trade, occupation, profession, or business of the same	1968
nature of the trade, occupation, profession, or business involved	1969
in the service performed.	1970

(c) The individual is a separate and distinct business entity	1971
from the entity for which the service is being performed or, if	1972
the individual is providing construction services and is a sole	1973
proprietorship or a partner in a partnership, the individual is a	1974
legitimate sole proprietorship or a partner in a legitimate	1975
partnership to which section 4175.04 of the Revised Code applies,	1976
as applicable.	1977

(d) The individual incurs the main expenses and has	1978
continuing or recurring business liabilities related to the	1979
service performed.	1980

(e) The individual is liable for breach of contract for	1981
failure to complete the service.	1982

(f) An agreement, written or oral, express or implied, exists	1983
describing the service to be performed, the payment the individual	1984
will receive for performance of the service, and the time frame	1985
for completion of the service.	1986

(g) The service performed by the individual is outside of the	1987
usual course of business of the employer.	1988

(E) "Employer" means any person, the state, any agency or	1989
instrumentality of the state, and any municipal corporation,	1990
county, township, school district, or other political subdivision	1991
or any agency or instrumentality thereof that engages an	1992
individual to perform services.	1993

(F) "Interested party" means any of the following entities:

1994

(1) Any contractor who submits a bid for the purpose of	1995
securing the award of a contract for construction of a public	1996
improvement as that term is defined in section 4115.03 of the	1997
Revised Code;	1998

(2) Any person acting as a subcontractor of a contractor	1999
described in division (F)(1) of this section;	2000

(3) Any bona fide labor organization that has as members or	2001
is authorized to represent employees of a person described in	2002
division (F)(1) or (2) of this section;	2003

(4) Any association having as members any of the persons	2004
described in division (F)(1) or (2) of this section.	2005

(G) "Labor organization" has the same meaning as in section	2006
3517.01 of the Revised Code.	2007

(H) "State agency" has the same meaning as in section 1.60 of	2008
the Revised Code.	2009

(I) "Subcontractor" means any person who undertakes to	2010
perform construction services under a contract with any individual	2011
other than the owner, part owner, or lessee.	2012

Sec. 4175.02.  (A) No employer shall fail to designate an	2013
individual who performs services for the employer as an employee	2014
unless the conditions described in division (D)(2) of section	2015
4175.01 of the Revised Code apply to that individual. The director	2016
of commerce shall not use an employer's failure to withhold	2017
federal or state income taxes with respect to an individual or to	2018
include remuneration paid to an individual for purposes of section	2019
4123.26 or 4141.20 of the Revised Code when making a determination	2020
as to whether the employer violated this division. The director	2021
shall not use an individual's election to obtain workers'	2022
compensation coverage as a sole proprietor or a partnership in	2023
making a determination as to whether the individual has violated	2024
this division. The burden of proof is on the party asserting that	2025
an individual is not an employee.	2026

(B) No employer shall retaliate through discharge, or in any	2027
other manner, against any individual for exercising any rights	2028
granted under this chapter.	2029

(C) No employer shall retaliate against an individual if the	2030
individual does any of the following:	2031

(1) Makes a complaint to an employer, coworker, community	2032
organization, or to a federal or state agency or at a public	2033
hearing, stating that provisions of this chapter allegedly have	2034
been violated;	2035

(2) Causes to be instituted any proceeding under or related	2036
to this chapter;	2037

(3) Testifies or prepares to testify in an investigation or	2038
proceeding under this chapter;	2039

(4) Opposes misclassification.

2040

(D) No employer shall attempt to cause or cause an individual	2041
to waive the provisions of this chapter or to enter into a	2042
predispute waiver.	2043

(E) No employer shall violate a rule adopted by the director	2044
pursuant to section 4175.06 of the Revised Code.	2045

(F) No person shall require or request an individual to enter	2046
into an agreement or sign a document that results in the	2047
misclassification of the individual as an independent contractor	2048
or otherwise does not accurately reflect the individual's	2049
relationship with an employer.	2050

Sec. 4175.03. This chapter shall apply only to determinations	2051
as to whether an individual is an employer for purposes of section	2052
4111.02, 4111.14, 4113.15, or 4115.03 of the Revised Code or	2053
Chapter 4121., 4123., 4141., or 5747. of the Revised Code. Nothing	2054
in this chapter shall be construed as to limit the application of	2055
any other remedies available at law or in equity.	2056

Sec. 4175.04. An employer and the director of commerce shall	2057
consider a sole proprietorship or partnership that performs	2058
construction services for the employer to be a legitimate sole	2059
proprietorship or a legitimate partnership if the employer	2060
demonstrates all of the following:	2061

(A) The sole proprietorship or partnership performs the	2062
construction service free from the direction or control of the	2063
employer over the means and manner of providing the service,	2064
subject only to the right of the employer for whom the service is	2065
provided to specify the desired result.	2066

(B) The sole proprietorship or partnership is not subject to	2067
cancellation or destruction upon severance of the relationship	2068
with the employer.	2069

(C) The owner of the sole proprietorship or the partners in	2070
the partnership have a substantial investment of capital in the	2071
sole proprietorship or partnership beyond ordinary tools and	2072
equipment and a personal vehicle.	2073

(D) The sole proprietorship or partnership owns the capital	2074
goods, gains the profits, and bears the losses of the sole	2075
proprietorship or partnership.	2076

(E) The sole proprietorship or partnership makes its	2077
construction services available to the general public or the	2078
business community on a continuing basis.	2079

(F) The sole proprietorship or partnership reported a profit	2080
or loss or earnings from self-employment on the sole	2081
proprietorship or partnership's federal income tax schedule.	2082

(G) The sole proprietorship or partnership performs	2083
construction services for the employer under the name of the sole	2084
proprietorship or partnership.	2085

(H) If the construction services the sole proprietorship or	2086
partnership provides to the employer require a license or permit	2087
in order to provide those services, the sole proprietorship or	2088
partnership obtains the appropriate license or permit in the name	2089
of the sole proprietorship or partnership name and directly pays	2090
for the appropriate license or permit.	2091

(I) The sole proprietorship or partnership furnishes the	2092
tools and equipment necessary for the sole proprietorship or	2093
partnership to provide the construction service for the employer.	2094

(J) If necessary, the sole proprietorship or partnership	2095
hires its own employees without obtaining approval from the	2096
employer, pays those employees without direct reimbursement from	2097
the employer, and reports the employees' income to the internal	2098
revenue service.	2099

(K) The employer does not represent the sole proprietorship	2100
or the partners of the partnership as an employee of the employer	2101
to the employer's customers.	2102

(L) The sole proprietorship or partnership performs similar	2103
construction services for others on whatever basis and whenever	2104
the sole proprietorship or partnership chooses.	2105

If the director of commerce, using the factors listed in this	2106
section, determines that a sole proprietorship or partnership	2107
performing construction services for an employer is not a	2108
legitimate sole proprietorship or a legitimate partnership, the	2109
director shall consider the owner of the sole proprietorship, each	2110
partner of the partnership, and each of the employees of the sole	2111
proprietorship or partnership, as applicable, as an employee of	2112
the employer for the purposes of this chapter.	2113

Sec. 4175.05. The provisions of this chapter apply to all	2114
subcontractors or lower tier subcontractors.	2115

A contractor is liable under this chapter for the failure of	2116
any subcontractor or lower tier subcontractor to properly classify	2117
individuals performing services related to construction as	2118
employees. A subcontractor is liable under this chapter for the	2119
failure of any lower tier subcontractor to properly classify	2120
individuals performing services related to construction as	2121
employees.	2122

Sec. 4175.06.  The director of commerce shall enforce this	2123
chapter. The director shall hire as many investigators and other	2124
personnel as the director determines are necessary to administer	2125
and enforce this chapter. The director may adopt reasonable rules	2126
in accordance with Chapter 119. of the Revised Code to implement	2127
and administer this chapter.	2128

Sec. 4175.07.  (A) Any aggrieved party may file a complaint	2129
with the director of commerce against an employer if the aggrieved	2130
party reasonably believes that the employer is in violation of	2131
section 4175.02 of the Revised Code. The director shall conduct	2132
investigations in connection with the administration and	2133
enforcement of this chapter.	2134

(B) Any investigator employed by the division of industrial	2135
compliance within the department of commerce is authorized to do	2136
both of the following:	2137

(1) Visit and inspect, at all reasonable times, all of the	2138
offices and job sites maintained by the employer who is the	2139
subject of the complaint;	2140

(2) Inspect and audit, at all reasonable times, all documents	2141
necessary to determine whether an individual performing services	2142
for the employer is an employee.	2143

(C) The director may compel, by subpoena, the attendance and	2144
testimony of witnesses and the production of books, payrolls,	2145
records, papers, and other evidence in any investigation, and may	2146
administer oaths to witnesses.	2147

(D) Upon completion of an investigation under this section,	2148
the investigator shall submit the results of the investigator's	2149
investigation to the superintendent of industrial compliance.	2150

Sec. 4175.08.  If, after receiving the results of an	2151
investigation conducted pursuant to section 4175.07 of the Revised	2152
Code, the superintendent of industrial compliance determines that	2153
reasonable evidence exists that an employer has violated section	2154
4175.02 of the Revised Code, the superintendent shall send a	2155
written notice to the director of commerce informing the director	2156
of the superintendent's determination.	2157

Within seven days after the director receives a written	2158
report from the superintendent, the director shall send a written	2159
notice to the employer who is the subject of the investigation in	2160
the same manner as prescribed in section 119.07 of the Revised	2161
Code for licensees, except that the notice shall specify that a	2162
hearing will be held and shall specify the date, time, and place	2163
of the hearing. The director shall hold a hearing regarding the	2164
alleged violation in the same manner prescribed for an	2165
adjudication hearing under section 119.09 of the Revised Code. If	2166
the director, after the hearing, determines a violation has	2167
occurred, the director may discipline the employer in accordance	2168
with section 4175.09 of the Revised Code. The director's	2169
determination is an order that the person may appeal in accordance	2170
with section 119.12 of the Revised Code. If an employer who	2171
allegedly committed a violation of section 4175.02 of the Revised	2172
Code fails to appear for a hearing, the director may request the	2173
court of common pleas of the county where the alleged violation	2174
occurred to compel the person to appear before the director for a	2175
hearing.	2176

Sec. 4175.09. (A) If, after a hearing held in accordance with	2177
section 4175.08 of the Revised Code, the director of commerce	2178
determines that an employer violated section 4175.02 of the	2179
Revised Code, the director may do any of the following:	2180

(1) Issue and cause to be served on any party an order to	2181
cease and desist from further violation of that section;	2182

(2) Take affirmative or other action the director considers	2183
reasonable to eliminate the effect of the violation;	2184

(3) Collect the amount of any wages, salary, employment	2185
benefits, or other compensation denied or lost to an individual	2186
because the employer misclassified the individual;	2187

(4) Assess any civil penalty allowed under section 4175.10 or	2188
4175.11 of the Revised Code.	2189

(B) If the director assesses an employer a civil penalty for	2190
a violation of section 4175.02 of the Revised Code and the	2191
employer fails to pay that civil penalty within the time period	2192
prescribed by the director, the director shall forward to the	2193
attorney general the name of the employer and the amount of the	2194
civil penalty for the purpose of collecting that civil penalty. In	2195
addition to the civil penalty assessed pursuant to this section,	2196
the employer also shall pay any fee assessed by the attorney	2197
general for collection of the civil penalty.	2198

(C) The attorney general shall bring any action for relief	2199
requested by the director in the name of the people of the state	2200
of Ohio.	2201

Sec. 4175.10. (A) Except as otherwise provided in division	2202
(B) of this section and section 4175.11 of the Revised Code, if,	2203
after a hearing conducted pursuant to section 4175.08 of the	2204
Revised Code, the director of commerce determines that an employer	2205
has violated section 4175.02 of the Revised Code, the employer	2206
shall be subject to a civil penalty of one thousand five hundred	2207
dollars for each violation.	2208

(B) Except as otherwise provided in section 4175.11 of the	2209
Revised Code if, after a hearing held in accordance with section	2210
4175.08 of the Revised Code, the director determines that the	2211
employer has committed a violation of section 4175.02 of the	2212
Revised Code and that violation occurred within five years after	2213
the date the director made a determination that resulted in the	2214
director assessing the employer a civil penalty under division (A)	2215
or (B) of this section, the employer is subject to a civil penalty	2216
not less than one thousand five hundred dollars or more than two	2217
thousand five hundred dollars for each violation found by the	2218
director that occurred during that five-year period.	2219

(C) For purposes of this section, each violation of section	2220
4175.02 of the Revised Code constitutes a separate violation for	2221
each individual or rule involved and for each day the violation	2222
continues.	2223

(D) The director shall base the amount of the civil penalty	2224
assessed under this section upon the director's determination of	2225
the gravity of the violations committed by the employer.	2226

Sec. 4175.11.  (A) Whoever knowingly violates section 4175.02	2227
of the Revised Code, or whoever obstructs the director of commerce	2228
or any other person authorized to inspect places of employment	2229
pursuant to section 4175.07 of the Revised Code is liable for	2230
penalties up to double the amount specified in section 4175.10 of	2231
the Revised Code.	2232

(B) An employer who is liable under division (A) of this	2233
section because the employer knowingly violated section 4175.02 of	2234
the Revised Code also is liable to the employee who was injured by	2235
the employer's violation for punitive damages in an amount equal	2236
to the amount of the penalties assessed against the employer	2237
pursuant to division (A) of this section.	2238

(C) The director shall impose the penalties described in	2239
divisions (A) and (B) of this section if a preponderance of the	2240
evidence demonstrates that the employer acted knowingly when	2241
committing the violation.	2242

Sec. 4175.12.  If the director of commerce determines that an	2243
alleged violation of this chapter has occurred that may result in	2244
a penalty assessed pursuant to section 4175.99 of the Revised	2245
Code, the director shall refer the matter to the appropriate	2246
prosecutorial authority.	2247

Sec. 4175.13.  If the director of commerce believes that any	2248
employer allegedly has violated a valid order issued by the	2249
director pursuant to section 4175.09 of the Revised Code, the	2250
director may commence an action in the court of common pleas in	2251
the county where the alleged violation has occurred and obtain	2252
from the court an order compelling the employer to obey the order	2253
of the director or be found guilty of contempt of court and	2254
punished in accordance with Chapter 2705. of the Revised Code.	2255

Sec. 4175.14.  (A) An aggrieved party may bring a civil	2256
action in the court of common pleas in the county where the	2257
alleged violation occurred or where any individual who is party to	2258
the action resides, without regard to exhaustion of any	2259
alternative administrative remedies provided in this chapter. An	2260
aggrieved party may bring a civil action on behalf of the	2261
aggrieved party or on behalf of any other individual who is	2262
similarly situated to the aggrieved party. If a court or a jury in	2263
a civil action brought pursuant to this division determines that a	2264
violation of section 4175.02 of the Revised Code has occurred, the	2265
court shall award to the plaintiff all of the following:	2266

(1) The amount of any wages, salary, employment benefits, or	2267
other compensation denied or lost to an individual by reason of	2268
the violation, plus an equal amount in liquidated damages;	2269

(2) Compensatory damages and an amount up to five hundred	2270
dollars for each violation of section 4175.02 of the Revised Code;	2271

(3) In the case of a violation of division (B) or (C) of	2272
section 4175.02 of the Revised Code, all legal or equitable relief	2273
that the court determines appropriate;	2274

(4) Attorney's fees and costs.

2275

(B) An aggrieved party shall bring an action under division	2276
(A) of this section not later than three years after the last day	2277
the aggrieved individual or individual for whom the aggrieved	2278
party is bringing the action performed services for an employer	2279
who has allegedly violated section 4175.02 of the Revised Code.	2280
The three-year period specified in this division is tolled if the	2281
employer has deterred the ability of an individual to bring an	2282
action under this section or to file a complaint under section	2283
4175.07 of the Revised Code.	2284

(C) If the director of commerce has determined under section	2285
4175.09 of the Revised Code that an employer is subject to a civil	2286
penalty under section 4175.10 or 4175.11 of the Revised Code for a	2287
violation of section 4175.02 of the Revised Code, an aggrieved	2288
party, within ninety days after the director issues that	2289
determination, may bring a civil action in the court of common	2290
pleas in the county where the violation occurred to enforce that	2291
penalty. If an aggrieved party elects to bring such an action, the	2292
aggrieved party shall notify the director of that election in	2293
writing. During that ninety-day period, the attorney general shall	2294
not bring an action to enforce that penalty. After the ninety-day	2295
period expires, only the attorney general, on behalf of the	2296
director and in accordance with this chapter, may bring an action	2297
to collect the civil penalty. In any civil action brought by an	2298
aggrieved party pursuant to this division, the court shall award	2299
the aggrieved party ten per cent of the amount of the penalty owed	2300
by the employer, and the remaining amount recovered shall be	2301
awarded to the director.	2302

Sec. 4175.15.  (A) The director of commerce shall create a	2303
summary of the requirements of this chapter in English and Spanish	2304
and shall post that summary on the official web site maintained by	2305
the department of commerce and on the bulletin boards located in	2306
each of the offices of the department.	2307

(B) If an employer engages an individual to perform services	2308
and that individual is not considered an employee, that employer	2309
shall post and keep posted, in a conspicuous place on each job	2310
site where that individual performs services and in each of the	2311
employer's offices, the notice prepared by the director pursuant	2312
to division (A) of this section. The director shall furnish copies	2313
of the notice without charge to an employer upon request.	2314

Sec. 4175.16.  The director of commerce shall create a list	2315
of employers who have committed multiple violations of section	2316
4175.02 of the Revised Code. The director shall add an employer's	2317
name to the list if the director assesses against the employer the	2318
civil penalty described in division (B) of section 4175.10 of the	2319
Revised Code. The list shall include the name of the employer and	2320
the date that the employer committed the employer's most recent	2321
violation. The director shall notify an employer that the employer	2322
will be added to this list within five days after the director	2323
determines that the employer will be added to the list. The	2324
director shall publish the list on the web site maintained by the	2325
department of commerce. No state agency shall enter into a	2326
contract with an employer included in that list for a period of	2327
four years after the date of the employer's most recent violation.	2328
The director shall remove an employer's name and information from	2329
the list upon expiration of the time period of the employer's	2330
debarment.	2331

Sec. 4175.17.  The director of commerce, the director of job	2332
and family services, the tax commissioner, and the administrator	2333
of workers' compensation shall share information concerning any	2334
suspected misclassification by an employer or entity of one or	2335
more of the employer's employees as independent contractors in	2336
violation of section 4175.02 of the Revised Code. Upon determining	2337
that an employer has misclassified an employee as an independent	2338
contractor in violation of division (A) of that section, the	2339
director of commerce shall notify the director of job and family	2340
services, the tax commissioner, and the administrator, each of	2341
whom shall determine whether the employer's violation of section	2342
4175.02 of the Revised Code results in the employer not complying	2343
with the requirements of Chapter 4121., 4123., 4127., 4131.,	2344
4141., or 5747. of the Revised Code, as applicable. The director	2345
of commerce shall make that determination with respect to sections	2346
4111.02, 4111.14, 4113.15, or 4115.03 to 4115.21 of the Revised	2347
Code. The determination made by the director of commerce that an	2348
employer has misclassified an employee as an independent	2349
contractor is binding on the director of job and family services,	2350
the tax commissioner, and the administrator unless the individual	2351
is otherwise not considered an employee under the applicable law.	2352
Notwithstanding any provision of this section to the contrary,	2353
nothing in this chapter shall be construed to limit or otherwise	2354
constrain the duties and powers of the administrator under	2355
Chapters 4121., 4123., 4127., and 4131. of the Revised Code, the	2356
director of job and family services under Chapter 4141. of the	2357
Revised Code, or the tax commissioner under Chapter 5747. of the	2358
Revised Code.	2359

Sec. 4175.18.  There is hereby created in the state treasury	2360
the employee classification fund. The director of commerce shall	2361
deposit all moneys the director receives under this chapter,	2362
including civil penalties, into the fund. The director shall use	2363
the fund for the administration, investigation, and other expenses	2364
incurred in carrying out the director's powers and duties under	2365
this chapter. If, at the end of a fiscal year, the director	2366
determines that excess moneys exist in the fund, the director	2367
shall coordinate with the director of budget and management to	2368
transfer the excess funds to the division of administration fund	2369
created under section 121.08 of the Revised Code.	2370

Sec. 4175.99.  (A) An employer or person that knowingly	2371
violates division (A), (B), (C), (E), or (F) of section 4175.02 of	2372
the Revised Code, for the first offense, is guilty of a	2373
misdemeanor of the fourth degree, and for any subsequent violation	2374
of division (A), (B), (C), (E), or (F) of section 4175.02 of the	2375
Revised Code committed within a five-year period beginning on the	2376
date the employer or person previously was convicted of or pleaded	2377
guilty to the first violation, the employer or entity is guilty of	2378
a felony of the fifth degree.	2379

(B) Whoever violates division (D) of section 4175.02 of the	2380
Revised Code is guilty of a misdemeanor of the fourth degree.	2381

Sec. 5747.01.  Except as otherwise expressly provided or	2382
clearly appearing from the context, any term used in this chapter	2383
that is not otherwise defined in this section has the same meaning	2384
as when used in a comparable context in the laws of the United	2385
States relating to federal income taxes or if not used in a	2386
comparable context in those laws, has the same meaning as in	2387
section 5733.40 of the Revised Code. Any reference in this chapter	2388
to the Internal Revenue Code includes other laws of the United	2389
States relating to federal income taxes.	2390

As used in this chapter:

2391

(A) "Adjusted gross income" or "Ohio adjusted gross income"	2392
means federal adjusted gross income, as defined and used in the	2393
Internal Revenue Code, adjusted as provided in this section:	2394

(1) Add interest or dividends on obligations or securities of	2395
any state or of any political subdivision or authority of any	2396
state, other than this state and its subdivisions and authorities.	2397

(2) Add interest or dividends on obligations of any	2398
authority, commission, instrumentality, territory, or possession	2399
of the United States to the extent that the interest or dividends	2400
are exempt from federal income taxes but not from state income	2401
taxes.	2402

(3) Deduct interest or dividends on obligations of the United	2403
States and its territories and possessions or of any authority,	2404
commission, or instrumentality of the United States to the extent	2405
that the interest or dividends are included in federal adjusted	2406
gross income but exempt from state income taxes under the laws of	2407
the United States.	2408

(4) Deduct disability and survivor's benefits to the extent	2409
included in federal adjusted gross income.	2410

(5) Deduct benefits under Title II of the Social Security Act	2411
and tier 1 railroad retirement benefits to the extent included in	2412
federal adjusted gross income under section 86 of the Internal	2413
Revenue Code.	2414

(6) In the case of a taxpayer who is a beneficiary of a trust	2415
that makes an accumulation distribution as defined in section 665	2416
of the Internal Revenue Code, add, for the beneficiary's taxable	2417
years beginning before 2002, the portion, if any, of such	2418
distribution that does not exceed the undistributed net income of	2419
the trust for the three taxable years preceding the taxable year	2420
in which the distribution is made to the extent that the portion	2421
was not included in the trust's taxable income for any of the	2422
trust's taxable years beginning in 2002 or thereafter.	2423
"Undistributed net income of a trust" means the taxable income of	2424
the trust increased by (a)(i) the additions to adjusted gross	2425
income required under division (A) of this section and (ii) the	2426
personal exemptions allowed to the trust pursuant to section	2427
642(b) of the Internal Revenue Code, and decreased by (b)(i) the	2428
deductions to adjusted gross income required under division (A) of	2429
this section, (ii) the amount of federal income taxes attributable	2430
to such income, and (iii) the amount of taxable income that has	2431
been included in the adjusted gross income of a beneficiary by	2432
reason of a prior accumulation distribution. Any undistributed net	2433
income included in the adjusted gross income of a beneficiary	2434
shall reduce the undistributed net income of the trust commencing	2435
with the earliest years of the accumulation period.	2436

(7) Deduct the amount of wages and salaries, if any, not	2437
otherwise allowable as a deduction but that would have been	2438
allowable as a deduction in computing federal adjusted gross	2439
income for the taxable year, had the targeted jobs credit allowed	2440
and determined under sections 38, 51, and 52 of the Internal	2441
Revenue Code not been in effect.	2442

(8) Deduct any interest or interest equivalent on public	2443
obligations and purchase obligations to the extent that the	2444
interest or interest equivalent is included in federal adjusted	2445
gross income.	2446

(9) Add any loss or deduct any gain resulting from the sale,	2447
exchange, or other disposition of public obligations to the extent	2448
that the loss has been deducted or the gain has been included in	2449
computing federal adjusted gross income.	2450

(10) Deduct or add amounts, as provided under section 5747.70	2451
of the Revised Code, related to contributions to variable college	2452
savings program accounts made or tuition units purchased pursuant	2453
to Chapter 3334. of the Revised Code.	2454

(11)(a) Deduct, to the extent not otherwise allowable as a	2455
deduction or exclusion in computing federal or Ohio adjusted gross	2456
income for the taxable year, the amount the taxpayer paid during	2457
the taxable year for medical care insurance and qualified	2458
long-term care insurance for the taxpayer, the taxpayer's spouse,	2459
and dependents. No deduction for medical care insurance under	2460
division (A)(11) of this section shall be allowed either to any	2461
taxpayer who is eligible to participate in any subsidized health	2462
plan maintained by any employer of the taxpayer or of the	2463
taxpayer's spouse, or to any taxpayer who is entitled to, or on	2464
application would be entitled to, benefits under part A of Title	2465
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.	2466
301, as amended. For the purposes of division (A)(11)(a) of this	2467
section, "subsidized health plan" means a health plan for which	2468
the employer pays any portion of the plan's cost. The deduction	2469
allowed under division (A)(11)(a) of this section shall be the net	2470
of any related premium refunds, related premium reimbursements, or	2471
related insurance premium dividends received during the taxable	2472
year.	2473

(b) Deduct, to the extent not otherwise deducted or excluded	2474
in computing federal or Ohio adjusted gross income during the	2475
taxable year, the amount the taxpayer paid during the taxable	2476
year, not compensated for by any insurance or otherwise, for	2477
medical care of the taxpayer, the taxpayer's spouse, and	2478
dependents, to the extent the expenses exceed seven and one-half	2479
per cent of the taxpayer's federal adjusted gross income.	2480

(c) Deduct, to the extent not otherwise deducted or excluded	2481
in computing federal or Ohio adjusted gross income, any amount	2482
included in federal adjusted gross income under section 105 or not	2483
excluded under section 106 of the Internal Revenue Code solely	2484
because it relates to an accident and health plan for a person who	2485
otherwise would be a "qualifying relative" and thus a "dependent"	2486
under section 152 of the Internal Revenue Code but for the fact	2487
that the person fails to meet the income and support limitations	2488
under section 152(d)(1)(B) and (C) of the Internal Revenue Code.	2489

(d) For purposes of division (A)(11) of this section,	2490
"medical care" has the meaning given in section 213 of the	2491
Internal Revenue Code, subject to the special rules, limitations,	2492
and exclusions set forth therein, and "qualified long-term care"	2493
has the same meaning given in section 7702B(c) of the Internal	2494
Revenue Code. Solely for purposes of divisions (A)(11)(a) and (c)	2495
of this section, "dependent" includes a person who otherwise would	2496
be a "qualifying relative" and thus a "dependent" under section	2497
152 of the Internal Revenue Code but for the fact that the person	2498
fails to meet the income and support limitations under section	2499
152(d)(1)(B) and (C) of the Internal Revenue Code.	2500

(12)(a) Deduct any amount included in federal adjusted gross	2501
income solely because the amount represents a reimbursement or	2502
refund of expenses that in any year the taxpayer had deducted as	2503
an itemized deduction pursuant to section 63 of the Internal	2504
Revenue Code and applicable United States department of the	2505
treasury regulations. The deduction otherwise allowed under	2506
division (A)(12)(a) of this section shall be reduced to the extent	2507
the reimbursement is attributable to an amount the taxpayer	2508
deducted under this section in any taxable year.	2509

(b) Add any amount not otherwise included in Ohio adjusted	2510
gross income for any taxable year to the extent that the amount is	2511
attributable to the recovery during the taxable year of any amount	2512
deducted or excluded in computing federal or Ohio adjusted gross	2513
income in any taxable year.	2514

(13) Deduct any portion of the deduction described in section	2515
1341(a)(2) of the Internal Revenue Code, for repaying previously	2516
reported income received under a claim of right, that meets both	2517
of the following requirements:	2518

(a) It is allowable for repayment of an item that was	2519
included in the taxpayer's adjusted gross income for a prior	2520
taxable year and did not qualify for a credit under division (A)	2521
or (B) of section 5747.05 of the Revised Code for that year;	2522

(b) It does not otherwise reduce the taxpayer's adjusted	2523
gross income for the current or any other taxable year.	2524

(14) Deduct an amount equal to the deposits made to, and net	2525
investment earnings of, a medical savings account during the	2526
taxable year, in accordance with section 3924.66 of the Revised	2527
Code. The deduction allowed by division (A)(14) of this section	2528
does not apply to medical savings account deposits and earnings	2529
otherwise deducted or excluded for the current or any other	2530
taxable year from the taxpayer's federal adjusted gross income.	2531

(15)(a) Add an amount equal to the funds withdrawn from a	2532
medical savings account during the taxable year, and the net	2533
investment earnings on those funds, when the funds withdrawn were	2534
used for any purpose other than to reimburse an account holder	2535
for, or to pay, eligible medical expenses, in accordance with	2536
section 3924.66 of the Revised Code;	2537

(b) Add the amounts distributed from a medical savings	2538
account under division (A)(2) of section 3924.68 of the Revised	2539
Code during the taxable year.	2540

(16) Add any amount claimed as a credit under section	2541
5747.059 or 5747.65 of the Revised Code to the extent that such	2542
amount satisfies either of the following:	2543

(a) The amount was deducted or excluded from the computation	2544
of the taxpayer's federal adjusted gross income as required to be	2545
reported for the taxpayer's taxable year under the Internal	2546
Revenue Code;	2547

(b) The amount resulted in a reduction of the taxpayer's	2548
federal adjusted gross income as required to be reported for any	2549
of the taxpayer's taxable years under the Internal Revenue Code.	2550

(17) Deduct the amount contributed by the taxpayer to an	2551
individual development account program established by a county	2552
department of job and family services pursuant to sections 329.11	2553
to 329.14 of the Revised Code for the purpose of matching funds	2554
deposited by program participants. On request of the tax	2555
commissioner, the taxpayer shall provide any information that, in	2556
the tax commissioner's opinion, is necessary to establish the	2557
amount deducted under division (A)(17) of this section.	2558

(18) Beginning in taxable year 2001 but not for any taxable	2559
year beginning after December 31, 2005, if the taxpayer is married	2560
and files a joint return and the combined federal adjusted gross	2561
income of the taxpayer and the taxpayer's spouse for the taxable	2562
year does not exceed one hundred thousand dollars, or if the	2563
taxpayer is single and has a federal adjusted gross income for the	2564
taxable year not exceeding fifty thousand dollars, deduct amounts	2565
paid during the taxable year for qualified tuition and fees paid	2566
to an eligible institution for the taxpayer, the taxpayer's	2567
spouse, or any dependent of the taxpayer, who is a resident of	2568
this state and is enrolled in or attending a program that	2569
culminates in a degree or diploma at an eligible institution. The	2570
deduction may be claimed only to the extent that qualified tuition	2571
and fees are not otherwise deducted or excluded for any taxable	2572
year from federal or Ohio adjusted gross income. The deduction may	2573
not be claimed for educational expenses for which the taxpayer	2574
claims a credit under section 5747.27 of the Revised Code.	2575

(19) Add any reimbursement received during the taxable year	2576
of any amount the taxpayer deducted under division (A)(18) of this	2577
section in any previous taxable year to the extent the amount is	2578
not otherwise included in Ohio adjusted gross income.	2579

(20)(a)(i) Subject to divisions (A)(20)(a)(iii), (iv), and	2580
(v) of this section, add five-sixths of the amount of depreciation	2581
expense allowed by subsection (k) of section 168 of the Internal	2582
Revenue Code, including the taxpayer's proportionate or	2583
distributive share of the amount of depreciation expense allowed	2584
by that subsection to a pass-through entity in which the taxpayer	2585
has a direct or indirect ownership interest.	2586

(ii) Subject to divisions (A)(20)(a)(iii), (iv), and (v) of	2587
this section, add five-sixths of the amount of qualifying section	2588
179 depreciation expense, including the taxpayer's proportionate	2589
or distributive share of the amount of qualifying section 179	2590
depreciation expense allowed to any pass-through entity in which	2591
the taxpayer has a direct or indirect ownership interest.	2592

(iii) Subject to division (A)(20)(a)(v) of this section, for	2593
taxable years beginning in 2012 or thereafter, if the increase in	2594
income taxes withheld by the taxpayer is equal to or greater than	2595
ten per cent of income taxes withheld by the taxpayer during the	2596
taxpayer's immediately preceding taxable year, "two-thirds" shall	2597
be substituted for "five-sixths" for the purpose of divisions	2598
(A)(20)(a)(i) and (ii) of this section.	2599

(iv) Subject to division (A)(20)(a)(v) of this section, for	2600
taxable years beginning in 2012 or thereafter, a taxpayer is not	2601
required to add an amount under division (A)(20) of this section	2602
if the increase in income taxes withheld by the taxpayer and by	2603
any pass-through entity in which the taxpayer has a direct or	2604
indirect ownership interest is equal to or greater than the sum of	2605
(I) the amount of qualifying section 179 depreciation expense and	2606
(II) the amount of depreciation expense allowed to the taxpayer by	2607
subsection (k) of section 168 of the Internal Revenue Code, and	2608
including the taxpayer's proportionate or distributive shares of	2609
such amounts allowed to any such pass-through entities.	2610

(v) If a taxpayer directly or indirectly incurs a net	2611
operating loss for the taxable year for federal income tax	2612
purposes, to the extent such loss resulted from depreciation	2613
expense allowed by subsection (k) of section 168 of the Internal	2614
Revenue Code and by qualifying section 179 depreciation expense,	2615
"the entire" shall be substituted for "five-sixths of the" for the	2616
purpose of divisions (A)(20)(a)(i) and (ii) of this section.	2617

The tax commissioner, under procedures established by the	2618
commissioner, may waive the add-backs related to a pass-through	2619
entity if the taxpayer owns, directly or indirectly, less than	2620
five per cent of the pass-through entity.	2621

(b) Nothing in division (A)(20) of this section shall be	2622
construed to adjust or modify the adjusted basis of any asset.	2623

(c) To the extent the add-back required under division	2624
(A)(20)(a) of this section is attributable to property generating	2625
nonbusiness income or loss allocated under section 5747.20 of the	2626
Revised Code, the add-back shall be sitused to the same location	2627
as the nonbusiness income or loss generated by the property for	2628
the purpose of determining the credit under division (A) of	2629
section 5747.05 of the Revised Code. Otherwise, the add-back shall	2630
be apportioned, subject to one or more of the four alternative	2631
methods of apportionment enumerated in section 5747.21 of the	2632
Revised Code.	2633

(d) For the purposes of division (A)(20)(a)(v) of this	2634
section, net operating loss carryback and carryforward shall not	2635
include the allowance of any net operating loss deduction	2636
carryback or carryforward to the taxable year to the extent such	2637
loss resulted from depreciation allowed by section 168(k) of the	2638
Internal Revenue Code and by the qualifying section 179	2639
depreciation expense amount.	2640

(e) For the purposes of divisions (A)(20) and (21) of this	2641
section:	2642

(i) "Income taxes withheld" means the total amount withheld	2643
and remitted under sections 5747.06 and 5747.07 of the Revised	2644
Code by an employer during the employer's taxable year.	2645

(ii) "Increase in income taxes withheld" means the amount by	2646
which the amount of income taxes withheld by an employer during	2647
the employer's current taxable year exceeds the amount of income	2648
taxes withheld by that employer during the employer's immediately	2649
preceding taxable year.	2650

(iii) "Qualifying section 179 depreciation expense" means the	2651
difference between (I) the amount of depreciation expense directly	2652
or indirectly allowed to a taxpayer under section 179 of the	2653
Internal Revised Code, and (II) the amount of depreciation expense	2654
directly or indirectly allowed to the taxpayer under section 179	2655
of the Internal Revenue Code as that section existed on December	2656
31, 2002.	2657

(21)(a) If the taxpayer was required to add an amount under	2658
division (A)(20)(a) of this section for a taxable year, deduct one	2659
of the following:	2660

(i) One-fifth of the amount so added for each of the five	2661
succeeding taxable years if the amount so added was five-sixths of	2662
qualifying section 179 depreciation expense or depreciation	2663
expense allowed by subsection (k) of section 168 of the Internal	2664
Revenue Code;	2665

(ii) One-half of the amount so added for each of the two	2666
succeeding taxable years if the amount so added was two-thirds of	2667
such depreciation expense;	2668

(iii) One-sixth of the amount so added for each of the six	2669
succeeding taxable years if the entire amount of such depreciation	2670
expense was so added.	2671

(b) If the amount deducted under division (A)(21)(a) of this	2672
section is attributable to an add-back allocated under division	2673
(A)(20)(c) of this section, the amount deducted shall be sitused	2674
to the same location. Otherwise, the add-back shall be apportioned	2675
using the apportionment factors for the taxable year in which the	2676
deduction is taken, subject to one or more of the four alternative	2677
methods of apportionment enumerated in section 5747.21 of the	2678
Revised Code.	2679

(c) No deduction is available under division (A)(21)(a) of	2680
this section with regard to any depreciation allowed by section	2681
168(k) of the Internal Revenue Code and by the qualifying section	2682
179 depreciation expense amount to the extent that such	2683
depreciation results in or increases a federal net operating loss	2684
carryback or carryforward. If no such deduction is available for a	2685
taxable year, the taxpayer may carry forward the amount not	2686
deducted in such taxable year to the next taxable year and add	2687
that amount to any deduction otherwise available under division	2688
(A)(21)(a) of this section for that next taxable year. The	2689
carryforward of amounts not so deducted shall continue until the	2690
entire addition required by division (A)(20)(a) of this section	2691
has been deducted.	2692

(d) No refund shall be allowed as a result of adjustments	2693
made by division (A)(21) of this section.	2694

(22) Deduct, to the extent not otherwise deducted or excluded	2695
in computing federal or Ohio adjusted gross income for the taxable	2696
year, the amount the taxpayer received during the taxable year as	2697
reimbursement for life insurance premiums under section 5919.31 of	2698
the Revised Code.	2699

(23) Deduct, to the extent not otherwise deducted or excluded	2700
in computing federal or Ohio adjusted gross income for the taxable	2701
year, the amount the taxpayer received during the taxable year as	2702
a death benefit paid by the adjutant general under section 5919.33	2703
of the Revised Code.	2704

(24) Deduct, to the extent included in federal adjusted gross	2705
income and not otherwise allowable as a deduction or exclusion in	2706
computing federal or Ohio adjusted gross income for the taxable	2707
year, military pay and allowances received by the taxpayer during	2708
the taxable year for active duty service in the United States	2709
army, air force, navy, marine corps, or coast guard or reserve	2710
components thereof or the national guard. The deduction may not be	2711
claimed for military pay and allowances received by the taxpayer	2712
while the taxpayer is stationed in this state.	2713

(25) Deduct, to the extent not otherwise allowable as a	2714
deduction or exclusion in computing federal or Ohio adjusted gross	2715
income for the taxable year and not otherwise compensated for by	2716
any other source, the amount of qualified organ donation expenses	2717
incurred by the taxpayer during the taxable year, not to exceed	2718
ten thousand dollars. A taxpayer may deduct qualified organ	2719
donation expenses only once for all taxable years beginning with	2720
taxable years beginning in 2007.	2721

For the purposes of division (A)(25) of this section:

2722

(a) "Human organ" means all or any portion of a human liver,	2723
pancreas, kidney, intestine, or lung, and any portion of human	2724
bone marrow.	2725

(b) "Qualified organ donation expenses" means travel	2726
expenses, lodging expenses, and wages and salary forgone by a	2727
taxpayer in connection with the taxpayer's donation, while living,	2728
of one or more of the taxpayer's human organs to another human	2729
being.	2730

(26) Deduct, to the extent not otherwise deducted or excluded	2731
in computing federal or Ohio adjusted gross income for the taxable	2732
year, amounts received by the taxpayer as retired personnel pay	2733
for service in the uniformed services or reserve components	2734
thereof, or the national guard, or received by the surviving	2735
spouse or former spouse of such a taxpayer under the survivor	2736
benefit plan on account of such a taxpayer's death. If the	2737
taxpayer receives income on account of retirement paid under the	2738
federal civil service retirement system or federal employees	2739
retirement system, or under any successor retirement program	2740
enacted by the congress of the United States that is established	2741
and maintained for retired employees of the United States	2742
government, and such retirement income is based, in whole or in	2743
part, on credit for the taxpayer's uniformed service, the	2744
deduction allowed under this division shall include only that	2745
portion of such retirement income that is attributable to the	2746
taxpayer's uniformed service, to the extent that portion of such	2747
retirement income is otherwise included in federal adjusted gross	2748
income and is not otherwise deducted under this section. Any	2749
amount deducted under division (A)(26) of this section is not	2750
included in a taxpayer's adjusted gross income for the purposes of	2751
section 5747.055 of the Revised Code. No amount may be deducted	2752
under division (A)(26) of this section on the basis of which a	2753
credit was claimed under section 5747.055 of the Revised Code.	2754

(27) Deduct, to the extent not otherwise deducted or excluded	2755
in computing federal or Ohio adjusted gross income for the taxable	2756
year, the amount the taxpayer received during the taxable year	2757
from the military injury relief fund created in section 5101.98 of	2758
the Revised Code.	2759

(28) Deduct, to the extent not otherwise deducted or excluded	2760
in computing federal or Ohio adjusted gross income for the taxable	2761
year, the amount the taxpayer received as a veterans bonus during	2762
the taxable year from the Ohio department of veterans services as	2763
authorized by Section 2r of Article VIII, Ohio Constitution.	2764

(29) Deduct, to the extent not otherwise deducted or excluded	2765
in computing federal or Ohio adjusted gross income for the taxable	2766
year, any income derived from a transfer agreement or from the	2767
enterprise transferred under that agreement under section 4313.02	2768
of the Revised Code.	2769

(30) Deduct, to the extent not otherwise deducted or excluded	2770
in computing federal or Ohio adjusted gross income for the taxable	2771
year, Ohio college opportunity or federal Pell grant amounts	2772
received by the taxpayer or the taxpayer's spouse or dependent	2773
pursuant to section 3333.122 of the Revised Code or 20 U.S.C.	2774
1070a, et seq., and used to pay room or board furnished by the	2775
educational institution for which the grant was awarded at the	2776
institution's facilities, including meal plans administered by the	2777
institution. For the purposes of this division, receipt of a grant	2778
includes the distribution of a grant directly to an educational	2779
institution and the crediting of the grant to the enrollee's	2780
account with the institution.	2781

(31) Deduct one-half of the taxpayer's Ohio small business	2782
investor income, the deduction not to exceed sixty-two thousand	2783
five hundred dollars for each spouse if spouses file separate	2784
returns under section 5747.08 of the Revised Code or one hundred	2785
twenty-five thousand dollars for all other taxpayers. No	2786
pass-through entity may claim a deduction under this division.	2787

For the purposes of this division, "Ohio small business	2788
investor income" means the portion of a taxpayer's adjusted gross	2789
income that is business income reduced by deductions from business	2790
income and apportioned or allocated to this state under sections	2791
5747.21 and 5747.22 of the Revised Code, to the extent not	2792
otherwise deducted or excluded in computing federal or Ohio	2793
adjusted gross income for the taxable year.	2794

(B) "Business income" means income, including gain or loss,	2795
arising from transactions, activities, and sources in the regular	2796
course of a trade or business and includes income, gain, or loss	2797
from real property, tangible property, and intangible property if	2798
the acquisition, rental, management, and disposition of the	2799
property constitute integral parts of the regular course of a	2800
trade or business operation. "Business income" includes income,	2801
including gain or loss, from a partial or complete liquidation of	2802
a business, including, but not limited to, gain or loss from the	2803
sale or other disposition of goodwill.	2804

(C) "Nonbusiness income" means all income other than business	2805
income and may include, but is not limited to, compensation, rents	2806
and royalties from real or tangible personal property, capital	2807
gains, interest, dividends and distributions, patent or copyright	2808
royalties, or lottery winnings, prizes, and awards.	2809

(D) "Compensation" means any form of remuneration paid to an	2810
employee for personal services.	2811

(E) "Fiduciary" means a guardian, trustee, executor,	2812
administrator, receiver, conservator, or any other person acting	2813
in any fiduciary capacity for any individual, trust, or estate.	2814

(F) "Fiscal year" means an accounting period of twelve months	2815
ending on the last day of any month other than December.	2816

(G) "Individual" means any natural person.

2817

(H) "Internal Revenue Code" means the "Internal Revenue Code	2818
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	2819

(I) "Resident" means any of the following, provided that	2820
division (I)(3) of this section applies only to taxable years of a	2821
trust beginning in 2002 or thereafter:	2822

(1) An individual who is domiciled in this state, subject to	2823
section 5747.24 of the Revised Code;	2824

(2) The estate of a decedent who at the time of death was	2825
domiciled in this state. The domicile tests of section 5747.24 of	2826
the Revised Code are not controlling for purposes of division	2827
(I)(2) of this section.	2828

(3) A trust that, in whole or part, resides in this state. If	2829
only part of a trust resides in this state, the trust is a	2830
resident only with respect to that part.	2831

For the purposes of division (I)(3) of this section:

2832

(a) A trust resides in this state for the trust's current	2833
taxable year to the extent, as described in division (I)(3)(d) of	2834
this section, that the trust consists directly or indirectly, in	2835
whole or in part, of assets, net of any related liabilities, that	2836
were transferred, or caused to be transferred, directly or	2837
indirectly, to the trust by any of the following:	2838

(i) A person, a court, or a governmental entity or	2839
instrumentality on account of the death of a decedent, but only if	2840
the trust is described in division (I)(3)(e)(i) or (ii) of this	2841
section;	2842

(ii) A person who was domiciled in this state for the	2843
purposes of this chapter when the person directly or indirectly	2844
transferred assets to an irrevocable trust, but only if at least	2845
one of the trust's qualifying beneficiaries is domiciled in this	2846
state for the purposes of this chapter during all or some portion	2847
of the trust's current taxable year;	2848

(iii) A person who was domiciled in this state for the	2849
purposes of this chapter when the trust document or instrument or	2850
part of the trust document or instrument became irrevocable, but	2851
only if at least one of the trust's qualifying beneficiaries is a	2852
resident domiciled in this state for the purposes of this chapter	2853
during all or some portion of the trust's current taxable year. If	2854
a trust document or instrument became irrevocable upon the death	2855
of a person who at the time of death was domiciled in this state	2856
for purposes of this chapter, that person is a person described in	2857
division (I)(3)(a)(iii) of this section.	2858

(b) A trust is irrevocable to the extent that the transferor	2859
is not considered to be the owner of the net assets of the trust	2860
under sections 671 to 678 of the Internal Revenue Code.	2861

(c) With respect to a trust other than a charitable lead	2862
trust, "qualifying beneficiary" has the same meaning as "potential	2863
current beneficiary" as defined in section 1361(e)(2) of the	2864
Internal Revenue Code, and with respect to a charitable lead trust	2865
"qualifying beneficiary" is any current, future, or contingent	2866
beneficiary, but with respect to any trust "qualifying	2867
beneficiary" excludes a person or a governmental entity or	2868
instrumentality to any of which a contribution would qualify for	2869
the charitable deduction under section 170 of the Internal Revenue	2870
Code.	2871

(d) For the purposes of division (I)(3)(a) of this section,	2872
the extent to which a trust consists directly or indirectly, in	2873
whole or in part, of assets, net of any related liabilities, that	2874
were transferred directly or indirectly, in whole or part, to the	2875
trust by any of the sources enumerated in that division shall be	2876
ascertained by multiplying the fair market value of the trust's	2877
assets, net of related liabilities, by the qualifying ratio, which	2878
shall be computed as follows:	2879

(i) The first time the trust receives assets, the numerator	2880
of the qualifying ratio is the fair market value of those assets	2881
at that time, net of any related liabilities, from sources	2882
enumerated in division (I)(3)(a) of this section. The denominator	2883
of the qualifying ratio is the fair market value of all the	2884
trust's assets at that time, net of any related liabilities.	2885

(ii) Each subsequent time the trust receives assets, a	2886
revised qualifying ratio shall be computed. The numerator of the	2887
revised qualifying ratio is the sum of (1) the fair market value	2888
of the trust's assets immediately prior to the subsequent	2889
transfer, net of any related liabilities, multiplied by the	2890
qualifying ratio last computed without regard to the subsequent	2891
transfer, and (2) the fair market value of the subsequently	2892
transferred assets at the time transferred, net of any related	2893
liabilities, from sources enumerated in division (I)(3)(a) of this	2894
section. The denominator of the revised qualifying ratio is the	2895
fair market value of all the trust's assets immediately after the	2896
subsequent transfer, net of any related liabilities.	2897

(iii) Whether a transfer to the trust is by or from any of	2898
the sources enumerated in division (I)(3)(a) of this section shall	2899
be ascertained without regard to the domicile of the trust's	2900
beneficiaries.	2901

(e) For the purposes of division (I)(3)(a)(i) of this	2902
section:	2903

(i) A trust is described in division (I)(3)(e)(i) of this	2904
section if the trust is a testamentary trust and the testator of	2905
that testamentary trust was domiciled in this state at the time of	2906
the testator's death for purposes of the taxes levied under	2907
Chapter 5731. of the Revised Code.	2908

(ii) A trust is described in division (I)(3)(e)(ii) of this	2909
section if the transfer is a qualifying transfer described in any	2910
of divisions (I)(3)(f)(i) to (vi) of this section, the trust is an	2911
irrevocable inter vivos trust, and at least one of the trust's	2912
qualifying beneficiaries is domiciled in this state for purposes	2913
of this chapter during all or some portion of the trust's current	2914
taxable year.	2915

(f) For the purposes of division (I)(3)(e)(ii) of this	2916
section, a "qualifying transfer" is a transfer of assets, net of	2917
any related liabilities, directly or indirectly to a trust, if the	2918
transfer is described in any of the following:	2919

(i) The transfer is made to a trust, created by the decedent	2920
before the decedent's death and while the decedent was domiciled	2921
in this state for the purposes of this chapter, and, prior to the	2922
death of the decedent, the trust became irrevocable while the	2923
decedent was domiciled in this state for the purposes of this	2924
chapter.	2925

(ii) The transfer is made to a trust to which the decedent,	2926
prior to the decedent's death, had directly or indirectly	2927
transferred assets, net of any related liabilities, while the	2928
decedent was domiciled in this state for the purposes of this	2929
chapter, and prior to the death of the decedent the trust became	2930
irrevocable while the decedent was domiciled in this state for the	2931
purposes of this chapter.	2932

(iii) The transfer is made on account of a contractual	2933
relationship existing directly or indirectly between the	2934
transferor and either the decedent or the estate of the decedent	2935
at any time prior to the date of the decedent's death, and the	2936
decedent was domiciled in this state at the time of death for	2937
purposes of the taxes levied under Chapter 5731. of the Revised	2938
Code.	2939

(iv) The transfer is made to a trust on account of a	2940
contractual relationship existing directly or indirectly between	2941
the transferor and another person who at the time of the	2942
decedent's death was domiciled in this state for purposes of this	2943
chapter.	2944

(v) The transfer is made to a trust on account of the will of	2945
a testator who was domiciled in this state at the time of the	2946
testator's death for purposes of the taxes levied under Chapter	2947
5731. of the Revised Code.	2948

(vi) The transfer is made to a trust created by or caused to	2949
be created by a court, and the trust was directly or indirectly	2950
created in connection with or as a result of the death of an	2951
individual who, for purposes of the taxes levied under Chapter	2952
5731. of the Revised Code, was domiciled in this state at the time	2953
of the individual's death.	2954

(g) The tax commissioner may adopt rules to ascertain the	2955
part of a trust residing in this state.	2956

(J) "Nonresident" means an individual or estate that is not a	2957
resident. An individual who is a resident for only part of a	2958
taxable year is a nonresident for the remainder of that taxable	2959
year.	2960

(K) "Pass-through entity" has the same meaning as in section	2961
5733.04 of the Revised Code.	2962

(L) "Return" means the notifications and reports required to	2963
be filed pursuant to this chapter for the purpose of reporting the	2964
tax due and includes declarations of estimated tax when so	2965
required.	2966

(M) "Taxable year" means the calendar year or the taxpayer's	2967
fiscal year ending during the calendar year, or fractional part	2968
thereof, upon which the adjusted gross income is calculated	2969
pursuant to this chapter.	2970

(N) "Taxpayer" means any person subject to the tax imposed by	2971
section 5747.02 of the Revised Code or any pass-through entity	2972
that makes the election under division (D) of section 5747.08 of	2973
the Revised Code.	2974

(O) "Dependents" means dependents as defined in the Internal	2975
Revenue Code and as claimed in the taxpayer's federal income tax	2976
return for the taxable year or which the taxpayer would have been	2977
permitted to claim had the taxpayer filed a federal income tax	2978
return.	2979

(P) "Principal county of employment" means, in the case of a	2980
nonresident, the county within the state in which a taxpayer	2981
performs services for an employer or, if those services are	2982
performed in more than one county, the county in which the major	2983
portion of the services are performed.	2984

(Q) As used in sections 5747.50 to 5747.55 of the Revised	2985
Code:	2986

(1) "Subdivision" means any county, municipal corporation,	2987
park district, or township.	2988

(2) "Essential local government purposes" includes all	2989
functions that any subdivision is required by general law to	2990
exercise, including like functions that are exercised under a	2991
charter adopted pursuant to the Ohio Constitution.	2992

(R) "Overpayment" means any amount already paid that exceeds	2993
the figure determined to be the correct amount of the tax.	2994

(S) "Taxable income" or "Ohio taxable income" applies only to	2995
estates and trusts, and means federal taxable income, as defined	2996
and used in the Internal Revenue Code, adjusted as follows:	2997

(1) Add interest or dividends, net of ordinary, necessary,	2998
and reasonable expenses not deducted in computing federal taxable	2999
income, on obligations or securities of any state or of any	3000
political subdivision or authority of any state, other than this	3001
state and its subdivisions and authorities, but only to the extent	3002
that such net amount is not otherwise includible in Ohio taxable	3003
income and is described in either division (S)(1)(a) or (b) of	3004
this section:	3005

(a) The net amount is not attributable to the S portion of an	3006
electing small business trust and has not been distributed to	3007
beneficiaries for the taxable year;	3008

(b) The net amount is attributable to the S portion of an	3009
electing small business trust for the taxable year.	3010

(2) Add interest or dividends, net of ordinary, necessary,	3011
and reasonable expenses not deducted in computing federal taxable	3012
income, on obligations of any authority, commission,	3013
instrumentality, territory, or possession of the United States to	3014
the extent that the interest or dividends are exempt from federal	3015
income taxes but not from state income taxes, but only to the	3016
extent that such net amount is not otherwise includible in Ohio	3017
taxable income and is described in either division (S)(1)(a) or	3018
(b) of this section;	3019

(3) Add the amount of personal exemption allowed to the	3020
estate pursuant to section 642(b) of the Internal Revenue Code;	3021

(4) Deduct interest or dividends, net of related expenses	3022
deducted in computing federal taxable income, on obligations of	3023
the United States and its territories and possessions or of any	3024
authority, commission, or instrumentality of the United States to	3025
the extent that the interest or dividends are exempt from state	3026
taxes under the laws of the United States, but only to the extent	3027
that such amount is included in federal taxable income and is	3028
described in either division (S)(1)(a) or (b) of this section;	3029

(5) Deduct the amount of wages and salaries, if any, not	3030
otherwise allowable as a deduction but that would have been	3031
allowable as a deduction in computing federal taxable income for	3032
the taxable year, had the targeted jobs credit allowed under	3033
sections 38, 51, and 52 of the Internal Revenue Code not been in	3034
effect, but only to the extent such amount relates either to	3035
income included in federal taxable income for the taxable year or	3036
to income of the S portion of an electing small business trust for	3037
the taxable year;	3038

(6) Deduct any interest or interest equivalent, net of	3039
related expenses deducted in computing federal taxable income, on	3040
public obligations and purchase obligations, but only to the	3041
extent that such net amount relates either to income included in	3042
federal taxable income for the taxable year or to income of the S	3043
portion of an electing small business trust for the taxable year;	3044

(7) Add any loss or deduct any gain resulting from sale,	3045
exchange, or other disposition of public obligations to the extent	3046
that such loss has been deducted or such gain has been included in	3047
computing either federal taxable income or income of the S portion	3048
of an electing small business trust for the taxable year;	3049

(8) Except in the case of the final return of an estate, add	3050
any amount deducted by the taxpayer on both its Ohio estate tax	3051
return pursuant to section 5731.14 of the Revised Code, and on its	3052
federal income tax return in determining federal taxable income;	3053

(9)(a) Deduct any amount included in federal taxable income	3054
solely because the amount represents a reimbursement or refund of	3055
expenses that in a previous year the decedent had deducted as an	3056
itemized deduction pursuant to section 63 of the Internal Revenue	3057
Code and applicable treasury regulations. The deduction otherwise	3058
allowed under division (S)(9)(a) of this section shall be reduced	3059
to the extent the reimbursement is attributable to an amount the	3060
taxpayer or decedent deducted under this section in any taxable	3061
year.	3062

(b) Add any amount not otherwise included in Ohio taxable	3063
income for any taxable year to the extent that the amount is	3064
attributable to the recovery during the taxable year of any amount	3065
deducted or excluded in computing federal or Ohio taxable income	3066
in any taxable year, but only to the extent such amount has not	3067
been distributed to beneficiaries for the taxable year.	3068

(10) Deduct any portion of the deduction described in section	3069
1341(a)(2) of the Internal Revenue Code, for repaying previously	3070
reported income received under a claim of right, that meets both	3071
of the following requirements:	3072

(a) It is allowable for repayment of an item that was	3073
included in the taxpayer's taxable income or the decedent's	3074
adjusted gross income for a prior taxable year and did not qualify	3075
for a credit under division (A) or (B) of section 5747.05 of the	3076
Revised Code for that year.	3077

(b) It does not otherwise reduce the taxpayer's taxable	3078
income or the decedent's adjusted gross income for the current or	3079
any other taxable year.	3080

(11) Add any amount claimed as a credit under section	3081
5747.059 or 5747.65 of the Revised Code to the extent that the	3082
amount satisfies either of the following:	3083

(a) The amount was deducted or excluded from the computation	3084
of the taxpayer's federal taxable income as required to be	3085
reported for the taxpayer's taxable year under the Internal	3086
Revenue Code;	3087

(b) The amount resulted in a reduction in the taxpayer's	3088
federal taxable income as required to be reported for any of the	3089
taxpayer's taxable years under the Internal Revenue Code.	3090

(12) Deduct any amount, net of related expenses deducted in	3091
computing federal taxable income, that a trust is required to	3092
report as farm income on its federal income tax return, but only	3093
if the assets of the trust include at least ten acres of land	3094
satisfying the definition of "land devoted exclusively to	3095
agricultural use" under section 5713.30 of the Revised Code,	3096
regardless of whether the land is valued for tax purposes as such	3097
land under sections 5713.30 to 5713.38 of the Revised Code. If the	3098
trust is a pass-through entity investor, section 5747.231 of the	3099
Revised Code applies in ascertaining if the trust is eligible to	3100
claim the deduction provided by division (S)(12) of this section	3101
in connection with the pass-through entity's farm income.	3102

Except for farm income attributable to the S portion of an	3103
electing small business trust, the deduction provided by division	3104
(S)(12) of this section is allowed only to the extent that the	3105
trust has not distributed such farm income. Division (S)(12) of	3106
this section applies only to taxable years of a trust beginning in	3107
2002 or thereafter.	3108

(13) Add the net amount of income described in section 641(c)	3109
of the Internal Revenue Code to the extent that amount is not	3110
included in federal taxable income.	3111

(14) Add or deduct the amount the taxpayer would be required	3112
to add or deduct under division (A)(20) or (21) of this section if	3113
the taxpayer's Ohio taxable income were computed in the same	3114
manner as an individual's Ohio adjusted gross income is computed	3115
under this section. In the case of a trust, division (S)(14) of	3116
this section applies only to any of the trust's taxable years	3117
beginning in 2002 or thereafter.	3118

(T) "School district income" and "school district income tax"	3119
have the same meanings as in section 5748.01 of the Revised Code.	3120

(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7)	3121
of this section, "public obligations," "purchase obligations," and	3122
"interest or interest equivalent" have the same meanings as in	3123
section 5709.76 of the Revised Code.	3124

(V) "Limited liability company" means any limited liability	3125
company formed under Chapter 1705. of the Revised Code or under	3126
the laws of any other state.	3127

(W) "Pass-through entity investor" means any person who,	3128
during any portion of a taxable year of a pass-through entity, is	3129
a partner, member, shareholder, or equity investor in that	3130
pass-through entity.	3131

(X) "Banking day" has the same meaning as in section 1304.01	3132
of the Revised Code.	3133

(Y) "Month" means a calendar month.

3134

(Z) "Quarter" means the first three months, the second three	3135
months, the third three months, or the last three months of the	3136
taxpayer's taxable year.	3137

(AA)(1) "Eligible institution" means a state university or	3138
state institution of higher education as defined in section	3139
3345.011 of the Revised Code, or a private, nonprofit college,	3140
university, or other post-secondary institution located in this	3141
state that possesses a certificate of authorization issued by the	3142
Ohio board of regents pursuant to Chapter 1713. of the Revised	3143
Code or a certificate of registration issued by the state board of	3144
career colleges and schools under Chapter 3332. of the Revised	3145
Code.	3146

(2) "Qualified tuition and fees" means tuition and fees	3147
imposed by an eligible institution as a condition of enrollment or	3148
attendance, not exceeding two thousand five hundred dollars in	3149
each of the individual's first two years of post-secondary	3150
education. If the individual is a part-time student, "qualified	3151
tuition and fees" includes tuition and fees paid for the academic	3152
equivalent of the first two years of post-secondary education	3153
during a maximum of five taxable years, not exceeding a total of	3154
five thousand dollars. "Qualified tuition and fees" does not	3155
include:	3156

(a) Expenses for any course or activity involving sports,	3157
games, or hobbies unless the course or activity is part of the	3158
individual's degree or diploma program;	3159

(b) The cost of books, room and board, student activity fees,	3160
athletic fees, insurance expenses, or other expenses unrelated to	3161
the individual's academic course of instruction;	3162

(c) Tuition, fees, or other expenses paid or reimbursed	3163
through an employer, scholarship, grant in aid, or other	3164
educational benefit program.	3165

(BB)(1) "Modified business income" means the business income	3166
included in a trust's Ohio taxable income after such taxable	3167
income is first reduced by the qualifying trust amount, if any.	3168

(2) "Qualifying trust amount" of a trust means capital gains	3169
and losses from the sale, exchange, or other disposition of equity	3170
or ownership interests in, or debt obligations of, a qualifying	3171
investee to the extent included in the trust's Ohio taxable	3172
income, but only if the following requirements are satisfied:	3173

(a) The book value of the qualifying investee's physical	3174
assets in this state and everywhere, as of the last day of the	3175
qualifying investee's fiscal or calendar year ending immediately	3176
prior to the date on which the trust recognizes the gain or loss,	3177
is available to the trust.	3178

(b) The requirements of section 5747.011 of the Revised Code	3179
are satisfied for the trust's taxable year in which the trust	3180
recognizes the gain or loss.	3181

Any gain or loss that is not a qualifying trust amount is	3182
modified business income, qualifying investment income, or	3183
modified nonbusiness income, as the case may be.	3184

(3) "Modified nonbusiness income" means a trust's Ohio	3185
taxable income other than modified business income, other than the	3186
qualifying trust amount, and other than qualifying investment	3187
income, as defined in section 5747.012 of the Revised Code, to the	3188
extent such qualifying investment income is not otherwise part of	3189
modified business income.	3190

(4) "Modified Ohio taxable income" applies only to trusts,	3191
and means the sum of the amounts described in divisions (BB)(4)(a)	3192
to (c) of this section:	3193

(a) The fraction, calculated under section 5747.013, and	3194
applying section 5747.231 of the Revised Code, multiplied by the	3195
sum of the following amounts:	3196

(i) The trust's modified business income;

3197

(ii) The trust's qualifying investment income, as defined in	3198
section 5747.012 of the Revised Code, but only to the extent the	3199
qualifying investment income does not otherwise constitute	3200
modified business income and does not otherwise constitute a	3201
qualifying trust amount.	3202

(b) The qualifying trust amount multiplied by a fraction, the	3203
numerator of which is the sum of the book value of the qualifying	3204
investee's physical assets in this state on the last day of the	3205
qualifying investee's fiscal or calendar year ending immediately	3206
prior to the day on which the trust recognizes the qualifying	3207
trust amount, and the denominator of which is the sum of the book	3208
value of the qualifying investee's total physical assets	3209
everywhere on the last day of the qualifying investee's fiscal or	3210
calendar year ending immediately prior to the day on which the	3211
trust recognizes the qualifying trust amount. If, for a taxable	3212
year, the trust recognizes a qualifying trust amount with respect	3213
to more than one qualifying investee, the amount described in	3214
division (BB)(4)(b) of this section shall equal the sum of the	3215
products so computed for each such qualifying investee.	3216

(c)(i) With respect to a trust or portion of a trust that is	3217
a resident as ascertained in accordance with division (I)(3)(d) of	3218
this section, its modified nonbusiness income.	3219

(ii) With respect to a trust or portion of a trust that is	3220
not a resident as ascertained in accordance with division	3221
(I)(3)(d) of this section, the amount of its modified nonbusiness	3222
income satisfying the descriptions in divisions (B)(2) to (5) of	3223
section 5747.20 of the Revised Code, except as otherwise provided	3224
in division (BB)(4)(c)(ii) of this section. With respect to a	3225
trust or portion of a trust that is not a resident as ascertained	3226
in accordance with division (I)(3)(d) of this section, the trust's	3227
portion of modified nonbusiness income recognized from the sale,	3228
exchange, or other disposition of a debt interest in or equity	3229
interest in a section 5747.212 entity, as defined in section	3230
5747.212 of the Revised Code, without regard to division (A) of	3231
that section, shall not be allocated to this state in accordance	3232
with section 5747.20 of the Revised Code but shall be apportioned	3233
to this state in accordance with division (B) of section 5747.212	3234
of the Revised Code without regard to division (A) of that	3235
section.	3236

If the allocation and apportionment of a trust's income under	3237
divisions (BB)(4)(a) and (c) of this section do not fairly	3238
represent the modified Ohio taxable income of the trust in this	3239
state, the alternative methods described in division (C) of	3240
section 5747.21 of the Revised Code may be applied in the manner	3241
and to the same extent provided in that section.	3242

(5)(a) Except as set forth in division (BB)(5)(b) of this	3243
section, "qualifying investee" means a person in which a trust has	3244
an equity or ownership interest, or a person or unit of government	3245
the debt obligations of either of which are owned by a trust. For	3246
the purposes of division (BB)(2)(a) of this section and for the	3247
purpose of computing the fraction described in division (BB)(4)(b)	3248
of this section, all of the following apply:	3249

(i) If the qualifying investee is a member of a qualifying	3250
controlled group on the last day of the qualifying investee's	3251
fiscal or calendar year ending immediately prior to the date on	3252
which the trust recognizes the gain or loss, then "qualifying	3253
investee" includes all persons in the qualifying controlled group	3254
on such last day.	3255

(ii) If the qualifying investee, or if the qualifying	3256
investee and any members of the qualifying controlled group of	3257
which the qualifying investee is a member on the last day of the	3258
qualifying investee's fiscal or calendar year ending immediately	3259
prior to the date on which the trust recognizes the gain or loss,	3260
separately or cumulatively own, directly or indirectly, on the	3261
last day of the qualifying investee's fiscal or calendar year	3262
ending immediately prior to the date on which the trust recognizes	3263
the qualifying trust amount, more than fifty per cent of the	3264
equity of a pass-through entity, then the qualifying investee and	3265
the other members are deemed to own the proportionate share of the	3266
pass-through entity's physical assets which the pass-through	3267
entity directly or indirectly owns on the last day of the	3268
pass-through entity's calendar or fiscal year ending within or	3269
with the last day of the qualifying investee's fiscal or calendar	3270
year ending immediately prior to the date on which the trust	3271
recognizes the qualifying trust amount.	3272

(iii) For the purposes of division (BB)(5)(a)(iii) of this	3273
section, "upper level pass-through entity" means a pass-through	3274
entity directly or indirectly owning any equity of another	3275
pass-through entity, and "lower level pass-through entity" means	3276
that other pass-through entity.	3277

An upper level pass-through entity, whether or not it is also	3278
a qualifying investee, is deemed to own, on the last day of the	3279
upper level pass-through entity's calendar or fiscal year, the	3280
proportionate share of the lower level pass-through entity's	3281
physical assets that the lower level pass-through entity directly	3282
or indirectly owns on the last day of the lower level pass-through	3283
entity's calendar or fiscal year ending within or with the last	3284
day of the upper level pass-through entity's fiscal or calendar	3285
year. If the upper level pass-through entity directly and	3286
indirectly owns less than fifty per cent of the equity of the	3287
lower level pass-through entity on each day of the upper level	3288
pass-through entity's calendar or fiscal year in which or with	3289
which ends the calendar or fiscal year of the lower level	3290
pass-through entity and if, based upon clear and convincing	3291
evidence, complete information about the location and cost of the	3292
physical assets of the lower pass-through entity is not available	3293
to the upper level pass-through entity, then solely for purposes	3294
of ascertaining if a gain or loss constitutes a qualifying trust	3295
amount, the upper level pass-through entity shall be deemed as	3296
owning no equity of the lower level pass-through entity for each	3297
day during the upper level pass-through entity's calendar or	3298
fiscal year in which or with which ends the lower level	3299
pass-through entity's calendar or fiscal year. Nothing in division	3300
(BB)(5)(a)(iii) of this section shall be construed to provide for	3301
any deduction or exclusion in computing any trust's Ohio taxable	3302
income.	3303

(b) With respect to a trust that is not a resident for the	3304
taxable year and with respect to a part of a trust that is not a	3305
resident for the taxable year, "qualifying investee" for that	3306
taxable year does not include a C corporation if both of the	3307
following apply:	3308

(i) During the taxable year the trust or part of the trust	3309
recognizes a gain or loss from the sale, exchange, or other	3310
disposition of equity or ownership interests in, or debt	3311
obligations of, the C corporation.	3312

(ii) Such gain or loss constitutes nonbusiness income.

3313

(6) "Available" means information is such that a person is	3314
able to learn of the information by the due date plus extensions,	3315
if any, for filing the return for the taxable year in which the	3316
trust recognizes the gain or loss.	3317

(CC) "Qualifying controlled group" has the same meaning as in	3318
section 5733.04 of the Revised Code.	3319

(DD) "Related member" has the same meaning as in section	3320
5733.042 of the Revised Code.	3321

(EE)(1) For the purposes of division (EE) of this section:

3322

(a) "Qualifying person" means any person other than a	3323
qualifying corporation.	3324

(b) "Qualifying corporation" means any person classified for	3325
federal income tax purposes as an association taxable as a	3326
corporation, except either of the following:	3327

(i) A corporation that has made an election under subchapter	3328
S, chapter one, subtitle A, of the Internal Revenue Code for its	3329
taxable year ending within, or on the last day of, the investor's	3330
taxable year;	3331

(ii) A subsidiary that is wholly owned by any corporation	3332
that has made an election under subchapter S, chapter one,	3333
subtitle A of the Internal Revenue Code for its taxable year	3334
ending within, or on the last day of, the investor's taxable year.	3335

(2) For the purposes of this chapter, unless expressly stated	3336
otherwise, no qualifying person indirectly owns any asset directly	3337
or indirectly owned by any qualifying corporation.	3338

(FF) For purposes of this chapter and Chapter 5751. of the	3339
Revised Code:	3340

(1) "Trust" does not include a qualified pre-income tax	3341
trust.	3342

(2) A "qualified pre-income tax trust" is any pre-income tax	3343
trust that makes a qualifying pre-income tax trust election as	3344
described in division (FF)(3) of this section.	3345

(3) A "qualifying pre-income tax trust election" is an	3346
election by a pre-income tax trust to subject to the tax imposed	3347
by section 5751.02 of the Revised Code the pre-income tax trust	3348
and all pass-through entities of which the trust owns or controls,	3349
directly, indirectly, or constructively through related interests,	3350
five per cent or more of the ownership or equity interests. The	3351
trustee shall notify the tax commissioner in writing of the	3352
election on or before April 15, 2006. The election, if timely	3353
made, shall be effective on and after January 1, 2006, and shall	3354
apply for all tax periods and tax years until revoked by the	3355
trustee of the trust.	3356

(4) A "pre-income tax trust" is a trust that satisfies all of	3357
the following requirements:	3358

(a) The document or instrument creating the trust was	3359
executed by the grantor before January 1, 1972;	3360

(b) The trust became irrevocable upon the creation of the	3361
trust; and	3362

(c) The grantor was domiciled in this state at the time the	3363
trust was created.	3364

(GG) "Uniformed services" has the same meaning as in 10	3365
U.S.C. 101.	3366

(HH) "Employee" has the same meaning as in section 4175.01 of	3367
the Revised Code, unless the internal revenue service has accepted	3368
the classification an individual as an independent contractor made	3369
by the individual and the individual's payer.	3370

Section 2.  That existing sections 121.083, 1349.61, 4111.02,	3371
4111.14, 4113.15, 4115.03, 4121.01, 4123.01, 4123.026, 4141.01,	3372
and 5747.01 of the Revised Code are hereby repealed.	3373