As Passed by the Senate

130th General Assembly
Regular Session
2013-2014
Sub. H. B. No. 493


Representatives Sears, Henne 

Cosponsors: Representatives Hackett, Huffman, Stebelton, Wachtmann 

Senators Bacon, Faber, Peterson, Schaffer, Seitz 



A BILL
To amend sections 1561.31, 2305.25, 2305.252, 1
4121.129, 4121.45, 4123.01, 4123.26, 4123.27, 2
4123.29, 4123.291, 4123.292, 4123.32, 4123.322, 3
4123.34, 4123.35, 4123.353, 4123.36, 4123.37, 4
4123.40, 4123.41, 4123.411, 4123.47, 4123.511, 5
4123.512, 4123.54, 4123.542, 4123.66, 4123.82, 6
4123.83, 4125.05, 4729.80, and 4729.86; to enact 7
sections 4121.443, 4121.447, and 4123.323; to 8
repeal section 4121.419 of the Revised Code; and 9
to amend Section 1 of Sub. H.B. 34 of the 130th 10
General Assembly, as subsequently amended, to make 11
changes to Ohio's Workers' Compensation Law.12


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

       Section 1.  That sections 1561.31, 2305.25, 2305.252, 13
4121.129, 4121.45, 4123.01, 4123.26, 4123.27, 4123.29, 4123.291, 14
4123.292, 4123.32, 4123.322, 4123.34, 4123.35, 4123.353, 4123.36, 15
4123.37, 4123.40, 4123.41, 4123.411, 4123.47, 4123.511, 4123.512, 16
4123.54, 4123.542, 4123.66, 4123.82, 4123.83, 4125.05, 4729.80, 17
and 4729.86 be amended and sections 4121.443, 4121.447, and 18
4123.323 of the Revised Code be enacted to read as follows:19

       Sec. 1561.31.  Each deputy mine inspector shall inspect each 20
mine in the inspector's district, the owner, lessee, agent, or 21
operator of which is an employer as defined in section 4123.01 of 22
the Revised Code, or any other mine at which three or more persons 23
work, at intervals not exceeding three months between inspections, 24
and all other mines in the inspector's district as often as 25
practical, noting particularly the location and condition of 26
buildings, the condition of the boiler, machinery, workings of the 27
mine, the traveling ways and haulageways, the circulation and 28
condition of the air and drainage, and the condition of electrical 29
circuits and appliances. The inspector shall make tests for 30
poisonous, explosive, and noxious gases, and shall specifically 31
order compliance with any section of this chapter and Chapters 32
1563., 1565., and 1567. and sections 1509.09, 1509.12, 1509.13, 33
1509.14, 1509.15, 1509.17, and 1509.18 of the Revised Code that 34
the inspector finds is being violated.35

       Upon completion of the inspection of a mine, the inspector 36
shall fill out a report of the conditions found during inspections 37
on a form provided by the chief of the division of mineral 38
resources management, which form shall provide for statements as 39
to whether the laws are being observed or violated, and if 40
violated, the nature and extent thereof, the date of the 41
inspection, the number of persons employed in and about the mine, 42
whether or not a certificate of compliancethe proof of workers' 43
compensation coverage issued pursuant to section 4123.35 of the 44
Revised Code is posted and the date of expiration thereof, and 45
matters, things, and practices that specifically are covered by 46
law, order of the chief, or previous order of the inspector. The 47
inspector shall make this report in quadruplicate or 48
quintuplicate, and send the original to the chief, post a copy at 49
the mine, give a copy to the mine superintendent, and retain a 50
copy for the inspector's files. Where the miners of a mine have a 51
mine safety committee, the inspector shall post one additional 52
copy of the report of that mine at that mine for the use and 53
possession of the committee. The report required by this section 54
shall be known as the inspector's routine report.55

       If an inspector orders compliance with this chapter and 56
Chapters 1563., 1565., and 1567. and sections 1509.09, 1509.12, 57
1509.13, 1509.14, 1509.15, 1509.17, and 1509.18 of the Revised 58
Code, and is assured by the superintendent of the mine to which 59
the order applies that the order will be complied with, the 60
inspector shall revisit the mine within a reasonable period of 61
time and ascertain whether or not the order has been complied 62
with. The inspector shall report the inspector's findings to the 63
chief on a form to be provided by the chief, and take action to 64
enforce compliance.65

       Sec. 2305.25. As used in this section and sections 2305.251 66
to 2305.253 of the Revised Code:67

       (A)(1) "Health care entity" means an entity, whether acting 68
on its own behalf or on behalf of or in affiliation with other 69
health care entities, that conducts as part of its regular 70
business activities professional credentialing or quality review 71
activities involving the competence of, professional conduct of, 72
or quality of care provided by health care providers, including 73
both individuals who provide health care and entities that provide 74
health care.75

       (2) "Health care entity" includes any entity described in 76
division (A)(1) of this section, regardless of whether it is a 77
government entity; for-profit or nonprofit corporation; limited 78
liability company; partnership; professional corporation; state or 79
local society composed of physicians, dentists, optometrists, 80
psychologists, or pharmacists; accountable care organization; 81
other health care organization; or combination of any of the 82
foregoing entities.83

       (B) "Health insuring corporation" means an entity that holds 84
a certificate of authority under Chapter 1751. of the Revised 85
Code. "Health insuring corporation" includes wholly owned 86
subsidiaries of a health insuring corporation.87

       (C) "Hospital" means any of the following:88

       (1) An institution that has been registered or licensed by 89
the department of health as a hospital;90

       (2) An entity, other than an insurance company authorized to 91
do business in this state, that owns, controls, or is affiliated 92
with an institution that has been registered or licensed by the 93
department of health as a hospital;94

       (3) A group of hospitals that are owned, sponsored, or 95
managed by a single entity.96

       (D) "Incident report or risk management report" means a 97
report of an incident involving injury or potential injury to a 98
patient as a result of patient care provided by health care 99
providers, including both individuals who provide health care and 100
entities that provide health care, that is prepared by or for the 101
use of a peer review committee of a health care entity and is 102
within the scope of the functions of that committee.103

       (E)(1) "Peer review committee" means a utilization review 104
committee, quality assessment committee, performance improvement 105
committee, tissue committee, credentialing committee, or other 106
committee that does either of the following:107

       (a) Conducts professional credentialing or quality review 108
activities involving the competence of, professional conduct of, 109
or quality of care provided by health care providers, including 110
both individuals who provide health care and entities that provide 111
health care;112

       (b) Conducts any other attendant hearing process initiated as 113
a result of a peer review committee's recommendations or actions.114

       (2) "Peer review committee" includes all of the following:115

       (a) A peer review committee of a hospital or long-term care 116
facility or a peer review committee of a nonprofit health care 117
corporation that is a member of the hospital or long-term care 118
facility or of which the hospital or facility is a member;119

       (b) A peer review committee of a community mental health 120
center;121

       (c) A board or committee of a hospital, a long-term care 122
facility, or other health care entity when reviewing professional 123
qualifications or activities of health care providers, including 124
both individuals who provide health care and entities that provide 125
health care;126

       (d) A peer review committee, professional standards review 127
committee, or arbitration committee of a state or local society 128
composed of members who are in active practice as physicians, 129
dentists, optometrists, psychologists, or pharmacists;130

       (e) A peer review committee of a health insuring corporation 131
that has at least a two-thirds majority of member physicians in 132
active practice and that conducts professional credentialing and 133
quality review activities involving the competence or professional 134
conduct of health care providers that adversely affects or could 135
adversely affect the health or welfare of any patient;136

       (f) A peer review committee of a health insuring corporation 137
that has at least a two-thirds majority of member physicians in 138
active practice and that conducts professional credentialing and 139
quality review activities involving the competence or professional 140
conduct of a health care facility that has contracted with the 141
health insuring corporation to provide health care services to 142
enrollees, which conduct adversely affects, or could adversely 143
affect, the health or welfare of any patient;144

       (g) A peer review committee of a sickness and accident 145
insurer that has at least a two-thirds majority of physicians in 146
active practice and that conducts professional credentialing and 147
quality review activities involving the competence or professional 148
conduct of health care providers that adversely affects or could 149
adversely affect the health or welfare of any patient;150

       (h) A peer review committee of a sickness and accident 151
insurer that has at least a two-thirds majority of physicians in 152
active practice and that conducts professional credentialing and 153
quality review activities involving the competence or professional 154
conduct of a health care facility that has contracted with the 155
insurer to provide health care services to insureds, which conduct 156
adversely affects, or could adversely affect, the health or 157
welfare of any patient;158

       (i) A peer review committee of any insurer authorized under 159
Title XXXIX of the Revised Code to do the business of medical 160
professional liability insurance in this state that conducts 161
professional quality review activities involving the competence or 162
professional conduct of health care providers that adversely 163
affects or could affect the health or welfare of any patient;164

       (j) A peer review committee of the bureau of workers' 165
compensation or the industrial commission that is responsible for 166
reviewing the professional qualifications and the performance of 167
providers certified by the bureau to participate in the health 168
partnership program or of providers conducting medical 169
examinations or file reviews for the bureau or the commission;170

       (k) Any other peer review committee of a health care entity.171

       (F) "Physician" means an individual authorized to practice 172
medicine and surgery, osteopathic medicine and surgery, or 173
podiatric medicine and surgery.174

       (G) "Sickness and accident insurer" means an entity 175
authorized under Title XXXIX of the Revised Code to do the 176
business of sickness and accident insurance in this state.177

       (H) "Tort action" means a civil action for damages for 178
injury, death, or loss to a patient of a health care entity. "Tort 179
action" includes a product liability claim, as defined in section 180
2307.71 of the Revised Code, and an asbestos claim, as defined in 181
section 2307.91 of the Revised Code, but does not include a civil 182
action for a breach of contract or another agreement between 183
persons.184

       (I) "Accountable care organization" means such an 185
organization as defined in 42 C.F.R. 425.20.186

       Sec. 2305.252. (A) Proceedings and records within the scope 187
of a peer review committee of a health care entity shall be held 188
in confidence and shall not be subject to discovery or 189
introduction in evidence in any civil action against a health care 190
entity or health care provider, including both individuals who 191
provide health care and entities that provide health care, arising 192
out of matters that are the subject of evaluation and review by 193
the peer review committee. No individual who attends a meeting of 194
a peer review committee, serves as a member of a peer review 195
committee, works for or on behalf of a peer review committee, or 196
provides information to a peer review committee shall be permitted 197
or required to testify in any civil action as to any evidence or 198
other matters produced or presented during the proceedings of the 199
peer review committee or as to any finding, recommendation, 200
evaluation, opinion, or other action of the committee or a member 201
thereof. 202

       Information, documents, or records otherwise available from 203
original sources are not to be construed as being unavailable for 204
discovery or for use in any civil action merely because they were 205
produced or presented during proceedings of a peer review 206
committee, but the information, documents, or records are 207
available only from the original sources and cannot be obtained 208
from the peer review committee's proceedings or records. 209

       The release of any information, documents, or records that 210
were produced or presented during proceedings of a peer review 211
committee or created to document the proceedings does not affect 212
the confidentiality of any other information, documents, or 213
records produced or presented during those proceedings or created 214
to document them. Only the information, documents, or records 215
actually released cease to be privileged under this section.216

        Nothing in this section precludes health care entities from 217
sharing information, documents, or records that were produced or 218
presented during proceedings of a peer review committee or created 219
to document them as long as the information, documents, or records 220
are used only for peer review purposes.221

        An individual who testifies before a peer review committee, 222
serves as a representative of a peer review committee, serves as a 223
member of a peer review committee, works for or on behalf of a 224
peer review committee, or provides information to a peer review 225
committee shall not be prevented from testifying as to matters 226
within the individual's knowledge, but the individual cannot be 227
asked about the individual's testimony before the peer review 228
committee, information the individual provided to the peer review 229
committee, or any opinion the individual formed as a result of the 230
peer review committee's activities. 231

       An order by a court to produce for discovery or for use at 232
trial the proceedings or records described in this section is a 233
final order.234

       (B) Division (A) of this section applies to a peer review 235
committee of the bureau of workers' compensation that is 236
responsible for reviewing the professional qualifications and the 237
performance of providers certified by the bureau to participate in 238
the health partnership program created under sections 4121.44 and 239
4121.441 of the Revised Code, except that the proceedings and 240
records within the scope of the peer review committee are subject 241
to discovery or court subpoena and may be admitted into evidence 242
in any criminal action or administrative or civil action 243
initiated, prosecuted, or adjudicated by the bureau involving an 244
alleged violation of applicable statutes or administrative rules. 245
The bureau may share proceedings and records within the scope of 246
the peer review committee, including claimant records and claim 247
file information, with law enforcement agencies, licensing boards, 248
and other governmental agencies that are prosecuting, 249
adjudicating, or investigating alleged violations of applicable 250
statutes or administrative rules. If the bureau shares proceedings 251
or records with a law enforcement agency, licensing board, or 252
another governmental agency pursuant to this division, that 253
sharing does not affect the confidentiality of the record. 254
Recipients of claimant records and claim file information provided 255
by the bureau pursuant to this division shall take appropriate 256
measures to maintain the confidentiality of the information.257

       Sec. 4121.129.  (A) There is hereby created the workers' 258
compensation audit committee consisting of at least three members. 259
One member shall be the member of the bureau of workers' 260
compensation board of directors who is a certified public 261
accountant. The board, by majority vote, shall appoint two 262
additional members of the board to serve on the audit committee 263
and may appoint additional members who are not board members, as 264
the board determines necessary. Members of the audit committee 265
serve at the pleasure of the board, and the board, by majority 266
vote, may remove any member except the member of the committee who 267
is the certified public accountant member of the board. The board, 268
by majority vote, shall determine how often the audit committee 269
shall meet and report to the board. If the audit committee meets 270
on the same day as the board holds a meeting, no member shall be 271
compensated for more than one meeting held on that day. The audit 272
committee shall do all of the following:273

       (1) Recommend to the board an accountingactuarial firm to 274
perform the annual auditsanalysis required under section 4123.47 275
of the Revised Code;276

       (2) Recommend an auditing firm for the board to use when 277
conducting audits under section 4121.125 of the Revised Code;278

       (3) Review the results of each annual audit and management 279
review and, if any problems exist, assess the appropriate course 280
of action to correct those problems and develop an action plan to 281
correct those problems;282

       (4) Monitor the implementation of any action plans created 283
pursuant to division (A)(3) of this section;284

       (5) Review all internal audit reports on a regular basis.285

       (B) There is hereby created the workers' compensation 286
actuarial committee consisting of at least three members. One 287
member shall be the member of the board who is an actuary. The 288
board, by majority vote, shall appoint two additional members of 289
the board to serve on the actuarial committee and may appoint 290
additional members who are not board members, as the board 291
determines necessary. Members of the actuarial committee serve at 292
the pleasure of the board and the board, by majority vote, may 293
remove any member except the member of the committee who is the 294
actuary member of the board. The board, by majority vote, shall 295
determine how often the actuarial committee shall meet and report 296
to the board. If the actuarial committee meets on the same day as 297
the board holds a meeting, no member shall be compensated for more 298
than one meeting held on that day. The actuarial committee shall 299
do both of the following:300

       (1) Recommend actuarial consultants for the board to use for 301
the funds specified in this chapter and Chapters 4123., 4127., and 302
4131. of the Revised Code;303

       (2) Review calculations on rate schedules and performance 304
prepared by the actuarial consultants with whom the board enters 305
into a contract.306

       (C)(1) There is hereby created the workers' compensation 307
investment committee consisting of at least four members. Two of 308
the members shall be the members of the board who serve as the 309
investment and securities experts on the board. The board, by 310
majority vote, shall appoint two additional members of the board 311
to serve on the investment committee and may appoint additional 312
members who are not board members. Each additional member the 313
board appoints shall have at least one of the following 314
qualifications:315

       (a) Experience managing another state's pension funds or 316
workers' compensation funds;317

       (b) Expertise that the board determines is needed to make 318
investment decisions.319

        Members of the investment committee serve at the pleasure of 320
the board and the board, by majority vote, may remove any member 321
except the members of the committee who are the investment and 322
securities expert members of the board. The board, by majority 323
vote, shall determine how often the investment committee shall 324
meet and report to the board. If the investment committee meets on 325
the same day as the board holds a meeting, no member shall be 326
compensated for more than one meeting held on that day.327

       (2) The investment committee shall do all of the following:328

       (a) Develop the investment policy for the administration of 329
the investment program for the funds specified in this chapter and 330
Chapters 4123., 4127., and 4131. of the Revised Code in accordance 331
with the requirements specified in section 4123.442 of the Revised 332
Code;333

       (b) Submit the investment policy developed pursuant to 334
division (C)(2)(a) of this section to the board for approval;335

       (c) Monitor implementation by the administrator of workers' 336
compensation and the bureau of workers' compensation chief 337
investment officer of the investment policy approved by the board;338

       (d) Recommend outside investment counsel with whom the board 339
may contract to assist the investment committee in fulfilling its 340
duties;341

       (e) Review the performance of the bureau of workers' 342
compensation chief investment officer and any investment 343
consultants retained by the administrator to assure that the 344
investments of the assets of the funds specified in this chapter 345
and Chapters 4123., 4127., and 4131. of the Revised Code are made 346
in accordance with the investment policy approved by the board and 347
that the best possible return onto assure compliance with the348
investment is achievedpolicy and effective management of the 349
funds.350

       Sec. 4121.443.  (A) The bureau of workers' compensation may 351
summarily suspend the certification of a provider to participate 352
in the health partnership program created under sections 4121.44 353
and 4121.441 of the Revised Code without a prior hearing if the 354
bureau determines any of the following apply to the provider:355

       (1) The professional license, certification, or registration 356
held by the provider to practice the provider's profession has 357
been revoked or suspended for an indefinite period of time or for 358
a period of more than thirty days, subsequent to the provider's 359
certification to participate in the health partnership program.360

       (2) The provider has been convicted of or has pleaded guilty 361
to a violation of section 2913.48 or sections 2923.31 to 2923.36 362
of the Revised Code or has been convicted of or pleaded guilty to 363
any other criminal offense related to the delivery of or billing 364
for health care services.365

       (3) The bureau determines, by clear and convincing evidence, 366
that the continued participation by the provider in the health 367
partnership program presents a danger of immediate and serious 368
harm to claimants.369

       (B) The bureau shall issue a written order of summary 370
suspension by certified mail or in person in accordance with 371
section 119.07 of the Revised Code. If the provider subject to the 372
summary suspension requests an adjudicatory hearing by the bureau, 373
the date set for the hearing shall be not later than fifteen days, 374
but not earlier than seven days, after the provider requests the 375
hearing, unless otherwise agreed to by both the bureau and the 376
provider.377

       (C) If an order issued pursuant to this section is appealed, 378
the court may stay execution of the order and fix the terms of the 379
stay, if the court finds both of the following:380

       (1) That an unusual hardship to the appellant will result 381
from execution of the order pending appeal;382

       (2) That the health, safety, and welfare of the public will 383
not be threatened by staying execution of the order pending 384
appeal.385

       (D) A court or agency order staying the suspension of a 386
professional license, certification, or registration shall not 387
affect the ability of the bureau to suspend the certification of a 388
provider to participate in the health partnership program under 389
this section.390

       (E) The summary suspension of a certification of a provider 391
under this section shall not affect the ability of that provider 392
to receive payment for services rendered prior to the effective 393
date of the suspension.394

       (F) Any summary suspension imposed under this section shall 395
remain in effect, unless reversed on appeal, until a final 396
adjudication order issued by the bureau pursuant to this section 397
and Chapter 119. of the Revised Code takes effect. The bureau 398
shall issue its final adjudication order within seventy-five days 399
after completion of its hearing. A failure to issue the order 400
within the seventy-five-day time period shall result in 401
dissolution of the summary suspension order but shall not 402
invalidate any subsequent, final adjudication order.403

       (G) As used in this section, "provider" does not include a 404
hospital.405

       Sec. 4121.447.  Each contract the administrator of workers' 406
compensation enters into with a managed care organization under 407
division (B)(4) of section 4121.44 of the Revised Code shall 408
require the managed care organization to enter into a data 409
security agreement with the state board of pharmacy governing the 410
managed care organization's use of the board's drug database 411
established and maintained under section 4729.75 of the Revised 412
Code.413

       This section does not apply if the board does not establish 414
or maintain the drug database.415

       Sec. 4121.45.  (A) There is hereby created a workers' 416
compensation ombudsperson system to assist claimants and employers 417
in matters dealing with the bureau of workers' compensation and 418
the industrial commission. The industrial commission nominating 419
council shall appoint a chief ombudsperson. The chief 420
ombudsperson, with the advice and consent of the advisory 421
commissionnominating council, may appoint such assistant 422
ombudspersons as the nominating council deems necessary. The 423
positionsposition of chief ombudsperson and assistant 424
ombudspersons areis for termsa term of six years. A person 425
appointed to the position of chief ombudsperson or assistant 426
ombudspersonsshall serve at the pleasure of the nominating 427
council. The chief ombudsperson may not be transferred, demoted, 428
or suspended during the person's tenure and may be removed by the 429
nominating council only on the grounds of malfeasance or neglect 430
of duty upon notice and public hearinga vote of not fewer than 431
nine members of the nominating council. The ombudspersonschief 432
ombudsperson shall devote theirthe chief ombudsperson's full time 433
and attention to the duties of theirthe ombudsperson's office. 434
The administrator of workers' compensation shall furnish the 435
ombudspersonschief ombudsperson with the office space, supplies, 436
and clerical assistance that will enable the ombudspersonschief 437
ombudsperson and the ombudsperson system staff to perform their 438
duties effectively. The ombudsperson program shall be funded out 439
of the budget of the bureau and the chief ombudsperson and 440
assistant ombudspersonsthe ombudsperson system staff shall be 441
carried on the bureau payroll but. The chief ombudsperson and the 442
ombudsperson system shall be under the direction of the nominating 443
council. The administrator and all employees of the bureau and the 444
commission shall give the ombudspersonsthe ombudsperson system 445
staff full and prompt cooperation in all matters relating to the 446
duties of the ombudspersonschief ombudsperson.447

       (B) The ombudspersonsombudsperson system staff shall:448

       (1) Answer inquiries or investigate complaints made by 449
employers or claimants under this chapter and Chapter 4123. of the 450
Revised Code as they relate to the processing of a claim for 451
workers' compensation benefits;452

       (2) Provide claimants and employers with information 453
regarding problems which arise out of the functions of the bureau, 454
commission hearing officers, and the commission and the procedures 455
employed in the processing of claims;456

       (3) Answer inquiries or investigate complaints of an employer 457
as they relate to reserves established and premiums charged in 458
connection with the employer's account;459

       (4) Comply with Chapter 102. and sections 2921.42 and 2921.43 460
of the Revised Code and the nominating council's human resource 461
and ethics policies;462

       (5) Not express any opinions as to the merit of a claim or 463
the correctness of a decision by the various officers or agencies 464
as the decision relates to a claim for benefits or compensation.465

       For the purpose of carrying out the chief ombudsperson's 466
duties, the chief ombudsperson or the chief ombudsperson's 467
assistantsombudsperson system staff, notwithstanding sections 468
4123.27 and 4123.88 of the Revised Code, has the right at all 469
reasonable times to examine the contents of a claim file and 470
discuss with parties in interest the contents of the file as long 471
as the ombudsperson does not divulge information that would tend 472
to prejudice the case of either party to a claim or that would 473
tend to compromise a privileged attorney-client or doctor-patient 474
relationship.475

       (C) The chief ombudsperson shall:476

       (1) Assist any service office in its duties whenever it 477
requires assistance or information that can best be obtained from 478
central office personnel or records;479

       (2) Annually assemble reports from each assistant 480
ombudsperson as to their activities for the preceding year 481
together with their recommendations as to changes or improvements 482
in the operations of the workers' compensation system. The chief 483
ombudsperson shall prepare a written report summarizing the 484
activities of the ombudsperson system together with a digest of 485
recommendations. The chief ombudsperson shall transmit the report 486
to the nominating council.487

       (3) Comply with Chapter 102. and sections 2921.42 and 2921.43 488
of the Revised Code and the nominating council's human resource 489
and ethics policies.490

       (D) No ombudsperson or assistant ombudsperson shall:491

       (1) Represent a claimant or employer in claims pending before 492
or to be filed with the administrator, a district or staff hearing 493
officer, the commission, or the courts of the state, nor shall an 494
ombudsperson or assistant ombudsperson undertake any such 495
representation for a period of one year after the ombudsperson's 496
or assistant ombudsperson's employment terminates or be eligible 497
for employment by the bureau or the commission or as a district or 498
staff hearing officer for one year;499

       (2) Express any opinions as to the merit of a claim or the 500
correctness of a decision by the various officers or agencies as 501
the decision relates to a claim for benefits or compensation.502

       (E) The chief ombudsperson and assistant ombudspersons shall 503
receive compensation at a level established by the nominating 504
council commensurate with the individual's background, education, 505
and experience in workers' compensation or related fields. The 506
chief ombudsperson and assistant ombudspersons are full-time 507
permanent employees in the classified civilunclassified service 508
of the state and are entitled to all benefits that accrue to such 509
employees, including, without limitation, sick, vacation, and 510
personal leaves. Assistant ombudspersons serve at the pleasure of 511
the chief ombudsperson.512

       (F) In the event of a vacancy in the position of chief 513
ombudsperson, the nominating council may appoint a person to serve 514
as acting chief ombudsperson until a chief ombudsperson is 515
appointed. The acting chief ombudsperson shall be under the 516
direction and control of the nominating council and may be removed 517
by the nominating council with or without just cause.518

       Sec. 4123.01.  As used in this chapter:519

       (A)(1) "Employee" means:520

       (a) Every person in the service of the state, or of any 521
county, municipal corporation, township, or school district 522
therein, including regular members of lawfully constituted police 523
and fire departments of municipal corporations and townships, 524
whether paid or volunteer, and wherever serving within the state 525
or on temporary assignment outside thereof, and executive officers 526
of boards of education, under any appointment or contract of hire, 527
express or implied, oral or written, including any elected 528
official of the state, or of any county, municipal corporation, or 529
township, or members of boards of education.530

       As used in division (A)(1)(a) of this section, the term 531
"employee" includes the following persons when responding to an 532
inherently dangerous situation that calls for an immediate 533
response on the part of the person, regardless of whether the 534
person is within the limits of the jurisdiction of the person's 535
regular employment or voluntary service when responding, on the 536
condition that the person responds to the situation as the person 537
otherwise would if the person were on duty in the person's 538
jurisdiction:539

       (i) Off-duty peace officers. As used in division (A)(1)(a)(i) 540
of this section, "peace officer" has the same meaning as in 541
section 2935.01 of the Revised Code.542

       (ii) Off-duty firefighters, whether paid or volunteer, of a 543
lawfully constituted fire department.544

       (iii) Off-duty first responders, emergency medical 545
technicians-basic, emergency medical technicians-intermediate, or 546
emergency medical technicians-paramedic, whether paid or 547
volunteer, of an ambulance service organization or emergency 548
medical service organization pursuant to Chapter 4765. of the 549
Revised Code.550

       (b) Every person in the service of any person, firm, or 551
private corporation, including any public service corporation, 552
that (i) employs one or more persons regularly in the same 553
business or in or about the same establishment under any contract 554
of hire, express or implied, oral or written, including aliens and 555
minors, household workers who earn one hundred sixty dollars or 556
more in cash in any calendar quarter from a single household and 557
casual workers who earn one hundred sixty dollars or more in cash 558
in any calendar quarter from a single employer, or (ii) is bound 559
by any such contract of hire or by any other written contract, to 560
pay into the state insurance fund the premiums provided by this 561
chapter.562

       (c) Every person who performs labor or provides services 563
pursuant to a construction contract, as defined in section 4123.79 564
of the Revised Code, if at least ten of the following criteria 565
apply:566

       (i) The person is required to comply with instructions from 567
the other contracting party regarding the manner or method of 568
performing services;569

       (ii) The person is required by the other contracting party to 570
have particular training;571

       (iii) The person's services are integrated into the regular 572
functioning of the other contracting party;573

       (iv) The person is required to perform the work personally;574

       (v) The person is hired, supervised, or paid by the other 575
contracting party;576

       (vi) A continuing relationship exists between the person and 577
the other contracting party that contemplates continuing or 578
recurring work even if the work is not full time;579

       (vii) The person's hours of work are established by the other 580
contracting party;581

       (viii) The person is required to devote full time to the 582
business of the other contracting party;583

       (ix) The person is required to perform the work on the 584
premises of the other contracting party;585

       (x) The person is required to follow the order of work set by 586
the other contracting party;587

       (xi) The person is required to make oral or written reports 588
of progress to the other contracting party;589

       (xii) The person is paid for services on a regular basis such 590
as hourly, weekly, or monthly;591

       (xiii) The person's expenses are paid for by the other 592
contracting party;593

       (xiv) The person's tools and materials are furnished by the 594
other contracting party;595

       (xv) The person is provided with the facilities used to 596
perform services;597

       (xvi) The person does not realize a profit or suffer a loss 598
as a result of the services provided;599

       (xvii) The person is not performing services for a number of 600
employers at the same time;601

       (xviii) The person does not make the same services available 602
to the general public;603

       (xix) The other contracting party has a right to discharge 604
the person;605

       (xx) The person has the right to end the relationship with 606
the other contracting party without incurring liability pursuant 607
to an employment contract or agreement.608

       Every person in the service of any independent contractor or 609
subcontractor who has failed to pay into the state insurance fund 610
the amount of premium determined and fixed by the administrator of 611
workers' compensation for the person's employment or occupation or 612
if a self-insuring employer has failed to pay compensation and 613
benefits directly to the employer's injured and to the dependents 614
of the employer's killed employees as required by section 4123.35 615
of the Revised Code, shall be considered as the employee of the 616
person who has entered into a contract, whether written or verbal, 617
with such independent contractor unless such employees or their 618
legal representatives or beneficiaries elect, after injury or 619
death, to regard such independent contractor as the employer.620

       (d) Every person to whom all of the following apply:621

       (i) The person is a resident of a state other than this state 622
and is covered by that other state's workers' compensation law;623

       (ii) The person performs labor or provides services for that 624
person's employer while temporarily within this state;625

       (iii) The laws of that other state do not include the 626
provisions described in division (H)(4) of section 4123.54 of the 627
Revised Code.628

       (2) "Employee" does not mean:629

       (a) A duly ordained, commissioned, or licensed minister or 630
assistant or associate minister of a church in the exercise of 631
ministry;632

       (b) Any officer of a family farm corporation;633

       (c) An individual incorporated as a corporation; or634

        (d) An individual who otherwise is an employee of an employer 635
but who signs the waiver and affidavit specified in section 636
4123.15 of the Revised Code on the condition that the 637
administrator has granted a waiver and exception to the 638
individual's employer under section 4123.15 of the Revised Code.639

       Any employer may elect to include as an "employee" within 640
this chapter, any person excluded from the definition of 641
"employee" pursuant to division (A)(2) of this section. If an 642
employer is a partnership, sole proprietorship, individual 643
incorporated as a corporation, or family farm corporation, such 644
employer may elect to include as an "employee" within this 645
chapter, any member of such partnership, the owner of the sole 646
proprietorship, the individual incorporated as a corporation, or 647
the officers of the family farm corporation. In the event of an 648
election, the employer shall serve upon the bureau of workers' 649
compensation written notice naming the persons to be covered, 650
include such employee's remuneration for premium purposes in all 651
future payroll reports, and no person excluded from the definition 652
of "employee" pursuant to division (A)(2) of this section, 653
proprietor, individual incorporated as a corporation, or partner 654
shall be deemed an employee within this division until the 655
employer has served such notice.656

       For informational purposes only, the bureau shall prescribe 657
such language as it considers appropriate, on such of its forms as 658
it considers appropriate, to advise employers of their right to 659
elect to include as an "employee" within this chapter a sole 660
proprietor, any member of a partnership, an individual 661
incorporated as a corporation, the officers of a family farm 662
corporation, or a person excluded from the definition of 663
"employee" under division (A)(2) of this section, that they should 664
check any health and disability insurance policy, or other form of 665
health and disability plan or contract, presently covering them, 666
or the purchase of which they may be considering, to determine 667
whether such policy, plan, or contract excludes benefits for 668
illness or injury that they might have elected to have covered by 669
workers' compensation.670

       (B) "Employer" means:671

       (1) The state, including state hospitals, each county, 672
municipal corporation, township, school district, and hospital 673
owned by a political subdivision or subdivisions other than the 674
state;675

       (2) Every person, firm, professional employer organization as 676
defined in section 4125.01 of the Revised Code, and private 677
corporation, including any public service corporation, that (a) 678
has in service one or more employees or shared employees regularly 679
in the same business or in or about the same establishment under 680
any contract of hire, express or implied, oral or written, or (b) 681
is bound by any such contract of hire or by any other written 682
contract, to pay into the insurance fund the premiums provided by 683
this chapter.684

       All such employers are subject to this chapter. Any member of 685
a firm or association, who regularly performs manual labor in or 686
about a mine, factory, or other establishment, including a 687
household establishment, shall be considered an employee in 688
determining whether such person, firm, or private corporation, or 689
public service corporation, has in its service, one or more 690
employees and the employer shall report the income derived from 691
such labor to the bureau as part of the payroll of such employer, 692
and such member shall thereupon be entitled to all the benefits of 693
an employee.694

       (C) "Injury" includes any injury, whether caused by external 695
accidental means or accidental in character and result, received 696
in the course of, and arising out of, the injured employee's 697
employment. "Injury" does not include:698

       (1) Psychiatric conditions except where the claimant's 699
psychiatric conditions have arisen from an injury or occupational 700
disease sustained by that claimant or where the claimant's 701
psychiatric conditions have arisen from sexual conduct in which 702
the claimant was forced by threat of physical harm to engage or 703
participate;704

       (2) Injury or disability caused primarily by the natural 705
deterioration of tissue, an organ, or part of the body;706

       (3) Injury or disability incurred in voluntary participation 707
in an employer-sponsored recreation or fitness activity if the 708
employee signs a waiver of the employee's right to compensation or 709
benefits under this chapter prior to engaging in the recreation or 710
fitness activity;711

       (4) A condition that pre-existed an injury unless that 712
pre-existing condition is substantially aggravated by the injury. 713
Such a substantial aggravation must be documented by objective 714
diagnostic findings, objective clinical findings, or objective 715
test results. Subjective complaints may be evidence of such a 716
substantial aggravation. However, subjective complaints without 717
objective diagnostic findings, objective clinical findings, or 718
objective test results are insufficient to substantiate a 719
substantial aggravation.720

       (D) "Child" includes a posthumous child and a child legally 721
adopted prior to the injury.722

       (E) "Family farm corporation" means a corporation founded for 723
the purpose of farming agricultural land in which the majority of 724
the voting stock is held by and the majority of the stockholders 725
are persons or the spouse of persons related to each other within 726
the fourth degree of kinship, according to the rules of the civil 727
law, and at least one of the related persons is residing on or 728
actively operating the farm, and none of whose stockholders are a 729
corporation. A family farm corporation does not cease to qualify 730
under this division where, by reason of any devise, bequest, or 731
the operation of the laws of descent or distribution, the 732
ownership of shares of voting stock is transferred to another 733
person, as long as that person is within the degree of kinship 734
stipulated in this division.735

       (F) "Occupational disease" means a disease contracted in the 736
course of employment, which by its causes and the characteristics 737
of its manifestation or the condition of the employment results in 738
a hazard which distinguishes the employment in character from 739
employment generally, and the employment creates a risk of 740
contracting the disease in greater degree and in a different 741
manner from the public in general.742

       (G) "Self-insuring employer" means an employer who is granted 743
the privilege of paying compensation and benefits directly under 744
section 4123.35 of the Revised Code, including a board of county 745
commissioners for the sole purpose of constructing a sports 746
facility as defined in section 307.696 of the Revised Code, 747
provided that the electors of the county in which the sports 748
facility is to be built have approved construction of a sports 749
facility by ballot election no later than November 6, 1997.750

       (H) "Private employer" means an employer as defined in 751
division (B)(2) of this section.752

       (I) "Professional employer organization" has the same meaning 753
as in section 4125.01 of the Revised Code.754

       (J) "Public employer" means an employer as defined in 755
division (B)(1) of this section.756

       (I)(K) "Sexual conduct" means vaginal intercourse between a 757
male and female; anal intercourse, fellatio, and cunnilingus 758
between persons regardless of gender; and, without privilege to do 759
so, the insertion, however slight, of any part of the body or any 760
instrument, apparatus, or other object into the vaginal or anal 761
cavity of another. Penetration, however slight, is sufficient to 762
complete vaginal or anal intercourse.763

       (J)(L) "Other-states' insurer" means an insurance company 764
that is authorized to provide workers' compensation insurance 765
coverage in any of the states that permit employers to obtain 766
insurance for workers' compensation claims through insurance 767
companies.768

       (K)(M) "Other-states' coverage" means insuranceboth of the 769
following:770

       (1) Insurance coverage purchasedsecured by an eligible771
employer for workers' compensation claims that ariseof employees 772
who are in employment relationships localized in a state or states773
other than this state and that are filed by the employees of the 774
employer or those employee'semployees' dependents, as 775
applicable, in that other state or those other states;776

       (2) Insurance coverage secured by an eligible employer for 777
workers' compensation claims that arise in a state other than this 778
state where an employer elects to obtain coverage through either 779
the administrator or an other-states' insurer.780

       (N) "Limited other-states coverage" means insurance coverage 781
provided by the administrator to an eligible employer for workers' 782
compensation claims of employees who are in an employment 783
relationship localized in this state but are temporarily working 784
in a state other than this state, or those employees' dependents.785

       Sec. 4123.26. (A) Every employer shall keep records of, and 786
furnish to the bureau of workers' compensation upon request, all 787
information required by the administrator of workers' compensation 788
to carry out this chapter. In January of each year789

       (B) Except as otherwise provided in division (C) of this 790
section, every private employer of the state employing one or 791
more employees regularly in the same business, or in or about the 792
same establishment, shall prepare and mailsubmit a payroll report793
to the bureau at its main office in Columbus a statement 794
containing. Until the policy year commencing July 1, 2015, a 795
private employer shall submit the payroll report in January of 796
each year. For a policy year commencing on or after July 1, 2015, 797
the employer shall submit the payroll report on or before August 798
fifteenth of each year unless otherwise specified by the 799
administrator in rules the administrator adopts. The employer 800
shall include all of the following information in the payroll 801
report, as applicable:802

       (A) The(1) For payroll reports submitted prior to July 1, 803
2015, the number of employees employed during the preceding year 804
from the first day of January through the thirty-first day of 805
December who are localized in this state;806

       (B)(2) For payroll reports submitted on or after July 1, 807
2015, the number of employees localized in this state employed 808
during the preceding policy year from the first day of July 809
through the thirtieth day of June;810

       (3) The number of such employees localized in this state811
employed at each kind of employment and the aggregate amount of 812
wages paid to such employees;813

       (C)(4)(a) If an employer elects to obtainsecure814
other-states' coverage or limited other-states' coverage pursuant 815
to section 4123.292 of the Revised Code through either the 816
administrator, if the administrator elects to offer such coverage, 817
or an other-states' insurer for claims arising in a state or 818
states other than this state, all of the following information:819

       (1) The amount of wages the employer paid to the employer's 820
employees for performing labor or providing services for the 821
employer in this state;822

       (2) The amount of wages the employer paid to the employer's 823
employees for performing labor or providing services for the 824
employer in a state or states other than this state.825

        The allocation of wages identified by the employer pursuant 826
to divisions (C)(1) and (2) of this section shall not be presumed 827
to be an indication of the law under which an employee is eligible 828
to receive compensation and benefitsrequired under divisions 829
(B)(1) to (3) of this section and any additional information 830
required by the administrator in rules the administrator adopts, 831
with the advice and consent of the bureau of workers' compensation 832
board of directors, to allow the employer to secure other-states' 833
coverage or limited other-states' coverage.834

       (D)(5)(a) In accordance with the rules adopted by the 835
administrator pursuant to division (D)(C) of section 4123.32 of 836
the Revised Code, if the employer employs employees who are 837
covered under the federal "Longshore and Harbor Workers' 838
Compensation Act," 98 Stat. 1639, 33 U.S.C. 901 et seq., and under 839
this chapter and Chapter 4121. of the Revised Code, both of the 840
following amounts:841

       (1)(i) The amount of wages the employer pays to those 842
employees when the employees perform labor and provide services 843
for which the employees are eligible to receive compensation and 844
benefits under the federal "Longshore and Harbor Workers' 845
Compensation Act;";846

       (2)(ii) The amount of wages the employer pays to those 847
employees when the employees perform labor and provide services 848
for which the employees are eligible to receive compensation and 849
benefits under this chapter and Chapter 4121. of the Revised Code.850

       (b) The allocation of wages identified by the employer 851
pursuant to divisions (D)(1)(B)(5)(a)(i) and (2)(ii) of this 852
section shall not be presumed to be an indication of the law under 853
which an employee is eligible to receive compensation and 854
benefits.855

       The information shall be furnished on a blank to be prepared 856
by the bureau. The bureau shall furnish the blanks to employers 857
free of charge upon request therefor. Every employer receiving 858
from the bureau any blank, with directions to fill out the same, 859
shall cause the same to be properly filled out so as to answer 860
fully and correctly all questions therein propounded, and give all 861
the information therein sought, or if unable to do so, the 862
employer shall give to the bureau in writing good and sufficient 863
reasons for such failure.(C) Beginning August 1, 2015, each 864
employer that is recognized by the administrator as a professional 865
employer organization shall submit a monthly payroll report 866
containing the number of employees employed during the preceding 867
calendar month, the number of those employees employed at each 868
kind of employment, and the aggregate amount of wages paid to 869
those employees.870

       (D) An employer described in division (B) of this section 871
shall submit the payroll report required under this section to the 872
bureau on a form prescribed by the bureau. The bureau may require 873
that the information required to be furnished be verified under 874
oath and returned to the bureau within the period fixed by it or 875
by law. The bureau or any person employed by the bureau for that 876
purpose, may examine, under oath, any employer, or the officer, 877
agent, or employee thereof, for the purpose of ascertaining any 878
information which the employer is required to furnish to the 879
bureau.880

       (E) No private employer shall fail to furnish to the bureau 881
the annual statementpayroll report required by this section, nor 882
shall any employer fail to keep records of or furnish such other 883
information as may be required by the bureau under this section.884

       Whoever violates this section shall forfeit five hundred 885
dollars, to be collected in a civil action brought against the 886
employer in the name of the state, to be paid into the state 887
insurance fund and become a part thereof888

       (F) The administrator may adopt rules setting forth penalties 889
for failure to submit the payroll report required by this section, 890
including but not limited to exclusion from alternative rating 891
plans and discount programs.892

       Sec. 4123.27.  Information contained in the annual statement893
payroll report provided for in section 4123.26 of the Revised 894
Code, and such other information as may be furnished to the bureau 895
of workers' compensation by employers in pursuance of that 896
section, is for the exclusive use and information of the bureau in 897
the discharge of its official duties, and shall not be open to the 898
public nor be used in any court in any action or proceeding 899
pending therein unless the bureau is a party to the action or 900
proceeding; but the. The information contained in the statement901
payroll report may be tabulated and published by the bureau in 902
statistical form for the use and information of other state 903
departments and the public. No person in the employ of the bureau, 904
except those who are authorized by the administrator of workers' 905
compensation, shall divulge any information secured by the person 906
while in the employ of the bureau in respect to the transactions, 907
property, claim files, records, or papers of the bureau or in 908
respect to the business or mechanical, chemical, or other 909
industrial process of any company, firm, corporation, person, 910
association, partnership, or public utility to any person other 911
than the administrator or to the superior of such employee of the 912
bureau.913

       Notwithstanding the restrictions imposed by this section, the 914
governor, select or standing committees of the general assembly, 915
the auditor of state, the attorney general, or their designees, 916
pursuant to the authority granted in this chapter and Chapter 917
4121. of the Revised Code, may examine any records, claim files, 918
or papers in possession of the industrial commission or the 919
bureau. They also are bound by the privilege that attaches to 920
these papers.921

       The administrator shall report to the director of job and 922
family services or to the county director of job and family 923
services the name, address, and social security number or other 924
identification number of any person receiving workers' 925
compensation whose name or social security number or other 926
identification number is the same as that of a person required by 927
a court or child support enforcement agency to provide support 928
payments to a recipient or participant of public assistance, as 929
that term is defined in section 5101.181 of the Revised Code, and 930
whose name is submitted to the administrator by the director under 931
section 5101.36 of the Revised Code. The administrator also shall 932
inform the director of the amount of workers' compensation paid to 933
the person during such period as the director specifies.934

       Within fourteen days after receiving from the director of job 935
and family services a list of the names and social security 936
numbers of recipients or participants of public assistance 937
pursuant to section 5101.181 of the Revised Code, the 938
administrator shall inform the auditor of state of the name, 939
current or most recent address, and social security number of each 940
person receiving workers' compensation pursuant to this chapter 941
whose name and social security number are the same as that of a 942
person whose name or social security number was submitted by the 943
director. The administrator also shall inform the auditor of state 944
of the amount of workers' compensation paid to the person during 945
such period as the director specifies.946

       The bureau and its employees, except for purposes of 947
furnishing the auditor of state with information required by this 948
section, shall preserve the confidentiality of recipients or 949
participants of public assistance in compliance with section 950
5101.181 of the Revised Code.951

       Sec. 4123.29.  (A) The administrator of workers' 952
compensation, subject to the approval of the bureau of workers' 953
compensation board of directors, shall do all of the following:954

       (1) Classify occupations or industries with respect to their 955
degree of hazard and determine the risks of the different classes 956
according to the categories the national council on compensation 957
insurance establishes that are applicable to employers in this 958
state;959

       (2)(a) Fix the rates of premium of the risks of the classes 960
based upon the total payroll in each of the classes of occupation 961
or industry sufficiently large to provide a fund for the 962
compensation provided for in this chapter and to maintain a state 963
insurance fund from year to year. The administrator shall set the 964
rates at a level that assures the solvency of the fund. Where the 965
payroll cannot be obtained or, in the opinion of the 966
administrator, is not an adequate measure for determining the 967
premium to be paid for the degree of hazard, the administrator may 968
determine the rates of premium upon such other basis, consistent 969
with insurance principles, as is equitable in view of the degree 970
of hazard, and whenever in this chapter reference is made to 971
payroll or expenditure of wages with reference to fixing premiums, 972
the reference shall be construed to have been made also to such 973
other basis for fixing the rates of premium as the administrator 974
may determine under this section.975

       (b) If an employer elects to obtain other-states' coverage, 976
including limited other-states' coverage, pursuant to section 977
4123.292 of the Revised Code through either the administrator, if 978
the administrator elects to offer such coverage, or an 979
other-states' insurer, calculate the employer's premium for the 980
state insurance fund in the same manner as otherwise required 981
under division (A) of this section and section 4123.34 of the 982
Revised Code, except that when the administrator determines the 983
expenditure of wages, payroll, or both upon which to basemay 984
establish in rule an alternative calculation of the employer's 985
premium, the administrator shall use onlyto appropriately account 986
for the expenditure of wages, payroll, or both attributable to the 987
labor performed and services provided by that employer's employees 988
when those employees performed labor and provided services in this 989
state only and to which thein the other state or states for which 990
the employer elects to secure other-states' coverage does not 991
apply.992

       (c) If an employer elects to obtain other-states' coverage 993
pursuant to section 4123.292 of the Revised Code through an 994
other-states' insurer, calculate the employer's premium for the 995
state insurance fund in the same manner as otherwise required 996
under division (A) of this section and section 4123.34 of the 997
Revised Code, except that when the administrator determines the 998
expenditure of wages, payroll, or both upon which to base the 999
employer's premium, the administrator shall use only the 1000
expenditure of wages, payroll, or both attributable to the labor 1001
performed and services provided by that employer's employees when 1002
those employees performed labor and provided services in this 1003
state only and to which the other-states' coverage does not apply. 1004
The administrator may adopt rules setting forth the information 1005
that an employer electing to obtain other-states' coverage through 1006
an other-states' insurer shall report for purposes of determining 1007
the expenditure of wages, payroll, or both attributable to the 1008
labor performed and services provided in this state.1009

       (d) The administrator in setting or revising rates shall 1010
furnish to employers an adequate explanation of the basis for the 1011
rates set.1012

       (3) Develop and make available to employers who are paying 1013
premiums to the state insurance fund alternative premium plans. 1014
Alternative premium plans shall include retrospective rating 1015
plans. The administrator may make available plans under which an 1016
advanced deposit may be applied against a specified deductible 1017
amount per claim.1018

       (4)(a) Offer to insure the obligations of employers under 1019
this chapter under a plan that groups, for rating purposes, 1020
employers, and pools the risk of the employers within the group 1021
provided that the employers meet all of the following conditions:1022

       (i) All of the employers within the group are members of an 1023
organization that has been in existence for at least two years 1024
prior to the date of application for group coverage;1025

       (ii) The organization was formed for purposes other than that 1026
of obtaining group workers' compensation under this division;1027

       (iii) The employers' business in the organization is 1028
substantially similar such that the risks which are grouped are 1029
substantially homogeneous;1030

       (iv) The group of employers consists of at least one hundred 1031
members or the aggregate workers' compensation premiums of the 1032
members, as determined by the administrator, are expected1033
estimated to exceed one hundred fifty thousand dollars during the 1034
coverage period;1035

       (v) The formation and operation of the group program in the 1036
organization will substantially improve accident prevention and 1037
claims handling for the employers in the group;1038

       (vi) Each employer seeking to enroll in a group for workers' 1039
compensation coverage has an industrial insurance account in good 1040
standing with the bureau of workers' compensation such that at the 1041
time the agreement is processed no outstanding premiums, 1042
penalties, or assessments are due from any of the employers. The 1043
administrator shall adopt rules setting forth the criteria by 1044
which the administrator will determine whether an employer's 1045
account is in good standing.1046

       (b) If an organization sponsors more than one employer group 1047
to participate in group plans established under this section, that 1048
organization may submit a single application that supplies all of 1049
the information necessary for each group of employers that the 1050
organization wishes to sponsor.1051

       (c) In providing employer group plans under division (A)(4) 1052
of this section, the administrator shall consider an employer 1053
group as a single employing entity for purposes of group rating. 1054
No employer may be a member of more than one group for the purpose 1055
of obtaining workers' compensation coverage under this division.1056

       (d) At the time the administrator revises premium rates 1057
pursuant to this section and section 4123.34 of the Revised Code, 1058
if the premium rate of an employer who participates in a group 1059
plan established under this section changes from the rate 1060
established for the previous year, the administrator, in addition 1061
to sending the invoice with the rate revision to that employer, 1062
shall send a copy of that invoice to the third-party administrator 1063
that administers the group plan for that employer's group.1064

       (e) In providing employer group plans under division (A)(4) 1065
of this section, the administrator shall establish a program 1066
designed to mitigate the impact of a significant claim that would 1067
come into the experience of a private, state fund group-rated 1068
employer or a taxing district employer for the first time and be a 1069
contributing factor in that employer being excluded from a 1070
group-rated plan. The administrator shall establish eligibility 1071
criteria and requirements that such employers must satisfy in 1072
order to participate in this program. For purposes of this 1073
program, the administrator shall establish a discount on premium 1074
rates applicable to employers who qualify for the program.1075

       (f) In no event shall division (A)(4) of this section be 1076
construed as granting to an employer status as a self-insuring 1077
employer.1078

       (g) The administrator shall develop classifications of 1079
occupations or industries that are sufficiently distinct so as not 1080
to group employers in classifications that unfairly represent the 1081
risks of employment with the employer.1082

       (5) Generally promote employer participation in the state 1083
insurance fund through the regular dissemination of information to 1084
all classes of employers describing the advantages and benefits of 1085
opting to make premium payments to the fund. To that end, the 1086
administrator shall regularly make employers aware of the various 1087
workers' compensation premium packages developed and offered 1088
pursuant to this section.1089

       (6) Make available to every employer who is paying premiums 1090
to the state insurance fund a program whereby the employer or the 1091
employer's agent pays to the claimant or on behalf of the claimant 1092
the first fifteen thousand dollars of a compensable workers' 1093
compensation medical-only claim filed by that claimant that is 1094
related to the same injury or occupational disease. No formal 1095
application is required; however, an employer must elect to 1096
participate by telephoning the bureau after July 1, 1995. Once an 1097
employer has elected to participate in the program, the employer 1098
will be responsible for all bills in all medical-only claims with 1099
a date of injury the same or later than the election date, unless 1100
the employer notifies the bureau within fourteen days of receipt 1101
of the notification of a claim being filed that it does not wish 1102
to pay the bills in that claim, or the employer notifies the 1103
bureau that the fifteen thousand dollar maximum has been paid, or 1104
the employer notifies the bureau of the last day of service on 1105
which it will be responsible for the bills in a particular 1106
medical-only claim. If an employer elects to enter the program, 1107
the administrator shall not reimburse the employer for such 1108
amounts paid and shall not charge the first fifteen thousand 1109
dollars of any medical-only claim paid by an employer to the 1110
employer's experience or otherwise use it in merit rating or 1111
determining the risks of any employer for the purpose of payment 1112
of premiums under this chapter. A certified health care provider 1113
shall extend to an employer who participates in this program the 1114
same rates for services rendered to an employee of that employer 1115
as the provider bills the administrator for the same type of 1116
medical claim processed by the bureau and shall not charge, 1117
assess, or otherwise attempt to collect from an employee any 1118
amount for covered services or supplies that is in excess of that 1119
rate. If an employer elects to enter the program and the employer 1120
fails to pay a bill for a medical-only claim included in the 1121
program, the employer shall be liable for that bill and the 1122
employee for whom the employer failed to pay the bill shall not be 1123
liable for that bill. The administrator shall adopt rules to 1124
implement and administer division (A)(6) of this section. Upon 1125
written request from the bureau, the employer shall provide 1126
documentation to the bureau of all medical-only bills that they 1127
are paying directly. Such requests from the bureau may not be made 1128
more frequently than on a semiannual basis. Failure to provide 1129
such documentation to the bureau within thirty days of receipt of 1130
the request may result in the employer's forfeiture of 1131
participation in the program for such injury. The provisions of 1132
this section shall not apply to claims in which an employer with 1133
knowledge of a claimed compensable injury or occupational disease, 1134
has paid wages in lieu of compensation or total disability.1135

        (B) The administrator, with the advice and consent of the 1136
board, by rule, may do both of the following:1137

       (1) Grant an employer who makespays the employer's 1138
semiannualannual estimated premium payment at least one monthin 1139
full prior to the last day on which the payment may be made 1140
without penaltystart of the policy year for which the estimated 1141
premium is due, a discount as the administrator fixes from time to 1142
time;1143

       (2) Levy a minimum annual administrative charge upon risks 1144
where semiannual premium reports develop a charge less than the 1145
administrator considers adequate to offset administrative costs of 1146
processing.1147

       Sec. 4123.291.  (A) An adjudicating committee appointed by 1148
the administrator of workers' compensation to hear any matter 1149
specified in divisions (B)(1) to (7) of this section shall hear 1150
the matter within sixty days of the date on which an employer 1151
files the request, protest, or petition. An employer desiring to 1152
file a request, protest, or petition regarding any matter 1153
specified in divisions (B)(1) to (7) of this section shall file 1154
the request, protest, or petition to the adjudicating committee on 1155
or before twenty-four months after the administrator sends notice 1156
of the determination about which the employer is filing the 1157
request, protest, or petition.1158

       (B) An employer who is adversely affected by a decision of an 1159
adjudicating committee appointed by the administrator may appeal 1160
the decision of the committee to the administrator or the 1161
administrator's designee. The employer shall file the appeal in 1162
writing within thirty days after the employer receives the 1163
decision of the adjudicating committee. The administrator or the 1164
designee shall hear the appeal and hold a hearing, provided that 1165
the decision of the adjudicating committee relates to one of the 1166
following:1167

       (1) An employer request for a waiver of a default in the 1168
payment of premiums pursuant to section 4123.37 of the Revised 1169
Code;1170

       (2) An employer request for the settlement of liability as a 1171
noncomplying employer under section 4123.75 of the Revised Code;1172

       (3) An employer petition objecting to thean assessment of a 1173
premiummade pursuant to section 4123.37 of the Revised Code and 1174
the rules adopted pursuant to that section;1175

       (4) An employer request for the abatement of penalties 1176
assessed pursuant to section 4123.32 of the Revised Code and the 1177
rules adopted pursuant to that section;1178

       (5) An employer protest relating to an audit finding or a 1179
determination of a manual classification, experience rating, or 1180
transfer or combination of risk experience;1181

       (6) Any decision relating to any other risk premium matter 1182
under Chapters 4121., 4123., and 4131. of the Revised Code;1183

       (7) An employer petition objecting to the amount of security 1184
required under division (D) of section 4125.05 of the Revised Code 1185
and the rules adopted pursuant to that section.1186

       (C) The bureau of workers' compensation board of directors, 1187
based upon recommendations of the workers' compensation actuarial 1188
committee, shall establish the policy for all adjudicating 1189
committee procedures, including, but not limited to, specific 1190
criteria for manual premium rate adjustment.1191

       Sec. 4123.292. (A) Notwithstanding sections 4123.35 and 1192
4123.82 of the Revised Code, an employer may elect to obtain 1193
other-states' coverage through an other-states' insurer or, if the 1194
administrator of workers' compensation elects to offer such 1195
coverage, through the administrator pursuant to division (B) of 1196
this section. An employer who elects to obtain other-states' 1197
coverage shall submit a written notice to the administrator 1198
stating that election on a form prescribed by the administrator1199
and, if the employer elects to obtain that coverage through an 1200
other-states' insurer, the name of the other-states' insurer 1201
through whom the employer has obtained that coverage. If an 1202
employer fails to pay the employer's premium for other-states' 1203
coverage, the administrator shall consider the employer to be 1204
noncompliant for the purposes of having other-states' coverage but 1205
shall not consider the employer to be a noncomplying employer for 1206
purposes of this chapter or Chapter 4121., 4127., or 4131. of the 1207
Revised Code unless the employer otherwise fails to comply with1208
and the employer's premiums in this state for any and all 1209
noncompliant periods of time shall be calculated in the same 1210
manner as otherwise required under division (A) of section 4123.29 1211
and section 4123.354123.34 of the Revised Code, using both the 1212
wages reported in this state and the wages that the employer 1213
claimed would be reported to the other-states' insurer for 1214
securing coverage.1215

       (B) The administrator may secureoffer other-states' coverage 1216
to allow an employer who wishes to obtain other-states' coverage 1217
pursuant to this section and who elects to obtainsecure that 1218
coverage through the administrator for workers' compensation 1219
claims arising in a state or states other than this state. If the 1220
administrator elects to secure a vehicle through which the 1221
administrator will provide other-states' coverage, the 1222
administrator shall follow the competitive bidding requirements 1223
specified in Chapter 125. of the Revised Code to select one or 1224
more other-states' insurerinsurers, and the administrator, with 1225
the advice and consent of the bureau of workers' compensation 1226
board of directors, shall award thea contract to provide 1227
other-states' coverage for employers located in this state to the1228
one or more other-states' insurerinsurers that isare the lowest 1229
and best bidderbidders.1230

       (C) If the administrator elects to secure other-states' 1231
coverage pursuant to division (B) of this section, the 1232
administrator shall calculate an employer's premium for 1233
other-states' coverage provided through the administrator 1234
separately from calculating any other premiums or assessments 1235
charged under this chapter or Chapter 4121., 4127., or 4131. of 1236
the Revised Code. The administrator shall calculate the employer's 1237
other-states' coverage premium in the same manner the 1238
administrator calculates an employer's premium for the state 1239
insurance fund pursuant to division (A) of section 4123.29 and 1240
section 4123.34 of the Revised Code, except that, when calculating 1241
the employer's premium for other-states' coverage under this 1242
division, the administrator shall do all of the following:1243

       (1) Base the employer's other-states' coverage premium on the 1244
terms specified in the contract the administrator enters into with 1245
an insurance company pursuant to division (B) of this section;1246

       (2) When determining the expenditure of wages, payroll, or 1247
both upon which to base the employer's other-states' coverage 1248
premium, use only the amount of wages, payroll, or both the 1249
employer paid to the employer's employees for performing labor or 1250
providing services for the employer in a state or states other 1251
than this state;1252

       (3) Not take into account the amount of wages, payroll, or 1253
both the employer paid to the employer's employees for performing 1254
labor or providing services for the employer in this state or any 1255
compensation or benefits paid for claims covered by the state 1256
insurance fundNotwithstanding sections 4123.35 and 4123.82 of the 1257
Revised Code, the administrator may offer limited other-states' 1258
coverage to allow an employer who wishes to obtain limited 1259
other-states' coverage pursuant to this section. An employer who 1260
elects to obtain limited other-states' coverage shall submit a 1261
written notice to the administrator stating that election on a 1262
form prescribed by the administrator.1263

        If the administrator elects to secure a vehicle through which 1264
the administrator will provide limited other-states' coverage, the 1265
administrator shall follow the competitive bidding requirements 1266
specified in Chapter 125. of the Revised Code to select one or 1267
more other-states' insurers and, with the advice and consent of 1268
the board, award a contract to provide limited other-states' 1269
coverage to the lowest and best bidders.1270

       (D) If the administrator elects to secureoffer other states' 1271
coverage or limited other-states' coverage, the administrator, 1272
with the advice and consent of the board, shall adopt rules to 1273
implement divisions (B) and (C) of this section.1274

       (E) An other-states' insurer that provides other-states' 1275
coverage to an employer pursuant to this section shall do all of 1276
the following when calculating the employer's premium for that 1277
coverage:1278

       (1) When determining the amount of wages, payroll, or both 1279
upon which to base the employer's premium, use only the amount of 1280
wages, payroll, or both the employer paid to the employer's 1281
employees for performing labor or providing services for the 1282
employer in a state or states other than this state;1283

       (2) Not take into account the amount of wages, payroll, or 1284
both the employer paid to the employer's employees for performing 1285
labor or providing services for the employer in this state or any 1286
compensation or benefits paid for claims otherwise covered by this 1287
chapter or Chapter 4121., 4127., or 4131. of the Revised Code;1288

       (3) Take into account any other factors the other-states' 1289
insurer uses to calculate premiums for workers' compensation 1290
insurance.1291

       (F) The board and the individual members thereof, the 1292
administrator, and the bureau of workers' compensation shall not 1293
incur any obligation or liability if another state determines that 1294
the other-states' coverage or limited other-states' coverage1295
provided under this section does not satisfy the requirements 1296
specified in that state's workers' compensation law for obtaining 1297
workers' compensation coverage in that state.1298

       Sec. 4123.32.  The administrator of workers' compensation, 1299
with the advice and consent of the bureau of workers' compensation 1300
board of directors, shall adopt rules with respect to the 1301
collection, maintenance, and disbursements of the state insurance 1302
fund including all of the following:1303

       (A) A rule providing that the premium security deposit 1304
collected from any employer entitles the employer to the benefits 1305
of this chapter for the remainder of the six months and also for 1306
an additional adjustment period of two months, and, thereafter, if 1307
the employer pays the premium due at the close of any six-month 1308
period, coverage shall be extended for an additional eight-month 1309
period beginning from the end of the six-month period for which 1310
the employer pays the premium due;1311

       (B) A rule providing for ascertaining the correctness of any 1312
employer's report of estimated or actual expenditure of wages and 1313
the determination and adjustment of proper premiums and the 1314
payment of those premiums by the employer for or during any period 1315
less than eight months and notwithstanding any payment or 1316
determination of premium made when exceptional conditions or 1317
circumstances in the judgment of the administrator justify the 1318
action;1319

       (C)(B) Such special rules as the administrator considers 1320
necessary to safeguard the fund and that are just in the 1321
circumstances, covering the rates to be applied where one employer 1322
takes over the occupation or industry of another or where an 1323
employer first makes application for state insurance, and the 1324
administrator may require that if any employer transfers a 1325
business in whole or in part or otherwise reorganizes the 1326
business, the successor in interest shall assume, in proportion to 1327
the extent of the transfer, as determined by the administrator, 1328
the employer's account and shall continue the payment of all 1329
contributions due under this chapter;1330

       (D)(C) A rule providing that an employer who employs an 1331
employee covered under the federal "Longshore and Harbor Workers' 1332
Compensation Act," 98 Stat. 1639, 33 U.S.C. 901 et seq., and this 1333
chapter and Chapter 4121. of the Revised Code shall be assessed a 1334
premium in accordance with the expenditure of wages, payroll, or 1335
both attributable to only labor performed and services provided by 1336
such an employee when the employee performs labor and provides 1337
services for which the employee is not eligible to receive 1338
compensation and benefits under that federal act.1339

       (E)(D) A rule providing for all of the following:1340

       (1) If, within two months immediately after the expiration of 1341
the six-month period, an employer fails to file a report of the 1342
employer's actual payroll expenditures for the periodpursuant to 1343
section 4123.26 of the Revised Code for private employers or 1344
pursuant to section 4123.41 of the Revised Code for public 1345
employers, the premium found to beand assessments due from the 1346
employer for the period shall be calculated based on the estimated 1347
payroll of the employer used in calculating the estimated premium 1348
due, increased in an amount equal to one per cent of the premium, 1349
but the increase shall not be less than three nor more than 1350
fifteen dollarsby ten per cent;1351

       (2) The premium determined by the administrator to be due 1352
from an employer shall be payable on or before the end of the 1353
coverage period established by the premium security deposit, or 1354
within the time specified by the administrator if the period for 1355
which the advance premium has been paid is less than eight months.1356
(a) If an employer fails to pay the premium or assessments when 1357
due for a policy year commencing prior to July 1, 2015, the 1358
administrator may add a late fee penalty of not more than thirty 1359
dollars to the premium plus an additional penalty amount as 1360
follows:1361

       (a)(i) For a premium from sixty-one to ninety days past due, 1362
the prime interest rate, multiplied by the premium due;1363

       (b)(ii) For a premium from ninety-one to one hundred twenty 1364
days past due, the prime interest rate plus two per cent, 1365
multiplied by the premium due;1366

       (c)(iii) For a premium from one hundred twenty-one to one 1367
hundred fifty days past due, the prime interest rate plus four per 1368
cent, multiplied by the premium due;1369

       (d)(iv) For a premium from one hundred fifty-one to one 1370
hundred eighty days past due, the prime interest rate plus six per 1371
cent, multiplied by the premium due;1372

       (e)(v) For a premium from one hundred eighty-one to two 1373
hundred ten days past due, the prime interest rate plus eight per 1374
cent, multiplied by the premium due;1375

       (f)(vi) For each additional thirty-day period or portion 1376
thereof that a premium remains past due after it has remained past 1377
due for more than two hundred ten days, the prime interest rate 1378
plus eight per cent, multiplied by the premium due.1379

       (b) For purposes of division (D)(2)(a) of this section, 1380
"prime interest rate" means the average bank prime rate, and the 1381
administrator shall determine the prime interest rate in the same 1382
manner as a county auditor determines the average bank prime rate 1383
under section 929.02 of the Revised Code.1384

       (c) If an employer fails to pay the premium or assessments 1385
when due for a policy year commencing on or after July 1, 2015, 1386
the administrator may assess a penalty at the interest rate 1387
established by the state tax commissioner pursuant to section 1388
5703.47 of the Revised Code.1389

       (3) Notwithstanding the interest rates specified in division 1390
(E)(D)(2)(a) or (c) of this section, at no time shall the 1391
additional penalty amount assessed under division (E)(D)(2)(a) or 1392
(c) of this section exceed fifteen per cent of the premium due.1393

        (4) If an employer recognized by the administrator as a 1394
professional employer organization fails to make a timely payment 1395
of premiums or assessments as required by section 4123.35 of the 1396
Revised Code, the administrator shall revoke the professional 1397
employer organization's registration pursuant to section 4125.06 1398
of the Revised Code.1399

       (5) An employer may appeal a late fee penalty or additional 1400
penalty to an adjudicating committee pursuant to section 4123.291 1401
of the Revised Code.1402

       For purposes of division (E) of this section, "prime interest 1403
rate" means the average bank prime rate, and the administrator 1404
shall determine the prime interest rate in the same manner as a 1405
county auditor determines the average bank prime rate under 1406
section 929.02 of the Revised Code.1407

       (5)(6) If the employer files an appropriate payroll report,1408
within the time provided by law or within the time specified by 1409
the administrator if the period for which the employer paid an 1410
estimated premium is less than eight months, the employer shall 1411
not be in default and division (E)(D)(2) of this section shall not 1412
apply if the employer pays the premiums within fifteen days after 1413
being first notified by the administrator of the amount due.1414

       (6)(7) Any deficiencies in the amounts of the premium 1415
security deposit paid by an employer for any periodprior to July 1416
1, 2015, shall be subject to an interest charge of six per cent 1417
per annum from the date the premium obligation is incurred. In 1418
determining the interest due on deficiencies in premium security 1419
deposit payments, a charge in each case shall be made against the 1420
employer in an amount equal to interest at the rate of six per 1421
cent per annum on the premium security deposit due but remaining 1422
unpaid sixty days after notice by the administrator.1423

       (7)(8) Any interest charges or penalties provided for in 1424
divisions (E)(D)(2) and (6)(7) of this section shall be credited 1425
to the employer's account for rating purposes in the same manner 1426
as premiums.1427

       (F)(E) A rule providing that each employer, on the occasion 1428
of instituting coverage under this chapter for an effective date 1429
prior to July 1, 2015, shall submit a premium security deposit. 1430
The deposit shall be calculated equivalent to thirty per cent of 1431
the semiannual premium obligation of the employer based upon the 1432
employer's estimated expenditure for wages for the ensuing 1433
six-month period plus thirty per cent of an additional adjustment 1434
period of two months but only up to a maximum of one thousand 1435
dollars and not less than ten dollars. The administrator shall 1436
review the security deposit of every employer who has submitted a 1437
deposit which is less than the one-thousand-dollar maximum. The 1438
administrator may require any such employer to submit additional 1439
money up to the maximum of one thousand dollars that, in the 1440
administrator's opinion, reflects the employer's current payroll 1441
expenditure for an eight-month period.1442

       (G)(F) A rule providing that each employer, on the occasion 1443
of instituting coverage under this chapter, shall submit an 1444
application fee and an application for coverage that completely 1445
provides all of the information required for the administrator to 1446
establish coverage for that employer, and that the employer's 1447
failure to pay the application fee or to provide all of the 1448
information completelyrequested on the application may be grounds 1449
for the administrator to deny coverage for that employer.1450

       (H)(G) A rule providing that, in addition to any other 1451
remedies permitted in this chapter, the administrator may 1452
discontinue an employer's coverage if the employer fails to pay 1453
the premium due on or before the premium's due date.1454

       (I)(H) A rule providing that if after a final adjudication it 1455
is determined that an employer has failed to pay an obligation, 1456
billing, account, or assessment that is greater than one thousand 1457
dollars on or before its due date, the administrator may 1458
discontinue the employer's coverage in addition to any other 1459
remedies permitted in this chapter, and that the administrator 1460
shall not discontinue an employer's coverage pursuant to this 1461
division prior to a final adjudication regarding the employer's 1462
failure to pay such obligation, billing, account, or assessment on 1463
or before its due date.1464

       (J)(I) As used in divisions (G) and (H) and (I) of this 1465
section:1466

        (1) "Employer" has the same meaning as in division (B) of1467
section 4123.01 of the Revised Code except that "employer" does 1468
not include the state, a state hospital, or a state university or 1469
college.1470

        (2) "State university or college" has the same meaning as in 1471
section 3345.12 of the Revised Code and also includes the Ohio 1472
agricultural research and development center and OSU extension. 1473

        (3) "State hospital" means the Ohio state university hospital 1474
and its ancillary facilities and the medical university of Ohio at 1475
Toledo hospital.1476

       Sec. 4123.322. (A) Notwithstanding any provision to the 1477
contrary in section 4123.32 or 4123.41 of the Revised Code, the1478
The administrator of workers' compensation, with the advice and 1479
consent of the bureau of workers' compensation board of directors, 1480
mayshall adopt rules with respect to the collection, maintenance, 1481
and disbursements of the state insurance fund to provide for a 1482
system of prospective payment of workers' compensation premiums. 1483
If the administrator elects to adopt rules establishing a 1484
prospective payment system, those ruleswhich shall include all of 1485
the following:1486

        (1) A requirement that, notwithstanding section 4123.26 of 1487
the Revised Code, on or before the thirtieth day of June of each 1488
year, or such other date as the administrator establishes, every 1489
employer mentioned in division (B)(2) of section 4123.01 of the 1490
Revised Code shall file with the bureau of workers' compensation 1491
an estimate of the employer's payroll for the immediately 1492
following twelve-month period or other period as the administrator 1493
establishes;1494

       (2) A requirement that upon an initial application for 1495
coverage, ana private employer mentioned in division (B)(2) of 1496
section 4123.01 of the Revised Code shall file with the 1497
application an estimate of the employer's payroll for the 1498
unexpired period from the date of application to the period ending 1499
on the following thirtieth day of June or other date as 1500
established by the administrator determines pursuant to division 1501
(A)(1) of this sectionrules the administrator adopts, and shall 1502
pay the amount the administrator determines by rule in order to 1503
establish coverage for the employer as described in division 1504
(B)(12) of section 4121.121 of the Revised Code;1505

       (3) A requirement that, notwithstanding section 4123.26 or 1506
4123.41 of the Revised Code, on or before the first day of January 1507
of each year, or such other date as the administrator establishes, 1508
every employer mentioned in division (B)(1) of section 4123.01 of 1509
the Revised Code, except for a state agency or a state university 1510
or college, shall file with the bureau an estimate of the 1511
employer's payroll for the immediately following twelve-month 1512
period or other period as the administrator establishes;1513

       (4)(2) A requirement that upon an initial application for 1514
coverage, ana public employer mentioned in division (B)(1) of 1515
section 4123.01 of the Revised Code, except for a state agency or 1516
state university or college, shall file with the application an 1517
estimate of the employer's payroll for the unexpired period from 1518
the date of application to the period ending on the following 1519
thirty-first day of December or other date as established by the 1520
administrator determines pursuant to division (A)(3) of this 1521
sectionrules the administrator adopts, and shall pay the amount 1522
the administrator determines by rule in order to establish 1523
coverage for the employer as described in division (B)(12) of 1524
section 4121.121 of the Revised Code;1525

        (5) The assessment of a penalty if an employer fails to 1526
timely file the estimates of payroll required by the rules adopted 1527
pursuant to this section;1528

       (6)(3) A requirement that an employer complete periodic 1529
payroll reports of actual expenditures for previous coverage 1530
periods for reconciliation with estimated payroll reports;1531

        (7)(4) The assessment of a penalty for late payroll 1532
reconciliation reports and for late payment of any reconciliation 1533
premium;1534

       (8)(5) The establishment of a transition period during which 1535
time the bureau shall determine the adequacy of existing premium 1536
security deposits of employers, the establishment of provisions 1537
for additional premium payments during that transition, the 1538
provision of a credit of those deposits toward the first premium 1539
due from an employer under the rules adopted under divisions 1540
(A)(1) to (7)(4) of this section, and the establishment of 1541
penalties for late payment or failure to comply with the rules.1542

        (B) For purposes of division (A)(6)(3) of this section, an 1543
employer shall make timely payment of any premium owed when actual 1544
payroll expenditures exceeded estimated payroll, and the employer 1545
shall receive premium credit when the estimated payroll exceeded 1546
the actual payroll.1547

        (C) For purposes of division (A)(7)(4) of this section, if 1548
the employer's actual payroll substantially exceeds the estimated 1549
payroll, the administrator may assess additional penalties 1550
specified in rules the administrator adopts on the reconciliation 1551
premium.1552

        (D) As used in this section, "state university or college" 1553
has the same meaning as in section 4123.32 of the Revised Code.1554

       Sec. 4123.323.  (A) Except as provided in division (B) of 1555
this section, a payment required under this chapter or Chapter 1556
4121. of the Revised Code, including a payment due for purposes of 1557
continuing coverage, is due on the date specified in those 1558
chapters, unless otherwise provided in a rule adopted by the 1559
administrator of workers' compensation, with the advice and 1560
consent of the bureau of workers' compensation board of directors.1561

       (B) For purposes of collection referrals to the attorney 1562
general under section 131.02 of the Revised Code, a premium 1563
payment is due thirty days after the date upon which a private 1564
employer must submit the payroll report for the corresponding 1565
policy year pursuant to section 4123.26 of the Revised Code or the 1566
date upon which a public employer must submit the payroll report 1567
for the corresponding policy year pursuant to section 4123.41 of 1568
the Revised Code, as applicable.1569

       Sec. 4123.34.  It shall be the duty of the bureau of workers' 1570
compensation board of directors and the administrator of workers' 1571
compensation to safeguard and maintain the solvency of the state 1572
insurance fund and all other funds specified in this chapter and 1573
Chapters 4121., 4127., and 4131. of the Revised Code. The 1574
administrator, in the exercise of the powers and discretion 1575
conferred upon the administrator in section 4123.29 of the Revised 1576
Code, shall fix and maintain, with the advice and consent of the 1577
board, for each class of occupation or industry, the lowest 1578
possible rates of premium consistent with the maintenance of a 1579
solvent state insurance fund and the creation and maintenance of a 1580
reasonable surplus, after the payment of legitimate claims for 1581
injury, occupational disease, and death that the administrator 1582
authorizes to be paid from the state insurance fund for the 1583
benefit of injured, diseased, and the dependents of killed 1584
employees. In establishing rates, the administrator shall take 1585
into account the necessity of ensuring sufficient money is set 1586
aside in the premium payment security fund to cover any defaults 1587
in premium obligations. The administrator shall observe all of the 1588
following requirements in fixing the rates of premium for the 1589
risks of occupations or industries:1590

       (A) The administrator shall keep an accurate account of the 1591
money paid in premiums by each of the several classes of 1592
occupations or industries, and the losses on account of injuries, 1593
occupational disease, and death of employees thereof, and also 1594
keep an account of the money received from each individual 1595
employer and the amount of losses incurred against the state 1596
insurance fund on account of injuries, occupational disease, and 1597
death of the employees of the employer.1598

       (B) A portion of the money paid into the state insurance fund 1599
shall be set aside for the creation of a surplus fund account 1600
within the state insurance fund. Any references in this chapter or 1601
in Chapter 4121., 4125., 4127., or 4131. of the Revised Code to 1602
the surplus fund, the surplus created in this division, the 1603
statutory surplus fund, or the statutory surplus of the state 1604
insurance fund are hereby deemed to be references to the surplus 1605
fund account. The administrator may transfer the portion of the 1606
state insurance fund to the surplus fund account as the 1607
administrator determines is necessary to satisfy the needs of the 1608
surplus fund account and to guarantee the solvency of the state 1609
insurance fund and the surplus fund account. In addition to all 1610
statutory authority under this chapter and Chapter 4121. of the 1611
Revised Code, the administrator has discretionary and contingency 1612
authority to make charges to the surplus fund account. The 1613
administrator shall account for all charges, whether statutory, 1614
discretionary, or contingency, that the administrator may make to 1615
the surplus fund account. A revision of basic rates shall be made 1616
annually on the first day of July.1617

        Notwithstanding any provision of the law to the contrary, one 1618
hundred eighty days after the effective date on which 1619
self-insuring employers first may elect under division (D) of 1620
section 4121.66 of the Revised Code to directly pay for 1621
rehabilitation expenses, the administrator shall calculate the 1622
deficit, if any, in the portion of the surplus fund account that 1623
is used for reimbursement to self-insuring employers for all 1624
expenses other than handicapped reimbursement under section 1625
4123.343 of the Revised Code. The administrator, from time to 1626
time, may determine whether the surplus fund account has such a 1627
deficit and may assess all self-insuring employers who 1628
participated in the portion of the surplus fund account during the 1629
accrual of the deficit and who during that time period have not 1630
made the election under division (D) of section 4121.66 of the 1631
Revised Code the amount the administrator determines necessary to 1632
reduce the deficit.1633

       RevisionsFor policy years commencing prior to July 1, 2016, 1634
revisions of basic rates for private employers shall be in 1635
accordance with the oldest four of the last five calendar years of 1636
the combined accident and occupational disease experience of the 1637
administrator in the administration of this chapter, as shown by 1638
the accounts kept as provided in this section, excluding. For a 1639
policy year commencing on or after July 1, 2016, revisions of 1640
basic rates for private employers shall be in accordance with the 1641
oldest four of the last five policy years combined accident and 1642
occupational disease experience of the administrator in the 1643
administration of this chapter, as shown by the accounts kept as 1644
provided in this section.1645

       Revisions of basic rates for public employers shall be in 1646
accordance with the oldest four of the last five policy years of 1647
the combined accident and occupational disease experience of the 1648
administrator in the administration of this chapter, as shown by 1649
the accounts kept as provided in this section.1650

       In revising basic rates, the administrator shall exclude the 1651
experience of employers that are no longer active if the 1652
administrator determines that the inclusion of those employers 1653
would have a significant negative impact on the remainder of the 1654
employers in a particular manual classification; and the. The1655
administrator shall adopt rules, with the advice and consent of 1656
the board, governing rate revisions, the object of which shall be 1657
to make an equitable distribution of losses among the several 1658
classes of occupation or industry, which rules shall be general in 1659
their application.1660

       (C) The administrator may apply that form of rating system 1661
that the administrator finds is best calculated to merit rate or 1662
individually rate the risk more equitably, predicated upon the 1663
basis of its individual industrial accident and occupational 1664
disease experience, and may encourage and stimulate accident 1665
prevention. The administrator shall develop fixed and equitable 1666
rules controlling the rating system, which rules shall conserve to 1667
each risk the basic principles of workers' compensation insurance.1668

       (D) The administrator, from the money paid into the state 1669
insurance fund, shall set aside into an account of the state 1670
insurance fund titled a premium payment security fund sufficient 1671
money to pay for any premiums due from an employer and uncollected 1672
that are in excess of the employer's premium security deposit.1673

       The fund shall be in the custody of the treasurer of state. 1674
All investment earnings of the fund shall be deposited in the 1675
fund. Disbursements from the fund shall be made by the bureau of 1676
workers' compensation upon order of the administrator to the state 1677
insurance fund. The use of the moneys held by the premium payment 1678
security fund account is restricted to reimbursement to the state 1679
insurance fund of premiums due and uncollected in excess of an 1680
employer's premium security deposit. The moneys constituting the 1681
premium payment security fund shall be maintained without regard 1682
to or reliance upon any other fund. This section does not prevent 1683
the deposit or investment of the premium payment security fund 1684
with any other fund created by this chapter, but the premium 1685
payment security fund is separate and distinct for every other 1686
purpose and a strict accounting thereof shall be maintained.1687

       (E) The administrator may grant discounts on premium rates 1688
for employers who meet either of the following requirements:1689

       (1) Have not incurred a compensable injury for one year or 1690
more and who maintain an employee safety committee or similar 1691
organization or make periodic safety inspections of the workplace.1692

       (2) Successfully complete a loss prevention program 1693
prescribed by the superintendent of the division of safety and 1694
hygiene and conducted by the division or by any other person 1695
approved by the superintendent.1696

       (F)(1) In determining the premium rates for the construction 1697
industry the administrator shall calculate the employers' premiums 1698
based upon the actual remuneration construction industry employees 1699
receive from construction industry employers, provided that the 1700
amount of remuneration the administrator uses in calculating the 1701
premiums shall not exceed an average weekly wage equal to one 1702
hundred fifty per cent of the statewide average weekly wage as 1703
defined in division (C) of section 4123.62 of the Revised Code.1704

       (2) Division (F)(1) of this section shall not be construed as 1705
affecting the manner in which benefits to a claimant are awarded 1706
under this chapter.1707

       (3) As used in division (F) of this section, "construction 1708
industry" includes any activity performed in connection with the 1709
erection, alteration, repair, replacement, renovation, 1710
installation, or demolition of any building, structure, highway, 1711
or bridge.1712

       (G) The administrator of workers' compensation shall not 1713
place a limit on the length of time that an employer may 1714
participate in the bureau of workers' compensation drug free 1715
workplace and workplace safety programs.1716

       Sec. 4123.35.  (A) Except as provided in this section, and 1717
until the policy year commencing July 1, 2015, every private1718
employer mentioned in division (B)(2) of section 4123.01 of the 1719
Revised Code, and every publicly owned utility shall pay 1720
semiannually in the months of January and July into the state 1721
insurance fund the amount of annual premium the administrator of 1722
workers' compensation fixes for the employment or occupation of 1723
the employer, the amount of which premium to be paid by each 1724
employer to be determined by the classifications, rules, and rates 1725
made and published by the administrator. The employer shall pay 1726
semiannually a further sum of money into the state insurance fund 1727
as may be ascertained to be due from the employer by applying the 1728
rules of the administrator, and a.1729

       Except as otherwise provided in this section, for a policy 1730
year commencing on or after July 1, 2015, every private employer 1731
and every publicly owned utility shall pay annually in the month 1732
of June immediately preceding the policy year into the state 1733
insurance fund the amount of estimated annual premium the 1734
administrator fixes for the employment or occupation of the 1735
employer, the amount of which estimated premium to be paid by each 1736
employer to be determined by the classifications, rules, and rates 1737
made and published by the administrator. The employer shall pay a 1738
further sum of money into the state insurance fund as may be 1739
ascertained to be due from the employer by applying the rules of 1740
the administrator. Upon receipt of the payroll report required by 1741
division (B) of section 4123.26 of the Revised Code, the 1742
administrator shall adjust the premium and assessments charged to 1743
each employer for the difference between estimated gross payrolls 1744
and actual gross payrolls, and any balance due to the 1745
administrator shall be immediately paid by the employer. Any 1746
balance due the employer shall be credited to the employer's 1747
account.1748

       For a policy year commencing on or after July 1, 2015, each 1749
employer that is recognized by the administrator as a professional 1750
employer organization shall pay monthly into the state insurance 1751
fund the amount of premium the administrator fixes for the 1752
employer for the prior month based on the actual payroll of the 1753
employer reported pursuant to division (C) of section 4123.26 of 1754
the Revised Code.1755

       A receipt or certificate certifying that payment has been 1756
made, along with a written notice as is required in section 1757
4123.54 of the Revised Code, shall be mailed immediatelyissued1758
to the employer by the bureau of workers' compensation. The 1759
receipt or certificate is prima-facie evidence of the payment of 1760
the premium, and the proper. The administrator shall provide each 1761
employer written proof of workers' compensation coverage as is 1762
required in section 4123.83 of the Revised Code. Proper posting of 1763
the notice constitutes the employer's compliance with the notice 1764
requirement mandated in section 4123.544123.83 of the Revised 1765
Code.1766

       If the administrator adopts rules to establish a prospective 1767
payment of premium under section 4123.322 of the Revised Code, 1768
every employer mentioned in division (B)(2) of section 4123.01 of 1769
the Revised Code and every publicly owned utility shall pay into 1770
the state insurance fund the amount of premium the administrator 1771
fixes for the employment or occupation of the employer, the amount 1772
of which premium to be paid by each employer to be determined by 1773
the classifications, rules, and rates made and published by the 1774
administrator and based upon the estimates and reconciliations 1775
required by the rules the administrator adopts under section 1776
4123.322 of the Revised Code.1777

       The bureau of workers' compensation shall verify with the 1778
secretary of state the existence of all corporations and 1779
organizations making application for workers' compensation 1780
coverage and shall require every such application to include the 1781
employer's federal identification number.1782

       AnA private employer as defined in division (B)(2) of 1783
section 4123.01 of the Revised Code who has contracted with a 1784
subcontractor is liable for the unpaid premium due from any 1785
subcontractor with respect to that part of the payroll of the 1786
subcontractor that is for work performed pursuant to the contract 1787
with the employer.1788

       Division (A) of this section providing for the payment of 1789
premiums semiannually does not apply to any employer who was a 1790
subscriber to the state insurance fund prior to January 1, 1914, 1791
or, until July 1, 2015, who may first become a subscriber to the 1792
fund in any month other than January or July. Instead, the 1793
semiannual premiums shall be paid by those employers from time to 1794
time upon the expiration of the respective periods for which 1795
payments into the fund have been made by them. After July 1, 2015, 1796
an employer who first becomes a subscriber to the fund on any day 1797
other than the first day of July shall pay premiums according to 1798
rules adopted by the administrator, with the advice and consent of 1799
the bureau of workers' compensation board of directors, for the 1800
remainder of the policy year for which the coverage is effective.1801

       The administrator, with the advice and consent of the board,1802
shall adopt rules to permit employers to make periodic payments of 1803
the semiannual premium and assessment due under this division. The 1804
rules shall include provisions for the assessment of interest 1805
charges, where appropriate, and for the assessment of penalties 1806
when an employer fails to make timely premium payments. The 1807
administrator, in the rules the administrator adopts, may set an 1808
administrative fee for these periodic payments. An employer who 1809
timely pays the amounts due under this division is entitled to all 1810
of the benefits and protections of this chapter. Upon receipt of 1811
payment, the bureau immediately shall mailissue a receipt or 1812
certificate to the employer certifying that payment has been made, 1813
which receipt is prima-facie evidence of payment. Workers' 1814
compensation coverage under this chapter continues uninterrupted 1815
upon timely receipt of payment under this division.1816

       Every public employer, except public employers that are 1817
self-insuring employers under this section, shall comply with 1818
sections 4123.38 to 4123.41, and 4123.48 of the Revised Code in 1819
regard to the contribution of moneys to the public insurance fund.1820

       (B) Employers who will abide by the rules of the 1821
administrator and who may be of sufficient financial ability to 1822
render certain the payment of compensation to injured employees or 1823
the dependents of killed employees, and the furnishing of medical, 1824
surgical, nursing, and hospital attention and services and 1825
medicines, and funeral expenses, equal to or greater than is 1826
provided for in sections 4123.52, 4123.55 to 4123.62, and 4123.64 1827
to 4123.67 of the Revised Code, and who do not desire to insure 1828
the payment thereof or indemnify themselves against loss sustained 1829
by the direct payment thereof, upon a finding of such facts by the 1830
administrator, may be granted the privilege to pay individually 1831
compensation, and furnish medical, surgical, nursing, and hospital 1832
services and attention and funeral expenses directly to injured 1833
employees or the dependents of killed employees, thereby being 1834
granted status as a self-insuring employer. The administrator may 1835
charge employers who apply for the status as a self-insuring 1836
employer a reasonable application fee to cover the bureau's costs 1837
in connection with processing and making a determination with 1838
respect to an application.1839

       All employers granted status as self-insuring employers shall 1840
demonstrate sufficient financial and administrative ability to 1841
assure that all obligations under this section are promptly met. 1842
The administrator shall deny the privilege where the employer is 1843
unable to demonstrate the employer's ability to promptly meet all 1844
the obligations imposed on the employer by this section.1845

       (1) The administrator shall consider, but is not limited to, 1846
the following factors, where applicable, in determining the 1847
employer's ability to meet all of the obligations imposed on the 1848
employer by this section:1849

       (a) The employer employs a minimum of five hundred employees 1850
in this state;1851

       (b) The employer has operated in this state for a minimum of 1852
two years, provided that an employer who has purchased, acquired, 1853
or otherwise succeeded to the operation of a business, or any part 1854
thereof, situated in this state that has operated for at least two 1855
years in this state, also shall qualify;1856

       (c) Where the employer previously contributed to the state 1857
insurance fund or is a successor employer as defined by bureau 1858
rules, the amount of the buyout, as defined by bureau rules;1859

       (d) The sufficiency of the employer's assets located in this 1860
state to insure the employer's solvency in paying compensation 1861
directly;1862

       (e) The financial records, documents, and data, certified by 1863
a certified public accountant, necessary to provide the employer's 1864
full financial disclosure. The records, documents, and data 1865
include, but are not limited to, balance sheets and profit and 1866
loss history for the current year and previous four years.1867

       (f) The employer's organizational plan for the administration 1868
of the workers' compensation law;1869

       (g) The employer's proposed plan to inform employees of the 1870
change from a state fund insurer to a self-insuring employer, the 1871
procedures the employer will follow as a self-insuring employer, 1872
and the employees' rights to compensation and benefits; and1873

       (h) The employer has either an account in a financial 1874
institution in this state, or if the employer maintains an account 1875
with a financial institution outside this state, ensures that 1876
workers' compensation checks are drawn from the same account as 1877
payroll checks or the employer clearly indicates that payment will 1878
be honored by a financial institution in this state.1879

       The administrator may waive the requirements of divisions 1880
(B)(1)(a) and (b) of this section and the requirement of division 1881
(B)(1)(e) of this section that the financial records, documents, 1882
and data be certified by a certified public accountant. The 1883
administrator shall adopt rules establishing the criteria that an 1884
employer shall meet in order for the administrator to waive the 1885
requirements of divisions (B)(1)(a), (b), and (e) of this section. 1886
Such rules may require additional security of that employer 1887
pursuant to division (E) of section 4123.351 of the Revised Code.1888

       The administrator shall not grant the status of self-insuring 1889
employer to the state, except that the administrator may grant the 1890
status of self-insuring employer to a state institution of higher 1891
education, including its hospitals, that meets the requirements of 1892
division (B)(2) of this section.1893

       (2) When considering the application of a public employer, 1894
except for a board of county commissioners described in division 1895
(G) of section 4123.01 of the Revised Code, a board of a county 1896
hospital, or a publicly owned utility, the administrator shall 1897
verify that the public employer satisfies all of the following 1898
requirements as the requirements apply to that public employer:1899

       (a) For the two-year period preceding application under this 1900
section, the public employer has maintained an unvoted debt 1901
capacity equal to at least two times the amount of the current 1902
annual premium established by the administrator under this chapter 1903
for that public employer for the year immediately preceding the 1904
year in which the public employer makes application under this 1905
section.1906

       (b) For each of the two fiscal years preceding application 1907
under this section, the unreserved and undesignated year-end fund 1908
balance in the public employer's general fund is equal to at least 1909
five per cent of the public employer's general fund revenues for 1910
the fiscal year computed in accordance with generally accepted 1911
accounting principles.1912

       (c) For the five-year period preceding application under this 1913
section, the public employer, to the extent applicable, has 1914
complied fully with the continuing disclosure requirements 1915
established in rules adopted by the United States securities and 1916
exchange commission under 17 C.F.R. 240.15c 2-12.1917

       (d) For the five-year period preceding application under this 1918
section, the public employer has not had its local government fund 1919
distribution withheld on account of the public employer being 1920
indebted or otherwise obligated to the state.1921

       (e) For the five-year period preceding application under this 1922
section, the public employer has not been under a fiscal watch or 1923
fiscal emergency pursuant to section 118.023, 118.04, or 3316.03 1924
of the Revised Code.1925

       (f) For the public employer's fiscal year preceding 1926
application under this section, the public employer has obtained 1927
an annual financial audit as required under section 117.10 of the 1928
Revised Code, which has been released by the auditor of state 1929
within seven months after the end of the public employer's fiscal 1930
year.1931

       (g) On the date of application, the public employer holds a 1932
debt rating of Aa3 or higher according to Moody's investors 1933
service, inc., or a comparable rating by an independent rating 1934
agency similar to Moody's investors service, inc.1935

       (h) The public employer agrees to generate an annual 1936
accumulating book reserve in its financial statements reflecting 1937
an actuarially generated reserve adequate to pay projected claims 1938
under this chapter for the applicable period of time, as 1939
determined by the administrator.1940

       (i) For a public employer that is a hospital, the public 1941
employer shall submit audited financial statements showing the 1942
hospital's overall liquidity characteristics, and the 1943
administrator shall determine, on an individual basis, whether the 1944
public employer satisfies liquidity standards equivalent to the 1945
liquidity standards of other public employers.1946

       (j) Any additional criteria that the administrator adopts by 1947
rule pursuant to division (E) of this section.1948

       The administrator may adopt rules establishing the criteria 1949
that a public employer shall satisfy in order for the 1950
administrator to waive any of the requirements listed in divisions 1951
(B)(2)(a) to (j) of this section. The rules may require additional 1952
security from that employer pursuant to division (E) of section 1953
4123.351 of the Revised Code. The administrator shall not waive 1954
any of the requirements listed in divisions (B)(2)(a) to (j) of 1955
this section for a public employer who does not satisfy the 1956
criteria established in the rules the administrator adopts.1957

       (C) A board of county commissioners described in division (G) 1958
of section 4123.01 of the Revised Code, as an employer, that will 1959
abide by the rules of the administrator and that may be of 1960
sufficient financial ability to render certain the payment of 1961
compensation to injured employees or the dependents of killed 1962
employees, and the furnishing of medical, surgical, nursing, and 1963
hospital attention and services and medicines, and funeral 1964
expenses, equal to or greater than is provided for in sections 1965
4123.52, 4123.55 to 4123.62, and 4123.64 to 4123.67 of the Revised 1966
Code, and that does not desire to insure the payment thereof or 1967
indemnify itself against loss sustained by the direct payment 1968
thereof, upon a finding of such facts by the administrator, may be 1969
granted the privilege to pay individually compensation, and 1970
furnish medical, surgical, nursing, and hospital services and 1971
attention and funeral expenses directly to injured employees or 1972
the dependents of killed employees, thereby being granted status 1973
as a self-insuring employer. The administrator may charge a board 1974
of county commissioners described in division (G) of section 1975
4123.01 of the Revised Code that applies for the status as a 1976
self-insuring employer a reasonable application fee to cover the 1977
bureau's costs in connection with processing and making a 1978
determination with respect to an application. All employers 1979
granted such status shall demonstrate sufficient financial and 1980
administrative ability to assure that all obligations under this 1981
section are promptly met. The administrator shall deny the 1982
privilege where the employer is unable to demonstrate the 1983
employer's ability to promptly meet all the obligations imposed on 1984
the employer by this section. The administrator shall consider, 1985
but is not limited to, the following factors, where applicable, in 1986
determining the employer's ability to meet all of the obligations 1987
imposed on the board as an employer by this section:1988

       (1) The board as an employer employs a minimum of five 1989
hundred employees in this state;1990

       (2) The board has operated in this state for a minimum of two 1991
years;1992

       (3) Where the board previously contributed to the state 1993
insurance fund or is a successor employer as defined by bureau 1994
rules, the amount of the buyout, as defined by bureau rules;1995

       (4) The sufficiency of the board's assets located in this 1996
state to insure the board's solvency in paying compensation 1997
directly;1998

       (5) The financial records, documents, and data, certified by 1999
a certified public accountant, necessary to provide the board's 2000
full financial disclosure. The records, documents, and data 2001
include, but are not limited to, balance sheets and profit and 2002
loss history for the current year and previous four years.2003

       (6) The board's organizational plan for the administration of 2004
the workers' compensation law;2005

       (7) The board's proposed plan to inform employees of the 2006
proposed self-insurance, the procedures the board will follow as a 2007
self-insuring employer, and the employees' rights to compensation 2008
and benefits;2009

       (8) The board has either an account in a financial 2010
institution in this state, or if the board maintains an account 2011
with a financial institution outside this state, ensures that 2012
workers' compensation checks are drawn from the same account as 2013
payroll checks or the board clearly indicates that payment will be 2014
honored by a financial institution in this state;2015

       (9) The board shall provide the administrator a surety bond 2016
in an amount equal to one hundred twenty-five per cent of the 2017
projected losses as determined by the administrator.2018

       (D) The administrator shall require a surety bond from all 2019
self-insuring employers, issued pursuant to section 4123.351 of 2020
the Revised Code, that is sufficient to compel, or secure to 2021
injured employees, or to the dependents of employees killed, the 2022
payment of compensation and expenses, which shall in no event be 2023
less than that paid or furnished out of the state insurance fund 2024
in similar cases to injured employees or to dependents of killed 2025
employees whose employers contribute to the fund, except when an 2026
employee of the employer, who has suffered the loss of a hand, 2027
arm, foot, leg, or eye prior to the injury for which compensation 2028
is to be paid, and thereafter suffers the loss of any other of the 2029
members as the result of any injury sustained in the course of and 2030
arising out of the employee's employment, the compensation to be 2031
paid by the self-insuring employer is limited to the disability 2032
suffered in the subsequent injury, additional compensation, if 2033
any, to be paid by the bureau out of the surplus created by 2034
section 4123.34 of the Revised Code.2035

       (E) In addition to the requirements of this section, the 2036
administrator shall make and publish rules governing the manner of 2037
making application and the nature and extent of the proof required 2038
to justify a finding of fact by the administrator as to granting 2039
the status of a self-insuring employer, which rules shall be 2040
general in their application, one of which rules shall provide 2041
that all self-insuring employers shall pay into the state 2042
insurance fund such amounts as are required to be credited to the 2043
surplus fund in division (B) of section 4123.34 of the Revised 2044
Code. The administrator may adopt rules establishing requirements 2045
in addition to the requirements described in division (B)(2) of 2046
this section that a public employer shall meet in order to qualify 2047
for self-insuring status.2048

       Employers shall secure directly from the bureau central 2049
offices application forms upon which the bureau shall stamp a 2050
designating number. Prior to submission of an application, an 2051
employer shall make available to the bureau, and the bureau shall 2052
review, the information described in division (B)(1) of this 2053
section, and public employers shall make available, and the bureau 2054
shall review, the information necessary to verify whether the 2055
public employer meets the requirements listed in division (B)(2) 2056
of this section. An employer shall file the completed application 2057
forms with an application fee, which shall cover the costs of 2058
processing the application, as established by the administrator, 2059
by rule, with the bureau at least ninety days prior to the 2060
effective date of the employer's new status as a self-insuring 2061
employer. The application form is not deemed complete until all 2062
the required information is attached thereto. The bureau shall 2063
only accept applications that contain the required information.2064

       (F) The bureau shall review completed applications within a 2065
reasonable time. If the bureau determines to grant an employer the 2066
status as a self-insuring employer, the bureau shall issue a 2067
statement, containing its findings of fact, that is prepared by 2068
the bureau and signed by the administrator. If the bureau 2069
determines not to grant the status as a self-insuring employer, 2070
the bureau shall notify the employer of the determination and 2071
require the employer to continue to pay its full premium into the 2072
state insurance fund. The administrator also shall adopt rules 2073
establishing a minimum level of performance as a criterion for 2074
granting and maintaining the status as a self-insuring employer 2075
and fixing time limits beyond which failure of the self-insuring 2076
employer to provide for the necessary medical examinations and 2077
evaluations may not delay a decision on a claim.2078

       (G) The administrator shall adopt rules setting forth 2079
procedures for auditing the program of self-insuring employers. 2080
The bureau shall conduct the audit upon a random basis or whenever 2081
the bureau has grounds for believing that a self-insuring employer 2082
is not in full compliance with bureau rules or this chapter.2083

       The administrator shall monitor the programs conducted by 2084
self-insuring employers, to ensure compliance with bureau 2085
requirements and for that purpose, shall develop and issue to 2086
self-insuring employers standardized forms for use by the 2087
self-insuring employer in all aspects of the self-insuring 2088
employers' direct compensation program and for reporting of 2089
information to the bureau.2090

       The bureau shall receive and transmit to the self-insuring 2091
employer all complaints concerning any self-insuring employer. In 2092
the case of a complaint against a self-insuring employer, the 2093
administrator shall handle the complaint through the 2094
self-insurance division of the bureau. The bureau shall maintain a 2095
file by employer of all complaints received that relate to the 2096
employer. The bureau shall evaluate each complaint and take 2097
appropriate action.2098

       The administrator shall adopt as a rule a prohibition against 2099
any self-insuring employer from harassing, dismissing, or 2100
otherwise disciplining any employee making a complaint, which rule 2101
shall provide for a financial penalty to be levied by the 2102
administrator payable by the offending self-insuring employer.2103

       (H) For the purpose of making determinations as to whether to 2104
grant status as a self-insuring employer, the administrator may 2105
subscribe to and pay for a credit reporting service that offers 2106
financial and other business information about individual 2107
employers. The costs in connection with the bureau's subscription 2108
or individual reports from the service about an applicant may be 2109
included in the application fee charged employers under this 2110
section.2111

       (I) The administrator, notwithstanding other provisions of 2112
this chapter, may permit a self-insuring employer to resume 2113
payment of premiums to the state insurance fund with appropriate 2114
credit modifications to the employer's basic premium rate as such 2115
rate is determined pursuant to section 4123.29 of the Revised 2116
Code.2117

       (J) On the first day of July of each year, the administrator 2118
shall calculate separately each self-insuring employer's 2119
assessments for the safety and hygiene fund, administrative costs 2120
pursuant to section 4123.342 of the Revised Code, and for the 2121
portion of the surplus fund under division (B) of section 4123.34 2122
of the Revised Code that is not used for handicapped 2123
reimbursement, on the basis of the paid compensation attributable 2124
to the individual self-insuring employer according to the 2125
following calculation:2126

       (1) The total assessment against all self-insuring employers 2127
as a class for each fund and for the administrative costs for the 2128
year that the assessment is being made, as determined by the 2129
administrator, divided by the total amount of paid compensation 2130
for the previous calendar year attributable to all amenable 2131
self-insuring employers;2132

       (2) Multiply the quotient in division (J)(1) of this section 2133
by the total amount of paid compensation for the previous calendar 2134
year that is attributable to the individual self-insuring employer 2135
for whom the assessment is being determined. Each self-insuring 2136
employer shall pay the assessment that results from this 2137
calculation, unless the assessment resulting from this calculation 2138
falls below a minimum assessment, which minimum assessment the 2139
administrator shall determine on the first day of July of each 2140
year with the advice and consent of the bureau of workers' 2141
compensation board of directors, in which event, the self-insuring 2142
employer shall pay the minimum assessment.2143

       In determining the total amount due for the total assessment 2144
against all self-insuring employers as a class for each fund and 2145
the administrative assessment, the administrator shall reduce 2146
proportionately the total for each fund and assessment by the 2147
amount of money in the self-insurance assessment fund as of the 2148
date of the computation of the assessment.2149

       The administrator shall calculate the assessment for the 2150
portion of the surplus fund under division (B) of section 4123.34 2151
of the Revised Code that is used for handicapped reimbursement in 2152
the same manner as set forth in divisions (J)(1) and (2) of this 2153
section except that the administrator shall calculate the total 2154
assessment for this portion of the surplus fund only on the basis 2155
of those self-insuring employers that retain participation in the 2156
handicapped reimbursement program and the individual self-insuring 2157
employer's proportion of paid compensation shall be calculated 2158
only for those self-insuring employers who retain participation in 2159
the handicapped reimbursement program. The administrator, as the 2160
administrator determines appropriate, may determine the total 2161
assessment for the handicapped portion of the surplus fund in 2162
accordance with sound actuarial principles.2163

       The administrator shall calculate the assessment for the 2164
portion of the surplus fund under division (B) of section 4123.34 2165
of the Revised Code that under division (D) of section 4121.66 of 2166
the Revised Code is used for rehabilitation costs in the same 2167
manner as set forth in divisions (J)(1) and (2) of this section, 2168
except that the administrator shall calculate the total assessment 2169
for this portion of the surplus fund only on the basis of those 2170
self-insuring employers who have not made the election to make 2171
payments directly under division (D) of section 4121.66 of the 2172
Revised Code and an individual self-insuring employer's proportion 2173
of paid compensation only for those self-insuring employers who 2174
have not made that election.2175

       The administrator shall calculate the assessment for the 2176
portion of the surplus fund under division (B) of section 4123.34 2177
of the Revised Code that is used for reimbursement to a 2178
self-insuring employer under division (H) of section 4123.512 of 2179
the Revised Code in the same manner as set forth in divisions 2180
(J)(1) and (2) of this section except that the administrator shall 2181
calculate the total assessment for this portion of the surplus 2182
fund only on the basis of those self-insuring employers that 2183
retain participation in reimbursement to the self-insuring 2184
employer under division (H) of section 4123.512 of the Revised 2185
Code and the individual self-insuring employer's proportion of 2186
paid compensation shall be calculated only for those self-insuring 2187
employers who retain participation in reimbursement to the 2188
self-insuring employer under division (H) of section 4123.512 of 2189
the Revised Code.2190

       An employer who no longer is a self-insuring employer in this 2191
state or who no longer is operating in this state, shall continue 2192
to pay assessments for administrative costs and for the portion of 2193
the surplus fund under division (B) of section 4123.34 of the 2194
Revised Code that is not used for handicapped reimbursement, based 2195
upon paid compensation attributable to claims that occurred while 2196
the employer was a self-insuring employer within this state.2197

       (K) There is hereby created in the state treasury the 2198
self-insurance assessment fund. All investment earnings of the 2199
fund shall be deposited in the fund. The administrator shall use 2200
the money in the self-insurance assessment fund only for 2201
administrative costs as specified in section 4123.341 of the 2202
Revised Code.2203

       (L) Every self-insuring employer shall certify, in affidavit 2204
form subject to the penalty for perjury, to the bureau the amount 2205
of the self-insuring employer's paid compensation for the previous 2206
calendar year. In reporting paid compensation paid for the 2207
previous year, a self-insuring employer shall exclude from the 2208
total amount of paid compensation any reimbursement the 2209
self-insuring employer receives in the previous calendar year from 2210
the surplus fund pursuant to section 4123.512 of the Revised Code 2211
for any paid compensation. The self-insuring employer also shall 2212
exclude from the paid compensation reported any amount recovered 2213
under section 4123.931 of the Revised Code and any amount that is 2214
determined not to have been payable to or on behalf of a claimant 2215
in any final administrative or judicial proceeding. The 2216
self-insuring employer shall exclude such amounts from the paid 2217
compensation reported in the reporting period subsequent to the 2218
date the determination is made. The administrator shall adopt 2219
rules, in accordance with Chapter 119. of the Revised Code, that 2220
provide for all of the following:2221

       (1) Establishing the date by which self-insuring employers 2222
must submit such information and the amount of the assessments 2223
provided for in division (J) of this section for employers who 2224
have been granted self-insuring status within the last calendar 2225
year;2226

       (2) If an employer fails to pay the assessment when due, the 2227
administrator may add a late fee penalty of not more than five 2228
hundred dollars to the assessment plus an additional penalty 2229
amount as follows:2230

       (a) For an assessment from sixty-one to ninety days past due, 2231
the prime interest rate, multiplied by the assessment due;2232

       (b) For an assessment from ninety-one to one hundred twenty 2233
days past due, the prime interest rate plus two per cent, 2234
multiplied by the assessment due;2235

       (c) For an assessment from one hundred twenty-one to one 2236
hundred fifty days past due, the prime interest rate plus four per 2237
cent, multiplied by the assessment due;2238

       (d) For an assessment from one hundred fifty-one to one 2239
hundred eighty days past due, the prime interest rate plus six per 2240
cent, multiplied by the assessment due;2241

       (e) For an assessment from one hundred eighty-one to two 2242
hundred ten days past due, the prime interest rate plus eight per 2243
cent, multiplied by the assessment due;2244

       (f) For each additional thirty-day period or portion thereof 2245
that an assessment remains past due after it has remained past due 2246
for more than two hundred ten days, the prime interest rate plus 2247
eight per cent, multiplied by the assessment due.2248

        (3) An employer may appeal a late fee penalty and penalty 2249
assessment to the administrator.2250

        For purposes of division (L)(2) of this section, "prime 2251
interest rate" means the average bank prime rate, and the 2252
administrator shall determine the prime interest rate in the same 2253
manner as a county auditor determines the average bank prime rate 2254
under section 929.02 of the Revised Code.2255

       The administrator shall include any assessment and penalties 2256
that remain unpaid for previous assessment periods in the 2257
calculation and collection of any assessments due under this 2258
division or division (J) of this section.2259

       (M) As used in this section, "paid compensation" means all 2260
amounts paid by a self-insuring employer for living maintenance 2261
benefits, all amounts for compensation paid pursuant to sections 2262
4121.63, 4121.67, 4123.56, 4123.57, 4123.58, 4123.59, 4123.60, and 2263
4123.64 of the Revised Code, all amounts paid as wages in lieu of 2264
such compensation, all amounts paid in lieu of such compensation 2265
under a nonoccupational accident and sickness program fully funded 2266
by the self-insuring employer, and all amounts paid by a 2267
self-insuring employer for a violation of a specific safety 2268
standard pursuant to Section 35 of Article II, Ohio Constitution 2269
and section 4121.47 of the Revised Code.2270

       (N) Should any section of this chapter or Chapter 4121. of 2271
the Revised Code providing for self-insuring employers' 2272
assessments based upon compensation paid be declared 2273
unconstitutional by a final decision of any court, then that 2274
section of the Revised Code declared unconstitutional shall revert 2275
back to the section in existence prior to November 3, 1989, 2276
providing for assessments based upon payroll.2277

       (O) The administrator may grant a self-insuring employer the 2278
privilege to self-insure a construction project entered into by 2279
the self-insuring employer that is scheduled for completion within 2280
six years after the date the project begins, and the total cost of 2281
which is estimated to exceed one hundred million dollars or, for 2282
employers described in division (R) of this section, if the 2283
construction project is estimated to exceed twenty-five million 2284
dollars. The administrator may waive such cost and time criteria 2285
and grant a self-insuring employer the privilege to self-insure a 2286
construction project regardless of the time needed to complete the 2287
construction project and provided that the cost of the 2288
construction project is estimated to exceed fifty million dollars. 2289
A self-insuring employer who desires to self-insure a construction 2290
project shall submit to the administrator an application listing 2291
the dates the construction project is scheduled to begin and end, 2292
the estimated cost of the construction project, the contractors 2293
and subcontractors whose employees are to be self-insured by the 2294
self-insuring employer, the provisions of a safety program that is 2295
specifically designed for the construction project, and a 2296
statement as to whether a collective bargaining agreement 2297
governing the rights, duties, and obligations of each of the 2298
parties to the agreement with respect to the construction project 2299
exists between the self-insuring employer and a labor 2300
organization.2301

       A self-insuring employer may apply to self-insure the 2302
employees of either of the following:2303

       (1) All contractors and subcontractors who perform labor or 2304
work or provide materials for the construction project;2305

       (2) All contractors and, at the administrator's discretion, a 2306
substantial number of all the subcontractors who perform labor or 2307
work or provide materials for the construction project.2308

       Upon approval of the application, the administrator shall 2309
mail a certificate granting the privilege to self-insure the 2310
construction project to the self-insuring employer. The 2311
certificate shall contain the name of the self-insuring employer 2312
and the name, address, and telephone number of the self-insuring 2313
employer's representatives who are responsible for administering 2314
workers' compensation claims for the construction project. The 2315
self-insuring employer shall post the certificate in a conspicuous 2316
place at the site of the construction project.2317

       The administrator shall maintain a record of the contractors 2318
and subcontractors whose employees are covered under the 2319
certificate issued to the self-insured employer. A self-insuring 2320
employer immediately shall notify the administrator when any 2321
contractor or subcontractor is added or eliminated from inclusion 2322
under the certificate.2323

       Upon approval of the application, the self-insuring employer 2324
is responsible for the administration and payment of all claims 2325
under this chapter and Chapter 4121. of the Revised Code for the 2326
employees of the contractor and subcontractors covered under the 2327
certificate who receive injuries or are killed in the course of 2328
and arising out of employment on the construction project, or who 2329
contract an occupational disease in the course of employment on 2330
the construction project. For purposes of this chapter and Chapter 2331
4121. of the Revised Code, a claim that is administered and paid 2332
in accordance with this division is considered a claim against the 2333
self-insuring employer listed in the certificate. A contractor or 2334
subcontractor included under the certificate shall report to the 2335
self-insuring employer listed in the certificate, all claims that 2336
arise under this chapter and Chapter 4121. of the Revised Code in 2337
connection with the construction project for which the certificate 2338
is issued.2339

       A self-insuring employer who complies with this division is 2340
entitled to the protections provided under this chapter and 2341
Chapter 4121. of the Revised Code with respect to the employees of 2342
the contractors and subcontractors covered under a certificate 2343
issued under this division for death or injuries that arise out 2344
of, or death, injuries, or occupational diseases that arise in the 2345
course of, those employees' employment on that construction 2346
project, as if the employees were employees of the self-insuring 2347
employer, provided that the self-insuring employer also complies 2348
with this section. No employee of the contractors and 2349
subcontractors covered under a certificate issued under this 2350
division shall be considered the employee of the self-insuring 2351
employer listed in that certificate for any purposes other than 2352
this chapter and Chapter 4121. of the Revised Code. Nothing in 2353
this division gives a self-insuring employer authority to control 2354
the means, manner, or method of employment of the employees of the 2355
contractors and subcontractors covered under a certificate issued 2356
under this division.2357

       The contractors and subcontractors included under a 2358
certificate issued under this division are entitled to the 2359
protections provided under this chapter and Chapter 4121. of the 2360
Revised Code with respect to the contractor's or subcontractor's 2361
employees who are employed on the construction project which is 2362
the subject of the certificate, for death or injuries that arise 2363
out of, or death, injuries, or occupational diseases that arise in 2364
the course of, those employees' employment on that construction 2365
project.2366

       The contractors and subcontractors included under a 2367
certificate issued under this division shall identify in their 2368
payroll records the employees who are considered the employees of 2369
the self-insuring employer listed in that certificate for purposes 2370
of this chapter and Chapter 4121. of the Revised Code, and the 2371
amount that those employees earned for employment on the 2372
construction project that is the subject of that certificate. 2373
Notwithstanding any provision to the contrary under this chapter 2374
and Chapter 4121. of the Revised Code, the administrator shall 2375
exclude the payroll that is reported for employees who are 2376
considered the employees of the self-insuring employer listed in 2377
that certificate, and that the employees earned for employment on 2378
the construction project that is the subject of that certificate, 2379
when determining those contractors' or subcontractors' premiums or 2380
assessments required under this chapter and Chapter 4121. of the 2381
Revised Code. A self-insuring employer issued a certificate under 2382
this division shall include in the amount of paid compensation it 2383
reports pursuant to division (L) of this section, the amount of 2384
paid compensation the self-insuring employer paid pursuant to this 2385
division for the previous calendar year.2386

       Nothing in this division shall be construed as altering the 2387
rights of employees under this chapter and Chapter 4121. of the 2388
Revised Code as those rights existed prior to September 17, 1996. 2389
Nothing in this division shall be construed as altering the rights 2390
devolved under sections 2305.31 and 4123.82 of the Revised Code as 2391
those rights existed prior to September 17, 1996.2392

       As used in this division, "privilege to self-insure a 2393
construction project" means privilege to pay individually 2394
compensation, and to furnish medical, surgical, nursing, and 2395
hospital services and attention and funeral expenses directly to 2396
injured employees or the dependents of killed employees.2397

       (P) A self-insuring employer whose application is granted 2398
under division (O) of this section shall designate a safety 2399
professional to be responsible for the administration and 2400
enforcement of the safety program that is specifically designed 2401
for the construction project that is the subject of the 2402
application.2403

       A self-insuring employer whose application is granted under 2404
division (O) of this section shall employ an ombudsperson for the 2405
construction project that is the subject of the application. The 2406
ombudsperson shall have experience in workers' compensation or the 2407
construction industry, or both. The ombudsperson shall perform all 2408
of the following duties:2409

       (1) Communicate with and provide information to employees who 2410
are injured in the course of, or whose injury arises out of 2411
employment on the construction project, or who contract an 2412
occupational disease in the course of employment on the 2413
construction project;2414

       (2) Investigate the status of a claim upon the request of an 2415
employee to do so;2416

       (3) Provide information to claimants, third party 2417
administrators, employers, and other persons to assist those 2418
persons in protecting their rights under this chapter and Chapter 2419
4121. of the Revised Code.2420

       A self-insuring employer whose application is granted under 2421
division (O) of this section shall post the name of the safety 2422
professional and the ombudsperson and instructions for contacting 2423
the safety professional and the ombudsperson in a conspicuous 2424
place at the site of the construction project.2425

       (Q) The administrator may consider all of the following when 2426
deciding whether to grant a self-insuring employer the privilege 2427
to self-insure a construction project as provided under division 2428
(O) of this section:2429

       (1) Whether the self-insuring employer has an organizational 2430
plan for the administration of the workers' compensation law;2431

       (2) Whether the safety program that is specifically designed 2432
for the construction project provides for the safety of employees 2433
employed on the construction project, is applicable to all 2434
contractors and subcontractors who perform labor or work or 2435
provide materials for the construction project, and has as a 2436
component, a safety training program that complies with standards 2437
adopted pursuant to the "Occupational Safety and Health Act of 2438
1970," 84 Stat. 1590, 29 U.S.C.A. 651, and provides for continuing 2439
management and employee involvement;2440

       (3) Whether granting the privilege to self-insure the 2441
construction project will reduce the costs of the construction 2442
project;2443

       (4) Whether the self-insuring employer has employed an 2444
ombudsperson as required under division (P) of this section;2445

       (5) Whether the self-insuring employer has sufficient surety 2446
to secure the payment of claims for which the self-insuring 2447
employer would be responsible pursuant to the granting of the 2448
privilege to self-insure a construction project under division (O) 2449
of this section.2450

       (R) As used in divisions (O), (P), and (Q), "self-insuring 2451
employer" includes the following employers, whether or not they 2452
have been granted the status of being a self-insuring employer 2453
under division (B) of this section:2454

        (1) A state institution of higher education;2455

        (2) A school district;2456

        (3) A county school financing district;2457

        (4) An educational service center;2458

        (5) A community school established under Chapter 3314. of the 2459
Revised Code;2460

       (6) A municipal power agency as defined in section 3734.058 2461
of the Revised Code.2462

        (S) As used in this section:2463

       (1) "Unvoted debt capacity" means the amount of money that a 2464
public employer may borrow without voter approval of a tax levy;2465

       (2) "State institution of higher education" means the state 2466
universities listed in section 3345.011 of the Revised Code, 2467
community colleges created pursuant to Chapter 3354. of the 2468
Revised Code, university branches created pursuant to Chapter 2469
3355. of the Revised Code, technical colleges created pursuant to 2470
Chapter 3357. of the Revised Code, and state community colleges 2471
created pursuant to Chapter 3358. of the Revised Code.2472

       Sec. 4123.353.  (A) A public employer, except for a board of 2473
county commissioners described in division (G) of section 4123.01 2474
of the Revised Code, a board of a county hospital, or a publicly 2475
owned utility, who is granted the status of self-insuring employer 2476
pursuant to section 4123.35 of the Revised Code shall do all of 2477
the following:2478

       (1) Reserve funds as necessary, in accordance with sound and 2479
prudent actuarial judgment, to cover the costs the public employer 2480
may potentially incur to remain in compliance with this chapter 2481
and Chapter 4121. of the Revised Code;2482

       (2) Include all activity under this chapter and Chapter 4121. 2483
of the Revised Code in a single fund on the public employer's 2484
accounting records;2485

       (3) Within ninety days after the last day of each fiscal 2486
year, prepare and maintain a report of the reserved funds 2487
described in division (A)(1) of this section and disbursements 2488
made from those reserved funds;2489

       (4) Within ninety days after the last day of each fiscal 2490
year, obtain a written report prepared by a member of the American 2491
academy of actuaries, certifying whether the reserved funds 2492
described in division (A)(1) of this section are sufficient to 2493
cover the costs the public employer may potentially incur to 2494
remain in compliance with this chapter and Chapter 4121. of the 2495
Revised Code, are computed in accordance with accepted loss 2496
reserving standards, and are fairly stated in accordance with 2497
sound loss reserving principles.2498

       (B) A public employer who is subject to division (A) of this 2499
section shall make the reports required by that division available 2500
for inspection by the administrator of workers' compensation and 2501
any other person at all reasonable times during regular business 2502
hours.2503

       Sec. 4123.36.  Whenever an employer fails to pay a premium 2504
due,and the administrator of workers' compensation determines the 2505
employer's account to be uncollectible, the administrator shall 2506
cover the default in excess of the employer's premium security 2507
deposit by transfer of money from the premium payment security 2508
fund account to the state insurance fund. The transfer establishes 2509
coverage of the employer for the immediately completed six-month 2510
period together with the ensuing two-month adjustment period and 2511
the employer is not liable to respond in damages at common law or 2512
by statute for injuries or death of any employees wherever 2513
occurring during that eight-month period. Payments from the 2514
premium payment security fund may not be used to cover a default 2515
of an employer with respect to any period longer than eight 2516
months. Thereafter, the employer shall be considered a 2517
noncomplying employer under this chapter and shall not be entitled 2518
to the benefits and protection of this chapter until the employer 2519
again establishes coverage pursuant to this chapter through 2520
reimbursement to the premium payment security fund for the money 2521
paid to the state insurance fund, on account of the default, 2522
payment of any semiannual premium obligations due but in default, 2523
and submission of a new premium security deposit pursuant to 2524
section 4123.32 of the Revised Code.2525

       Sec. 4123.37.  In this section "amenable employer" has the 2526
same meaning as "employer" as defined in division (J)(I) of 2527
section 4123.32 of the Revised Code.2528

       If the administrator of workers' compensation finds that any 2529
person, firm, or private corporation, including any public service 2530
corporation, is, or has been at any time after January 1, 1923, an 2531
amenable employer and has not complied with section 4123.35 of the 2532
Revised Code the administrator shall determine the period during 2533
which the person, firm, or corporation was an amenable employer 2534
and shall forthwith give notice of the determination to the 2535
employer. Within twenty days thereafter the employer shall furnish 2536
the bureau with the payroll covering the period included in the 2537
determination and, if the employer is an amenable employer at the 2538
time of the determination, shall pay a premium security deposit 2539
for the eight months next succeeding the date of the determination 2540
and shall pay into the state insurance fund the amount of premium 2541
and assessments applicable to such payroll. If the administrator 2542
determines that the employer is an amenable employer prior to the 2543
policy year commencing July 1, 2015, the administrator may require 2544
the employer to pay a premium security deposit.2545

       If the employer does not furnish the payroll and pay the 2546
applicable premium, assessments, and, if applicable, the premium 2547
security deposit within the twenty days, the administrator shall 2548
forthwith make an assessment of the premiumamounts due from the 2549
employer for the period the administrator determined the employer 2550
to be an amenable employer including the premium security deposit 2551
according to section 4123.32 of the Revised Code if the employer 2552
is an amenable employer at the time of the determination, basing 2553
the assessment upon the information in the possession of the 2554
administrator.2555

       The administrator shall give to the employer assessed written 2556
notice of the assessment. The notice shall be mailed to the 2557
employer at the employer's residence or usual place of business by 2558
certified mail. Unless the employer to whom the notice of 2559
assessment is directed files with the bureau within twenty days 2560
after receipt thereof, a petition in writing, verified under oath 2561
by the employer, or the employer's authorized agent having 2562
knowledge of the facts, setting forth with particularity the items 2563
of the assessment objected to, together with the reason for the 2564
objections, the assessment shall become conclusive and the amount 2565
thereof shall be due and payable from the employer so assessed to 2566
the state insurance fund. When a petition objecting to an 2567
assessment is filed the bureau shall assign a time and place for 2568
the hearing of the same and shall notify the petitioner thereof by 2569
certified mail. When an employer files a petition the assessment 2570
made by the administrator shall become due and payable ten days 2571
after notice of the finding made at the hearing has been sent by 2572
certified mail to the party assessed. An appeal may be taken from 2573
any finding to the court of common pleas of Franklin county upon 2574
the execution by the party assessed of a bond to the state in 2575
double the amount found due and ordered paid by the bureau 2576
conditioned that the party will pay any judgment and costs 2577
rendered against it for the premium.2578

       When no petition objecting to an assessment is filed or when 2579
a finding is made affirming or modifying an assessment after 2580
hearing, a certified copy of the assessment as affirmed or 2581
modified may be filed by the administrator in the office of the 2582
clerk of the court of common pleas in any county in which the 2583
employer has property or in which the employer has a place of 2584
business. The clerk, immediately upon the filing of the 2585
assessment, shall enter a judgment for the state against the 2586
employer in the amount shown on the assessment. The judgment may 2587
be filed by the clerk in a loose leaf book entitled "special 2588
judgments for state insurance fund." The judgment shall bear the 2589
same rate of interest, have the same effect as other judgments, 2590
and be given the same preference allowed by law on other judgments 2591
rendered for claims for taxes. An assessment or judgment under 2592
this section shall not be a bar to the adjustment of the 2593
employer's account upon the employer furnishing the employer's 2594
payroll records to the bureau.2595

       The administrator, for good cause shown, may waive a default 2596
in the payment of premium where the default is of less than sixty 2597
days' duration, and upon payment by the employer of the premium 2598
for the period, the employer and the employer's employees are 2599
entitled to all of the benefits and immunities provided by this 2600
chapter.2601

       Sec. 4123.40.  On or before the first day of July of every 2602
year, the administrator of workers' compensation shall estimate 2603
the gross payroll of all state employers for the succeeding 2604
biennium or fiscal year.2605

       The administrator shall determine and certify for the office 2606
of budget and management that rate or rates which, when applied to 2607
the gross payroll estimate, will produce an amount equal to the 2608
estimated cost of awards or claim payments to be made during the 2609
like fiscal period, as determined by the administrator.2610

       The rate certified shall be applied and made a part of the 2611
gross payroll calculation for the period for which the foregoing 2612
estimates have been made, in conformity with section 125.21 of the 2613
Revised Code. The amounts collected shall be remitted to the 2614
bureau of workers' compensation as provided in section 125.21 of 2615
the Revised Code.2616

       If the historical amounts remitted to the bureau for a fiscal 2617
period are greater or less than actualhistorical awards or claim2618
payments for the like period by reason of an error in the prior 2619
estimates of gross payroll or awards or payments, the overage or 2620
shortagedifference shall be includedreturned to the state 2621
employer or recovered by the bureau in a manner determined by the 2622
administrator in determining the rate for the next succeeding 2623
fiscal period.2624

       In fixing the amount of contribution to be made by the state 2625
and each of its departments, agencies, and instrumentalities, the 2626
administrator shall classify departments, agencies, and 2627
instrumentalities into such groups as will equitably determine the 2628
contributions in accordance with their expected individual 2629
accident experience so that the state and its departments, 2630
agencies, and instrumentalities contribute an amount sufficient to 2631
meet individual obligations and maintain a solvent public 2632
insurance fundthe obligations of the participants in total.2633

       Moneys collected from state employers shall not be used to 2634
pay compensation or other benefits attributable to service of 2635
persons as employees of counties or taxing districts therein, nor 2636
shall moneys collected from counties and taxing districts therein 2637
be used to pay compensation or other benefits attributable to 2638
service of persons as employees of the state.2639

       Sec. 4123.41.  (A) By(1) For policy years that begin prior 2640
to January 1, 2016, by the first day of January of each year, the 2641
bureau of workers' compensation shall furnish to the county 2642
auditor of each county and the chief fiscal officer of each taxing 2643
district in a county and of each district activity and institution 2644
mentioned in section 4123.39 of the Revised Code forms containing 2645
the premium rates applicable to the county, district, district 2646
activity, or institution as an employer, on which to report the 2647
amount of money expended by the county, district, district 2648
activity, or institution during the previous twelve calendar 2649
months for the services of employees under this chapter.2650

       (B) Each county auditor and each fiscal officer of a 2651
district, district activity, and institution shall calculate on 2652
the form it receives from the bureau under division (A) of this 2653
section the premium due as its proper contribution to the public 2654
insurance fund and issue a warrant in favor of the bureau for the 2655
amount due from the county, district, district activity, or 2656
institution to the public insurance fund.2657

       (2) For a policy year commencing on or after January 1, 2016, 2658
by the first day of November of each year, the bureau shall 2659
furnish to the county auditor of each county and the chief fiscal 2660
officer of each taxing district in a county and of each district 2661
activity and institution mentioned in section 4123.39 of the 2662
Revised Code forms showing the estimated premium due from the 2663
county, district, district activity, or institution for the 2664
forthcoming policy year. 2665

       After the conclusion of each policy year, the county auditor 2666
of each county and the chief fiscal officer of each taxing 2667
district in a county and of each district activity and institution 2668
mentioned in section 4123.39 of the Revised Code shall, on or 2669
before the fifteenth day of February immediately following the 2670
conclusion of the policy year, report the amount of money expended 2671
by the county, district, district activity, or institution during 2672
the policy year for the services of employees under this chapter. 2673
The bureau shall adjust the premium and assessments charged to the 2674
employer for the difference between estimated gross payrolls and 2675
actual gross payrolls, and the employer immediately shall pay any 2676
balance due to the bureau. Any balance due the employer shall be 2677
credited to the employer's account.2678

       The administrator may adopt rules setting forth penalties for 2679
failure to submit the report of money expended as required by this 2680
division, including, but not limited to, exclusion from 2681
alternative rating plans and discount programs.2682

       (B)(1) Except as otherwise provided in division (B) of this 2683
section, payments due under this section shall be made according 2684
to the following schedule:2685

       (1) On(a) For payments of premium and assessments due for a 2686
policy year that commences on or before January 1, 2014:2687

       (i) On or before the fifteenth day of May of eachimmediately 2688
following the conclusion of the policy year, no less than 2689
forty-five per cent of the annual amount due for the policy year;2690

       (2)(ii) On or before the first day of September immediately 2691
following the conclusion of eachthe policy year, no less than the 2692
total amount due for the policy year.2693

       (b) For the policy year commencing January 1, 2015:2694

       (i) On or before the fifteenth day of May immediately 2695
following the conclusion of the policy year, no less than fifty 2696
per cent of the annual amount due for the policy year;2697

       (ii) On or before the first day of September immediately 2698
following the conclusion of the policy year, no less than the 2699
total amount due for the policy year.2700

       (c) For the policy year commencing January 1, 2016:2701

       (i) On or before the fifteenth day of May in that policy 2702
year, no less than fifty per cent of the annual premium estimated 2703
by the bureau.2704

       (ii) On or before the first day of September in that policy 2705
year, no less than the total amount of annual premium estimated by 2706
the bureau.2707

       (d) For a policy year commencing on or after January 1, 2017, 2708
the total amount of annual premium estimated by the bureau on or 2709
before the thirty-first day of December immediately preceding the 2710
start of the policy year.2711

       (2) The administrator, with the advice and consent of the 2712
bureau of workers' compensation board of directors, shall adopt 2713
rules to permit employers to make periodic payments of the premium 2714
and assessments due under this section. The rules shall include 2715
provisions for the assessment of interest charges, if appropriate, 2716
and for the assessment of penalties when an employer fails to make 2717
timely premium payments. The administrator may adopt rules to 2718
establish an administrative fee for those periodic payments.2719

       (C) The legislative body of any county, district, district 2720
activity, or institution may reimburse the fund from which the 2721
workers' compensation payments are made by transferring to the 2722
fund from any other fund of the county, district, district 2723
activity, or institution, the proportionate amount of the payments 2724
that should be chargeable to the fund, whether the fund is derived 2725
from taxation or otherwise. The proportionate amount of the 2726
payments chargeable to the fund may be based on payroll, relative 2727
exposure, relative loss experience, or any combination of these 2728
factors, as determined by the legislative body. 2729

       (1) The workers' compensation program payments of any county, 2730
district, district activity, or institution may include all 2731
payments required by any bureau of workers' compensation rating 2732
plan.2733

       (2) The workers' compensation program payments of any county, 2734
district, district activity, or institution, except for a county 2735
board of developmental disabilities, a board of alcohol, drug 2736
addiction, and mental health services, a board of mental health 2737
services, and a board of alcohol and drug addiction services, also 2738
may include any of the following:2739

       (a) Direct administrative costs incurred in the management of 2740
the county, district, district activity, or institution's workers' 2741
compensation program;2742

       (b) Indirect costs that are necessary and reasonable for the 2743
proper and efficient administration of the workers' compensation 2744
program as documented in a cost allocation plan. The indirect cost 2745
plan shall conform to the United States office of management and 2746
budget circular A-87 "cost principles for state and local 2747
governments," 2 C.F.R. 225, as most recently amended on May 10, 2748
2004. The plan shall not authorize payment from the fund of any 2749
general government expense required to carry out the overall 2750
governmental responsibilities.2751

       (3) Within sixty days before a legislative body changes the 2752
method used for calculating the proportionate amount of the 2753
payments chargeable to the fund, it shall notify, consult with, 2754
and give information supporting the change to any elected official 2755
affected by the change. A transfer made pursuant to division 2756
(B)(2) of this section is not subject to section 5705.16 of the 2757
Revised Code.2758

       (D) Any county board of developmental disabilities, board of 2759
alcohol, drug addiction, and mental health services, board of 2760
mental health services, or board of alcohol and drug addiction 2761
services whose workers' compensation payments, on or before 2762
September 28, 2012, includes costs referred to in division (C)(2) 2763
of this section may continue to do so on and after September 28, 2764
2012.2765

       (E) The bureau may investigate the correctness of the 2766
information provided by the county auditor and chief fiscal 2767
officer under division (B)(A) of this section, and if the bureau 2768
determines at any time that the county, district, district 2769
activity, or institution has not reported the correct information, 2770
the administrator of workers' compensation may make deductions or 2771
additions as the facts warrant and take those facts into 2772
consideration in determining the current or future contributions 2773
to be made by the county, district, district activity, or 2774
institution. If the county, district, district activity, or 2775
institution does not furnish the report in the time required by 2776
this section, the administrator may fix the amount of contribution 2777
the county, district, district activity, or institution must make 2778
and certify that amount for payment.2779

       (F) TheFor payments of premium and assessments for a policy 2780
year prior to the policy year commencing January 1, 2015, the 2781
administrator shall provide a discount to any county, district, 2782
district activity, or institution that pays its total amount due 2783
to the public insurance fund on or before the fifteenth day of May 2784
of each year as its proper contribution for premiums. The 2785
administrator shall base the discount provided under this division 2786
on the savings generated by the early payment to the public 2787
insurance fund. The administrator may provide the discount through 2788
a refund to the county, district, district activity, or 2789
institution or an offset against the future contributions due to 2790
the public insurance fund from the county, district, district 2791
activity, or institution.2792

       (G) The administrator may impose an interest penalty for late 2793
payment of any amount due from a county, district, district 2794
activity, and institution at the interest rate established by the 2795
state tax commissioner pursuant to section 5703.47 of the Revised 2796
Code.2797

       (H) If the administrator adopts rules for the prospective 2798
payment of premium as permitted under section 4123.322 of the 2799
Revised Code, every employer mentioned in division (B)(1) of 2800
section 4123.01 of the Revised Code, except for a state agency or 2801
a state university or college as defined in section 4123.32 of the 2802
Revised Code, shall pay into the state insurance fund the amount 2803
of premium the administrator fixes for the employment or 2804
occupation of the employer, the amount of which premium to be paid 2805
by each employer to be determined by the classifications, rules, 2806
and rates made and published by the administrator and based upon 2807
the estimates and reconciliations required by the rules the 2808
administrator adopts under section 4123.322 of the Revised Code.2809

       Sec. 4123.411.  (A) For the purpose of carrying out sections 2810
4123.412 to 4123.418 of the Revised Code, the administrator of 2811
workers' compensation, with the advice and consent of the bureau 2812
of workers' compensation board of directors, shall levy an 2813
assessment against all employers at a rate, of at least five but2814
not to exceed ten cents per one hundred dollars of payroll, such 2815
rate to be determined annually for each employer group listed in 2816
divisions (A)(1) to (3) of this section, which will produce an 2817
amount no greater than the amount the administrator estimates to 2818
be necessary to carry out such sections for the period for which 2819
the assessment is levied. In the event the amount produced by the 2820
assessment is not sufficient to carry out such sections the 2821
additional amount necessary shall be provided from the income 2822
produced as a result of investments made pursuant to section 2823
4123.44 of the Revised Code.2824

       Assessments shall be levied according to the following 2825
schedule:2826

       (1) PrivateFor private fund employers, except self-insuring 2827
employers--:2828

       (a) For policy years commencing prior to July 1, 2015, in 2829
January and July of each year upon gross payrolls of the preceding 2830
six months;2831

       (b) For policy years commencing on or after July 1, 2015, in 2832
the month of June immediately preceding each policy year upon 2833
gross payrolls estimated for that policy year.2834

       (2) CountiesFor counties and taxing district employers 2835
therein, except county hospitals that are self-insuring 2836
employers--:2837

       (a) For policy years commencing prior to January 1, 2016, in 2838
January of each year upon gross payrolls of the preceding twelve 2839
months;2840

       (b) For policy years commencing on or after January 1, 2016, 2841
in the month of December immediately preceding each policy year 2842
upon gross payrolls estimated for that policy year.2843

       (3) TheFor the state as an employer--in January, April, 2844
July, and October of each year upon gross payrolls of the 2845
preceding three months or at other intervals as the administrator 2846
establishes.2847

       After the completion of each policy year that commences on or 2848
after July 1, 2015, for private fund employers or that commences 2849
on or after January 1, 2016, for counties and taxing district 2850
employers therein, the assessments levied under this section shall 2851
be adjusted for the difference between estimated gross payrolls 2852
and actual gross payrolls reported by the employer on the payroll 2853
report submitted by a private employer pursuant to section 4123.26 2854
of the Revised Code, or, for a public employer, submitted pursuant 2855
to section 4123.41 of the Revised Code.2856

       Amounts assessed in accordance with this section shall be 2857
collected from each employer as prescribed in rules the 2858
administrator adopts.2859

       The moneys derived from the assessment provided for in this 2860
section shall be credited to the disabled workers' relief fund 2861
created by section 4123.412 of the Revised Code. The administrator 2862
shall establish by rule classifications of employers within 2863
divisions (A)(1) to (3) of this section and shall determine rates 2864
for each class so as to fairly apportion the costs of carrying out 2865
sections 4123.412 to 4123.418 of the Revised Code.2866

       (B) For all injuries and disabilities occurring on or after 2867
January 1, 1987, the administrator, for the purposes of carrying 2868
out sections 4123.412 to 4123.418 of the Revised Code, shall levy 2869
an assessment against all employers at a rate per one hundred 2870
dollars of payroll, such rate to be determined annually for each 2871
classification of employer in each employer group listed in 2872
divisions (A)(1) to (3) of this section, which will produce an 2873
amount no greater than the amount the administrator estimates to 2874
be necessary to carry out such sections for the period for which 2875
the assessment is levied. The administrator annually shall 2876
establish the contributions due from employers for the disabled 2877
workers' relief fund at rates as low as possible but that will 2878
assure sufficient moneys to guarantee the payment of any claims 2879
against that fund.2880

       Amounts assessed in accordance with this division shall be 2881
billed at the same time premiums are billed and credited to the 2882
disabled workers' relief fund created by section 4123.412 of the 2883
Revised Code. The administrator shall determine the rates for each 2884
class in the same manner as the administrator fixes the rates for 2885
premiums pursuant to section 4123.29 of the Revised Code.2886

       (C) For a self-insuring employer, the bureau of workers' 2887
compensation shall pay to employees who are participants 2888
regardless of the date of injury, any amounts due to the 2889
participants under section 4123.414 of the Revised Code and shall 2890
bill the self-insuring employer, semiannually, for all amounts 2891
paid to a participant.2892

       Sec. 4123.47.  (A) The administrator of workers' compensation 2893
shall have an actuarial auditsanalysis of the state insurance 2894
fund and all other funds specified in this chapter and Chapters 2895
4121., 4127., and 4131. of the Revised Code made at least once 2896
each year. The auditsanalysis shall be made and certified by 2897
recognized insurance, credentialed property or casualty actuaries 2898
who shall be selected by the bureau of workers' compensation board 2899
of directors. The audits shall cover the premium rates, 2900
classifications, and all other matters involving the 2901
administration of the state insurance fund and all other funds 2902
specified in this chapter and Chapters 4121., 4127., and 4131. of 2903
the Revised Code. The expense of the auditsanalysis shall be paid 2904
from the state insurance fund. The administrator shall make copies 2905
of the auditsanalysis available to the workers' compensation 2906
audit committee at no charge and to the public at cost.2907

       (B) The auditor of state annually shall conduct an audit of 2908
the administration of this chapter by the industrial commission 2909
and the bureau of workers' compensation and the safety and hygiene 2910
fund. The cost of the audit shall be charged to the administrative 2911
costs of the bureau as defined in section 4123.341 of the Revised 2912
Code. The audit shall include audits of all fiscal activities, 2913
claims processing and handling, and employer premium collections. 2914
The auditor shall prepare a report of the audit together with 2915
recommendations and transmit copies of the report to the 2916
industrial commission, the board, the administrator, the governor, 2917
and to the general assembly. The auditor shall make copies of the 2918
report available to the public at cost.2919

       (C) The administrator may retain the services of a recognized 2920
actuary on a consulting basis for the purpose of evaluating the 2921
actuarial soundness of premium rates and classifications and all 2922
other matters involving the administration of the state insurance 2923
fund. The expense of services provided by the actuary shall be 2924
paid from the state insurance fund.2925

       Sec. 4123.511.  (A) Within seven days after receipt of any 2926
claim under this chapter, the bureau of workers' compensation 2927
shall notify the claimant and the employer of the claimant of the 2928
receipt of the claim and of the facts alleged therein. If the 2929
bureau receives from a person other than the claimant written or 2930
facsimile information or information communicated verbally over 2931
the telephone indicating that an injury or occupational disease 2932
has occurred or been contracted which may be compensable under 2933
this chapter, the bureau shall notify the employee and the 2934
employer of the information. If the information is provided 2935
verbally over the telephone, the person providing the information 2936
shall provide written verification of the information to the 2937
bureau according to division (E) of section 4123.84 of the Revised 2938
Code. The receipt of the information in writing or facsimile, or 2939
if initially by telephone, the subsequent written verification, 2940
and the notice by the bureau shall be considered an application 2941
for compensation under section 4123.84 or 4123.85 of the Revised 2942
Code, provided that the conditions of division (E) of section 2943
4123.84 of the Revised Code apply to information provided verbally 2944
over the telephone. Upon receipt of a claim, the bureau shall 2945
advise the claimant of the claim number assigned and the 2946
claimant's right to representation in the processing of a claim or 2947
to elect no representation. If the bureau determines that a claim 2948
is determined to be a compensable lost-time claim, the bureau 2949
shall notify the claimant and the employer of the availability of 2950
rehabilitation services. No bureau or industrial commission 2951
employee shall directly or indirectly convey any information in 2952
derogation of this right. This section shall in no way abrogate 2953
the bureau's responsibility to aid and assist a claimant in the 2954
filing of a claim and to advise the claimant of the claimant's 2955
rights under the law.2956

       The administrator of workers' compensation shall assign all 2957
claims and investigations to the bureau service office from which 2958
investigation and determination may be made most expeditiously.2959

       The bureau shall investigate the facts concerning an injury 2960
or occupational disease and ascertain such facts in whatever 2961
manner is most appropriate and may obtain statements of the 2962
employee, employer, attending physician, and witnesses in whatever 2963
manner is most appropriate.2964

       The administrator, with the advice and consent of the bureau 2965
of workers' compensation board of directors, may adopt rules that 2966
identify specified medical conditions that have a historical 2967
record of being allowed whenever included in a claim. The 2968
administrator may grant immediate allowance of any medical 2969
condition identified in those rules upon the filing of a claim 2970
involving that medical condition and may make immediate payment of 2971
medical bills for any medical condition identified in those rules 2972
that is included in a claim. If an employer contests the allowance 2973
of a claim involving any medical condition identified in those 2974
rules, and the claim is disallowed, payment for the medical 2975
condition included in that claim shall be charged to and paid from 2976
the surplus fund created under section 4123.34 of the Revised 2977
Code.2978

       (B)(1) Except as provided in division (B)(2) of this section, 2979
in claims other than those in which the employer is a 2980
self-insuring employer, if the administrator determines under 2981
division (A) of this section that a claimant is or is not entitled 2982
to an award of compensation or benefits, the administrator shall 2983
issue an order no later than twenty-eight days after the sending 2984
of the notice under division (A) of this section, granting or 2985
denying the payment of the compensation or benefits, or both as is 2986
appropriate to the claimant. Notwithstanding the time limitation 2987
specified in this division for the issuance of an order, if a 2988
medical examination of the claimant is required by statute, the 2989
administrator promptly shall schedule the claimant for that 2990
examination and shall issue an order no later than twenty-eight 2991
days after receipt of the report of the examination. The 2992
administrator shall notify the claimant and the employer of the 2993
claimant and their respective representatives in writing of the 2994
nature of the order and the amounts of compensation and benefit 2995
payments involved. The employer or claimant may appeal the order 2996
pursuant to division (C) of this section within fourteen days 2997
after the date of the receipt of the order. The employer and 2998
claimant may waive, in writing, their rights to an appeal under 2999
this division.3000

       (2) Notwithstanding the time limitation specified in division 3001
(B)(1) of this section for the issuance of an order, if the 3002
employer certifies a claim for payment of compensation or 3003
benefits, or both, to a claimant, and the administrator has 3004
completed the investigation of the claim, the payment of benefits 3005
or compensation, or both, as is appropriate, shall commence upon 3006
the later of the date of the certification or completion of the 3007
investigation and issuance of the order by the administrator, 3008
provided that the administrator shall issue the order no later 3009
than the time limitation specified in division (B)(1) of this 3010
section.3011

       (3) If an appeal is made under division (B)(1) or (2) of this 3012
section, the administrator shall forward the claim file to the 3013
appropriate district hearing officer within seven days of the 3014
appeal. In contested claims other than state fund claims, the 3015
administrator shall forward the claim within seven days of the 3016
administrator's receipt of the claim to the industrial commission, 3017
which shall refer the claim to an appropriate district hearing 3018
officer for a hearing in accordance with division (C) of this 3019
section.3020

       (C) If an employer or claimant timely appeals the order of 3021
the administrator issued under division (B) of this section or in 3022
the case of other contested claims other than state fund claims, 3023
the commission shall refer the claim to an appropriate district 3024
hearing officer according to rules the commission adopts under 3025
section 4121.36 of the Revised Code. The district hearing officer 3026
shall notify the parties and their respective representatives of 3027
the time and place of the hearing.3028

       The district hearing officer shall hold a hearing on a 3029
disputed issue or claim within forty-five days after the filing of 3030
the appeal under this division and issue a decision within seven 3031
days after holding the hearing. The district hearing officer shall 3032
notify the parties and their respective representatives in writing 3033
of the order. Any party may appeal an order issued under this 3034
division pursuant to division (D) of this section within fourteen 3035
days after receipt of the order under this division.3036

       (D) Upon the timely filing of an appeal of the order of the 3037
district hearing officer issued under division (C) of this 3038
section, the commission shall refer the claim file to an 3039
appropriate staff hearing officer according to its rules adopted 3040
under section 4121.36 of the Revised Code. The staff hearing 3041
officer shall hold a hearing within forty-five days after the 3042
filing of an appeal under this division and issue a decision 3043
within seven days after holding the hearing under this division. 3044
The staff hearing officer shall notify the parties and their 3045
respective representatives in writing of the staff hearing 3046
officer's order. Any party may appeal an order issued under this 3047
division pursuant to division (E) of this section within fourteen 3048
days after receipt of the order under this division.3049

       (E) Upon the filing of a timely appeal of the order of the 3050
staff hearing officer issued under division (D) of this section, 3051
the commission or a designated staff hearing officer, on behalf of 3052
the commission, shall determine whether the commission will hear 3053
the appeal. If the commission or the designated staff hearing 3054
officer decides to hear the appeal, the commission or the 3055
designated staff hearing officer shall notify the parties and 3056
their respective representatives in writing of the time and place 3057
of the hearing. The commission shall hold the hearing within 3058
forty-five days after the filing of the notice of appeal and, 3059
within seven days after the conclusion of the hearing, the 3060
commission shall issue its order affirming, modifying, or 3061
reversing the order issued under division (D) of this section. The 3062
commission shall notify the parties and their respective 3063
representatives in writing of the order. If the commission or the 3064
designated staff hearing officer determines not to hear the 3065
appeal, within fourteen days after the expiration of the period in 3066
which an appeal of the order of the staff hearing officer may be 3067
filed as provided in division (D) of this section, the commission 3068
or the designated staff hearing officer shall issue an order to 3069
that effect and notify the parties and their respective 3070
representatives in writing of that order.3071

       Except as otherwise provided in this chapter and Chapters 3072
4121., 4127., and 4131. of the Revised Code, any party may appeal 3073
an order issued under this division to the court pursuant to 3074
section 4123.512 of the Revised Code within sixty days after 3075
receipt of the order, subject to the limitations contained in that 3076
section.3077

       (F) Every notice of an appeal from an order issued under 3078
divisions (B), (C), (D), and (E) of this section shall state the 3079
names of the claimant and employer, the number of the claim, the 3080
date of the decision appealed from, and the fact that the 3081
appellant appeals therefrom.3082

       (G) All of the following apply to the proceedings under 3083
divisions (C), (D), and (E) of this section:3084

       (1) The parties shall proceed promptly and without 3085
continuances except for good cause;3086

       (2) The parties, in good faith, shall engage in the free 3087
exchange of information relevant to the claim prior to the conduct 3088
of a hearing according to the rules the commission adopts under 3089
section 4121.36 of the Revised Code;3090

       (3) The administrator is a party and may appear and 3091
participate at all administrative proceedings on behalf of the 3092
state insurance fund. However, in cases in which the employer is 3093
represented, the administrator shall neither present arguments nor 3094
introduce testimony that is cumulative to that presented or 3095
introduced by the employer or the employer's representative. The 3096
administrator may file an appeal under this section on behalf of 3097
the state insurance fund; however, except in cases arising under 3098
section 4123.343 of the Revised Code, the administrator only may 3099
appeal questions of law or issues of fraud when the employer 3100
appears in person or by representative.3101

       (H) Except as provided in section 4121.63 of the Revised Code 3102
and division (K) of this section, payments of compensation to a 3103
claimant or on behalf of a claimant as a result of any order 3104
issued under this chapter shall commence upon the earlier of the 3105
following:3106

       (1) Fourteen days after the date the administrator issues an 3107
order under division (B) of this section, unless that order is 3108
appealed;3109

       (2) The date when the employer has waived the right to appeal 3110
a decision issued under division (B) of this section;3111

       (3) If no appeal of an order has been filed under this 3112
section or to a court under section 4123.512 of the Revised Code, 3113
the expiration of the time limitations for the filing of an appeal 3114
of an order;3115

       (4) The date of receipt by the employer of an order of a 3116
district hearing officer, a staff hearing officer, or the 3117
industrial commission issued under division (C), (D), or (E) of 3118
this section.3119

       (I) PaymentsExcept as otherwise provided in division (B) of 3120
section 4123.66 of the Revised Code, payments of medical benefits 3121
payable under this chapter or Chapter 4121., 4127., or 4131. of 3122
the Revised Code shall commence upon the earlier of the following:3123

       (1) The date of the issuance of the staff hearing officer's 3124
order under division (D) of this section;3125

       (2) The date of the final administrative or judicial 3126
determination.3127

       (J) The administrator shall charge the compensation payments 3128
made in accordance with division (H) of this section or medical 3129
benefits payments made in accordance with division (I) of this 3130
section to an employer's experience immediately after the employer 3131
has exhausted the employer's administrative appeals as provided in 3132
this section or has waived the employer's right to an 3133
administrative appeal under division (B) of this section, subject 3134
to the adjustment specified in division (H) of section 4123.512 of 3135
the Revised Code.3136

       (K) Upon the final administrative or judicial determination 3137
under this section or section 4123.512 of the Revised Code of an 3138
appeal of an order to pay compensation, if a claimant is found to 3139
have received compensation pursuant to a prior order which is 3140
reversed upon subsequent appeal, the claimant's employer, if a 3141
self-insuring employer, or the bureau, shall withhold from any 3142
amount to which the claimant becomes entitled pursuant to any 3143
claim, past, present, or future, under Chapter 4121., 4123., 3144
4127., or 4131. of the Revised Code, the amount of previously paid 3145
compensation to the claimant which, due to reversal upon appeal, 3146
the claimant is not entitled, pursuant to the following criteria:3147

       (1) No withholding for the first twelve weeks of temporary 3148
total disability compensation pursuant to section 4123.56 of the 3149
Revised Code shall be made;3150

       (2) Forty per cent of all awards of compensation paid 3151
pursuant to sections 4123.56 and 4123.57 of the Revised Code, 3152
until the amount overpaid is refunded;3153

       (3) Twenty-five per cent of any compensation paid pursuant to 3154
section 4123.58 of the Revised Code until the amount overpaid is 3155
refunded;3156

       (4) If, pursuant to an appeal under section 4123.512 of the 3157
Revised Code, the court of appeals or the supreme court reverses 3158
the allowance of the claim, then no amount of any compensation 3159
will be withheld.3160

       The administrator and self-insuring employers, as 3161
appropriate, are subject to the repayment schedule of this 3162
division only with respect to an order to pay compensation that 3163
was properly paid under a previous order, but which is 3164
subsequently reversed upon an administrative or judicial appeal. 3165
The administrator and self-insuring employers are not subject to, 3166
but may utilize, the repayment schedule of this division, or any 3167
other lawful means, to collect payment of compensation made to a 3168
person who was not entitled to the compensation due to fraud as 3169
determined by the administrator or the industrial commission.3170

       (L) If a staff hearing officer or the commission fails to 3171
issue a decision or the commission fails to refuse to hear an 3172
appeal within the time periods required by this section, payments 3173
to a claimant shall cease until the staff hearing officer or 3174
commission issues a decision or hears the appeal, unless the 3175
failure was due to the fault or neglect of the employer or the 3176
employer agrees that the payments should continue for a longer 3177
period of time.3178

       (M) Except as otherwise provided in this section or section 3179
4123.522 of the Revised Code, no appeal is timely filed under this 3180
section unless the appeal is filed with the time limits set forth 3181
in this section.3182

       (N) No person who is not an employee of the bureau or 3183
commission or who is not by law given access to the contents of a 3184
claims file shall have a file in the person's possession.3185

       (O) Upon application of a party who resides in an area in 3186
which an emergency or disaster is declared, the industrial 3187
commission and hearing officers of the commission may waive the 3188
time frame within which claims and appeals of claims set forth in 3189
this section must be filed upon a finding that the applicant was 3190
unable to comply with a filing deadline due to an emergency or a 3191
disaster. 3192

       As used in this division:3193

       (1) "Emergency" means any occasion or instance for which the 3194
governor of Ohio or the president of the United States publicly 3195
declares an emergency and orders state or federal assistance to 3196
save lives and protect property, the public health and safety, or 3197
to lessen or avert the threat of a catastrophe.3198

       (2) "Disaster" means any natural catastrophe or fire, flood, 3199
or explosion, regardless of the cause, that causes damage of 3200
sufficient magnitude that the governor of Ohio or the president of 3201
the United States, through a public declaration, orders state or 3202
federal assistance to alleviate damage, loss, hardship, or 3203
suffering that results from the occurrence.3204

       Sec. 4123.512.  (A) The claimant or the employer may appeal 3205
an order of the industrial commission made under division (E) of 3206
section 4123.511 of the Revised Code in any injury or occupational 3207
disease case, other than a decision as to the extent of disability 3208
to the court of common pleas of the county in which the injury was 3209
inflicted or in which the contract of employment was made if the 3210
injury occurred outside the state, or in which the contract of 3211
employment was made if the exposure occurred outside the state. If 3212
no common pleas court has jurisdiction for the purposes of an 3213
appeal by the use of the jurisdictional requirements described in 3214
this division, the appellant may use the venue provisions in the 3215
Rules of Civil Procedure to vest jurisdiction in a court. If the 3216
claim is for an occupational disease, the appeal shall be to the 3217
court of common pleas of the county in which the exposure which 3218
caused the disease occurred. Like appeal may be taken from an 3219
order of a staff hearing officer made under division (D) of 3220
section 4123.511 of the Revised Code from which the commission has 3221
refused to hear an appeal. The appellant shall file the notice of 3222
appeal with a court of common pleas within sixty days after the 3223
date of the receipt of the order appealed from or the date of 3224
receipt of the order of the commission refusing to hear an appeal 3225
of a staff hearing officer's decision under division (D) of 3226
section 4123.511 of the Revised Code. The filing of the notice of 3227
the appeal with the court is the only act required to perfect the 3228
appeal.3229

       If an action has been commenced in a court of a county other 3230
than a court of a county having jurisdiction over the action, the 3231
court, upon notice by any party or upon its own motion, shall 3232
transfer the action to a court of a county having jurisdiction.3233

       Notwithstanding anything to the contrary in this section, if 3234
the commission determines under section 4123.522 of the Revised 3235
Code that an employee, employer, or their respective 3236
representatives have not received written notice of an order or 3237
decision which is appealable to a court under this section and 3238
which grants relief pursuant to section 4123.522 of the Revised 3239
Code, the party granted the relief has sixty days from receipt of 3240
the order under section 4123.522 of the Revised Code to file a 3241
notice of appeal under this section.3242

       (B) The notice of appeal shall state the names of the 3243
administrator of workers' compensation, the claimant, and the 3244
employer,; the number of the claim,; the date of the order 3245
appealed from,; and the fact that the appellant appeals therefrom.3246

       The administrator of workers' compensation, the claimant, and 3247
the employer shall be parties to the appeal and the court, upon 3248
the application of the commission, shall make the commission a 3249
party. The party filing the appeal shall serve a copy of the 3250
notice of appeal on the administrator at the central office of the 3251
bureau of workers' compensation in Columbus. The administrator 3252
shall notify the employer that if the employer fails to become an 3253
active party to the appeal, then the administrator may act on 3254
behalf of the employer and the results of the appeal could have an 3255
adverse effect upon the employer's premium rates.3256

       (C) The attorney general or one or more of the attorney 3257
general's assistants or special counsel designated by the attorney 3258
general shall represent the administrator and the commission. In 3259
the event the attorney general or the attorney general's 3260
designated assistants or special counsel are absent, the 3261
administrator or the commission shall select one or more of the 3262
attorneys in the employ of the administrator or the commission as 3263
the administrator's attorney or the commission's attorney in the 3264
appeal. Any attorney so employed shall continue the representation 3265
during the entire period of the appeal and in all hearings thereof 3266
except where the continued representation becomes impractical.3267

       (D) Upon receipt of notice of appeal, the clerk of courts 3268
shall provide notice to all parties who are appellees and to the 3269
commission.3270

       The claimant shall, within thirty days after the filing of 3271
the notice of appeal, file a petition containing a statement of 3272
facts in ordinary and concise language showing a cause of action 3273
to participate or to continue to participate in the fund and 3274
setting forth the basis for the jurisdiction of the court over the 3275
action. Further pleadings shall be had in accordance with the 3276
Rules of Civil Procedure, provided that service of summons on such 3277
petition shall not be required and provided that the claimant may 3278
not dismiss the complaint without the employer's consent if the 3279
employer is the party that filed the notice of appeal to court 3280
pursuant to this section. The clerk of the court shall, upon 3281
receipt thereof, transmit by certified mail a copy thereof to each 3282
party named in the notice of appeal other than the claimant. Any 3283
party may file with the clerk prior to the trial of the action a 3284
deposition of any physician taken in accordance with the 3285
provisions of the Revised Code, which deposition may be read in 3286
the trial of the action even though the physician is a resident of 3287
or subject to service in the county in which the trial is had. The 3288
bureau of workers' compensation shall pay the cost of the 3289
stenographic deposition filed in court and of copies of the 3290
stenographic deposition for each party from the surplus fund and 3291
charge the costs thereof against the unsuccessful party if the 3292
claimant's right to participate or continue to participate is 3293
finally sustained or established in the appeal. In the event the 3294
deposition is taken and filed, the physician whose deposition is 3295
taken is not required to respond to any subpoena issued in the 3296
trial of the action. The court, or the jury under the instructions 3297
of the court, if a jury is demanded, shall determine the right of 3298
the claimant to participate or to continue to participate in the 3299
fund upon the evidence adduced at the hearing of the action.3300

       (E) The court shall certify its decision to the commission 3301
and the certificate shall be entered in the records of the court. 3302
Appeals from the judgment are governed by the law applicable to 3303
the appeal of civil actions.3304

       (F) The cost of any legal proceedings authorized by this 3305
section, including an attorney's fee to the claimant's attorney to 3306
be fixed by the trial judge, based upon the effort expended, in 3307
the event the claimant's right to participate or to continue to 3308
participate in the fund is established upon the final 3309
determination of an appeal, shall be taxed against the employer or 3310
the commission if the commission or the administrator rather than 3311
the employer contested the right of the claimant to participate in 3312
the fund. The attorney's fee shall not exceed forty-two hundred 3313
dollars.3314

       (G) If the finding of the court or the verdict of the jury is 3315
in favor of the claimant's right to participate in the fund, the 3316
commission and the administrator shall thereafter proceed in the 3317
matter of the claim as if the judgment were the decision of the 3318
commission, subject to the power of modification provided by 3319
section 4123.52 of the Revised Code.3320

       (H)(1) An appeal from an order issued under division (E) of 3321
section 4123.511 of the Revised Code or any action filed in court 3322
in a case in which an award of compensation or medical benefits 3323
has been made shall not stay the payment of compensation or 3324
medical benefits under the award, or payment for subsequent 3325
periods of total disability or medical benefits during the 3326
pendency of the appeal. If, in a final administrative or judicial 3327
action, it is determined that payments of compensation or 3328
benefits, or both, made to or on behalf of a claimant should not 3329
have been made, the amount thereof shall be charged to the surplus 3330
fund account under division (B) of section 4123.34 of the Revised 3331
Code. In the event the employer is a state risk, the amount shall 3332
not be charged to the employer's experience, and the administrator 3333
shall adjust the employer's account accordingly. In the event the 3334
employer is a self-insuring employer, the self-insuring employer 3335
shall deduct the amount from the paid compensation the 3336
self-insuring employer reports to the administrator under division 3337
(L) of section 4123.35 of the Revised Code. If an employer is a 3338
state risk and has paid an assessment for a violation of a 3339
specific safety requirement, and, in a final administrative or 3340
judicial action, it is determined that the employer did not 3341
violate the specific safety requirement, the administrator shall 3342
reimburse the employer from the surplus fund account under 3343
division (B) of section 4123.34 of the Revised Code for the amount 3344
of the assessment the employer paid for the violation.3345

       (2)(a) Notwithstanding a final determination that payments of 3346
benefits made to or on behalf of a claimant should not have been 3347
made, the administrator or self-insuring employer shall award 3348
payment of medical or vocational rehabilitation services submitted 3349
for payment after the date of the final determination if all of 3350
the following apply:3351

       (i) The services were approved and were rendered by the 3352
provider in good faith prior to the date of the final 3353
determination.3354

       (ii) The services were payable under division (I) of section 3355
4123.511 of the Revised Code prior to the date of the final 3356
determination.3357

       (iii) The request for payment is submitted within the time 3358
limit set forth in section 4123.52 of the Revised Code.3359

       (b) Payments made under division (H)(1) of this section shall 3360
be charged to the surplus fund account under division (B) of 3361
section 4123.34 of the Revised Code. If the employer of the 3362
employee who is the subject of a claim described in division 3363
(H)(2)(a) of this section is a state fund employer, the payments 3364
made under that division shall not be charged to the employer's 3365
experience. If that employer is a self-insuring employer, the 3366
self-insuring employer shall deduct the amount from the paid 3367
compensation the self-insuring employer reports to the 3368
administrator under division (L) of section 4123.35 of the Revised 3369
Code.3370

       (c) Division (H)(2) of this section shall apply only to a 3371
claim under this chapter or Chapter 4121., 4127., or 4131. of the 3372
Revised Code arising on or after the effective date of this 3373
amendmentJuly 29, 2011.3374

       (3) A self-insuring employer may elect to pay compensation 3375
and benefits under this section directly to an employee or an 3376
employee's dependents by filing an application with the bureau of 3377
workers' compensation not more than one hundred eighty days and 3378
not less than ninety days before the first day of the employer's 3379
next six-month coverage period. If the self-insuring employer 3380
timely files the application, the application is effective on the 3381
first day of the employer's next six-month coverage period, 3382
provided that the administrator shall compute the employer's 3383
assessment for the surplus fund account due with respect to the 3384
period during which that application was filed without regard to 3385
the filing of the application. On and after the effective date of 3386
the employer's election, the self-insuring employer shall pay 3387
directly to an employee or to an employee's dependents 3388
compensation and benefits under this section regardless of the 3389
date of the injury or occupational disease, and the employer shall 3390
receive no money or credits from the surplus fund account on 3391
account of those payments and shall not be required to pay any 3392
amounts into the surplus fund account on account of this section. 3393
The election made under this division is irrevocable.3394

       (I) All actions and proceedings under this section which are 3395
the subject of an appeal to the court of common pleas or the court 3396
of appeals shall be preferred over all other civil actions except 3397
election causes, irrespective of position on the calendar.3398

       This section applies to all decisions of the commission or 3399
the administrator on November 2, 1959, and all claims filed 3400
thereafter are governed by sections 4123.511 and 4123.512 of the 3401
Revised Code.3402

       Any action pending in common pleas court or any other court 3403
on January 1, 1986, under this section is governed by former 3404
sections 4123.514, 4123.515, 4123.516, and 4123.519 and section 3405
4123.522 of the Revised Code.3406

       Sec. 4123.54.  (A) Except as otherwise provided in divisions 3407
(I) and (K) of this section, every employee, who is injured or who 3408
contracts an occupational disease, and the dependents of each 3409
employee who is killed, or dies as the result of an occupational 3410
disease contracted in the course of employment, wherever such 3411
injury has occurred or occupational disease has been contracted, 3412
provided the same were not:3413

       (1) Purposely self-inflicted; or3414

       (2) Caused by the employee being intoxicated or under the 3415
influence of a controlled substance not prescribed by a physician 3416
where the intoxication or being under the influence of the 3417
controlled substance not prescribed by a physician was the 3418
proximate cause of the injury, is entitled to receive, either 3419
directly from the employee's self-insuring employer as provided in 3420
section 4123.35 of the Revised Code, or from the state insurance 3421
fund, the compensation for loss sustained on account of the 3422
injury, occupational disease, or death, and the medical, nurse, 3423
and hospital services and medicines, and the amount of funeral 3424
expenses in case of death, as are provided by this chapter.3425

       (B) For the purpose of this section, provided that an 3426
employer has posted written notice to employees that the results 3427
of, or the employee's refusal to submit to, any chemical test 3428
described under this division may affect the employee's 3429
eligibility for compensation and benefits pursuant to this chapter 3430
and Chapter 4121. of the Revised Code, there is a rebuttable 3431
presumption that an employee is intoxicated or under the influence 3432
of a controlled substance not prescribed by the employee's 3433
physician and that being intoxicated or under the influence of a 3434
controlled substance not prescribed by the employee's physician is 3435
the proximate cause of an injury under either of the following 3436
conditions:3437

       (1) When any one or more of the following is true:3438

       (a) The employee, through a qualifying chemical test 3439
administered within eight hours of an injury, is determined to 3440
have an alcohol concentration level equal to or in excess of the 3441
levels established in divisions (A)(1)(b) to (i) of section 3442
4511.19 of the Revised Code;3443

       (b) The employee, through a qualifying chemical test 3444
administered within thirty-two hours of an injury, is determined 3445
to have one of the following controlled substances not prescribed 3446
by the employee's physician in the employee's system that tests 3447
above the following levels in an enzyme multiplied immunoassay 3448
technique screening test and above the levels established in 3449
division (B)(1)(c) of this section in a gas chromatography mass 3450
spectrometry test:3451

       (i) For amphetamines, one thousand nanograms per milliliter 3452
of urine;3453

       (ii) For cannabinoids, fifty nanograms per milliliter of 3454
urine;3455

       (iii) For cocaine, including crack cocaine, three hundred 3456
nanograms per milliliter of urine;3457

       (iv) For opiates, two thousand nanograms per milliliter of 3458
urine;3459

       (v) For phencyclidine, twenty-five nanograms per milliliter 3460
of urine.3461

       (c) The employee, through a qualifying chemical test 3462
administered within thirty-two hours of an injury, is determined 3463
to have one of the following controlled substances not prescribed 3464
by the employee's physician in the employee's system that tests 3465
above the following levels by a gas chromatography mass 3466
spectrometry test:3467

       (i) For amphetamines, five hundred nanograms per milliliter 3468
of urine;3469

       (ii) For cannabinoids, fifteen nanograms per milliliter of 3470
urine;3471

       (iii) For cocaine, including crack cocaine, one hundred fifty 3472
nanograms per milliliter of urine;3473

       (iv) For opiates, two thousand nanograms per milliliter of 3474
urine;3475

       (v) For phencyclidine, twenty-five nanograms per milliliter 3476
of urine.3477

       (d) The employee, through a qualifying chemical test 3478
administered within thirty-two hours of an injury, is determined 3479
to have barbiturates, benzodiazepines, methadone, or propoxyphene 3480
in the employee's system that tests above levels established by 3481
laboratories certified by the United States department of health 3482
and human services.3483

        (2) When the employee refuses to submit to a requested 3484
chemical test, on the condition that that employee is or was given 3485
notice that the refusal to submit to any chemical test described 3486
in division (B)(1) of this section may affect the employee's 3487
eligibility for compensation and benefits under this chapter and 3488
Chapter 4121. of the Revised Code.3489

       (C)(1) For purposes of division (B) of this section, a 3490
chemical test is a qualifying chemical test if it is administered 3491
to an employee after an injury under at least one of the following 3492
conditions:3493

       (a) When the employee's employer had reasonable cause to 3494
suspect that the employee may be intoxicated or under the 3495
influence of a controlled substance not prescribed by the 3496
employee's physician;3497

       (b) At the request of a police officer pursuant to section 3498
4511.191 of the Revised Code, and not at the request of the 3499
employee's employer;3500

       (c) At the request of a licensed physician who is not 3501
employed by the employee's employer, and not at the request of the 3502
employee's employer.3503

       (2) As used in division (C)(1)(a) of this section, 3504
"reasonable cause" means, but is not limited to, evidence that an 3505
employee is or was using alcohol or a controlled substance drawn 3506
from specific, objective facts and reasonable inferences drawn 3507
from these facts in light of experience and training. These facts 3508
and inferences may be based on, but are not limited to, any of the 3509
following:3510

       (a) Observable phenomena, such as direct observation of use, 3511
possession, or distribution of alcohol or a controlled substance, 3512
or of the physical symptoms of being under the influence of 3513
alcohol or a controlled substance, such as but not limited to 3514
slurred speech, dilated pupils, odor of alcohol or a controlled 3515
substance, changes in affect, or dynamic mood swings;3516

       (b) A pattern of abnormal conduct, erratic or aberrant 3517
behavior, or deteriorating work performance such as frequent 3518
absenteeism, excessive tardiness, or recurrent accidents, that 3519
appears to be related to the use of alcohol or a controlled 3520
substance, and does not appear to be attributable to other 3521
factors;3522

       (c) The identification of an employee as the focus of a 3523
criminal investigation into unauthorized possession, use, or 3524
trafficking of a controlled substance;3525

       (d) A report of use of alcohol or a controlled substance 3526
provided by a reliable and credible source;3527

       (e) Repeated or flagrant violations of the safety or work 3528
rules of the employee's employer, that are determined by the 3529
employee's supervisor to pose a substantial risk of physical 3530
injury or property damage and that appear to be related to the use 3531
of alcohol or a controlled substance and that do not appear 3532
attributable to other factors.3533

       (D) Nothing in this section shall be construed to affect the 3534
rights of an employer to test employees for alcohol or controlled 3535
substance abuse.3536

       (E) For the purpose of this section, laboratories certified 3537
by the United States department of health and human services or 3538
laboratories that meet or exceed the standards of that department 3539
for laboratory certification shall be used for processing the test 3540
results of a qualifying chemical test.3541

       (F) The written notice required by division (B) of this 3542
section shall be the same size or larger than the certificate3543
proof of premium payment noticeworkers' compensation coverage3544
furnished by the bureau of workers' compensation and shall be 3545
posted by the employer in the same location as the certificate3546
proof of premium payment noticeworkers' compensation coverage or 3547
the certificate of self-insurance.3548

       (G) If a condition that pre-existed an injury is 3549
substantially aggravated by the injury, and that substantial 3550
aggravation is documented by objective diagnostic findings, 3551
objective clinical findings, or objective test results, no 3552
compensation or benefits are payable because of the pre-existing 3553
condition once that condition has returned to a level that would 3554
have existed without the injury.3555

       (H)(1) Whenever, with respect to an employee of an employer 3556
who is subject to and has complied with this chapter, there is 3557
possibility of conflict with respect to the application of 3558
workers' compensation laws because the contract of employment is 3559
entered into and all or some portion of the work is or is to be 3560
performed in a state or states other than Ohio, the employer and 3561
the employee may agree to be bound by the laws of this state or by 3562
the laws of some other state in which all or some portion of the 3563
work of the employee is to be performed. The agreement shall be in 3564
writing and shall be filed with the bureau of workers' 3565
compensation within ten days after it is executed and shall remain 3566
in force until terminated or modified by agreement of the parties 3567
similarly filed. If the agreement is to be bound by the laws of 3568
this state and the employer has complied with this chapter, then 3569
the employee is entitled to compensation and benefits regardless 3570
of where the injury occurs or the disease is contracted and the 3571
rights of the employee and the employee's dependents under the 3572
laws of this state are the exclusive remedy against the employer 3573
on account of injury, disease, or death in the course of and 3574
arising out of the employee's employment. If the agreement is to 3575
be bound by the laws of another state and the employer has 3576
complied with the laws of that state, the rights of the employee 3577
and the employee's dependents under the laws of that state are the 3578
exclusive remedy against the employer on account of injury, 3579
disease, or death in the course of and arising out of the 3580
employee's employment without regard to the place where the injury 3581
was sustained or the disease contracted. If an employer and an 3582
employee enter into an agreement under this division, the fact 3583
that the employer and the employee entered into that agreement 3584
shall not be construed to change the status of an employee whose 3585
continued employment is subject to the will of the employer or the 3586
employee, unless the agreement contains a provision that expressly 3587
changes that status.3588

       (2) If any employee or the employee's dependents pursue 3589
workers' compensation benefits or recover damages from the 3590
employer under the laws of another state, the amount awarded or 3591
recovered, whether paid or to be paid in future installments, 3592
shall be credited on the amount of any award of compensation or 3593
benefits made to the employee or the employee's dependents by the 3594
bureau. If an employee or the employee's dependents pursue or3595
receive an award of compensation or benefits under this chapter or 3596
Chapter 4121., 4127., or 4131. of the Revised Code for the same 3597
injury, occupational disease, or death for which the employee or 3598
the employee's dependents previously pursued or otherwise elected 3599
to accept workers' compensation benefits and received a decision 3600
on the merits as defined in section 4123.542 of the Revised Code 3601
under the laws of another state or recovered damages under the 3602
laws of another state, the claim shall be disallowed and the 3603
administrator or any self-insuring employer, by any lawful means, 3604
may collect thefrom the employee or the employee's dependents 3605
any of the following:3606

       (i) The amount of compensation or benefits paid to or on 3607
behalf of the employee or the employee's dependents by the 3608
administrator or a self-insuring employer pursuant to this chapter 3609
or Chapter 4121., 4127., or 4131. of the Revised Code for that 3610
award;3611

       (ii) Any interest, attorney's fees, and costs the 3612
administrator or the self-insuring employer incurs in collecting 3613
that payment.3614

       (3) If an employee or the employee's dependents receive an 3615
award of compensation or benefits under this chapter or Chapter 3616
4121., 4127., or 4131. of the Revised Code and subsequently pursue 3617
or otherwise elect to accept workers' compensation benefits or 3618
damages under the laws of another state for the same injury, 3619
occupational disease, or death the claim under this chapter or 3620
Chapter 4121., 4127., or 4131. of the Revised Code shall be 3621
disallowed. The administrator or anya self-insuring employer 3622
also, by any lawful means, may collect from the employee or the 3623
employee's dependents anyor other-states' insurer any of the 3624
following:3625

       (i) The amount of compensation or benefits paid to or on 3626
behalf of the employee or the employee's dependents by the 3627
administrator or the self-insuring employer pursuant to this 3628
chapter or Chapter 4121., 4127., or 4131. of the Revised Code for 3629
that award;3630

       (ii) Any interest, costs, and attorney's fees the 3631
administrator or the self-insuring employer incurs in collecting 3632
that payment and any attorney's fees, penalties, interest, 3633
awards, and;3634

       (iii) Any costs incurred by an employer in contesting or 3635
responding to any claim filed by the employee or the employee's 3636
dependents for the same injury, occupational disease, or death 3637
that was filed after the original claim for which the employee or 3638
the employee's dependents received a decision on the merits as 3639
described in section 4123.542 of the Revised Code. If3640

       (4) If the employee's employer pays premiums into the state 3641
insurance fund, the administrator shall not charge the amount of 3642
compensation or benefits the administrator collects pursuant to 3643
this division (H)(2) or (3) of this section to the employer's 3644
experience. If the administrator collects any costs, penalties, 3645
interest, awards, or attorney's fees incurred by a state fundan3646
employer in contesting or responding to any claim pursuant to 3647
division (H)(2) or (3) of this section, the administrator shall 3648
forward the amount of such costs, penalties, interest, awards, and 3649
attorney's fees the administrator collectscollected to that 3650
employer. If the employee's employer is a self-insuring employer, 3651
the self-insuring employer shall deduct the amount of compensation 3652
or benefits the self-insuring employer collects pursuant to this 3653
division from the paid compensation the self-insuring employer 3654
reports to the administrator under division (L) of section 4123.35 3655
of the Revised Code.3656

        (3) Except as otherwise stipulated in division (H)(4) of this 3657
section, if(5) If an employee is a resident of a state other than 3658
this state and is insured under the workers' compensation law or 3659
similar laws of a state other than this state, the employee and 3660
the employee's dependents are not entitled to receive compensation 3661
or benefits under this chapter, on account of injury, disease, or 3662
death arising out of or in the course of employment while 3663
temporarily within this state, and the rights of the employee and 3664
the employee's dependents under the laws of the other state are 3665
the exclusive remedy against the employer on account of the 3666
injury, disease, or death.3667

       (4) Division (H)(3) of this section does not apply to an 3668
employee described in that division, or the employee's dependents, 3669
unless both of the following apply:3670

       (a) The laws of the other state limit the ability of an 3671
employee who is a resident of this state and is covered by this 3672
chapter and Chapter 4123. of the Revised Code, or the employee's 3673
dependents, to receive compensation or benefits under the other 3674
state's workers' compensation law on account of injury, disease, 3675
or death incurred by the employee that arises out of or in the 3676
course of the employee's employment while temporarily within that 3677
state in the same manner as specified in division (H)(3) of this 3678
section for an employee who is a resident of a state other than 3679
this state, or the employee's dependents;3680

       (b) The laws of the other state limit the liability of the 3681
employer of the employee who is a resident of this state and who 3682
is described in division (H)(4)(a) of this section for that 3683
injury, disease, or death, in the same manner specified in 3684
division (H)(3) of this section for the employer of an employee 3685
who is a resident of the other state.3686

       (5)(6) An employee, or the dependent of an employee, who 3687
elects to receive compensation and benefits under this chapter or 3688
Chapter 4121., 4127., or 4131. of the Revised Code for a claim may 3689
not receive compensation and benefits under the workers' 3690
compensation laws of any state other than this state for that same 3691
claim. For each claim submitted by or on behalf of an employee, 3692
the administrator or, if the employee is employed by a 3693
self-insuring employer, the self-insuring employer, shall request 3694
the employee or the employee's dependent to sign an election that 3695
affirms the employee's or employee's dependent's acceptance of 3696
electing to receive compensation and benefits under this chapter 3697
or Chapter 4121., 4127., or 4131. of the Revised Code for that 3698
claim that also affirmatively waives and releases the employee's 3699
or the employee's dependent's right to file for and receive 3700
compensation and benefits under the laws of any state other than 3701
this state for that claim. The employee or employee's dependent 3702
shall sign the election form within twenty-eight days after the 3703
administrator or self-insuring employer submits the request or the 3704
administrator or self-insuring employer shall suspenddismiss that 3705
claim until the administrator or self-insuring employer receives 3706
the signed election form.3707

       In the event a workers' compensation claim has been filed in 3708
another jurisdiction on behalf of an employee or the dependents of 3709
an employee, and the employee or dependents subsequently elect to 3710
receive compensation, benefits, or both under this chapter or 3711
Chapter 4121., 4127., or 4131. of the Revised Code, the employee 3712
or dependent shall withdraw or refuse acceptance of the workers' 3713
compensation claim filed in the other jurisdiction in order to 3714
pursue compensation or benefits under the laws of this state. If 3715
the employee or dependents were awarded workers' compensation 3716
benefits or had recovered damages under the laws of the other 3717
state, any compensation and benefits awarded under this chapter or 3718
Chapters 4121., 4127., or 4131. of the Revised Code shall be paid 3719
only to the extent to which those payments exceed the amounts paid 3720
under the laws of the other state. If the employee or dependent 3721
fails to withdraw or to refuse acceptance of the workers' 3722
compensation claim in the other jurisdiction within twenty-eight 3723
days after a request made by the administrator or a self-insuring 3724
employer, the administrator or self-insuring employer shall 3725
dismiss the employee's or employee's dependents' claim made in 3726
this state.3727

       (I) If an employee who is covered under the federal 3728
"Longshore and Harbor Workers' Compensation Act," 98 Stat. 1639, 3729
33 U.S.C. 901 et seq., is injured or contracts an occupational 3730
disease or dies as a result of an injury or occupational disease, 3731
and if that employee's or that employee's dependents' claim for 3732
compensation or benefits for that injury, occupational disease, or 3733
death is subject to the jurisdiction of that act, the employee or 3734
the employee's dependents are not entitled to apply for and shall 3735
not receive compensation or benefits under this chapter and 3736
Chapter 4121. of the Revised Code. The rights of such an employee 3737
and the employee's dependents under the federal "Longshore and 3738
Harbor Workers' Compensation Act," 98 Stat. 1639, 33 U.S.C. 901 et 3739
seq., are the exclusive remedy against the employer for that 3740
injury, occupational disease, or death.3741

       (J) Compensation or benefits are not payable to a claimant 3742
during the period of confinement of the claimant in any state or 3743
federal correctional institution, or in any county jail in lieu of 3744
incarceration in a state or federal correctional institution, 3745
whether in this or any other state for conviction of violation of 3746
any state or federal criminal law.3747

       (K) An employer, upon the approval of the administrator, may 3748
provide for workers' compensation coverage for the employer's 3749
employees who are professional athletes and coaches by submitting 3750
to the administrator proof of coverage under a league policy 3751
issued under the laws of another state under either of the 3752
following circumstances:3753

       (1) The employer administers the payroll and workers' 3754
compensation insurance for a professional sports team subject to a 3755
collective bargaining agreement, and the collective bargaining 3756
agreement provides for the uniform administration of workers' 3757
compensation benefits and compensation for professional athletes.3758

       (2) The employer is a professional sports league, or is a 3759
member team of a professional sports league, and all of the 3760
following apply:3761

       (a) The professional sports league operates as a single 3762
entity, whereby all of the players and coaches of the sports 3763
league are employees of the sports league and not of the 3764
individual member teams.3765

       (b) The professional sports league at all times maintains 3766
workers' compensation insurance that provides coverage for the 3767
players and coaches of the sports league.3768

       (c) Each individual member team of the professional sports 3769
league, pursuant to the organizational or operating documents of 3770
the sports league, is obligated to the sports league to pay to the 3771
sports league any workers' compensation claims that are not 3772
covered by the workers' compensation insurance maintained by the 3773
sports league.3774

       If the administrator approves the employer's proof of 3775
coverage submitted under division (K) of this section, a 3776
professional athlete or coach who is an employee of the employer 3777
and the dependents of the professional athlete or coach are not 3778
entitled to apply for and shall not receive compensation or 3779
benefits under this chapter and Chapter 4121. of the Revised Code. 3780
The rights of such an athlete or coach and the dependents of such 3781
an athlete or coach under the laws of the state where the policy 3782
was issued are the exclusive remedy against the employer for the 3783
athlete or coach if the athlete or coach suffers an injury or 3784
contracts an occupational disease in the course of employment, or 3785
for the dependents of the athlete or the coach if the athlete or 3786
coach is killed as a result of an injury or dies as a result of an 3787
occupational disease, regardless of the location where the injury 3788
was suffered or the occupational disease was contracted.3789

       Sec. 4123.542. An employee or the dependents of an employee 3790
who receive a decision on the merits of a claim for compensation 3791
or benefits under this chapter or Chapter 4121., 4127., or 4131. 3792
of the Revised Code shall not file a claim for the same injury, 3793
occupational disease, or death in another state under the workers' 3794
compensation laws of that state. AnExcept as otherwise provided 3795
in division (H) of section 4123.54 of the Revised Code, an3796
employee or the employee's dependents who receive a decision on 3797
the merits of a claim for compensation or benefits under the 3798
workers' compensation laws of another state shall not file a claim 3799
for compensation and benefits under this chapter or Chapter 4121., 3800
4127., or 4131. of the Revised Code for the same injury, 3801
occupational disease, or death.3802

       As used in this section, "a decision on the merits" means a 3803
decision determined or adjudicated for compensability of a claim 3804
and not on jurisdictional grounds.3805

       Sec. 4123.66.  (A) In addition to the compensation provided 3806
for in this chapter, the administrator of workers' compensation 3807
shall disburse and pay from the state insurance fund the amounts 3808
for medical, nurse, and hospital services and medicine as the 3809
administrator deems proper and, in case death ensues from the 3810
injury or occupational disease, the administrator shall disburse 3811
and pay from the fund reasonable funeral expenses in an amount not 3812
to exceed fifty-five hundred dollars. The bureau of workers' 3813
compensation shall reimburse anyone, whether dependent, volunteer, 3814
or otherwise, who pays the funeral expenses of any employee whose 3815
death ensues from any injury or occupational disease as provided 3816
in this section. The administrator may adopt rules, with the 3817
advice and consent of the bureau of workers' compensation board of 3818
directors, with respect to furnishing medical, nurse, and hospital 3819
service and medicine to injured or disabled employees entitled 3820
thereto, and for the payment therefor. In case an injury or 3821
industrial accident that injures an employee also causes damage to 3822
the employee's eyeglasses, artificial teeth or other denture, or 3823
hearing aid, or in the event an injury or occupational disease 3824
makes it necessary or advisable to replace, repair, or adjust the 3825
same, the bureau shall disburse and pay a reasonable amount to 3826
repair or replace the same.3827

       (B) The administrator, in the rules the administrator adopts 3828
pursuant to division (A) of this section, may adopt rules 3829
specifying the circumstances under which the bureau may make 3830
immediate payment for the first fill of prescription drugs for 3831
medical conditions identified in an application for compensation 3832
or benefits under section 4123.84 or 4123.85 of the Revised Code 3833
that occurs prior to the date the administrator issues an initial 3834
determination order under division (B) of section 4123.511 of the 3835
Revised Code. If the claim is ultimately disallowed in a final 3836
administrative or judicial order, and if the employer is a state 3837
fund employer who pays assessments into the surplus fund account 3838
created under section 4123.34 of the Revised Code, the payments 3839
for medical services made pursuant to this division for the first 3840
fill of prescription drugs shall be charged to and paid from the 3841
surplus fund account and not charged through the state insurance 3842
fund to the employer against whom the claim was filed.3843

       (C)(1) If an employer or a welfare plan has provided to or on 3844
behalf of an employee any benefits or compensation for an injury 3845
or occupational disease and that injury or occupational disease is 3846
determined compensable under this chapter, the employer or a 3847
welfare plan may request that the administrator reimburse the 3848
employer or welfare plan for the amount the employer or welfare 3849
plan paid to or on behalf of the employee in compensation or 3850
benefits. The administrator shall reimburse the employer or 3851
welfare plan for the compensation and benefits paid if, at the 3852
time the employer or welfare plan provides the benefits or 3853
compensation to or on behalf of employee, the injury or 3854
occupational disease had not been determined to be compensable 3855
under this chapter and if the employee was not receiving 3856
compensation or benefits under this chapter for that injury or 3857
occupational disease. The administrator shall reimburse the 3858
employer or welfare plan in the amount that the administrator 3859
would have paid to or on behalf of the employee under this chapter 3860
if the injury or occupational disease originally would have been 3861
determined compensable under this chapter. If the employer is a 3862
merit-rated employer, the administrator shall adjust the amount of 3863
premium next due from the employer according to the amount the 3864
administrator pays the employer. The administrator shall adopt 3865
rules, in accordance with Chapter 119. of the Revised Code, to 3866
implement this division.3867

       (2) As used in this division, "welfare plan" has the same 3868
meaning as in division (1) of 29 U.S.C.A. 1002.3869

       Sec. 4123.82.  (A) All contracts and agreements are void 3870
which undertake to indemnify or insure an employer against loss or 3871
liability for the payment of compensation to workers or their 3872
dependents for death, injury, or occupational disease occasioned 3873
in the course of the workers' employment, or which provide that 3874
the insurer shall pay the compensation, or which indemnify the 3875
employer against damages when the injury, disease, or death arises 3876
from the failure to comply with any lawful requirement for the 3877
protection of the lives, health, and safety of employees, or when 3878
the same is occasioned by the willful act of the employer or any 3879
of the employer's officers or agents, or by which it is agreed 3880
that the insurer shall pay any such damages. No license or 3881
authority to enter into any such agreements or issue any such 3882
policies of insurance shall be granted or issued by any public 3883
authority in this state. Any corporation organized or admitted 3884
under the laws of this state to transact liability insurance as 3885
defined in section 3929.01 of the Revised Code may by amendment of 3886
its articles of incorporation or by original articles of 3887
incorporation, provide therein for the authority and purpose to 3888
make insurance in states, territories, districts, and counties, 3889
other than the state of Ohio, and in the state of Ohio in respect 3890
of contracts permitted by division (B) of this section, 3891
indemnifying employers against loss or liability for payment of 3892
compensation to workers and employees and their dependents for 3893
death, injury, or occupational disease occasioned in the course of 3894
the employment and to insure and indemnify employers against loss, 3895
expense, and liability by risk of bodily injury or death by 3896
accident, disability, sickness, or disease suffered by workers and 3897
employees for which the employer may be liable or has assumed 3898
liability.3899

       (B) Notwithstanding division (A) of this section:3900

       (1) No contract because of that division is void which 3901
undertakes to indemnify a self-insuring employer against all or 3902
part of such employer's loss in excess of at least fifty thousand 3903
dollars from any one disaster or event arising out of the 3904
employer's liability under this chapter, but no insurance 3905
corporation shall, directly or indirectly, represent an employer 3906
in the settlement, adjudication, determination, allowance, or 3907
payment of claims. The superintendent of insurance shall enforce 3908
this prohibition by such disciplinary orders directed against the 3909
offending insurance corporation as the superintendent of insurance 3910
deems appropriate in the circumstances and the administrator of 3911
workers' compensation shall enforce this prohibition by such 3912
disciplinary orders directed against the offending employer as the 3913
administrator deems appropriate in the circumstances, which orders 3914
may include revocation of the insurance corporation's right to 3915
enter into indemnity contracts and revocation of the employer's 3916
status as a self-insuring employer.3917

       (2) The administrator may enter into a contract of indemnity 3918
with any such employer upon such terms, payment of such premium, 3919
and for such amount and form of indemnity as the administrator 3920
determines and the bureau of workers' compensation board of 3921
directors may procure reinsurance of the liability of the public 3922
and private funds under this chapter, or any part of the liability 3923
in respect of either or both of the funds, upon such terms and 3924
premiums or other payments from the fund or funds as the 3925
administrator deems prudent in the maintenance of a solvent fund 3926
or funds from year to year. When making the finding of fact which 3927
the administrator is required by section 4123.35 of the Revised 3928
Code to make with respect to the financial ability of an employer, 3929
no contract of indemnity, or the ability of the employer to 3930
procure such a contract, shall be considered as increasing the 3931
financial ability of the employer.3932

       (C) Nothing in this section shall be construed to prohibit 3933
the administrator or an other-states' insurer from providing to 3934
employers in this state other-states' coverage or limited 3935
other-states' coverage in accordance with section 4123.292 of the 3936
Revised Code.3937

       (D) Notwithstanding any other section of the Revised Code, 3938
but subject to division (A) of this section, the superintendent of 3939
insurance shall have the sole authority to regulate any insurance 3940
products, except for the bureau of workers' compensation and those 3941
products offered by the bureau, that indemnify or insure employers 3942
against workers' compensation losses in this state or that are 3943
sold to employers in this state.3944

       Sec. 4123.83.  Each employer paying premiums into the state 3945
insurance fund or electing directly to pay compensation to the 3946
employer's injured employees or the dependents of the employer's 3947
killed employees as provided in section 4123.35 of the Revised 3948
Code, shall post conspicuously in the employer's place or places 3949
of employment notices, which shall be furnished in adequate number3950
at least annually by the bureau of workers' compensation at the 3951
time of the payment of the premium, stating the fact that the 3952
employer has made the payment, the date thereof, and period for 3953
which the payment is made. The notice shall state that it is proof 3954
of workers' compensation coverage, or that the employer has 3955
complied with section 4123.35 of the Revised Code, and has been 3956
authorized by the administrator of workers' compensation directly 3957
to compensate employees or dependents, and the date of the 3958
authorization. The notice shall indicate that coverage is 3959
contingent on continued payment of premiums and assessments due.3960
The notice, when posted, constitutes sufficient notice to the 3961
employer's employees of the fact that the employer has made 3962
paymentcarries workers' compensation coverage or that the 3963
employer has complied with the elective provisions of section 3964
4123.35 of the Revised Code. 3965

       Sec. 4125.05. (A) Not later than thirty days after November 3966
5, 2004, or not later than thirty days after the formation of a 3967
professional employer organization, whichever date occurs later, a 3968
professional employer organization operating in this state shall 3969
register with the administrator of workers' compensation on forms 3970
provided by the administrator. Following initial registration, 3971
each professional employer organization shall register with the 3972
administrator annually on or before the thirty-first day of 3973
December. Commonly owned or controlled applicants may register as 3974
a professional employer organization reporting entity or register 3975
individually. Registration as a part of a professional employer 3976
organization reporting entity shall not disqualify an individual 3977
professional employer organization from participating in a 3978
group-rated plan under division (A)(4) of section 4123.29 of the 3979
Revised Code.3980

        (B) Initial registration and each annual registration renewal 3981
shall include all of the following:3982

        (1) A list of each of the professional employer 3983
organization's client employers current as of the date of 3984
registration for purposes of initial registration or current as of 3985
the date of annual registration renewal, or within fourteen days 3986
of adding or releasing a client, that includes the client 3987
employer's name, address, federal tax identification number, and 3988
bureau of workers' compensation risk number;3989

        (2) A fee as determined by the administrator;3990

        (3) The name or names under which the professional employer 3991
organization conducts business;3992

        (4) The address of the professional employer organization's 3993
principal place of business and the address of each office it 3994
maintains in this state;3995

        (5) The professional employer organization's taxpayer or 3996
employer identification number;3997

        (6) A list of each state in which the professional employer 3998
organization has operated in the preceding five years, and the 3999
name, corresponding with each state, under which the professional 4000
employer organization operated in each state, including any 4001
alternative names, names of predecessors, and if known, successor 4002
business entities; 4003

       (7) The most recent financial statement prepared and audited 4004
pursuant to division (B) of section 4125.051 of the Revised Code;4005

       (8) If there is any deficit in the working capital required 4006
under division (A) of section 4125.051 of the Revised Code, a 4007
bond, irrevocable letter of credit, or securities with a minimum 4008
market value in an amount sufficient to cover the deficit in 4009
accordance with the requirements of that section;4010

        (9) An attestation of the accuracy of the data submissions 4011
from the chief executive officer of the professional employer 4012
organization.4013

        (C) Upon terms and for periods that the administrator 4014
considers appropriate, the administrator may issue a limited 4015
registration to a professional employer organization or 4016
professional employer organization reporting entity that provides 4017
all of the following items:4018

       (1) A properly executed request for limited registration on a 4019
form provided by the administrator;4020

       (2) All information and materials required for registration 4021
in divisions (B)(1) to (6) of this section;4022

       (3) Information and documentation necessary to show that the 4023
professional employer organization or professional employer 4024
organization reporting entity satisfies all of the following 4025
criteria:4026

       (a) It is domiciled outside of this state.4027

       (b) It is licensed or registered as a professional employer 4028
organization in another state.4029

       (c) It does not maintain an office in this state.4030

       (d) It does not participate in direct solicitations for 4031
client employers located or domiciled in this state.4032

       (e) It has fifty or fewer shared employees employed or 4033
domiciled in this state on any given day.4034

       (D)(1) The administrator, with the advice and consent of the 4035
bureau of workers' compensation board of directors, shallmay4036
adopt rules in accordance with Chapter 119. of the Revised Code to 4037
require, in addition to the requirement under division (B)(8) of 4038
this section and except as otherwise specified in division (D)(2) 4039
of this section, a professional employer organization to provide 4040
security in the form of a bond or letter of credit assignable to 4041
the Ohio bureau of workers' compensation not to exceed an amount 4042
equal to the premiums and assessments incurred for the two most 4043
recent payroll periodspolicy year, prior to any discounts or 4044
dividends, to meet the financial obligations of the professional 4045
employer organization pursuant to this chapter and Chapters 4121. 4046
and 4123. of the Revised Code.4047

       (2) As an alternative to providing security in the form of a 4048
bond or letter of credit under division (D)(1) of this section, 4049
the administrator shall permit a professional employer 4050
organization to make periodic payments of prospective premiums and 4051
assessments to the bureau.4052

       (3) A professional employer organization may appeal the 4053
amount of the security required pursuant to rules adopted under 4054
division (D)(1) of this section in accordance with section 4055
4123.291 of the Revised Code.4056

       (3) A professional employer organization shall pay premiums 4057
and assessments for purposes of Chapters 4121. and 4123. of the 4058
Revised Code on a monthly basis pursuant to division (A) of 4059
section 4123.35 of the Revised Code.4060

       (E) Notwithstanding division (D) of this section, a 4061
professional employer organization that qualifies for 4062
self-insurance or retrospective rating under section 4123.29 or 4063
4123.35 of the Revised Code shall abide by the financial 4064
disclosure and security requirements pursuant to those sections 4065
and the rules adopted under those sections in place of the 4066
requirements specified in division (D) of this section or 4067
specified in rules adopted pursuant to that division.4068

       (F) Except to the extent necessary for the administrator to 4069
administer the statutory duties of the administrator and for 4070
employees of the state to perform their official duties, all 4071
records, reports, client lists, and other information obtained 4072
from a professional employer organization and professional 4073
employer organization reporting entity under divisions (A), (B), 4074
and (C) of this section are confidential and shall be considered 4075
trade secrets and shall not be published or open to public 4076
inspection.4077

       (G) The list described in division (B)(1) of this section 4078
shall be considered a trade secret.4079

        (H) The administrator shall establish the fee described in 4080
division (B)(2) of this section in an amount that does not exceed 4081
the cost of the administration of the initial and renewal 4082
registration process.4083

       (I) A financial statement required under division (B)(7) of 4084
this section for initial registration shall be the most recent 4085
financial statement of the professional employer organization or 4086
professional employer organization reporting entity of which the 4087
professional employer organization is a member and shall not be 4088
older than thirteen months. For each registration renewal, the 4089
professional employer organization shall file the required 4090
financial statement within one hundred eighty days after the end 4091
of the professional employer organization's or professional 4092
employer organization reporting entity's fiscal year. A 4093
professional employer organization may apply to the administrator 4094
for an extension beyond that time if the professional employer 4095
organization provides the administrator with a letter from the 4096
professional employer organization's auditor stating the reason 4097
for delay and the anticipated completion date.4098

       (J) Multiple, unrelated professional employer organizations 4099
shall not combine together for purposes of obtaining workers' 4100
compensation coverage or for forming any type of self-insurance 4101
arrangement available under this chapter. Multiple, unrelated 4102
professional employer organization reporting entities shall not 4103
combine together for purposes of obtaining workers' compensation 4104
coverage or for forming any type of self-insurance arrangement 4105
available under this chapter.4106

       (K) The administrator shall maintain a list of professional 4107
employer organizations and professional employer organization 4108
reporting entities registered under this section that is readily 4109
available to the public by electronic or other means.4110

       Sec. 4729.80. (A) If the state board of pharmacy establishes 4111
and maintains a drug database pursuant to section 4729.75 of the 4112
Revised Code, the board is authorized or required to provide 4113
information from the database in accordance with the following:4114

       (1) On receipt of a request from a designated representative 4115
of a government entity responsible for the licensure, regulation, 4116
or discipline of health care professionals with authority to 4117
prescribe, administer, or dispense drugs, the board may provide to 4118
the representative information from the database relating to the 4119
professional who is the subject of an active investigation being 4120
conducted by the government entity.4121

       (2) On receipt of a request from a federal officer, or a 4122
state or local officer of this or any other state, whose duties 4123
include enforcing laws relating to drugs, the board shall provide 4124
to the officer information from the database relating to the 4125
person who is the subject of an active investigation of a drug 4126
abuse offense, as defined in section 2925.01 of the Revised Code, 4127
being conducted by the officer's employing government entity.4128

       (3) Pursuant to a subpoena issued by a grand jury, the board 4129
shall provide to the grand jury information from the database 4130
relating to the person who is the subject of an investigation 4131
being conducted by the grand jury.4132

       (4) Pursuant to a subpoena, search warrant, or court order in 4133
connection with the investigation or prosecution of a possible or 4134
alleged criminal offense, the board shall provide information from 4135
the database as necessary to comply with the subpoena, search 4136
warrant, or court order.4137

       (5) On receipt of a request from a prescriber or the 4138
prescriber's delegate approved by the board, the board mayshall4139
provide to the prescriber information from the database relating 4140
to a patient who is either of the following, if the prescriber 4141
certifies in a form specified by the board that it is for the 4142
purpose of providing medical treatment to the patient who is the 4143
subject of the request:4144

       (a) A current patient of the prescriber;4145

       (b) A potential patient of the prescriber based on a referral 4146
of the patient to the prescriber.4147

       (6) On receipt of a request from a pharmacist or the 4148
pharmacist's delegate approved by the board, the board mayshall4149
provide to the pharmacist information from the database relating 4150
to a current patient of the pharmacist, if the pharmacist 4151
certifies in a form specified by the board that it is for the 4152
purpose of the pharmacist's practice of pharmacy involving the 4153
patient who is the subject of the request.4154

       (7) On receipt of a request from an individual seeking the 4155
individual's own database information in accordance with the 4156
procedure established in rules adopted under section 4729.84 of 4157
the Revised Code, the board may provide to the individual the 4158
individual's own database information.4159

       (8) On receipt of a request from the medical director of a 4160
managed care organization that has entered into a data security 4161
agreement with the board required by section 5167.14 of the 4162
Revised Code, the board shall provide to the medical director 4163
information from the database relating to a medicaid recipient 4164
enrolled in the managed care organization, including information 4165
in the database related to prescriptions for the recipient that 4166
were not covered or reimbursed under a program administered by the 4167
department of medicaid.4168

       (9) On receipt of a request from the medicaid director, the 4169
board shall provide to the director information from the database 4170
relating to a recipient of a program administered by the 4171
department of medicaid, including information in the database 4172
related to prescriptions for the recipient that were not covered 4173
or paid by a program administered by the department. 4174

       (10) On receipt of a request from the medical director of a 4175
managed care organization, the board shall provide to the medical 4176
director information from the database relating to a claimant 4177
under Chapter 4121., 4123., 4127., or 4131. of the Revised Code 4178
assigned to the managed care organization, including information 4179
in the database related to prescriptions for the claimant that 4180
were not covered or reimbursed under those chapters, if both of 4181
the following apply:4182

       (a) The managed care organization has entered into a contract 4183
with the administrator of workers' compensation under division 4184
(B)(4) of section 4121.44 of the Revised Code;4185

       (b) The managed care organization has entered into a data 4186
security agreement with the board as required by section 4121.447 4187
of the Revised Code.4188

       (11) On receipt of a request from the administrator of 4189
workers' compensation, the board mayshall provide to the 4190
administrator information from the database relating to a claimant 4191
under Chapter 4121., 4123., 4127., or 4131. of the Revised Code, 4192
including information in the database related to prescriptions for 4193
the claimant that were not covered or reimbursed under Chapter 4194
4121., 4123., 4127., or 4131. of the Revised Code.4195

       (11)(12) On receipt of a request from a requestor described 4196
in division (A)(1), (2), (5), or (6) of this section who is from 4197
or participating with another state's prescription monitoring 4198
program, the board may provide to the requestor information from 4199
the database, but only if there is a written agreement under which 4200
the information is to be used and disseminated according to the 4201
laws of this state.4202

       (B) The state board of pharmacy shall maintain a record of 4203
each individual or entity that requests information from the 4204
database pursuant to this section. In accordance with rules 4205
adopted under section 4729.84 of the Revised Code, the board may 4206
use the records to document and report statistics and law 4207
enforcement outcomes.4208

        The board may provide records of an individual's requests for 4209
database information to the following:4210

        (1) A designated representative of a government entity that 4211
is responsible for the licensure, regulation, or discipline of 4212
health care professionals with authority to prescribe, administer, 4213
or dispense drugs who is involved in an active investigation being 4214
conducted by the government entity of the individual who submitted 4215
the requests for database information;4216

        (2) A federal officer, or a state or local officer of this or 4217
any other state, whose duties include enforcing laws relating to 4218
drugs and who is involved in an active investigation being 4219
conducted by the officer's employing government entity of the 4220
individual who submitted the requests for database information.4221

       (C) Information contained in the database and any information 4222
obtained from it is not a public record. Information contained in 4223
the records of requests for information from the database is not a 4224
public record. Information that does not identify a person may be 4225
released in summary, statistical, or aggregate form.4226

       (D) A pharmacist or prescriber shall not be held liable in 4227
damages to any person in any civil action for injury, death, or 4228
loss to person or property on the basis that the pharmacist or 4229
prescriber did or did not seek or obtain information from the 4230
database.4231

       Sec. 4729.86. If the state board of pharmacy establishes and 4232
maintains a drug database pursuant to section 4729.75 of the 4233
Revised Code, all of the following apply:4234

       (A)(1) No person identified in divisions (A)(1) to (10)(11)4235
or (B) of section 4729.80 of the Revised Code shall disseminate 4236
any written or electronic information the person receives from the 4237
drug database or otherwise provide another person access to the 4238
information that the person receives from the database, except as 4239
follows:4240

       (a) When necessary in the investigation or prosecution of a 4241
possible or alleged criminal offense;4242

       (b) When a person provides the information to the prescriber 4243
or pharmacist for whom the person is approved by the board to 4244
serve as a delegate of the prescriber or pharmacist for purposes 4245
of requesting and receiving information from the drug database 4246
under division (A)(5) or (6) of section 4729.80 of the Revised 4247
Code;4248

       (c) When a prescriber or pharmacist provides the information 4249
to a person who is approved by the board to serve as such a 4250
delegate of the prescriber or pharmacist.4251

       (2) No person shall provide false information to the state 4252
board of pharmacy with the intent to obtain or alter information 4253
contained in the drug database.4254

       (3) No person shall obtain drug database information by any 4255
means except as provided under section 4729.80 or 4729.81 of the 4256
Revised Code.4257

       (B) A person shall not use information obtained pursuant to 4258
division (A) of section 4729.80 of the Revised Code as evidence in 4259
any civil or administrative proceeding.4260

       (C)(1) The board may restrict a person from obtaining further 4261
information from the drug database if any of the following is the 4262
case:4263

        (a) The person violates division (A)(1), (2), or (3) of this 4264
section;4265

       (b) The person is a requestor identified in division 4266
(A)(11)(12) of section 4729.80 of the Revised Code and the board 4267
determines that the person's actions in another state would have 4268
constituted a violation of division (A)(1), (2), or (3) of this 4269
section;4270

        (c) The person fails to comply with division (B) of this 4271
section, regardless of the jurisdiction in which the failure to 4272
comply occurred.4273

        (2) The board shall determine the extent to which the person 4274
is restricted from obtaining further information from the 4275
database.4276

       Section 2.  That existing sections 1561.31, 2305.25, 4277
2305.252, 4121.129, 4121.45, 4123.01, 4123.26, 4123.27, 4123.29, 4278
4123.291, 4123.292, 4123.32, 4123.322, 4123.34, 4123.35, 4123.353, 4279
4123.36, 4123.37, 4123.40, 4123.41, 4123.411, 4123.47, 4123.511, 4280
4123.512, 4123.54, 4123.542, 4123.66, 4123.82, 4123.83, 4125.05, 4281
4729.80, and 4729.86 and section 4121.419 of the Revised Code are 4282
hereby repealed.4283

       Section 3. That Section 1 of Sub. H.B. 34 of the 130th 4284
General Assembly, as amended by Am. Sub. H.B. 59 of the 130th 4285
General Assembly, be amended to read as follows:4286

       Sec. 1. All items in this section are hereby appropriated out 4287
of any moneys in the state treasury to the credit of the 4288
designated fund. For all appropriations made in this act, those in 4289
the first column are for fiscal year 2014, and those in the second 4290
column are for fiscal year 2015.4291

FND AI AI TITLE Appropriations 4292

BWC BUREAU OF WORKERS' COMPENSATION
4293

Workers' Compensation Fund Group4294

7023 855401 William Green Lease Payments to OBA $ 16,026,100 $ 0 4295
7023 855407 Claims, Risk and Medical Management $ 118,338,586 $ 118,338,586 4296
7023 855408 Fraud Prevention $ 12,114,226 $ 12,114,226 4297
7023 855409 Administrative Services $ 105,857,276 $ 105,357,276 4298
7023 855410 Attorney General Payments $ 4,621,850 $ 4,621,850 4299
8220 855606 Coal Workers' Fund $ 147,666 $ 147,666 4300
8230 855608 Marine Industry $ 75,527 $ 75,527 4301
8250 855605 Disabled Workers Relief Fund $ 319,718 $ 319,718 4302
8260 855609 Safety and Hygiene Operating $ 21,661,132 $ 21,661,132 4303
8260 855610 Safety Grants $ 15,000,000 $ 15,000,000 4304
8290 855604 Long Term Care Loan Program $ 100,000 $ 100,000 4305
TOTAL WCF Workers' Compensation 4306
Fund Group $ 294,262,081 $ 277,735,981 4307

Federal Special Revenue Fund Group4308

3490 855601 OSHA Enforcement $ 1,731,000 $ 1,731,000 4309
3FW0 855614 BLS SOII Grant $ 116,919 $ 116,919 4310
TOTAL FED Federal Special Revenue Fund Group $ 1,847,919 $ 1,847,919 4311
TOTAL ALL BUDGET FUND GROUPS $ 296,110,000 $ 279,583,900 4312

       WILLIAM GREEN LEASE PAYMENTS4313

       Of the foregoing appropriation item 855401, William Green 4314
Lease Payments, up to $16,026,100 shall be used to make lease 4315
payments to the Treasurer of State at the times they are required 4316
to be made during the period from July 1, 2013 to June 30, 2015, 4317
pursuant to leases and agreements made under section 154.24 of the 4318
Revised Code. If it is determined that additional appropriations 4319
are necessary for such purpose, such amounts are hereby 4320
appropriated.4321

       WORKERS' COMPENSATION FRAUD UNIT4322

       Of the foregoing appropriation item 855410, Attorney General 4323
Payments, $828,200 in each fiscal year shall be used to fund the 4324
expenses of the Workers' Compensation Fraud Unit within the 4325
Attorney General's Office. These payments shall be processed at 4326
the beginning of each quarter of each fiscal year and deposited 4327
into the Workers' Compensation Section Fund (Fund 1950) used by 4328
the Attorney General.4329

       SAFETY AND HYGIENE4330

       Notwithstanding section 4121.37 of the Revised Code, the 4331
Treasurer of State shall transfer $21,661,132 cash in fiscal year 4332
2014 and $21,661,132 cash in fiscal year 2015 from the State 4333
Insurance Fund to the Safety and Hygiene Fund (Fund 8260).4334

       OSHA ON-SITE CONSULTATION PROGRAM4335

        The Bureau of Workers' Compensation may designate a portion 4336
of appropriation item 855609, Safety and Hygiene Operating, to be 4337
used to match federal funding for the federal Occupational Safety 4338
and Health Administration's (OSHA) on-site consultation program.4339

       VOCATIONAL REHABILITATION4340

       The Bureau of Workers' Compensation and the Opportunities for 4341
Ohioans with Disabilities Agency shall enter into an interagency 4342
agreement for the provision of vocational rehabilitation services 4343
and staff to mutually eligible clients. The bureau may provide not 4344
more than $605,407 in fiscal year 2014 and not more than $605,407 4345
in fiscal year 2015 from the State Insurance Fund to fund 4346
vocational rehabilitation services and staff in accordance with 4347
the interagency agreement.4348

       FUND BALANCE4349

       Any unencumbered cash balance in excess of $45,000,000 in the 4350
Workers' Compensation Fund (Fund 7023) on the thirtieth day of 4351
June of each fiscal year shall be used to reduce the 4352
administrative cost rate charged to employers to cover 4353
appropriations for Bureau of Workers' Compensation operations.4354

       Section 4. That Section 1 of Sub. H.B. 34 of the 130th 4355
General Assembly, as amended by Am. Sub. H.B. 59 of the 130th 4356
General Assembly, is hereby repealed.4357

       Section 5.  The amendments to section 4125.05 of the Revised 4358
Code by Section 1 of this act take effect July 1, 2015.4359

       Section 6.  The amendments made by Section 1 of this act to 4360
sections 4123.01, 4123.26, 4123.29, 4123.292, 4123.54, and 4123.82 4361
of the Revised Code apply to claims that arise on or after the 4362
effective date of those amendments.4363

       Section 7. This act applies to an appeal filed pursuant to 4364
section 4123.512 of the Revised Code, as amended by this act, on 4365
or after the effective date of this act.4366

       Section 8.  The Administrator of Workers' Compensation shall 4367
work with professional employer organizations that have been 4368
granted status as self-insuring employers under division (B) of 4369
section 4123.35 of the Revised Code and with other stakeholders to 4370
address the issue of the appropriate experience rating to assign 4371
to a client employer that leaves such a professional employer 4372
organization to obtain coverage through the state insurance fund. 4373
The Administrator shall prepare a report of the Administrator's 4374
findings on the issue and shall submit that report to the General 4375
Assembly by December 31, 2014.4376

       Section 9.  The items of law contained in this act, and their 4377
applications, are severable. If any item of law contained in this 4378
act, or if any application of any item of law contained in this 4379
act, is held invalid, the invalidity does not affect other items 4380
of law contained in this act and their applications that can be 4381
given effect without the invalid item of law or application.4382

       Section 10.  Section 4123.26 of the Revised Code is presented 4383
in this act as a composite of the section as amended by both Am. 4384
Sub. H.B. 562 and Am. Sub. S.B. 334 of the 127th General Assembly. 4385
The General Assembly, applying the principle stated in division 4386
(B) of section 1.52 of the Revised Code that amendments are to be 4387
harmonized if reasonably capable of simultaneous operation, finds 4388
that the composite is the resulting version of the section in 4389
effect prior to the effective date of the section as presented in 4390
this act.4391