As Introduced

130th General Assembly Regular Session 2013-2014

S. B. No. 14

Senator Kearney 

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

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A BILL

To amend sections 122.075, 122.71, 122.72, 122.74,

1

122.75, 122.87, 122.88, 122.89, 122.90, 125.831,

2

169.05, 4141.01, 4141.09, 4141.241, 4141.29,

3

4141.291, 4141.293, 4301.20, 5733.01, 5733.98,

4

5739.01, 5739.02, 5739.025, 5747.01, 5747.98,

5

5751.01, 5751.98, and 6301.06, to enact sections

6

122.084, 122.721, 122.731, 122.891, 4141.294,

7

4141.302, 4141.50 to 4141.57, 5709.29, 5747.61,

8

5751.55, 6301.021, 6303.01, and 6303.02, and to

9

repeal sections 901.13, 5733.46, 5733.48, 5747.28,

10

5747.29, 5747.70, 5747.75, 5747.77, and 5751.53 of

11

the Revised Code to authorize programs and tax

12

credits to encourage the hiring of unemployed

13

individuals, to make changes to the Unemployment

14

Compensation Law, to authorize grants and tax

15

credits for the rehabilitation of distressed areas

16

and the expansion of broadband connections to

17

rural areas, to create a revolving loan fund and a

18

bonding program for small businesses, to make

19

changes to the Minority Business Bonding Program,

20

to levy taxes, and to make an appropriation.

21

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

Section 1. That sections 122.075, 122.71, 122.72, 122.74,	22
122.75, 122.87, 122.88, 122.89, 122.90, 125.831, 169.05, 4141.01,	23
4141.09, 4141.241, 4141.29, 4141.291, 4141.293, 4301.20, 5733.01,	24
5733.98, 5739.01, 5739.02, 5739.025, 5747.01, 5747.98, 5751.01,	25
5751.98, and 6301.06 be amended and sections 122.084, 122.721,	26
122.731, 122.891, 4141.294, 4141.302, 4141.50, 4141.51, 4141.52,	27
4141.53, 4141.54, 4141.55, 4141.56, 4141.57, 5709.29, 5747.61,	28
5751.55, 6301.021, 6303.01, and 6303.02 of the Revised Code be	29
enacted to read as follows:	30

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

31

(1) "Alternative fuel" has the same meaning as in section	32
125.831 of the Revised Code.	33

(2) "Biodiesel" means a mono-alkyl ester combustible liquid	34
fuel that is derived from vegetable oils or animal fats, or any	35
combination of those reagents, and that meets American society for	36
testing and materials specification D6751-03a for biodiesel fuel	37
(B100) blend stock distillate fuels.	38

(3) "Diesel fuel" and "gasoline" have the same meanings as in	39
section 5735.01 of the Revised Code.	40

(4) "Ethanol" has the same meaning as in section 5733.46 of	41
the Revised Codemeans fermentation ethyl alcohol derived from	42
agricultural products, including potatoes, cereal, grains, cheese	43
whey, and sugar beets; forest products; or other renewable	44
resources, including residue and waste generated from the	45
production, processing, and marketing of agricultural products,	46
forest products, and other renewable resources that meet all of	47
the specifications in the American society for testing and	48
materials (ASTM) specification D 4806-88 and is denatured as	49
specified in Parts 20 and 21 of Title 27 of the Code of Federal	50
Regulations.	51

(5) "Blended biodiesel" means diesel fuel containing at least	52
twenty per cent biodiesel by volume.	53

(6) "Blended gasoline" means gasoline containing at least	54
eighty-five per cent ethanol by volume.	55

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

56

(a) The difference in cost between blended gasoline and	57
gasoline containing ten per cent or less ethanol at the time that	58
the blended gasoline is purchased;	59

(b) The difference in cost between blended biodiesel and	60
diesel fuel containing two per cent or less biodiesel at the time	61
that the blended biodiesel is purchased.	62

(B) For the purpose of improving the air quality in this	63
state, the director of development services shall establish an	64
alternative fuel transportation program under which the director	65
may make grants and loans to businesses, nonprofit organizations,	66
public school systems, or local governments for the purchase and	67
installation of alternative fuel refueling or distribution	68
facilities and terminals, for the purchase and use of alternative	69
fuel, and to pay the costs of educational and promotional	70
materials and activities intended for prospective alternative fuel	71
consumers, fuel marketers, and others in order to increase the	72
availability and use of alternative fuel.	73

(C) The director, in consultation with the director of	74
agriculture, shall adopt rules in accordance with Chapter 119. of	75
the Revised Code that are necessary for the administration of the	76
alternative fuel transportation program. The rules shall establish	77
at least all of the following:	78

(1) An application form and procedures governing the	79
application process for receiving funds under the program;	80

(2) A procedure for prioritizing the award of grants and	81
loans under the program. The procedures shall give preference to	82
all of the following:	83

(a) Publicly accessible refueling facilities;

84

(b) Entities applying to the program that have secured	85
funding from other sources, including, but not limited to, private	86
or federal incentives;	87

(c) Entities that have presented compelling evidence of	88
demand in the market in which the facilities or terminals will be	89
located;	90

(d) Entities that have committed to utilizing purchased or	91
installed facilities or terminals for the greatest number of	92
years;	93

(e) Entities that will be purchasing or installing facilities	94
or terminals for any type of alternative fuel.	95

(3) A requirement that the maximum incentive for the purchase	96
and installation of an alternative fuel refueling or distribution	97
facility or terminal be eighty per cent of the cost of the	98
facility or terminal, except that at least twenty per cent of the	99
total net cost of the facility or terminal shall be incurred by	100
the recipient and not compensated for by any other source;	101

(4) A requirement that the maximum incentive for the purchase	102
of alternative fuel be eighty per cent of the cost of the fuel or,	103
in the case of blended biodiesel or blended gasoline, eighty per	104
cent of the incremental cost of the blended biodiesel or blended	105
gasoline;	106

(5) Any other criteria, procedures, or guidelines that the	107
director determines are necessary to administer the program,	108
including fees, charges, interest rates, and payment schedules.	109

(D) An applicant for a grant or loan under this section that	110
sells motor vehicle fuel at retail shall agree that if the	111
applicant receives funding, the applicant will report to the	112
director the gallon or gallon equivalent amounts of alternative	113
fuel the applicant sells at retail in this state for a period of	114
three years after the project is completed.	115

The director shall enter into a written confidentiality	116
agreement with the applicant regarding the gallon or gallon	117
equivalent amounts sold as described in this division, and upon	118
execution of the agreement this information is not a public	119
record.	120

(E) There is hereby created in the state treasury the	121
alternative fuel transportation fund. The fund shall consist of	122
money transferred to the fund under division (C) of section	123
125.836 and under division (B)(2) of section 3706.27 of the	124
Revised Code, money that is appropriated to it by the general	125
assembly, and money as may be specified by the general assembly	126
from the advanced energy fund created by section 4928.61 of the	127
Revised Code. Money in the fund shall be used to make grants and	128
loans under the alternative fuel transportation program and by the	129
director in the administration of that program.	130

Sec. 122.084.  As used in this section, a "small business" is	131
a business that has fewer than five hundred employees and that	132
conducts operations in this state.	133

The director of development services, under Chapter 119. of	134
the Revised Code, shall adopt, and may amend and rescind, as	135
necessary and proper, to improve, rules that establish and provide	136
for the administration of a small business microloan revolving	137
loan program to assist small businesses. The director shall	138
include the following in the rules:	139

(A) Qualifications to be met by small businesses that seek to	140
receive microloans through the program;	141

(B) Procedures according to which small businesses shall	142
apply for microloans through the program;	143

(C) Criteria for reviewing applications for microloans, and	144
criteria for selecting small businesses that are entitled to	145
receive microloans;	146

(D) Standards for determining the amount of microloans;

147

(E) Specifications identifying the purposes to which	148
microloans may be applied, and methods through which the use of	149
microloans can be accounted for;	150

(F) Standards for setting the interest to be paid on	151
microloans, and standards for fixing the terms according to which	152
microloans are to be repaid;	153

(G) Procedures to be implemented upon default in repayment of	154
microloans;	155

(H) Qualifications to be met by, and procedures for	156
approving, business training programs in which individuals having	157
control of small businesses are required to have participated in	158
as a condition of receiving microloans; and	159

(I) Any other qualifications, procedures, criteria,	160
specifications, methods, or standards necessary and proper for	161
efficient and successful establishment and administration of the	162
small business microloan revolving loan program as a coherent	163
program to assist small businesses.	164

The director may prescribe forms that are necessary for	165
efficient and successful administration of the small business	166
microloan revolving loan program. The forms do not need to be	167
prescribed by rule.	168

The small business microloan revolving loan program is for	169
the general purposes of assisting small businesses to meet	170
capitalization requirements, expand business operations, and	171
create and retain jobs. A small business may not use a microloan	172
to pay debts that are outstanding at the time the microloan is	173
disbursed to the small business.	174

The amount of a microloan may not exceed fifty thousand	175
dollars. The interest charged on a microloan shall be a fixed rate	176
that is at or below the market rate in the community in which the	177
microloan applicant is doing business.	178

The director shall disburse microloans through the several	179
Ohio small business development centers. The individual or	180
individuals having control of a small business, as a condition of	181
receiving a microloan, shall have participated in and successfully	182
completed an approved business training program provided by or	183
through a small business development center or the development	184
services agency.	185

There is hereby created the small business microloan	186
revolving loan fund in the state treasury. The fund consists of	187
money appropriated to the fund, money received in repayment of	188
microloans made from the fund, and investment earnings on money in	189
the fund. The director shall use money in the fund to make	190
microloans to qualified small businesses through the small	191
business microloan revolving loan program, and to pay reasonable	192
costs of administering the program. All investment earnings on	193
money in the fund shall be credited to the fund.	194

Sec. 122.71.  As used in sections 122.71 to 122.83 of the	195
Revised Code:	196

(A) "Financial institution" means any banking corporation,	197
trust company, insurance company, savings and loan association,	198
building and loan association, or corporation, partnership,	199
federal lending agency, foundation, or other institution engaged	200
in lending or investing funds for industrial or business purposes.	201

(B) "Project" means any real or personal property connected	202
with or being a part of an industrial, distribution, commercial,	203
or research facility to be acquired, constructed, reconstructed,	204
enlarged, improved, furnished, or equipped, or any combination	205
thereof, with the aid provided under sections 122.71 to 122.83 of	206
the Revised Code, for industrial, commercial, distribution, and	207
research development of the state.	208

(C) "Mortgage" means the lien imposed on a project by a	209
mortgage on real property, or by financing statements on personal	210
property, or a combination of a mortgage and financing statements	211
when a project consists of both real and personal property.	212

(D) "Mortgagor" means the principal user of a project or the	213
person, corporation, partnership, or association unconditionally	214
guaranteeing performance by the principal user of its obligations	215
under the mortgage.	216

(E)(1) "Minority business enterprise" means an individual who	217
is a United States citizen and owns and controls a business, or a	218
partnership, corporation, or joint venture of any kind that is	219
owned and controlled by United States citizens, which citizen or	220
citizens are residents of this state and are members of one of the	221
following economically disadvantaged groups: Blacks or African	222
Americans, American Indians, Hispanics or Latinos, and Asians.	223

(2) "Owned and controlled" means that at least fifty-one per	224
cent of the business, including corporate stock if a corporation,	225
is owned by persons who belong to one or more of the groups set	226
forth in division (E)(1) of this section, and that those owners	227
have control over the management and day-to-day operations of the	228
business and an interest in the capital, assets, and profits and	229
losses of the business proportionate to their percentage of	230
ownership. In order to qualify as a minority business enterprise,	231
a business shall have been owned and controlled by those persons	232
at least one year prior to being awarded a contract pursuant to	233
this section.	234

(F) "Community improvement corporation" means a corporation	235
organized under Chapter 1724. of the Revised Code.	236

(G) "Ohio development corporation" means a corporation	237
organized under Chapter 1726. of the Revised Code.	238

(H) "Minority contractors business assistance organization"	239
means an entity engaged in the provision of management and	240
technical business assistance to minority business enterprise	241
entrepreneurs.	242

(I) "Minority business supplier development council" means a	243
nonprofit organization established as an affiliate of the national	244
minority supplier development council.	245

(J) "Regional economic development entity" means an entity	246
that is under contract with the director of development services	247
to administer a loan program under this chapter in a particular	248
area of the state.	249

(K) "Community development corporation" means a corporation	250
organized under Chapter 1702. of the Revised Code that consists of	251
residents of the community and business and civic leaders and that	252
has as a principal purpose one or more of the following: the	253
revitalization and development of a low- to moderate-income	254
neighborhood or community; the creation of jobs for low- to	255
moderate-income residents; the development of commercial	256
facilities and services; providing training, technical assistance,	257
and financial assistance to small businesses; and planning,	258
developing, or managing low-income housing or other community	259
development activities.	260

(L) "Small business" means a business operating in this state	261
having five million dollars or less in annual payroll	262
expenditures.	263

Sec. 122.72.  (A) There is hereby created the minority	264
development financing advisory board to assist in carrying out the	265
programs created pursuant to sections 122.71 to 122.89 of the	266
Revised Code.	267

(B) The board shall consist of ten members. The director of	268
development services or the director's designee shall be a voting	269
member on the board. Seven members shall be appointed by the	270
governor with the advice and consent of the senate and selected	271
because of their knowledge of and experience in industrial,	272
business, and commercial financing, suretyship, construction, and	273
their understanding of the problems of minority business	274
enterprises; one member also shall be a member of the senate and	275
appointed by the president of the senate, and one member also	276
shall be a member of the house of representatives and appointed by	277
the speaker of the house of representatives. With respect to the	278
board, all of the following apply:	279

(1) Not more than four of the members of the board appointed	280
by the governor shall be of the same political party.	281

(2) Each member shall hold office from the date of the	282
member's appointment until the end of the term for which the	283
member was appointed.	284

(3) The terms of office for the seven members appointed by	285
the governor shall be for seven years, commencing on the first day	286
of October and ending on the thirtieth day of September of the	287
seventh year, except that of the original seven members, three	288
shall be appointed for three years and two shall be appointed for	289
five years.	290

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

291

(5) Any member appointed to fill a vacancy occurring prior to	292
the expiration of the term for which the member's predecessor was	293
appointed shall hold office for the remainder of the predecessor's	294
term.	295

(6) Any member shall continue in office subsequent to the	296
expiration date of the member's term until the member's successor	297
takes office, or until a period of sixty days has elapsed,	298
whichever occurs first.	299

(7) Before entering upon official duties as a member of the	300
board, each member shall take an oath as provided by Section 7 of	301
Article XV, Ohio Constitution.	302

(8) The governor may, at any time, remove any member	303
appointed by the governor pursuant to section 3.04 of the Revised	304
Code.	305

(9) Notwithstanding section 101.26 of the Revised Code,	306
members shall receive their necessary and actual expenses while	307
engaged in the business of the board and shall be paid at the per	308
diem rate of step 1 of pay range 31 of section 124.15 of the	309
Revised Code.	310

(10) Six members of the board constitute a quorum and the	311
affirmative vote of six members is necessary for any action taken	312
by the board.	313

(11) In the event of the absence of a member appointed by the	314
president of the senate or by the speaker of the house of	315
representatives, either of the following persons may serve in the	316
member's absence:	317

(a) The president of the senate or the speaker of the house	318
of representatives, whoever appointed the absent member;	319

(b) A member of the senate or of the house of representatives	320
of the same political party as the absent member, as designated by	321
the president of the senate or the speaker of the house of	322
representatives, whoever appointed the absent member.	323

(12) The board shall annually elect one of its members as	324
chairperson and another as vice-chairperson.	325

(13) The board shall meet on the second Tuesday of each	326
month.	327

Sec. 122.721. The small business development financing	328
advisory board is established to assist in carrying out the	329
programs created under section 122.891 of the Revised Code.	330

The board consists of ten members. The director of	331
development services or the director's designee is a voting member	332
of the board. Seven members shall be appointed by the governor	333
with the advice and consent of the senate, and shall have	334
knowledge of and experience in industrial, business, and	335
commercial financing, suretyship, and construction, and an	336
understanding of the problems of small businesses. One member	337
shall be a member of the senate appointed by the president of the	338
senate, and one member shall be a member of the house of	339
representatives appointed by the speaker of the house of	340
representatives.	341

Not more than four members appointed by the governor shall be	342
members of the same political party.	343

The terms of office for the seven members appointed by the	344
governor shall be seven years, commencing on the first day of	345
October and ending on the thirtieth day of September of the	346
seventh year, except that of the original seven members, three	347
shall be appointed for three years and two shall be appointed for	348
five years.	349

Each member shall hold office from the date of the member's	350
appointment until the end of the term for which the member was	351
appointed.	352

A member is eligible for reappointment.

353

A member appointed to fill a vacancy occurring prior to the	354
expiration of the term for which the member's predecessor was	355
appointed shall hold office for the remainder of the predecessor's	356
term.	357

A member shall continue in office subsequent to the	358
expiration date of the member's term until the member's successor	359
takes office, or until a period of sixty days has elapsed,	360
whichever occurs first.	361

Before entering upon official duties as a member, the member	362
shall take an oath as provided by Ohio Constitution, Article XV,	363
Section 7.	364

The governor, at any time under section 3.04 of the Revised	365
Code, may remove a member appointed by the governor.	366

Notwithstanding section 101.26 of the Revised Code, members	367
are entitled to their necessary and actual expenses while engaged	368
in the business of the board and shall be paid at the per diem	369
rate of step 1 of pay range 31 of section 124.15 of the Revised	370
Code.	371

Six members of the board constitute a quorum, and the	372
affirmative vote of six members is necessary for any action taken	373
by the board.	374

In the event a member appointed by the president of the	375
senate or by the speaker of the house of representatives is	376
absent, either of the following persons may serve in the member's	377
absence: the president of the senate or the speaker of the house	378
of representatives, whoever appointed the absent member, or a	379
member of the senate or of the house of representatives of the	380
same political party as the absent member, as designated by the	381
president of the senate or the speaker of the house of	382
representatives, whoever appointed the absent member.	383

The board shall annually elect one of its members as	384
chairperson and another member as vice-chairperson.	385

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

386

Sec. 122.731.  (A) The powers and duties provided in section	387
122.891 of the Revised Code are established in order to promote	388
the welfare of the people of the state by encouraging the	389
establishment and expansion of small businesses; to stabilize the	390
economy; to provide employment; to assist in the development	391
within the state of industrial, commercial, distribution, and	392
research activities required for the people of the state, and for	393
their gainful employment; and otherwise to create or preserve jobs	394
and employment opportunities and to improve the economic welfare	395
of the people of the state. It is determined that the	396
accomplishment of those purposes is essential so that the people	397
of the state may maintain their present high standards of living	398
in comparison with the people of other states and so that	399
opportunities for employment and for favorable markets for the	400
products of the state's natural resources, agriculture, and	401
manufacturing will be improved. It further is determined that it	402
therefore is necessary to establish the program authorized under	403
section 122.891 of the Revised Code, to establish the small	404
business development financing advisory board, and to vest it and	405
the director of development services with the powers and duties	406
provided in that section.	407

(B) The small business development financing advisory board	408
shall do all of the following:	409

(1) Make recommendations to the director with regard to	410
applications for assistance under section 122.891 of the Revised	411
Code;	412

(2) Advise the director in the administration of section	413
122.891 of the Revised Code; and	414

(3) Adopt bylaws to govern the conduct of the business of the	415
board.	416

The board may revise its recommendations to reflect any	417
changes in the proposed assistance made by the director.	418

Sec. 122.74.  (A)(1) The director of development services	419
shall do all of the following:	420

(a) Receive applications for assistance under sections 122.71	421
to 122.89122.891 of the Revised Code and applications from surety	422
companies for bond guarantees under section 122.90 of the Revised	423
Code, and, after processing but subject to division (A)(2) of this	424
section, forward them to the minority development financing	425
advisory board or small business development financing advisory	426
board, as applicable, together with necessary supporting	427
information;	428

(b) Receive the recommendations of the boardrespective	429
boards and make a final determination whether to approve the	430
application for assistance;	431

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

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

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

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

451

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

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

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

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

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

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

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

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

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

501

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(H) Expend money appropriated to the department of	619
development services agency by the general assembly for the	620
purposes of sections 122.71 to 122.83 and 122.87 to 122.90 of the	621
Revised Code;	622

(I) Do all acts and things necessary or proper to carry out	623
the powers expressly granted and the duties imposed in sections	624
122.71 to 122.83 and 122.87 to 122.90 of the Revised Code.	625

Sec. 122.87.  As used in sections 122.87 to 122.90 of the	626
Revised Code:	627

(A) "Surety company" means a company that is authorized by	628
the department of insurance to issue bonds as surety.	629

(B) "Minority business" means any of the following	630
occupations:	631

(1) Minority construction contractor;

632

(2) Minority seller;

633

(3) Minority service vendor.

634

(C) "Minority construction contractor" means a person who is	635
both a construction contractor and an owner of a minority business	636
enterprise certified under division (B) of section 123.151 of the	637
Revised Code.	638

(D) "Minority seller" means a person who is both a seller of	639
goods and an owner of a minority business enterprise listed on the	640
special minority business enterprise bid notification list under	641
division (B) of section 125.08 of the Revised Code.	642

(E) "Minority service vendor" means a person who is both a	643
vendor of services and an owner of a minority business enterprise	644
listed on the special minority business enterprise bid	645
notification list under division (B) of section 125.08 of the	646
Revised Code.	647

(F) "Minority business enterprise" has the meaning given in	648
section 122.71 of the Revised Code.	649

(G) "EDGE business enterprise" means a sole proprietorship,	650
association, partnership, corporation, limited liability	651
corporation, or joint venture certified as a participant in the	652
encouraging diversity, growth, and equity program by the director	653
of administrative services under section 123.152 of the Revised	654
Code.	655

(H) "Small business" means a business operating in this state	656
having five million dollars or less in annual payroll	657
expenditures.	658

Sec. 122.88.  (A) There is hereby created in the state	659
treasury the minority and small business bonding fund, consisting	660
of moneys deposited or credited to it pursuant to section 169.05	661
of the Revised Code; all grants, gifts, and contributions received	662
pursuant to division (B)(9) of section 122.74 of the Revised Code;	663
all moneys recovered following defaults; and any other moneys	664
obtained by the director of development services for the purposes	665
of sections 122.87 to 122.90 of the Revised Code. The fund shall	666
be administered by the director. Moneys in the fund shall be held	667
in trust for the purposes of sections 122.87 to 122.90 of the	668
Revised Code.	669

(B) Any claims against the state arising from defaults shall	670
be payable from the minority and small business bonding program	671
administrative and loss reserve fund as provided in division (C)	672
of this section or from the minority and small business bonding	673
fund. Nothing in sections 122.87 to 122.90 of the Revised Code	674
grants or pledges to any obligee or other person any state moneys	675
other than the moneys in the minority and small business bonding	676
program administrative and loss reserve fund or the minority and	677
small business bonding fund, or moneys available to the minority	678
and small business bonding fund upon request of the director in	679
accordance with division (B) of section 169.05 of the Revised	680
Code.	681

(C) There is hereby created in the state treasury the	682
minority and small business bonding program administrative and	683
loss reserve fund, consisting of all premiums charged and	684
collected in accordance with sectionsections 122.89 and 122.891	685
of the Revised Code and any interest income earned from the moneys	686
in the minority and small business bonding fund. All expenses of	687
the director and, the minority development financing advisory	688
board, and the small business development financing advisory board	689
in carrying out the purposes of sections 122.87 to 122.90 of the	690
Revised Code shall be paid from the minority and small business	691
bonding program administrative and loss reserve fund.	692

Any moneys to the credit of the minority and small business	693
bonding program administrative and loss reserve fund in excess of	694
the amount necessary to fund the appropriation authority for the	695
minority and small business bonding program administrative and	696
loss reserve fund shall be held as a loss reserve to pay claims	697
arising from defaults on surety bonds underwritten in accordance	698
with section 122.89 or 122.891 of the Revised Code or guaranteed	699
in accordance with section 122.90 of the Revised Code. If the	700
balance of funds in the minority and small business bonding	701
program administrative and loss reserve fund is insufficient to	702
pay a claim against the state arising from default, then such	703
claim shall be payable from the minority and small business	704
bonding fund.	705

Sec. 122.89.  (A) The director of development services may	706
execute bonds as surety for minority businesses as principals, on	707
contracts with the state, any political subdivision or	708
instrumentality thereof, or any person as the obligee. The	709
director as surety may exercise all the rights and powers of a	710
company authorized by the department of insurance to execute bonds	711
as surety but shall not be subject to any requirements of a surety	712
company under Title XXXIX of the Revised Code nor to any rules of	713
the department of insurance.	714

(B) The director, with the advice of the minority development	715
financing advisory board, shall adopt rules under Chapter 119. of	716
the Revised Code establishing procedures for application for	717
surety bonds by minority businesses and for review and approval of	718
applications. The board shall review each application in	719
accordance with the rules and, based on the bond worthiness of	720
each applicant, shall refer all qualified applicants to the	721
director. Based on the recommendation of the board, the director	722
shall determine whether or not the applicant shall receive	723
bonding. The rules shall establish the maximum amount of any bond	724
issued at two million dollars.	725

(C) The rules of the board shall require the minority	726
business to pay a premium in advance for the bond to be	727
established by the director, with the advice of the board after	728
the director receives advice from the superintendent of insurance	729
regarding the standard market rates for premiums for similar	730
bonds. All premiums paid by minority businesses shall be paid into	731
the minority and small business bonding program administrative and	732
loss reserve fund.	733

(D) The rules of the board shall provide for a retainage of	734
money paid to the minority business or EDGE business enterprise of	735
fifteen per cent for a contract valued at more than fifty thousand	736
dollars and for a retainage of twelve per cent for a contract	737
valued at fifty thousand dollars or less.	738

(E) The penal sum amounts of all outstanding bonds issued by	739
the director shall not exceed the amount of moneys in the minority	740
and small business bonding fund and available to the fund under	741
division (B) of section 169.05 of the Revised Code.	742

(F) The superintendent of insurance shall provide such	743
technical and professional assistance as is considered necessary	744
by the director, including providing advice regarding the standard	745
market rates for bond premiums as described under division (C) of	746
this section.	747

(G) Notwithstanding any provision of the Revised Code to the	748
contrary, a minority business or EDGE business enterprise may bid	749
or enter into a contract with the state or with any	750
instrumentality of the state without being required to provide a	751
bond as follows:	752

(1) For the first contract that a minority business or EDGE	753
business enterprise enters into with the state or with any	754
particular instrumentality of the state, the minority business or	755
EDGE business enterprise may bid or enter into a contract valued	756
at twenty-five thousand dollars or less without being required to	757
provide a bond, but only if the minority business or EDGE business	758
enterprise is participating in a qualified contractor assistance	759
program or has successfully completed a qualified contractor	760
assistance program after the effective date of this amendment	761
October 16, 2009;	762

(2) After the state or any particular instrumentality of the	763
state has accepted the first contract as completed and all	764
subcontractors and suppliers on the contract have been paid, the	765
minority business or EDGE business enterprise may bid or enter	766
into a second contract with the state or with that particular	767
instrumentality of the state valued at fifty thousand dollars or	768
less without being required to provide a bond, but only if the	769
minority business or EDGE business enterprise is participating in	770
a qualified contractor assistance program or has successfully	771
completed a qualified contractor assistance program after the	772
effective date of this amendmentOctober 16, 2009;	773

(3) After the state or any particular instrumentality of the	774
state has accepted the second contract as completed and all	775
subcontractors and suppliers on the contract have been paid, the	776
minority business or EDGE business enterprise may bid or enter	777
into a third contract with the state or with that particular	778
instrumentality of the state valued at one hundred thousand	779
dollars or less without being required to provide a bond, but only	780
if the minority business or EDGE business enterprise has	781
successfully completed a qualified contractor assistance program	782
after the effective date of this amendmentOctober 16, 2009;	783

(4) After the state or any particular instrumentality of the	784
state has accepted the third contract as completed and all	785
subcontractors and suppliers on the contract have been paid, the	786
minority business or EDGE business enterprise may bid or enter	787
into a fourth contract with the state or with that particular	788
instrumentality of the state valued at three hundred thousand	789
dollars or less without being required to provide a bond, but only	790
if the minority business or EDGE business enterprise has	791
successfully completed a qualified contractor assistance program	792
after the effective date of this amendmentOctober 16, 2009;	793

(5) After the state or any instrumentality of the state has	794
accepted the fourth contract as completed and all subcontractors	795
and suppliers on the contract have been paid, upon a showing that	796
with respect to a contract valued at four hundred thousand dollars	797
or less with the state or with any particular instrumentality of	798
the state, that the minority business or EDGE business enterprise	799
either has been denied a bond by two surety companies or that the	800
minority business or EDGE business enterprise has applied to two	801
surety companies for a bond and, at the expiration of sixty days	802
after making the application, has neither received nor been denied	803
a bond, the minority business or EDGE business enterprise may	804
repeat its participation in the unbonded state contractor program.	805
Under no circumstances shall a minority business or EDGE business	806
enterprise be permitted to participate in the unbonded state	807
contractor program more than twice.	808

(H) Notwithstanding any provision of the Revised Code to the	809
contrary, a minority business or EDGE business enterprise may bid	810
or enter into a contract with any political subdivision of the	811
state or with any instrumentality of a political subdivision	812
without being required to provide a bond as follows:	813

(1) For the first contract that the minority business or EDGE	814
business enterprise enters into with any particular political	815
subdivision of the state or with any particular instrumentality of	816
a political subdivision, the minority business or EDGE business	817
enterprise may bid or enter into a contract valued at twenty-five	818
thousand dollars or less without being required to provide a bond,	819
but only if the minority business or EDGE business enterprise is	820
participating in a qualified contractor assistance program or has	821
successfully completed a qualified contractor assistance program	822
after the effective date of this amendmentOctober 16, 2009;	823

(2) After any political subdivision of the state or any	824
instrumentality of a political subdivision has accepted the first	825
contract as completed and all subcontractors and suppliers on the	826
contract have been paid, the minority business or EDGE business	827
enterprise may bid or enter into a second contract with that	828
particular political subdivision of the state or with that	829
particular instrumentality of a political subdivision valued at	830
fifty thousand dollars or less without being required to provide a	831
bond, but only if the minority business or EDGE business	832
enterprise is participating in a qualified contractor assistance	833
program or has successfully completed a qualified contractor	834
assistance program after the effective date of this amendment	835
October 16, 2009;	836

(3) After any political subdivision of the state or any	837
instrumentality of a political subdivision has accepted the second	838
contract as completed and all subcontractors and suppliers on the	839
contract have been paid, the minority business or EDGE business	840
enterprise may bid or enter into a third contract with that	841
particular political subdivision of the state or with that	842
particular instrumentality of a political subdivision valued at	843
one hundred thousand dollars or less without being required to	844
provide a bond, but only if the minority business or EDGE business	845
enterprise has successfully completed a qualified contractor	846
assistance program after the effective date of this amendment	847
October 16, 2009;	848

(4) After any political subdivision of the state or any	849
instrumentality of a political subdivision has accepted the third	850
contract as completed and all subcontractors and suppliers on the	851
contract have been paid, the minority business or EDGE business	852
enterprise may bid or enter into a fourth contract with that	853
particular political subdivision of the state or with that	854
particular instrumentality of a political subdivision valued at	855
two hundred thousand dollars or less without being required to	856
provide a bond, but only if the minority business or EDGE business	857
enterprise has successfully completed a qualified contractor	858
assistance program after the effective date of this amendment	859
October 16, 2009;	860

(5) After any political subdivision of the state or any	861
instrumentality of a political subdivision has accepted the fourth	862
contract as completed and all subcontractors and suppliers on the	863
contract have been paid, upon a showing that with respect to a	864
contract valued at three hundred thousand dollars or less with any	865
political subdivision of the state or any instrumentality of a	866
political subdivision, that the minority business or EDGE business	867
enterprise either has been denied a bond by two surety companies	868
or that the minority business or EDGE business enterprise has	869
applied to two surety companies for a bond and, at the expiration	870
of sixty days after making the application, has neither received	871
nor been denied a bond, the minority business or EDGE business	872
enterprise may repeat its participation in the unbonded political	873
subdivision contractor program. Under no circumstances shall a	874
minority business or EDGE business enterprise be permitted to	875
participate in the unbonded political subdivision contractor	876
program more than twice.	877

(I) Notwithstanding any provision of the Revised Code to the	878
contrary, if a minority business or EDGE business enterprise has	879
entered into two or more contracts with the state or with any	880
instrumentality of the state, the minority business or EDGE	881
business enterprise may bid or enter into a contract with a	882
political subdivision of the state or with any instrumentality of	883
a political subdivision valued at the level at which the minority	884
business or EDGE business enterprise would qualify if entering	885
into an additional contract with the state.	886

(J) The director of development services shall coordinate and	887
oversee the unbonded state contractor program described in	888
division (G) of this section, the unbonded political subdivision	889
contractor program described in division (H) of this section, and	890
the approval of a qualified contractor assistance program. The	891
director shall prepare an annual report and submit it to the	892
governor and the general assembly on or before the first day of	893
February that includes the following: information on the	894
director's activities for the preceding calendar year regarding	895
the unbonded state contractor program, the unbonded political	896
subdivision contractor program, and the qualified contractor	897
assistance program; a summary and description of the operations	898
and activities of these programs; an assessment of the	899
achievements of these programs; and a recommendation as to whether	900
these programs need to continue.	901

(K) As used in this section:

902

(1) "EDGE business enterprise" means an EDGE business	903
enterprise certified under section 123.152 of the Revised Code.	904

(2) "Qualified contractor assistance program" means an	905
educational program or technical assistance program for business	906
development that is designed to assist a minority business or EDGE	907
business enterprise in becoming eligible for bonding and has been	908
approved by the director of development services for use as	909
required under this section.	910

(3) "Successfully completed a qualified contractor assistance	911
program" means the minority business or EDGE business enterprise	912
completed such a program on or after the effective date of this	913
amendmentOctober 16, 2009.	914

(4) "Unbonded state contractor program" means the program	915
described in division (G) of this section.	916

(5) "Unbonded political subdivision contractor program" means	917
the program described in division (H) of this section.	918

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

919

(1) "Qualified contractor assistance program" means an	920
educational program or technical assistance program for business	921
development that is designed to assist a small business in	922
becoming eligible for bonding and that has been approved by the	923
director of development services for operation and attendance as	924
required under this section.	925

(2) "Successfully completed a qualified contractor assistance	926
program" means the small business completed such a program on or	927
after the effective date of this section.	928

(3) "Unbonded state contractor program" means the program	929
described in division (H) of this section.	930

(4) "Unbonded political subdivision contractor program" means	931
the program described in division (I) of this section.	932

(B) The director may execute bonds as surety for small	933
businesses as principals on contracts with the state or	934
instrumentality thereof, a political subdivision or	935
instrumentality thereof, or any person as the obligee. The	936
director as surety may exercise all the rights and powers of a	937
company authorized by the department of insurance to execute bonds	938
as surety, but shall not be subject to any requirements of a	939
surety company under Title XXXIX of the Revised Code or to any	940
rules of the department or superintendent of insurance.	941

(C) The director, with the advice of the small business	942
development financing advisory board, shall adopt rules under	943
Chapter 119. of the Revised Code establishing procedures whereby	944
small businesses shall apply for surety bonds, and for the review	945
and approval of applications. The board shall review each	946
application in accordance with the rules and, based upon the bond	947
worthiness of each applicant, shall refer all qualified applicants	948
to the director. Based on the recommendation of the board, the	949
director shall determine whether or not the applicant is entitled	950
to receive bonding. The rules shall establish the maximum amount	951
of any bond issued at two million dollars.	952

(D) The rules shall require the small business to pay a	953
premium in advance for the bond. The premium shall be established	954
by the director, with the advice of the board, after the director	955
has received advice from the superintendent of insurance regarding	956
the standard market rates for premiums for similar bonds. All	957
premiums paid by small businesses shall be paid into the minority	958
and small business bonding program administrative and loss reserve	959
fund.	960

(E) The rules shall provide for a retainage of money paid to	961
the small business of fifteen per cent for a contract valued at	962
more than fifty thousand dollars and for a retainage of twelve per	963
cent for a contract valued at fifty thousand dollars or less.	964

(F) The penal sum amounts of all outstanding bonds issued by	965
the director shall not exceed the amount of money in and available	966
to the minority and small business bonding fund under division (B)	967
of section 169.05 of the Revised Code.	968

(G) The superintendent of insurance shall provide technical	969
and professional assistance as is considered necessary by the	970
director, including providing advice regarding the standard market	971
rates for bond premiums as described under division (D) of this	972
section.	973

(H) Notwithstanding any provision of the Revised Code to the	974
contrary, a small business may bid or enter into a contract with	975
the state or with any instrumentality of the state without being	976
required to provide a bond as follows:	977

(1) For the first contract that a small business enters into	978
with the state or with any particular instrumentality of the	979
state, the small business may bid or enter into a contract valued	980
at twenty-five thousand dollars or less without being required to	981
provide a bond, but only if the small business is participating in	982
a qualified contractor assistance program or has successfully	983
completed a qualified contractor assistance program after the	984
effective date of this section.	985

(2) After the state or the particular instrumentality of the	986
state has accepted the first contract as completed and all	987
subcontractors and suppliers on the contract have been paid, the	988
small business may bid or enter into a second contract with the	989
state or with that particular instrumentality of the state valued	990
at fifty thousand dollars or less without being required to	991
provide a bond, but only if the small business is participating in	992
a qualified contractor assistance program or has successfully	993
completed a qualified contractor assistance program after the	994
effective date of this section.	995

(3) After the state or the particular instrumentality of the	996
state has accepted the second contract as completed and all	997
subcontractors and suppliers on the contract have been paid, the	998
small business may bid or enter into a third contract with the	999
state or with that particular instrumentality of the state valued	1000
at one hundred thousand dollars or less without being required to	1001
provide a bond, but only if the small business has successfully	1002
completed a qualified contractor assistance program after the	1003
effective date of this section.	1004

(4) After the state or the particular instrumentality of the	1005
state has accepted the third contract as completed and all	1006
subcontractors and suppliers on the contract have been paid, the	1007
small business may bid or enter into a fourth contract with the	1008
state or with that particular instrumentality of the state valued	1009
at three hundred thousand dollars or less without being required	1010
to provide a bond, but only if the small business has successfully	1011
completed a qualified contractor assistance program after the	1012
effective date of this section.	1013

(5) After the state or the instrumentality of the state has	1014
accepted the fourth contract as completed and all subcontractors	1015
and suppliers on the contract have been paid, upon a showing that	1016
with respect to a contract valued at four hundred thousand dollars	1017
or less with the state or with any particular instrumentality of	1018
the state, that the small business either has been denied a bond	1019
by two surety companies or that the small business has applied to	1020
two surety companies for a bond and, at the expiration of sixty	1021
days after making the application, has neither received nor been	1022
denied a bond, the small business may repeat its participation in	1023
the unbonded state contractor program. Under no circumstances	1024
shall a small business be permitted to participate in the unbonded	1025
state contractor program more than twice.	1026

(I) Notwithstanding any provision of the Revised Code to the	1027
contrary, a small business may bid or enter into a contract with	1028
any political subdivision of the state or with any instrumentality	1029
of a political subdivision without being required to provide a	1030
bond as follows:	1031

(1) For the first contract that the small business enters	1032
into with any particular political subdivision of the state or	1033
with any particular instrumentality of a political subdivision,	1034
the small business may bid or enter into a contract valued at	1035
twenty-five thousand dollars or less without being required to	1036
provide a bond, but only if the small business is participating in	1037
a qualified contractor assistance program or has successfully	1038
completed a qualified contractor assistance program after the	1039
effective date of this section.	1040

(2) After the political subdivision or the instrumentality of	1041
a political subdivision has accepted the first contract as	1042
completed and all subcontractors and suppliers on the contract	1043
have been paid, the small business may bid or enter into a second	1044
contract with that particular political subdivision or with that	1045
particular instrumentality of a political subdivision valued at	1046
fifty thousand dollars or less without being required to provide a	1047
bond, but only if the small business is participating in a	1048
qualified contractor assistance program or has successfully	1049
completed a qualified contractor assistance program after the	1050
effective date of this section.	1051

(3) After the political subdivision or the instrumentality of	1052
a political subdivision has accepted the second contract as	1053
completed and all subcontractors and suppliers on the contract	1054
have been paid, the small business may bid or enter into a third	1055
contract with that particular political subdivision or with that	1056
particular instrumentality of a political subdivision valued at	1057
one hundred thousand dollars or less without being required to	1058
provide a bond, but only if the small business has successfully	1059
completed a qualified contractor assistance program after the	1060
effective date of this section.	1061

(4) After the political subdivision or the instrumentality of	1062
a political subdivision has accepted the third contract as	1063
completed and all subcontractors and suppliers on the contract	1064
have been paid, the small business may bid or enter into a fourth	1065
contract with that particular political subdivision of the state	1066
or with that particular instrumentality of a political subdivision	1067
valued at two hundred thousand dollars or less without being	1068
required to provide a bond, but only if the small business has	1069
successfully completed a qualified contractor assistance program	1070
after the effective date of this section.	1071

(5) After the political subdivision or the instrumentality of	1072
a political subdivision has accepted the fourth contract as	1073
completed and all subcontractors and suppliers on the contract	1074
have been paid, upon a showing that with respect to a contract	1075
valued at three hundred thousand dollars or less with any	1076
political subdivision or any instrumentality of a political	1077
subdivision, that the small business either has been denied a bond	1078
by two surety companies or that the small business has applied to	1079
two surety companies for a bond and, at the expiration of sixty	1080
days after making the application, has neither received nor been	1081
denied a bond, the small business may repeat its participation in	1082
the unbonded political subdivision contractor program. Under no	1083
circumstances shall a small business be permitted to participate	1084
in the unbonded political subdivision contractor program more than	1085
twice.	1086

(J) Notwithstanding any provision of the Revised Code to the	1087
contrary, if a small business has entered into two or more	1088
contracts with the state or with any instrumentality of the state,	1089
the small business may bid or enter into a contract with a	1090
political subdivision or with any instrumentality of a political	1091
subdivision valued at the level at which the small business would	1092
qualify if entering into an additional contract with the state.	1093

(K) The director of development services shall coordinate and	1094
oversee the unbonded state contractor program described in	1095
division (H) of this section, the unbonded political subdivision	1096
contractor program described in division (I) of this section, and	1097
the approval of a qualified contractor assistance program. The	1098
director shall prepare an annual report and submit it to the	1099
governor and the general assembly on or before the first day of	1100
February that includes the following: information on the	1101
director's activities for the preceding calendar year regarding	1102
the unbonded state contractor program, the unbonded political	1103
subdivision contractor program, and the qualified contractor	1104
assistance program; a summary and description of the operations	1105
and activities of these programs; an assessment of the	1106
achievements of these programs; and a recommendation as to whether	1107
these programs need to continue.	1108

Sec. 122.90.  (A) The director of development services may	1109
guarantee bonds executed by sureties for minority businesses and	1110
EDGE business enterprises certified under section 123.152 of the	1111
Revised Code as principals on contracts with the state, any	1112
political subdivision or instrumentality, or any person as the	1113
obligee. The director, as guarantor, may exercise all the rights	1114
and powers of a company authorized by the department of insurance	1115
to guarantee bonds under Chapter 3929. of the Revised Code but	1116
otherwise is not subject to any laws related to a guaranty company	1117
under Title XXXIX of the Revised Code nor to any rules of the	1118
department of insurance.	1119

(B) The director shall adopt rules under Chapter 119. of the	1120
Revised Code to establish procedures for the application for bond	1121
guarantees and the review and approval of applications for bond	1122
guarantees submitted by sureties that execute bonds eligible for	1123
guarantees under division (A) of this section.	1124

(C) In accordance with rules adopted pursuant to this	1125
section, the director may guarantee up to ninety per cent of the	1126
loss incurred and paid by sureties on bonds guaranteed under	1127
division (A) of this section.	1128

(D) The penal sum amounts of all outstanding guarantees made	1129
by the director under this section shall not exceed three times	1130
the difference between the amount of moneys in the minority and	1131
small business bonding fund and available to the fund under	1132
division (B) of section 169.05 of the Revised Code and the amount	1133
of all outstanding bonds issued by the director in accordance with	1134
division (A) of section 122.89 of the Revised Code.	1135

(E) The director of development, with controlling board	1136
approval, may approve one application per fiscal year from each	1137
surety bond company for bond guarantees in an amount requested to	1138
support one fiscal year of that company's activity under this	1139
section. A surety bond company that applies for a bond guarantee	1140
under this division, whether or not the guarantee is approved, is	1141
not restricted from also applying for individual bond guarantees	1142
under division (A) of this section.	1143

Sec. 125.831. As used in sections 125.831 to 125.834 of the	1144
Revised Code:	1145

(A) "Alternative fuel" means any of the following fuels used	1146
in a motor vehicle:	1147

(1) E85 blend fuel;

1148

(2) Blended biodiesel;

1149

(3) Natural gas;

1150

(4) Liquefied petroleum gas;

1151

(5) Hydrogen;

1152

(6) Compressed air;

1153

(7) Any power source, including electricity;

1154

(8) Any fuel not described in divisions (A)(1) to (7) of this	1155
section that the United States department of energy determines, by	1156
final rule, to be substantially not petroleum, and that would	1157
yield substantial energy security and environmental benefits.	1158

(B) "Biodiesel" means a mono-alkyl ester combustible liquid	1159
fuel that is derived from vegetable oils or animal fats, or any	1160
combination of those reagents that meets the American society for	1161
testing and materials specification for biodiesel fuel (B100)	1162
blend stock distillate fuels and any other standards that the	1163
director of administrative services adopts by rule.	1164

(C) "Blended biodiesel" means a blend of biodiesel with	1165
petroleum based diesel fuel in which the resultant product	1166
contains not less than twenty per cent biodiesel that meets the	1167
American society for testing and materials specification for	1168
blended diesel fuel and any other standards that the director of	1169
administrative services adopts by rule.	1170

(D) "Diesel fuel" means any liquid fuel that is capable of	1171
use in discrete form or as a blend component in the operation of	1172
engines of the diesel type.	1173

(E) "E85 blend fuel" means fuel containing eighty-five per	1174
cent or more ethanol as defined in section 5733.46122.075 of the	1175
Revised Code or containing any other percentage of not less than	1176
seventy per cent ethanol if the United States department of energy	1177
determines, by rule, that the lower percentage is necessary to	1178
provide for the requirements of cold start, safety, or vehicle	1179
functions, and that meets the American society for testing and	1180
materials specification for E85 blend fuel and any other standards	1181
that the director of administrative services adopts by rule.	1182

(F) "Law enforcement officer" means an officer, agent, or	1183
employee of a state agency upon whom, by statute, a duty to	1184
conserve the peace or to enforce all or certain laws is imposed	1185
and the authority to arrest violators is conferred, within the	1186
limits of that statutory duty and authority, but does not include	1187
such an officer, agent, or employee if that duty and authority is	1188
location specific.	1189

(G)(1) "Motor vehicle" means any automobile, car minivan,	1190
cargo van, passenger van, sport utility vehicle, or pickup truck	1191
with a gross vehicle weight of under twelve thousand pounds.	1192

(2) "Motor vehicle" does not include, except for the purposes	1193
of division (C) of section 125.832 of the Revised Code, any	1194
vehicle described in division (G)(1) of this section that is used	1195
by a law enforcement officer and law enforcement agency or any	1196
vehicle that is so described and that is equipped with specialized	1197
equipment that is not normally found in such a vehicle and that is	1198
used to carry out a state agency's specific and specialized duties	1199
and responsibilities.	1200

(H) "Specialized equipment" does not include standard mobile	1201
radios with no capabilities other than voice communication,	1202
exterior and interior lights, or roof-mounted caution lights.	1203

(I) "State agency" means every organized body, office, board,	1204
authority, commission, or agency established by the laws of the	1205
state for the exercise of any governmental or quasi-governmental	1206
function of state government regardless of the funding source for	1207
that entity, other than any state institution of higher education,	1208
the office of the governor, lieutenant governor, auditor of state,	1209
treasurer of state, secretary of state, or attorney general, the	1210
general assembly or any legislative agency, the courts or any	1211
judicial agency, or any state retirement system or retirement	1212
program established by or referenced in the Revised Code.	1213

(J) "State institution of higher education" has the same	1214
meaning as in section 3345.011 of the Revised Code.	1215

Sec. 169.05.  (A) Every holder required to file a report	1216
under section 169.03 of the Revised Code shall, at the time of	1217
filing, pay to the director of commerce ten per cent of the	1218
aggregate amount of unclaimed funds as shown on the report, except	1219
for aggregate amounts of fifty dollars or less in which case one	1220
hundred per cent shall be paid. The funds may be deposited by the	1221
director in the state treasury to the credit of the unclaimed	1222
funds trust fund, which is hereby created, or placed with a	1223
financial organization. Any interest earned on money in the trust	1224
fund shall be credited to the trust fund. The remainder of the	1225
aggregate amount of unclaimed funds as shown on the report, plus	1226
earnings accrued to date of payment to the director, shall, at the	1227
option of the director, be retained by the holder or paid to the	1228
director for deposit as agent for the mortgage funds with a	1229
financial organization as defined in section 169.01 of the Revised	1230
Code, with the funds to be in income-bearing accounts to the	1231
credit of the mortgage funds, or the holder may enter into an	1232
agreement with the director specifying the obligations of the	1233
United States in which funds are to be invested, and agree to pay	1234
the interest on the obligations to the state. Holders retaining	1235
any funds not in obligations of the United States shall enter into	1236
an agreement with the director specifying the classification of	1237
income-bearing account in which the funds will be held and pay the	1238
state interest on the funds at a rate equal to the prevailing	1239
market rate for similar funds. Moneys that the holder is required	1240
to pay to the director rather than to retain may be deposited with	1241
the treasurer of state, or placed with a financial organization.	1242

Securities and other intangible property transferred to the	1243
director shall, within a reasonable time, be converted to cash and	1244
the proceeds deposited as provided for other funds.	1245

One-half of the funds evidenced by agreements, in	1246
income-bearing accounts, or on deposit with the treasurer of state	1247
shall be allocated on the records of the director to the mortgage	1248
insurance fund created by section 122.561 of the Revised Code. Out	1249
of the remaining half, after allocation of sufficient moneys to	1250
the minority and small business bonding fund to meet the	1251
provisions of division (B) of this section, the remainder shall be	1252
allocated on the records of the director to the housing	1253
development fund created by division (A) of section 175.11 of the	1254
Revised Code.	1255

(B) The director shall serve as agent for the director of	1256
development services and as agent for the Ohio housing finance	1257
agency in making deposits and withdrawals and maintaining records	1258
pertaining to the minority and small business bonding fund created	1259
by section 122.88 of the Revised Code, the mortgage insurance	1260
fund, and the housing development fund created by section 175.11	1261
of the Revised Code. Funds from the mortgage insurance fund are	1262
available to the director of development services when those funds	1263
are to be disbursed to prevent or cure, or upon the occurrence of,	1264
a default of a mortgage insured pursuant to section 122.451 of the	1265
Revised Code. Funds from the housing development fund are	1266
available upon request to the Ohio housing finance agency, in an	1267
amount not to exceed the funds allocated on the records of the	1268
director, for the purposes of section 175.05 of the Revised Code.	1269
Funds from the minority and small business bonding fund are	1270
available to the director of development services upon request to	1271
pay obligations on bonds the director writes pursuant to section	1272
122.88 of the Revised Code; except that, unless the general	1273
assembly authorizes additional amounts, the total maximum amount	1274
of moneys that may be allocated to the minority and small business	1275
bonding fund under this division is ten million dollars.	1276

When funds are to be disbursed, the appropriate agency shall	1277
call upon the director to transfer the necessary funds to it. The	1278
director shall first withdraw the funds paid by the holders and	1279
deposited with the treasurer of state or in a financial	1280
institution as agent for the funds. Whenever these funds are	1281
inadequate to meet the request, the director shall provide for a	1282
withdrawal of funds, within a reasonable time and in the amount	1283
necessary to meet the request, from financial institutions in	1284
which the funds were retained or placed by a holder and from other	1285
holders who have retained funds, in an equitable manner as the	1286
director prescribes. In the event that the amount to be withdrawn	1287
from any one holder is less than five hundred dollars, the amount	1288
to be withdrawn is at the director's discretion. The director	1289
shall then transfer to the agency the amount of funds requested.	1290

Funds deposited in the unclaimed funds trust fund are subject	1291
to call by the director when necessary to pay claims the director	1292
allows under section 169.08 of the Revised Code, in accordance	1293
with the director's rules, to defray the necessary costs of making	1294
publications this chapter requires and to pay other operating and	1295
administrative expenses the department of commerce incurs in the	1296
administration and enforcement of this chapter.	1297

The unclaimed funds trust fund shall be assessed a	1298
proportionate share of the administrative costs of the department	1299
of commerce in accordance with procedures the director of commerce	1300
prescribes and the director of budget and management approves. The	1301
assessment shall be paid from the unclaimed funds trust fund to	1302
the division of administration fund.	1303

(C) Earnings on the accounts in financial organizations to	1304
the credit of the mortgage funds shall, at the option of the	1305
financial organization, be credited to the accounts at times and	1306
at rates as earnings are paid on other accounts of the same	1307
classification held in the financial organization or paid to the	1308
director. The director shall be notified annually, and at other	1309
times as the director may request, of the amount of the earnings	1310
credited to the accounts. Interest on unclaimed funds a holder	1311
retains shall be paid to the director or credited as specified in	1312
the agreement under which the organization retains the funds.	1313
Interest payable to the director under an agreement to invest	1314
unclaimed funds and obligations of the United States shall be paid	1315
annually by the holder to the director. Any earnings or interest	1316
the director receives under this division shall be deposited in	1317
and credited to the mortgage funds.	1318

Sec. 4141.01.  As used in this chapter, unless the context	1319
otherwise requires:	1320

(A)(1) "Employer" means the state, its instrumentalities, its	1321
political subdivisions and their instrumentalities, Indian tribes,	1322
and any individual or type of organization including any	1323
partnership, limited liability company, association, trust,	1324
estate, joint-stock company, insurance company, or corporation,	1325
whether domestic or foreign, or the receiver, trustee in	1326
bankruptcy, trustee, or the successor thereof, or the legal	1327
representative of a deceased person who subsequent to December 31,	1328
1971, or in the case of political subdivisions or their	1329
instrumentalities, subsequent to December 31, 1973:	1330

(a) Had in employment at least one individual, or in the case	1331
of a nonprofit organization, subsequent to December 31, 1973, had	1332
not less than four individuals in employment for some portion of a	1333
day in each of twenty different calendar weeks, in either the	1334
current or the preceding calendar year whether or not the same	1335
individual was in employment in each such day; or	1336

(b) Except for a nonprofit organization, had paid for service	1337
in employment wages of fifteen hundred dollars or more in any	1338
calendar quarter in either the current or preceding calendar year;	1339
or	1340

(c) Had paid, subsequent to December 31, 1977, for employment	1341
in domestic service in a local college club, or local chapter of a	1342
college fraternity or sorority, cash remuneration of one thousand	1343
dollars or more in any calendar quarter in the current calendar	1344
year or the preceding calendar year, or had paid subsequent to	1345
December 31, 1977, for employment in domestic service in a private	1346
home cash remuneration of one thousand dollars in any calendar	1347
quarter in the current calendar year or the preceding calendar	1348
year:	1349

(i) For the purposes of divisions (A)(1)(a) and (b) of this	1350
section, there shall not be taken into account any wages paid to,	1351
or employment of, an individual performing domestic service as	1352
described in this division.	1353

(ii) An employer under this division shall not be an employer	1354
with respect to wages paid for any services other than domestic	1355
service unless the employer is also found to be an employer under	1356
division (A)(1)(a), (b), or (d) of this section.	1357

(d) As a farm operator or a crew leader subsequent to	1358
December 31, 1977, had in employment individuals in agricultural	1359
labor; and	1360

(i) During any calendar quarter in the current calendar year	1361
or the preceding calendar year, paid cash remuneration of twenty	1362
thousand dollars or more for the agricultural labor; or	1363

(ii) Had at least ten individuals in employment in	1364
agricultural labor, not including agricultural workers who are	1365
aliens admitted to the United States to perform agricultural labor	1366
pursuant to sections 1184(c) and 1101(a)(15)(H) of the	1367
"Immigration and Nationality Act," 66 Stat. 163, 189, 8 U.S.C.A.	1368
1101(a)(15)(H)(ii)(a), 1184(c), for some portion of a day in each	1369
of the twenty different calendar weeks, in either the current or	1370
preceding calendar year whether or not the same individual was in	1371
employment in each day; or	1372

(e) Is not otherwise an employer as defined under division	1373
(A)(1)(a) or (b) of this section; and	1374

(i) For which, within either the current or preceding	1375
calendar year, service, except for domestic service in a private	1376
home not covered under division (A)(1)(c) of this section, is or	1377
was performed with respect to which such employer is liable for	1378
any federal tax against which credit may be taken for	1379
contributions required to be paid into a state unemployment fund;	1380

(ii) Which, as a condition for approval of this chapter for	1381
full tax credit against the tax imposed by the "Federal	1382
Unemployment Tax Act," 84 Stat. 713, 26 U.S.C.A. 3301 to 3311, is	1383
required, pursuant to such act to be an employer under this	1384
chapter; or	1385

(iii) Who became an employer by election under division	1386
(A)(4) or (5) of this section and for the duration of such	1387
election; or	1388

(f) In the case of the state, its instrumentalities, its	1389
political subdivisions, and their instrumentalities, and Indian	1390
tribes, had in employment, as defined in divisions (B)(2)(a) and	1391
(B)(2)(l) of this section, at least one individual;	1392

(g) For the purposes of division (A)(1)(a) of this section,	1393
if any week includes both the thirty-first day of December and the	1394
first day of January, the days of that week before the first day	1395
of January shall be considered one calendar week and the days	1396
beginning the first day of January another week.	1397

(2) Each individual employed to perform or to assist in	1398
performing the work of any agent or employee of an employer is	1399
employed by such employer for all the purposes of this chapter,	1400
whether such individual was hired or paid directly by such	1401
employer or by such agent or employee, provided the employer had	1402
actual or constructive knowledge of the work. All individuals	1403
performing services for an employer of any person in this state	1404
who maintains two or more establishments within this state are	1405
employed by a single employer for the purposes of this chapter.	1406

(3) An employer subject to this chapter within any calendar	1407
year is subject to this chapter during the whole of such year and	1408
during the next succeeding calendar year.	1409

(4) An employer not otherwise subject to this chapter who	1410
files with the director of job and family services a written	1411
election to become an employer subject to this chapter for not	1412
less than two calendar years shall, with the written approval of	1413
such election by the director, become an employer subject to this	1414
chapter to the same extent as all other employers as of the date	1415
stated in such approval, and shall cease to be subject to this	1416
chapter as of the first day of January of any calendar year	1417
subsequent to such two calendar years only if at least thirty days	1418
prior to such first day of January the employer has filed with the	1419
director a written notice to that effect.	1420

(5) Any employer for whom services that do not constitute	1421
employment are performed may file with the director a written	1422
election that all such services performed by individuals in the	1423
employer's employ in one or more distinct establishments or places	1424
of business shall be deemed to constitute employment for all the	1425
purposes of this chapter, for not less than two calendar years.	1426
Upon written approval of the election by the director, such	1427
services shall be deemed to constitute employment subject to this	1428
chapter from and after the date stated in such approval. Such	1429
services shall cease to be employment subject to this chapter as	1430
of the first day of January of any calendar year subsequent to	1431
such two calendar years only if at least thirty days prior to such	1432
first day of January such employer has filed with the director a	1433
written notice to that effect.	1434

(B)(1) "Employment" means service performed by an individual	1435
for remuneration under any contract of hire, written or oral,	1436
express or implied, including service performed in interstate	1437
commerce and service performed by an officer of a corporation,	1438
without regard to whether such service is executive, managerial,	1439
or manual in nature, and without regard to whether such officer is	1440
a stockholder or a member of the board of directors of the	1441
corporation, unless it is shown to the satisfaction of the	1442
director that such individual has been and will continue to be	1443
free from direction or control over the performance of such	1444
service, both under a contract of service and in fact. The	1445
director shall adopt rules to define "direction or control."	1446

(2) "Employment" includes:

1447

(a) Service performed after December 31, 1977, by an	1448
individual in the employ of the state or any of its	1449
instrumentalities, or any political subdivision thereof or any of	1450
its instrumentalities or any instrumentality of more than one of	1451
the foregoing or any instrumentality of any of the foregoing and	1452
one or more other states or political subdivisions and without	1453
regard to divisions (A)(1)(a) and (b) of this section, provided	1454
that such service is excluded from employment as defined in the	1455
"Federal Unemployment Tax Act," 53 Stat. 183, 26 U.S.C.A. 3301,	1456
3306(c)(7) and is not excluded under division (B)(3) of this	1457
section; or the services of employees covered by voluntary	1458
election, as provided under divisions (A)(4) and (5) of this	1459
section;	1460

(b) Service performed after December 31, 1971, by an	1461
individual in the employ of a religious, charitable, educational,	1462
or other organization which is excluded from the term "employment"	1463
as defined in the "Federal Unemployment Tax Act," 84 Stat. 713, 26	1464
U.S.C.A. 3301 to 3311, solely by reason of section 26 U.S.C.A.	1465
3306(c)(8) of that act and is not excluded under division (B)(3)	1466
of this section;	1467

(c) Domestic service performed after December 31, 1977, for	1468
an employer, as provided in division (A)(1)(c) of this section;	1469

(d) Agricultural labor performed after December 31, 1977, for	1470
a farm operator or a crew leader, as provided in division	1471
(A)(1)(d) of this section;	1472

(e) Service not covered under division (B)(1) of this section	1473
which is performed after December 31, 1971:	1474

(i) As an agent-driver or commission-driver engaged in	1475
distributing meat products, vegetable products, fruit products,	1476
bakery products, beverages other than milk, laundry, or	1477
dry-cleaning services, for the individual's employer or principal;	1478

(ii) As a traveling or city salesperson, other than as an	1479
agent-driver or commission-driver, engaged on a full-time basis in	1480
the solicitation on behalf of and in the transmission to the	1481
salesperson's employer or principal except for sideline sales	1482
activities on behalf of some other person of orders from	1483
wholesalers, retailers, contractors, or operators of hotels,	1484
restaurants, or other similar establishments for merchandise for	1485
resale, or supplies for use in their business operations, provided	1486
that for the purposes of division (B)(2)(e)(ii) of this section,	1487
the services shall be deemed employment if the contract of service	1488
contemplates that substantially all of the services are to be	1489
performed personally by the individual and that the individual	1490
does not have a substantial investment in facilities used in	1491
connection with the performance of the services other than in	1492
facilities for transportation, and the services are not in the	1493
nature of a single transaction that is not a part of a continuing	1494
relationship with the person for whom the services are performed.	1495

(f) An individual's entire service performed within or both	1496
within and without the state if:	1497

(i) The service is localized in this state.

1498

(ii) The service is not localized in any state, but some of	1499
the service is performed in this state and either the base of	1500
operations, or if there is no base of operations then the place	1501
from which such service is directed or controlled, is in this	1502
state or the base of operations or place from which such service	1503
is directed or controlled is not in any state in which some part	1504
of the service is performed but the individual's residence is in	1505
this state.	1506

(g) Service not covered under division (B)(2)(f)(ii) of this	1507
section and performed entirely without this state, with respect to	1508
no part of which contributions are required and paid under an	1509
unemployment compensation law of any other state, the Virgin	1510
Islands, Canada, or of the United States, if the individual	1511
performing such service is a resident of this state and the	1512
director approves the election of the employer for whom such	1513
services are performed; or, if the individual is not a resident of	1514
this state but the place from which the service is directed or	1515
controlled is in this state, the entire services of such	1516
individual shall be deemed to be employment subject to this	1517
chapter, provided service is deemed to be localized within this	1518
state if the service is performed entirely within this state or if	1519
the service is performed both within and without this state but	1520
the service performed without this state is incidental to the	1521
individual's service within the state, for example, is temporary	1522
or transitory in nature or consists of isolated transactions;	1523

(h) Service of an individual who is a citizen of the United	1524
States, performed outside the United States except in Canada after	1525
December 31, 1971, or the Virgin Islands, after December 31, 1971,	1526
and before the first day of January of the year following that in	1527
which the United States secretary of labor approves the Virgin	1528
Islands law for the first time, in the employ of an American	1529
employer, other than service which is "employment" under divisions	1530
(B)(2)(f) and (g) of this section or similar provisions of another	1531
state's law, if:	1532

(i) The employer's principal place of business in the United	1533
States is located in this state;	1534

(ii) The employer has no place of business in the United	1535
States, but the employer is an individual who is a resident of	1536
this state; or the employer is a corporation which is organized	1537
under the laws of this state, or the employer is a partnership or	1538
a trust and the number of partners or trustees who are residents	1539
of this state is greater than the number who are residents of any	1540
other state; or	1541

(iii) None of the criteria of divisions (B)(2)(f)(i) and (ii)	1542
of this section is met but the employer has elected coverage in	1543
this state or the employer having failed to elect coverage in any	1544
state, the individual has filed a claim for benefits, based on	1545
such service, under this chapter.	1546

(i) For the purposes of division (B)(2)(h) of this section,	1547
the term "American employer" means an employer who is an	1548
individual who is a resident of the United States; or a	1549
partnership, if two-thirds or more of the partners are residents	1550
of the United States; or a trust, if all of the trustees are	1551
residents of the United States; or a corporation organized under	1552
the laws of the United States or of any state, provided the term	1553
"United States" includes the states, the District of Columbia, the	1554
Commonwealth of Puerto Rico, and the Virgin Islands.	1555

(j) Notwithstanding any other provisions of divisions (B)(1)	1556
and (2) of this section, service, except for domestic service in a	1557
private home not covered under division (A)(1)(c) of this section,	1558
with respect to which a tax is required to be paid under any	1559
federal law imposing a tax against which credit may be taken for	1560
contributions required to be paid into a state unemployment fund,	1561
or service, except for domestic service in a private home not	1562
covered under division (A)(1)(c) of this section, which, as a	1563
condition for full tax credit against the tax imposed by the	1564
"Federal Unemployment Tax Act," 84 Stat. 713, 26 U.S.C.A. 3301 to	1565
3311, is required to be covered under this chapter.	1566

(k) Construction services performed by any individual under a	1567
construction contract, as defined in section 4141.39 of the	1568
Revised Code, if the director determines that the employer for	1569
whom services are performed has the right to direct or control the	1570
performance of the services and that the individuals who perform	1571
the services receive remuneration for the services performed. The	1572
director shall presume that the employer for whom services are	1573
performed has the right to direct or control the performance of	1574
the services if ten or more of the following criteria apply:	1575

(i) The employer directs or controls the manner or method by	1576
which instructions are given to the individual performing	1577
services;	1578

(ii) The employer requires particular training for the	1579
individual performing services;	1580

(iii) Services performed by the individual are integrated	1581
into the regular functioning of the employer;	1582

(iv) The employer requires that services be provided by a	1583
particular individual;	1584

(v) The employer hires, supervises, or pays the wages of the	1585
individual performing services;	1586

(vi) A continuing relationship between the employer and the	1587
individual performing services exists which contemplates	1588
continuing or recurring work, even if not full-time work;	1589

(vii) The employer requires the individual to perform	1590
services during established hours;	1591

(viii) The employer requires that the individual performing	1592
services be devoted on a full-time basis to the business of the	1593
employer;	1594

(ix) The employer requires the individual to perform services	1595
on the employer's premises;	1596

(x) The employer requires the individual performing services	1597
to follow the order of work established by the employer;	1598

(xi) The employer requires the individual performing services	1599
to make oral or written reports of progress;	1600

(xii) The employer makes payment to the individual for	1601
services on a regular basis, such as hourly, weekly, or monthly;	1602

(xiii) The employer pays expenses for the individual	1603
performing services;	1604

(xiv) The employer furnishes the tools and materials for use	1605
by the individual to perform services;	1606

(xv) The individual performing services has not invested in	1607
the facilities used to perform services;	1608

(xvi) The individual performing services does not realize a	1609
profit or suffer a loss as a result of the performance of the	1610
services;	1611

(xvii) The individual performing services is not performing	1612
services for more than two employers simultaneously;	1613

(xviii) The individual performing services does not make the	1614
services available to the general public;	1615

(xix) The employer has a right to discharge the individual	1616
performing services;	1617

(xx) The individual performing services has the right to end	1618
the individual's relationship with the employer without incurring	1619
liability pursuant to an employment contract or agreement.	1620

(l) Service performed by an individual in the employ of an	1621
Indian tribe as defined by section 4(e) of the "Indian	1622
Self-Determination and Education Assistance Act," 88 Stat. 2204	1623
(1975), 25 U.S.C.A. 450b(e), including any subdivision,	1624
subsidiary, or business enterprise wholly owned by an Indian tribe	1625
provided that the service is excluded from employment as defined	1626
in the "Federal Unemployment Tax Act," 53 Stat. 183 (1939), 26	1627
U.S.C.A. 3301 and 3306(c)(7) and is not excluded under division	1628
(B)(3) of this section.	1629

(3) "Employment" does not include the following services if	1630
they are found not subject to the "Federal Unemployment Tax Act,"	1631
84 Stat. 713 (1970), 26 U.S.C.A. 3301 to 3311, and if the services	1632
are not required to be included under division (B)(2)(j) of this	1633
section:	1634

(a) Service performed after December 31, 1977, in	1635
agricultural labor, except as provided in division (A)(1)(d) of	1636
this section;	1637

(b) Domestic service performed after December 31, 1977, in a	1638
private home, local college club, or local chapter of a college	1639
fraternity or sorority except as provided in division (A)(1)(c) of	1640
this section;	1641

(c) Service performed after December 31, 1977, for this state	1642
or a political subdivision as described in division (B)(2)(a) of	1643
this section when performed:	1644

(i) As a publicly elected official;

1645

(ii) As a member of a legislative body, or a member of the	1646
judiciary;	1647

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

1648

(iv) As an employee, not in the classified service as defined	1649
in section 124.11 of the Revised Code, serving on a temporary	1650
basis in case of fire, storm, snow, earthquake, flood, or similar	1651
emergency;	1652

(v) In a position which, under or pursuant to law, is	1653
designated as a major nontenured policymaking or advisory	1654
position, not in the classified service of the state, or a	1655
policymaking or advisory position the performance of the duties of	1656
which ordinarily does not require more than eight hours per week.	1657

(d) In the employ of any governmental unit or instrumentality	1658
of the United States;	1659

(e) Service performed after December 31, 1971:

1660

(i) Service in the employ of an educational institution or	1661
institution of higher education, including those operated by the	1662
state or a political subdivision, if such service is performed by	1663
a student who is enrolled and is regularly attending classes at	1664
the educational institution or institution of higher education; or	1665

(ii) By an individual who is enrolled at a nonprofit or	1666
public educational institution which normally maintains a regular	1667
faculty and curriculum and normally has a regularly organized body	1668
of students in attendance at the place where its educational	1669
activities are carried on as a student in a full-time program,	1670
taken for credit at the institution, which combines academic	1671
instruction with work experience, if the service is an integral	1672
part of the program, and the institution has so certified to the	1673
employer, provided that this subdivision shall not apply to	1674
service performed in a program established for or on behalf of an	1675
employer or group of employers.	1676

(f) Service performed by an individual in the employ of the	1677
individual's son, daughter, or spouse and service performed by a	1678
child under the age of eighteen in the employ of the child's	1679
father or mother;	1680

(g) Service performed for one or more principals by an	1681
individual who is compensated on a commission basis, who in the	1682
performance of the work is master of the individual's own time and	1683
efforts, and whose remuneration is wholly dependent on the amount	1684
of effort the individual chooses to expend, and which service is	1685
not subject to the "Federal Unemployment Tax Act," 53 Stat. 183	1686
(1939), 26 U.S.C.A. 3301 to 3311. Service performed after December	1687
31, 1971:	1688

(i) By an individual for an employer as an insurance agent or	1689
as an insurance solicitor, if all this service is performed for	1690
remuneration solely by way of commission;	1691

(ii) As a home worker performing work, according to	1692
specifications furnished by the employer for whom the services are	1693
performed, on materials or goods furnished by such employer which	1694
are required to be returned to the employer or to a person	1695
designated for that purpose.	1696

(h) Service performed after December 31, 1971:

1697

(i) In the employ of a church or convention or association of	1698
churches, or in an organization which is operated primarily for	1699
religious purposes and which is operated, supervised, controlled,	1700
or principally supported by a church or convention or association	1701
of churches;	1702

(ii) By a duly ordained, commissioned, or licensed minister	1703
of a church in the exercise of the individual's ministry or by a	1704
member of a religious order in the exercise of duties required by	1705
such order; or	1706

(iii) In a facility conducted for the purpose of carrying out	1707
a program of rehabilitation for individuals whose earning capacity	1708
is impaired by age or physical or mental deficiency or injury, or	1709
providing remunerative work for individuals who because of their	1710
impaired physical or mental capacity cannot be readily absorbed in	1711
the competitive labor market, by an individual receiving such	1712
rehabilitation or remunerative work.	1713

(i) Service performed after June 30, 1939, with respect to	1714
which unemployment compensation is payable under the "Railroad	1715
Unemployment Insurance Act," 52 Stat. 1094 (1938), 45 U.S.C. 351;	1716

(j) Service performed by an individual in the employ of any	1717
organization exempt from income tax under section 501 of the	1718
"Internal Revenue Code of 1954," if the remuneration for such	1719
service does not exceed fifty dollars in any calendar quarter, or	1720
if such service is in connection with the collection of dues or	1721
premiums for a fraternal beneficial society, order, or association	1722
and is performed away from the home office or is ritualistic	1723
service in connection with any such society, order, or	1724
association;	1725

(k) Casual labor not in the course of an employer's trade or	1726
business; incidental service performed by an officer, appraiser,	1727
or member of a finance committee of a bank, building and loan	1728
association, savings and loan association, or savings association	1729
when the remuneration for such incidental service exclusive of the	1730
amount paid or allotted for directors' fees does not exceed sixty	1731
dollars per calendar quarter is casual labor;	1732

(l) Service performed in the employ of a voluntary employees'	1733
beneficial association providing for the payment of life,	1734
sickness, accident, or other benefits to the members of such	1735
association or their dependents or their designated beneficiaries,	1736
if admission to a membership in such association is limited to	1737
individuals who are officers or employees of a municipal or public	1738
corporation, of a political subdivision of the state, or of the	1739
United States and no part of the net earnings of such association	1740
inures, other than through such payments, to the benefit of any	1741
private shareholder or individual;	1742

(m) Service performed by an individual in the employ of a	1743
foreign government, including service as a consular or other	1744
officer or employee or of a nondiplomatic representative;	1745

(n) Service performed in the employ of an instrumentality	1746
wholly owned by a foreign government if the service is of a	1747
character similar to that performed in foreign countries by	1748
employees of the United States or of an instrumentality thereof	1749
and if the director finds that the secretary of state of the	1750
United States has certified to the secretary of the treasury of	1751
the United States that the foreign government, with respect to	1752
whose instrumentality exemption is claimed, grants an equivalent	1753
exemption with respect to similar service performed in the foreign	1754
country by employees of the United States and of instrumentalities	1755
thereof;	1756

(o) Service with respect to which unemployment compensation	1757
is payable under an unemployment compensation system established	1758
by an act of congress;	1759

(p) Service performed as a student nurse in the employ of a	1760
hospital or a nurses' training school by an individual who is	1761
enrolled and is regularly attending classes in a nurses' training	1762
school chartered or approved pursuant to state law, and service	1763
performed as an intern in the employ of a hospital by an	1764
individual who has completed a four years' course in a medical	1765
school chartered or approved pursuant to state law;	1766

(q) Service performed by an individual under the age of	1767
eighteen in the delivery or distribution of newspapers or shopping	1768
news, not including delivery or distribution to any point for	1769
subsequent delivery or distribution;	1770

(r) Service performed in the employ of the United States or	1771
an instrumentality of the United States immune under the	1772
Constitution of the United States from the contributions imposed	1773
by this chapter, except that to the extent that congress permits	1774
states to require any instrumentalities of the United States to	1775
make payments into an unemployment fund under a state unemployment	1776
compensation act, this chapter shall be applicable to such	1777
instrumentalities and to services performed for such	1778
instrumentalities in the same manner, to the same extent, and on	1779
the same terms as to all other employers, individuals, and	1780
services, provided that if this state is not certified for any	1781
year by the proper agency of the United States under section 3304	1782
of the "Internal Revenue Code of 1954," the payments required of	1783
such instrumentalities with respect to such year shall be refunded	1784
by the director from the fund in the same manner and within the	1785
same period as is provided in division (E) of section 4141.09 of	1786
the Revised Code with respect to contributions erroneously	1787
collected;	1788

(s) Service performed by an individual as a member of a band	1789
or orchestra, provided such service does not represent the	1790
principal occupation of such individual, and which service is not	1791
subject to or required to be covered for full tax credit against	1792
the tax imposed by the "Federal Unemployment Tax Act," 53 Stat.	1793
183 (1939), 26 U.S.C.A. 3301 to 3311.	1794

(t) Service performed in the employ of a day camp whose	1795
camping season does not exceed twelve weeks in any calendar year,	1796
and which service is not subject to the "Federal Unemployment Tax	1797
Act," 53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311. Service	1798
performed after December 31, 1971:	1799

(i) In the employ of a hospital, if the service is performed	1800
by a patient of the hospital, as defined in division (W) of this	1801
section;	1802

(ii) For a prison or other correctional institution by an	1803
inmate of the prison or correctional institution;	1804

(iii) Service performed after December 31, 1977, by an inmate	1805
of a custodial institution operated by the state, a political	1806
subdivision, or a nonprofit organization.	1807

(u) Service that is performed by a nonresident alien	1808
individual for the period the individual temporarily is present in	1809
the United States as a nonimmigrant under division (F), (J), (M),	1810
or (Q) of section 101(a)(15) of the "Immigration and Nationality	1811
Act," 66 Stat. 163, 8 U.S.C.A. 1101, as amended, that is excluded	1812
under section 3306(c)(19) of the "Federal Unemployment Tax Act,"	1813
53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311.	1814

(v) Notwithstanding any other provisions of division (B)(3)	1815
of this section, services that are excluded under divisions	1816
(B)(3)(g), (j), (k), and (l) of this section shall not be excluded	1817
from employment when performed for a nonprofit organization, as	1818
defined in division (X) of this section, or for this state or its	1819
instrumentalities, or for a political subdivision or its	1820
instrumentalities or for Indian tribes;	1821

(w) Service that is performed by an individual working as an	1822
election official or election worker if the amount of remuneration	1823
received by the individual during the calendar year for services	1824
as an election official or election worker is less than one	1825
thousand dollars;	1826

(x) Service performed for an elementary or secondary school	1827
that is operated primarily for religious purposes, that is	1828
described in subsection 501(c)(3) and exempt from federal income	1829
taxation under subsection 501(a) of the Internal Revenue Code, 26	1830
U.S.C.A. 501;	1831

(y) Service performed by a person committed to a penal	1832
institution.	1833

(z) Service performed for an Indian tribe as described in	1834
division (B)(2)(l) of this section when performed in any of the	1835
following manners:	1836

(i) As a publicly elected official;

1837

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

1838

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

1839

(iv) In a position which, pursuant to Indian tribal law, is	1840
designated as a major nontenured policymaking or advisory	1841
position, or a policymaking or advisory position where the	1842
performance of the duties ordinarily does not require more than	1843
eight hours of time per week;	1844

(v) As an employee serving on a temporary basis in the case	1845
of a fire, storm, snow, earthquake, flood, or similar emergency.	1846

(aa) Service performed after December 31, 1971, for a	1847
nonprofit organization, this state or its instrumentalities, a	1848
political subdivision or its instrumentalities, or an Indian tribe	1849
as part of an unemployment work-relief or work-training program	1850
assisted or financed in whole or in part by any federal agency or	1851
an agency of a state or political subdivision, thereof, by an	1852
individual receiving the work-relief or work-training.	1853

(bb) Participation in a learn to earn program as defined in	1854
section 4141.293 of the Revised Code.	1855

(4) If the services performed during one half or more of any	1856
pay period by an employee for the person employing that employee	1857
constitute employment, all the services of such employee for such	1858
period shall be deemed to be employment; but if the services	1859
performed during more than one half of any such pay period by an	1860
employee for the person employing that employee do not constitute	1861
employment, then none of the services of such employee for such	1862
period shall be deemed to be employment. As used in division	1863
(B)(4) of this section, "pay period" means a period, of not more	1864
than thirty-one consecutive days, for which payment of	1865
remuneration is ordinarily made to the employee by the person	1866
employing that employee. Division (B)(4) of this section does not	1867
apply to services performed in a pay period by an employee for the	1868
person employing that employee, if any of such service is excepted	1869
by division (B)(3)(o) of this section.	1870

(C) "Benefits" means money payments payable to an individual	1871
who has established benefit rights, as provided in this chapter,	1872
for loss of remuneration due to the individual's unemployment.	1873

(D) "Benefit rights" means the weekly benefit amount and the	1874
maximum benefit amount that may become payable to an individual	1875
within the individual's benefit year as determined by the	1876
director.	1877

(E) "Claim for benefits" means a claim for waiting period or	1878
benefits for a designated week.	1879

(F) "Additional claim" means the first claim for benefits	1880
filed following any separation from employment during a benefit	1881
year; "continued claim" means any claim other than the first claim	1882
for benefits and other than an additional claim.	1883

(G)(1) "Wages" means remuneration paid to an employee by each	1884
of the employee's employers with respect to employment; except	1885
that wages shall not include that part of remuneration paid during	1886
any calendar year to an individual by an employer or such	1887
employer's predecessor in interest in the same business or	1888
enterprise, which in any calendar year is in excess of eight	1889
thousand two hundred fifty dollars on and after January 1, 1992;	1890
eight thousand five hundred dollars on and after January 1, 1993;	1891
eight thousand seven hundred fifty dollars on and after January 1,	1892
1994; and nine thousand dollars on and after January 1, 1995.	1893
Remuneration in excess of such amounts shall be deemed wages	1894
subject to contribution to the same extent that such remuneration	1895
is defined as wages under the "Federal Unemployment Tax Act," 84	1896
Stat. 714 (1970), 26 U.S.C.A. 3301 to 3311, as amended. The	1897
remuneration paid an employee by an employer with respect to	1898
employment in another state, upon which contributions were	1899
required and paid by such employer under the unemployment	1900
compensation act of such other state, shall be included as a part	1901
of remuneration in computing the amount specified in this	1902
division.	1903

(2) Notwithstanding division (G)(1) of this section, if, as	1904
of the computation date for any calendar year, the director	1905
determines that the level of the unemployment compensation fund is	1906
sixty per cent or more below the minimum safe level as defined in	1907
section 4141.25 of the Revised Code, then, effective the first day	1908
of January of the following calendar year, wages subject to this	1909
chapter shall not include that part of remuneration paid during	1910
any calendar year to an individual by an employer or such	1911
employer's predecessor in interest in the same business or	1912
enterprise which is in excess of nine thousand dollars. The	1913
increase in the dollar amount of wages subject to this chapter	1914
under this division shall remain in effect from the date of the	1915
director's determination pursuant to division (G)(2) of this	1916
section and thereafter notwithstanding the fact that the level in	1917
the fund may subsequently become less than sixty per cent below	1918
the minimum safe level.	1919

(H)(1) "Remuneration" means all compensation for personal	1920
services, including commissions and bonuses and the cash value of	1921
all compensation in any medium other than cash, except that in the	1922
case of agricultural or domestic service, "remuneration" includes	1923
only cash remuneration. Gratuities customarily received by an	1924
individual in the course of the individual's employment from	1925
persons other than the individual's employer and which are	1926
accounted for by such individual to the individual's employer are	1927
taxable wages.	1928

The reasonable cash value of compensation paid in any medium	1929
other than cash shall be estimated and determined in accordance	1930
with rules prescribed by the director, provided that	1931
"remuneration" does not include:	1932

(a) Payments as provided in divisions (b)(2) to (b)(16) of	1933
section 3306 of the "Federal Unemployment Tax Act," 84 Stat. 713,	1934
26 U.S.C.A. 3301 to 3311, as amended;	1935

(b) The payment by an employer, without deduction from the	1936
remuneration of the individual in the employer's employ, of the	1937
tax imposed upon an individual in the employer's employ under	1938
section 3101 of the "Internal Revenue Code of 1954," with respect	1939
to services performed after October 1, 1941.	1940

(2) "Cash remuneration" means all remuneration paid in cash,	1941
including commissions and bonuses, but not including the cash	1942
value of all compensation in any medium other than cash.	1943

(I) "Interested party" means the director and any party to	1944
whom notice of a determination of an application for benefit	1945
rights or a claim for benefits is required to be given under	1946
section 4141.28 of the Revised Code.	1947

(J) "Annual payroll" means the total amount of wages subject	1948
to contributions during a twelve-month period ending with the last	1949
day of the second calendar quarter of any calendar year.	1950

(K) "Average annual payroll" means the average of the last	1951
three annual payrolls of an employer, provided that if, as of any	1952
computation date, the employer has had less than three annual	1953
payrolls in such three-year period, such average shall be based on	1954
the annual payrolls which the employer has had as of such date.	1955

(L)(1) "Contributions" means the money payments to the state	1956
unemployment compensation fund required of employers by section	1957
4141.25 of the Revised Code and of the state and any of its	1958
political subdivisions electing to pay contributions under section	1959
4141.242 of the Revised Code. Employers paying contributions shall	1960
be described as "contributory employers."	1961

(2) "Payments in lieu of contributions" means the money	1962
payments to the state unemployment compensation fund required of	1963
reimbursing employers under sections 4141.241 and 4141.242 of the	1964
Revised Code.	1965

(M) An individual is "totally unemployed" in any week during	1966
which the individual performs no services and with respect to such	1967
week no remuneration is payable to the individual.	1968

(N) An individual is "partially unemployed" in any week if,	1969
due to involuntary loss of work, the total remuneration payable to	1970
the individual for such week is less than the individual's weekly	1971
benefit amount.	1972

(O) "Week" means the calendar week ending at midnight	1973
Saturday unless an equivalent week of seven consecutive calendar	1974
days is prescribed by the director.	1975

(1) "Qualifying week" means any calendar week in an	1976
individual's base period with respect to which the individual	1977
earns or is paid remuneration in employment subject to this	1978
chapter. A calendar week with respect to which an individual earns	1979
remuneration but for which payment was not made within the base	1980
period, when necessary to qualify for benefit rights, may be	1981
considered to be a qualifying week. The number of qualifying weeks	1982
which may be established in a calendar quarter shall not exceed	1983
the number of calendar weeks in the quarter.	1984

(2) "Average weekly wage" means the amount obtained by	1985
dividing an individual's total remuneration for all qualifying	1986
weeks during the base period by the number of such qualifying	1987
weeks, provided that if the computation results in an amount that	1988
is not a multiple of one dollar, such amount shall be rounded to	1989
the next lower multiple of one dollar.	1990

(P) "Weekly benefit amount" means the amount of benefits an	1991
individual would be entitled to receive for one week of total	1992
unemployment.	1993

(Q)(1) "Base period" means the first four of the last five	1994
completed calendar quarters immediately preceding the first day of	1995
an individual's benefit year, except as provided in division	1996
(Q)(2) of this section.	1997

(2) If an individual does not have sufficient qualifying	1998
weeks and wages in the base period to qualify for benefit rights,	1999
the individual's base period shall be the four most recently	2000
completed calendar quarters preceding the first day of the	2001
individual's benefit year. Such base period shall be known as the	2002
"alternate base period." If information as to weeks and wages for	2003
the most recent quarter of the alternate base period is not	2004
available to the director from the regular quarterly reports of	2005
wage information, which are systematically accessible, the	2006
director may, consistent with the provisions of section 4141.28 of	2007
the Revised Code, base the determination of eligibility for	2008
benefits on the affidavit of the claimant with respect to weeks	2009
and wages for that calendar quarter. The claimant shall furnish	2010
payroll documentation, where available, in support of the	2011
affidavit. The determination based upon the alternate base period	2012
as it relates to the claimant's benefit rights, shall be amended	2013
when the quarterly report of wage information from the employer is	2014
timely received and that information causes a change in the	2015
determination. As provided in division (B) of section 4141.28 of	2016
the Revised Code, any benefits paid and charged to an employer's	2017
account, based upon a claimant's affidavit, shall be adjusted	2018
effective as of the beginning of the claimant's benefit year. No	2019
calendar quarter in a base period or alternate base period shall	2020
be used to establish a subsequent benefit year.	2021

(3) The "base period" of a combined wage claim, as described	2022
in division (H) of section 4141.43 of the Revised Code, shall be	2023
the base period prescribed by the law of the state in which the	2024
claim is allowed.	2025

(4) For purposes of determining the weeks that comprise a	2026
completed calendar quarter under this division, only those weeks	2027
ending at midnight Saturday within the calendar quarter shall be	2028
utilized.	2029

(R)(1) "Benefit year" with respect to an individual means the	2030
fifty-two week period beginning with the first day of that week	2031
with respect to which the individual first files a valid	2032
application for determination of benefit rights, and thereafter	2033
the fifty-two week period beginning with the first day of that	2034
week with respect to which the individual next files a valid	2035
application for determination of benefit rights after the	2036
termination of the individual's last preceding benefit year,	2037
except that the application shall not be considered valid unless	2038
the individual has had employment in six weeks that is subject to	2039
this chapter or the unemployment compensation act of another	2040
state, or the United States, and has, since the beginning of the	2041
individual's previous benefit year, in the employment earned three	2042
times the average weekly wage determined for the previous benefit	2043
year. The "benefit year" of a combined wage claim, as described in	2044
division (H) of section 4141.43 of the Revised Code, shall be the	2045
benefit year prescribed by the law of the state in which the claim	2046
is allowed. Any application for determination of benefit rights	2047
made in accordance with section 4141.28 of the Revised Code is	2048
valid if the individual filing such application is unemployed, has	2049
been employed by an employer or employers subject to this chapter	2050
in at least twenty qualifying weeks within the individual's base	2051
period, and has earned or been paid remuneration at an average	2052
weekly wage of not less than twenty-seven and one-half per cent of	2053
the statewide average weekly wage for such weeks. For purposes of	2054
determining whether an individual has had sufficient employment	2055
since the beginning of the individual's previous benefit year to	2056
file a valid application, "employment" means the performance of	2057
services for which remuneration is payable.	2058

(2) Effective for benefit years beginning on and after	2059
December 26, 2004, any application for determination of benefit	2060
rights made in accordance with section 4141.28 of the Revised Code	2061
is valid if the individual satisfies the criteria described in	2062
division (R)(1) of this section, and if the reason for the	2063
individual's separation from employment is not disqualifying	2064
pursuant to division (D)(2) of section 4141.29 or section 4141.291	2065
of the Revised Code. A disqualification imposed pursuant to	2066
division (D)(2) of section 4141.29 or section 4141.291 of the	2067
Revised Code must be removed as provided in those sections as a	2068
requirement of establishing a valid application for benefit years	2069
beginning on and after December 26, 2004.	2070

(3) The statewide average weekly wage shall be calculated by	2071
the director once a year based on the twelve-month period ending	2072
the thirtieth day of June, as set forth in division (B)(3) of	2073
section 4141.30 of the Revised Code, rounded down to the nearest	2074
dollar. Increases or decreases in the amount of remuneration	2075
required to have been earned or paid in order for individuals to	2076
have filed valid applications shall become effective on Sunday of	2077
the calendar week in which the first day of January occurs that	2078
follows the twelve-month period ending the thirtieth day of June	2079
upon which the calculation of the statewide average weekly wage	2080
was based.	2081

(4) As used in this division, an individual is "unemployed"	2082
if, with respect to the calendar week in which such application is	2083
filed, the individual is "partially unemployed" or "totally	2084
unemployed" as defined in this section or if, prior to filing the	2085
application, the individual was separated from the individual's	2086
most recent work for any reason which terminated the individual's	2087
employee-employer relationship, or was laid off indefinitely or	2088
for a definite period of seven or more days.	2089

(S) "Calendar quarter" means the period of three consecutive	2090
calendar months ending on the thirty-first day of March, the	2091
thirtieth day of June, the thirtieth day of September, and the	2092
thirty-first day of December, or the equivalent thereof as the	2093
director prescribes by rule.	2094

(T) "Computation date" means the first day of the third	2095
calendar quarter of any calendar year.	2096

(U) "Contribution period" means the calendar year beginning	2097
on the first day of January of any year.	2098

(V) "Agricultural labor," for the purpose of this division,	2099
means any service performed prior to January 1, 1972, which was	2100
agricultural labor as defined in this division prior to that date,	2101
and service performed after December 31, 1971:	2102

(1) On a farm, in the employ of any person, in connection	2103
with cultivating the soil, or in connection with raising or	2104
harvesting any agricultural or horticultural commodity, including	2105
the raising, shearing, feeding, caring for, training, and	2106
management of livestock, bees, poultry, and fur-bearing animals	2107
and wildlife;	2108

(2) In the employ of the owner or tenant or other operator of	2109
a farm in connection with the operation, management, conservation,	2110
improvement, or maintenance of such farm and its tools and	2111
equipment, or in salvaging timber or clearing land of brush and	2112
other debris left by hurricane, if the major part of such service	2113
is performed on a farm;	2114

(3) In connection with the production or harvesting of any	2115
commodity defined as an agricultural commodity in section 15 (g)	2116
of the "Agricultural Marketing Act," 46 Stat. 1550 (1931), 12	2117
U.S.C. 1141j, as amended, or in connection with the ginning of	2118
cotton, or in connection with the operation or maintenance of	2119
ditches, canals, reservoirs, or waterways, not owned or operated	2120
for profit, used exclusively for supplying and storing water for	2121
farming purposes;	2122

(4) In the employ of the operator of a farm in handling,	2123
planting, drying, packing, packaging, processing, freezing,	2124
grading, storing, or delivering to storage or to market or to a	2125
carrier for transportation to market, in its unmanufactured state,	2126
any agricultural or horticultural commodity, but only if the	2127
operator produced more than one half of the commodity with respect	2128
to which such service is performed;	2129

(5) In the employ of a group of operators of farms, or a	2130
cooperative organization of which the operators are members, in	2131
the performance of service described in division (V)(4) of this	2132
section, but only if the operators produced more than one-half of	2133
the commodity with respect to which the service is performed;	2134

(6) Divisions (V)(4) and (5) of this section shall not be	2135
deemed to be applicable with respect to service performed:	2136

(a) In connection with commercial canning or commercial	2137
freezing or in connection with any agricultural or horticultural	2138
commodity after its delivery to a terminal market for distribution	2139
for consumption; or	2140

(b) On a farm operated for profit if the service is not in	2141
the course of the employer's trade or business.	2142

As used in division (V) of this section, "farm" includes	2143
stock, dairy, poultry, fruit, fur-bearing animal, and truck farms,	2144
plantations, ranches, nurseries, ranges, greenhouses, or other	2145
similar structures used primarily for the raising of agricultural	2146
or horticultural commodities and orchards.	2147

(W) "Hospital" means an institution which has been registered	2148
or licensed by the Ohio department of health as a hospital.	2149

(X) "Nonprofit organization" means an organization, or group	2150
of organizations, described in section 501(c)(3) of the "Internal	2151
Revenue Code of 1954," and exempt from income tax under section	2152
501(a) of that code.	2153

(Y) "Institution of higher education" means a public or	2154
nonprofit educational institution, including an educational	2155
institution operated by an Indian tribe, which:	2156

(1) Admits as regular students only individuals having a	2157
certificate of graduation from a high school, or the recognized	2158
equivalent;	2159

(2) Is legally authorized in this state or by the Indian	2160
tribe to provide a program of education beyond high school; and	2161

(3) Provides an educational program for which it awards a	2162
bachelor's or higher degree, or provides a program which is	2163
acceptable for full credit toward such a degree, a program of	2164
post-graduate or post-doctoral studies, or a program of training	2165
to prepare students for gainful employment in a recognized	2166
occupation.	2167

For the purposes of this division, all colleges and	2168
universities in this state are institutions of higher education.	2169

(Z) For the purposes of this chapter, "states" includes the	2170
District of Columbia, the Commonwealth of Puerto Rico, and the	2171
Virgin Islands.	2172

(AA) "Alien" means, for the purposes of division (A)(1)(d) of	2173
this section, an individual who is an alien admitted to the United	2174
States to perform service in agricultural labor pursuant to	2175
sections 214 (c) and 101 (a)(15)(H) of the "Immigration and	2176
Nationality Act," 66 Stat. 163, 8 U.S.C.A. 1101.	2177

(BB)(1) "Crew leader" means an individual who furnishes	2178
individuals to perform agricultural labor for any other employer	2179
or farm operator, and:	2180

(a) Pays, either on the individual's own behalf or on behalf	2181
of the other employer or farm operator, the individuals so	2182
furnished by the individual for the service in agricultural labor	2183
performed by them;	2184

(b) Has not entered into a written agreement with the other	2185
employer or farm operator under which the agricultural worker is	2186
designated as in the employ of the other employer or farm	2187
operator.	2188

(2) For the purposes of this chapter, any individual who is a	2189
member of a crew furnished by a crew leader to perform service in	2190
agricultural labor for any other employer or farm operator shall	2191
be treated as an employee of the crew leader if:	2192

(a) The crew leader holds a valid certificate of registration	2193
under the "Farm Labor Contractor Registration Act of 1963," 90	2194
Stat. 2668, 7 U.S.C. 2041; or	2195

(b) Substantially all the members of the crew operate or	2196
maintain tractors, mechanized harvesting or crop-dusting	2197
equipment, or any other mechanized equipment, which is provided by	2198
the crew leader; and	2199

(c) If the individual is not in the employment of the other	2200
employer or farm operator within the meaning of division (B)(1) of	2201
this section.	2202

(3) For the purposes of this division, any individual who is	2203
furnished by a crew leader to perform service in agricultural	2204
labor for any other employer or farm operator and who is not	2205
treated as in the employment of the crew leader under division	2206
(BB)(2) of this section shall be treated as the employee of the	2207
other employer or farm operator and not of the crew leader. The	2208
other employer or farm operator shall be treated as having paid	2209
cash remuneration to the individual in an amount equal to the	2210
amount of cash remuneration paid to the individual by the crew	2211
leader, either on the crew leader's own behalf or on behalf of the	2212
other employer or farm operator, for the service in agricultural	2213
labor performed for the other employer or farm operator.	2214

(CC) "Educational institution" means an institution other	2215
than an institution of higher education as defined in division (Y)	2216
of this section, including an educational institution operated by	2217
an Indian tribe, which:	2218

(1) Offers participants, trainees, or students an organized	2219
course of study or training designed to transfer to them	2220
knowledge, skills, information, doctrines, attitudes, or abilities	2221
from, by, or under the guidance of an instructor or teacher; and	2222

(2) Is approved, chartered, or issued a permit to operate as	2223
a school by the state board of education, other government agency,	2224
or Indian tribe that is authorized within the state to approve,	2225
charter, or issue a permit for the operation of a school.	2226

For the purposes of this division, the courses of study or	2227
training which the institution offers may be academic, technical,	2228
trade, or preparation for gainful employment in a recognized	2229
occupation.	2230

(DD) "Cost savings day" means any unpaid day off from work in	2231
which employees continue to accrue employee benefits which have a	2232
determinable value including, but not limited to, vacation,	2233
pension contribution, sick time, and life and health insurance.	2234

(EE) "Affected unit" means a definable group of two or more	2235
employees, including a department or shift, designated by an	2236
employer to participate in a short-time compensation plan.	2237

(FF) "Fringe benefit" means health insurance or a defined	2238
benefit plan or defined contribution plan as those terms are	2239
defined in the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	2240
U.S.C. 414, as amended, which is an incident to employment in	2241
addition to the cash remuneration earned.	2242

(GG) "Normal weekly hours of work" means the number of hours	2243
in a week that an employee normally works for an employer, not to	2244
exceed forty hours and not including hours of overtime work.	2245

(HH) "Participating employee" means an employee who works a	2246
reduced number of hours under an approved short-time compensation	2247
plan.	2248

(II) "Short-time compensation benefit" means an unemployment	2249
compensation benefit that is payable to an employee participating	2250
in a short-time compensation plan.	2251

(JJ) "Short-time compensation plan" means a plan submitted by	2252
an employer, for approval by the director, under which an employer	2253
reduces the normal weekly hours of work of the employees who are	2254
members of an affected unit in lieu of laying off those employees.	2255

(KK) "Unemployment compensation benefit" means the benefits	2256
payable under this chapter, other than short-time compensation	2257
benefits, and includes any amount payable pursuant to an agreement	2258
under federal law providing for compensation, assistance, or	2259
allowances with respect to unemployment.	2260

Sec. 4141.09.  (A) There is hereby created an unemployment	2261
compensation fund to be administered by the state without	2262
liability on the part of the state beyond the amounts paid into	2263
the fund and earned by the fund. The unemployment compensation	2264
fund shall consist of all contributions, payments in lieu of	2265
contributions described in sections 4141.241 and 4141.242 of the	2266
Revised Code, reimbursements of the federal share of extended	2267
benefits described in section 4141.301 of the Revised Code,	2268
collected under sections 4141.01 to 4141.464141.57 of the Revised	2269
Code, together with all interest earned upon any moneys deposited	2270
with the secretary of the treasury of the United States to the	2271
credit of the account of this state in the unemployment trust fund	2272
established and maintained pursuant to section 904 of the "Social	2273
Security Act," any property or securities acquired through the use	2274
of moneys belonging to the fund, and all earnings of such property	2275
or securities. The unemployment compensation fund shall be used to	2276
pay benefits, short-time compensation benefits, and refunds as	2277
provided by such sections and for no other purpose.	2278

(B) The treasurer of state shall be the custodian of the	2279
unemployment compensation fund and shall administer such fund in	2280
accordance with the directions of the director of job and family	2281
services. All disbursements therefrom shall be paid by the	2282
treasurer of state on warrants drawn by the director. Such	2283
warrants may bear the facsimile signature of the director printed	2284
thereon and that of a deputy or other employee of the director	2285
charged with the duty of keeping the account of the unemployment	2286
compensation fund and with the preparation of warrants for the	2287
payment of benefits to the persons entitled thereto. Moneys in the	2288
clearing and benefit accounts shall not be commingled with other	2289
state funds, except as provided in division (C) of this section,	2290
but shall be maintained in separate accounts on the books of the	2291
depositary bank. Such money shall be secured by the depositary	2292
bank to the same extent and in the same manner as required by	2293
sections 135.01 to 135.21 of the Revised Code; and collateral	2294
pledged for this purpose shall be kept separate and distinct from	2295
any collateral pledged to secure other funds of this state. All	2296
sums recovered for losses sustained by the unemployment	2297
compensation fund shall be deposited therein. The treasurer of	2298
state shall be liable on the treasurer's official bond for the	2299
faithful performance of the treasurer's duties in connection with	2300
the unemployment compensation fund, such liability to exist in	2301
addition to any liability upon any separate bond.	2302

(C) The treasurer of state shall maintain within the	2303
unemployment compensation fund three separate accounts which shall	2304
be a clearing account, a trust fund account, and a benefit	2305
account. All moneys payable to the unemployment compensation fund,	2306
upon receipt by the director, shall be forwarded to the treasurer	2307
of state, who shall immediately deposit them in the clearing	2308
account. Refunds of contributions, or payments in lieu of	2309
contributions, payable pursuant to division (E) of this section	2310
may be paid from the clearing account upon warrants signed by a	2311
deputy or other employee of the director charged with the duty of	2312
keeping the record of the clearing account and with the	2313
preparation of warrants for the payment of refunds to persons	2314
entitled thereto. After clearance thereof, all moneys in the	2315
clearing account shall be deposited with the secretary of the	2316
treasury of the United States to the credit of the account of this	2317
state in the unemployment trust fund established and maintained	2318
pursuant to section 904 of the "Social Security Act," in	2319
accordance with requirements of the "Federal Unemployment Tax	2320
Act," 53 Stat. 183 (1939), 26 U.S.C.A. 3301, 3304(a)(3), any law	2321
in this state relating to the deposit, administration, release, or	2322
disbursement of moneys in the possession or custody of this state	2323
to the contrary notwithstanding. The benefit account shall consist	2324
of all moneys requisitioned from this state's account in the	2325
unemployment trust fund. Federal funds may be deposited, at the	2326
director's discretion, into the benefit account. Any funds	2327
deposited into the benefit account shall be disbursed solely for	2328
payment of benefits under a federal program administered by this	2329
state and for no other purpose. Moneys in the clearing and benefit	2330
accounts may be deposited by the treasurer of state, under the	2331
direction of the director, in any bank or public depositary in	2332
which general funds of the state may be deposited, but no public	2333
deposit insurance charge or premium shall be paid out of the fund.	2334

(D) Moneys shall be requisitioned from this state's account	2335
in the unemployment trust fund solely for the payment of benefits	2336
and in accordance with regulations prescribed by the director. The	2337
director shall requisition from the unemployment trust fund such	2338
amounts, not exceeding the amount standing to this state's account	2339
therein, as are deemed necessary for the payment of benefits for a	2340
reasonable future period. Upon receipt thereof, the treasurer of	2341
state shall deposit such moneys in the benefit account.	2342
Expenditures of such money in the benefit account and refunds from	2343
the clearing account shall not require specific appropriations or	2344
other formal release by state officers of money in their custody.	2345
Any balance of moneys requisitioned from the unemployment trust	2346
fund which remains unclaimed or unpaid in the benefit account	2347
after the expiration of the period for which such sums were	2348
requisitioned shall either be deducted from estimates for and may	2349
be utilized for the payment of benefits during succeeding periods,	2350
or, in the discretion of the director, shall be redeposited with	2351
the secretary of the treasury of the United States to the credit	2352
of this state's account in the unemployment trust fund, as	2353
provided in division (C) of this section. Unclaimed or unpaid	2354
federal funds redeposited with the secretary of the treasury of	2355
the United States shall be credited to the appropriate federal	2356
account.	2357

(E) No claim for an adjustment or a refund on contribution,	2358
payment in lieu of contributions, interest, or forfeiture alleged	2359
to have been erroneously or illegally assessed or collected, or	2360
alleged to have been collected without authority, and no claim for	2361
an adjustment or a refund of any sum alleged to have been	2362
excessive or in any manner wrongfully collected shall be allowed	2363
unless an application, in writing, therefor is made within four	2364
years from the date on which such payment was made. If the	2365
director determines that such contribution, payment in lieu of	2366
contributions, interest, or forfeiture, or any portion thereof,	2367
was erroneously collected, the director shall allow such employer	2368
to make an adjustment thereof without interest in connection with	2369
subsequent contribution payments, or payments in lieu of	2370
contributions, by the employer, or the director may refund said	2371
amount, without interest, from the clearing account of the	2372
unemployment compensation fund, except as provided in division (B)	2373
of section 4141.11 of the Revised Code. For like cause and within	2374
the same period, adjustment or refund may be so made on the	2375
director's own initiative. An overpayment of contribution, payment	2376
in lieu of contributions, interest, or forfeiture for which an	2377
employer has not made application for refund prior to the date of	2378
sale of the employer's business shall accrue to the employer's	2379
successor in interest.	2380

An application for an adjustment or a refund, or any portion	2381
thereof, that is rejected is binding upon the employer unless,	2382
within thirty days after the mailing of a written notice of	2383
rejection to the employer's last known address, or, in the absence	2384
of mailing of such notice, within thirty days after the delivery	2385
of such notice, the employer files an application for a review and	2386
redetermination setting forth the reasons therefor. The director	2387
shall promptly examine the application for review and	2388
redetermination, and if a review is granted, the employer shall be	2389
promptly notified thereof, and shall be granted an opportunity for	2390
a prompt hearing.	2391

(F) If the director finds that contributions have been paid	2392
to the director in error, and that such contributions should have	2393
been paid to a department of another state or of the United States	2394
charged with the administration of an unemployment compensation	2395
law, the director may upon request by such department or upon the	2396
director's own initiative transfer to such department the amount	2397
of such contributions, less any benefits paid to claimants whose	2398
wages were the basis for such contributions. The director may	2399
request and receive from such department any contributions or	2400
adjusted contributions paid in error to such department which	2401
should have been paid to the director.	2402

(G) In accordance with section 303(c)(3) of the Social	2403
Security Act, and section 3304(a)(17) of the Internal Revenue Code	2404
of 1954 for continuing certification of Ohio unemployment	2405
compensation laws for administrative grants and for tax credits,	2406
any interest required to be paid on advances under Title XII of	2407
the Social Security Act shall be paid in a timely manner and shall	2408
not be paid, directly or indirectly, by an equivalent reduction in	2409
the Ohio unemployment taxes or otherwise, by the state from	2410
amounts in the unemployment compensation fund.	2411

(H) The treasurer of state, under the direction of the	2412
director and in accordance with the "Cash Management Improvement	2413
Act of 1990," 104 Stat. 1061, 31 U.S.C.A. 335, 6503, shall deposit	2414
amounts of interest earned by the state on funds in the benefit	2415
account established pursuant to division (C) of this section into	2416
the department of job and family services banking fees fund, which	2417
is hereby created in the state treasury for the purpose of paying	2418
related banking costs incurred by the state for the period for	2419
which the interest is calculated, except that if the deposited	2420
interest exceeds the banking costs incurred by the state for the	2421
period for which the interest is calculated, the treasurer of	2422
state shall deposit the excess interest into the unemployment	2423
trust fund.	2424

(I) The treasurer of state, under the direction of the	2425
director, shall deposit federal funds received by the director for	2426
training and administration and for payment of benefits, job	2427
search, relocation, transportation, and subsistence allowances	2428
pursuant to the "Trade Act of 1974," 88 Stat. 1978, 19 U.S.C.A.	2429
2101, as amended; the "North American Free Trade Agreement	2430
Implementation Act," 107 Stat. 2057 (1993), 19 U.S.C.A. 3301, as	2431
amended; and the "Trade Act of 2002," 116 Stat. 993, 19 U.S.C.A.	2432
3801, as amended, into the Trade Act training and administration	2433
account, which is hereby created for the purpose of making	2434
payments specified under those acts. The treasurer of state, under	2435
the direction of the director, may transfer funds from the Trade	2436
Act training and administration account to the benefit account for	2437
the purpose of making any payments directly to claimants for	2438
benefits, job search, relocation, transportation, and subsistence	2439
allowances, as specified by those acts.	2440

Sec. 4141.241.  (A)(1) Any nonprofit organization described	2441
in division (X) of section 4141.01 of the Revised Code, which	2442
becomes subject to this chapter on or after January 1, 1972, shall	2443
pay contributions under section 4141.25 of the Revised Code,	2444
unless it elects, in accordance with this division, to pay to the	2445
director of job and family services for deposit in the	2446
unemployment compensation fund an amount in lieu of contributions	2447
equal to the amount of regular benefits plus one half of extended	2448
benefits paid from that fund that is attributable to service in	2449
the employ of the nonprofit organization to individuals whose	2450
service, during the base period of the claims, was within the	2451
effective period of such election.	2452

(2) Any nonprofit organization which becomes subject to this	2453
chapter after January 1, 1972, may elect to become liable for	2454
payments in lieu of contributions for a period of not less than	2455
the remainder of that calendar year and the next calendar year,	2456
beginning with the date on which such subjectivity begins, by	2457
filing a written notice of its election with the director not	2458
later than thirty days immediately following the date of the	2459
determination of such subjectivity.	2460

(3) Any nonprofit organization which makes an election in	2461
accordance with this division will continue to be liable for	2462
payments in lieu of contributions for the period described in this	2463
division and until it files with the director a written notice	2464
terminating its election. The notice shall be filed not later than	2465
thirty days prior to the beginning of the calendar year for which	2466
the termination is to become effective.	2467

(4) Any nonprofit organization which has been paying	2468
contributions for a period subsequent to January 1, 1972, may	2469
change to a reimbursable basis by filing with the director, not	2470
later than thirty days prior to the beginning of any calendar	2471
year, a written notice of election to become liable for payments	2472
in lieu of contributions. The election shall not be terminable by	2473
the organization during that calendar year and the next calendar	2474
year.	2475

(5) The director, in accordance with any rules the director	2476
prescribes, shall notify each nonprofit organization of any	2477
determination which the director may make of its status as an	2478
employer and of the effective date of any election which it makes	2479
and of any termination of the election. Any determinations shall	2480
be subject to reconsideration, appeal, and review in accordance	2481
with section 4141.26 of the Revised Code.	2482

(B) Except as provided in division (I)(J) of section 4141.29	2483
of the Revised Code, benefits based on service with a nonprofit	2484
organization granted a reimbursing status under this section shall	2485
be payable in the same amount, on the same terms, and subject to	2486
the same conditions, as benefits payable on the basis of other	2487
service subject to this chapter. Payments in lieu of contributions	2488
shall be made in accordance with this division and division (D) of	2489
section 4141.24 of the Revised Code.	2490

(1)(a) At the end of each calendar quarter, or at the end of	2491
any other period as determined by the director under division	2492
(D)(4) of section 4141.24 of the Revised Code, the director shall	2493
bill each nonprofit organization or group of such organizations	2494
which has elected to make payments in lieu of contributions for an	2495
amount equal to the full amount of regular benefits plus one half	2496
of the amount of extended benefits paid during such quarter or	2497
other prescribed period which is attributable to service in the	2498
employ of such organization.	2499

(b) In the computation of the amount of benefits to be	2500
charged to employers liable for payments in lieu of contributions,	2501
all benefits attributable to service described in division	2502
(B)(1)(a) of this section shall be computed and charged to such	2503
organization as described in division (D) of section 4141.24 of	2504
the Revised Code, and, except as provided in division (D)(2) of	2505
section 4141.24 of the Revised Code, no portion of the amount may	2506
be charged to the mutualized account established by division (B)	2507
of section 4141.25 of the Revised Code.	2508

(c) The director may prescribe regulations under which	2509
organizations, which have elected to make payments in lieu of	2510
contributions may request permission to make such payments in	2511
equal installments throughout the year with an adjustment at the	2512
end of the year for any excess or shortage of the amount of such	2513
installment payments compared with the total amount of benefits	2514
actually charged the organization's account during the year. In	2515
making any adjustment, where the total installment payments are	2516
less than the actual benefits charged, the organization shall be	2517
liable for payment of the unpaid balance in accordance with	2518
division (B)(2) of this section. If the total installment payments	2519
exceed the actual benefits charged, all or part of the excess may,	2520
at the discretion of the director, be refunded or retained in the	2521
fund as part of the payments which may be required in the next	2522
year.	2523

(2) Payment of any bill rendered under division (B)(1) of	2524
this section shall be made not later than thirty days after the	2525
bill was mailed to the last known address of the organization or	2526
was otherwise delivered to it, unless there has been an	2527
application for review and redetermination in accordance with	2528
division (B)(4) of this section.	2529

(3) Payments made by an organization under this section shall	2530
not be deducted or deductible, in whole or in part, from the	2531
remuneration of individuals in the employ of the organization.	2532

(4) An organization may file an application for review and	2533
redetermination of the amounts appearing on any bill rendered to	2534
such organization under division (B)(1) of this section. The	2535
application shall be filed and determined under division (D)(4) of	2536
section 4141.24 of the Revised Code.	2537

(5) Past-due payments of amounts in lieu of contributions	2538
shall be subject to the same interest rates and collection	2539
procedures that apply to past-due contributions under sections	2540
4141.23 and 414.27 of the Revised Code. In case of failure to file	2541
a required quarterly report within the time prescribed by the	2542
director, the nonprofit organization shall be subject to a	2543
forfeiture pursuant to section 4141.20 of the Revised Code for	2544
each quarterly report that is not timely filed.	2545

All interest and forfeitures collected under this division	2546
shall be paid into the unemployment compensation special	2547
administrative fund as provided in section 4141.11 of the Revised	2548
Code.	2549

(6) All payments in lieu of contributions collected under	2550
this section shall be paid into the unemployment compensation fund	2551
as provided in section 4141.09 of the Revised Code. Any refunds of	2552
such payments shall be paid from the unemployment compensation	2553
fund, as provided in section 4141.09 of the Revised Code.	2554

(C)(1) Any nonprofit organization, or group of such	2555
organizations approved under division (D) of this section, that	2556
elects to become liable for payments in lieu of contributions	2557
shall be required within thirty days after the effective date of	2558
its election, to execute and file with the director a surety bond	2559
approved by the director or it may elect instead to deposit with	2560
the director approved municipal or other bonds, or approved	2561
securities, or a combination thereof, or other forms of collateral	2562
security approved by the director.	2563

(2)(a) The amount of the bond or deposit required shall be	2564
equal to three per cent of the organization's wages paid for	2565
employment as defined in section 4141.01 of the Revised Code that	2566
would have been taxable had the organization been a subject	2567
employer during the four calendar quarters immediately preceding	2568
the effective date of the election, or the amount established by	2569
the director within the limitation provided in division (C)(2)(d)	2570
of this section, whichever is the less. The effective date of the	2571
amount of the bond or other collateral security required after the	2572
employer initially is determined by the director to be liable for	2573
payments in lieu of contributions shall be the renewal date in the	2574
case of a bond or the biennial anniversary of the effective date	2575
of election in the case of deposit of securities or other forms of	2576
collateral security approved by the director, whichever date shall	2577
be most recent and applicable. If the nonprofit organization did	2578
not pay wages in each of such four calendar quarters, the amount	2579
of the bond or deposit shall be as determined by the director	2580
under regulations prescribed for this purpose.	2581

(b) Any bond or other form of collateral security approved by	2582
the director deposited under this division shall be in force for a	2583
period of not less than two calendar years and shall be renewed	2584
with the approval of the director, at such times as the director	2585
may prescribe, but not less frequently than at two-year intervals	2586
as long as the organization continues to be liable for payments in	2587
lieu of contributions. The director shall require adjustments to	2588
be made in a previously filed bond or other form of collateral	2589
security as the director considers appropriate. If the bond or	2590
other form of collateral security is to be increased, the adjusted	2591
bond or collateral security shall be filed by the organization	2592
within thirty days of the date that notice of the required	2593
adjustment was mailed or otherwise delivered to it. Failure by any	2594
organization covered by such bond or collateral security to pay	2595
the full amount of payments in lieu of contributions when due,	2596
together with any applicable interest provided for in division	2597
(B)(5) of this section, shall render the surety liable on the bond	2598
or collateral security to the extent of the bond or collateral	2599
security, as though the surety was the organization.	2600

(c) Any securities accepted in lieu of surety bond by the	2601
director shall be deposited with the treasurer of state who shall	2602
have custody thereof and retain the same in the treasurer of	2603
state's possession, or release them, according to conditions	2604
prescribed by regulations of the director. Income from the	2605
securities, held in custody by the treasurer of state, shall	2606
accrue to the benefit of the depositor and shall be distributed to	2607
the depositor in the absence of any notification from the director	2608
that the depositor is in default on any payment owed to the	2609
director. The director may require the sale of any such bonds to	2610
the extent necessary to satisfy any unpaid payments in lieu of	2611
contributions, together with any applicable interest or	2612
forfeitures provided for in division (B)(5) of this section. The	2613
director shall require the employer within thirty days following	2614
any sale of deposited securities, under this subdivision, to	2615
deposit additional securities, surety bond, or combination of	2616
both, to make whole the employer's security deposit at the	2617
approved level. Any cash remaining from the sale of such	2618
securities may, at the discretion of the director, be refunded in	2619
whole or in part, or be paid into the unemployment compensation	2620
fund to cover future payments required of the organization.	2621

(d) The required bond or deposit for any nonprofit	2622
organization, or group of such organizations approved by the	2623
director under division (D) of this section, that is determined by	2624
the director to be liable for payments in lieu of contributions	2625
effective beginning on and after January 1, 1996, but prior to	2626
January 1, 1998, and the required bond or deposit for any renewed	2627
elections under division (C)(2)(b) of this section effective	2628
during that period shall not exceed one million two hundred fifty	2629
thousand dollars. The required bond or deposit for any nonprofit	2630
organization, or group of such organizations approved by the	2631
director under division (D) of this section, that is determined to	2632
be liable for payments in lieu of contributions effective on and	2633
after January 1, 1998, and the required bond or deposit for any	2634
renewed elections effective on and after January 1, 1998, shall	2635
not exceed two million dollars.	2636

(3) If any nonprofit organization fails to file a bond or	2637
make a deposit, or to file a bond in an increased amount or to	2638
make whole the amount of a previously made deposit, as provided	2639
under this division, the director may terminate the organization's	2640
election to make payments in lieu of contributions effective for	2641
the quarter following such failure and the termination shall	2642
continue for not less than the remainder of that calendar year and	2643
the next calendar year, beginning with the quarter in which the	2644
termination becomes effective; except that the director may extend	2645
for good cause the applicable filing, deposit, or adjustment	2646
period by not more than thirty days.	2647

(D)(1) Two or more nonprofit organizations that have become	2648
liable for payments in lieu of contributions, in accordance with	2649
division (A) of this section, may file a joint application to the	2650
director for the establishment of the group account for the	2651
purpose of sharing the cost of benefits paid that are attributable	2652
to service in the employ of those employers. Notwithstanding	2653
division (E) of section 4141.242 of the Revised Code, hospitals	2654
operated by this state or a political subdivision may participate	2655
in a group account with nonprofit organizations under the	2656
procedures set forth in this section. Each application shall	2657
identify and authorize a group representative to act as the	2658
group's agent for the purposes of this division.	2659

(2) Upon the director's approval of the application, the	2660
director shall establish a group account for the employers	2661
effective as of the beginning of the calendar quarter in which the	2662
director receives the application and shall notify the group's	2663
representative of the effective date of the account. The account	2664
shall remain in effect for not less than two years and thereafter	2665
until terminated by the director or upon application by the group.	2666

(3) Upon establishment of the account, each member of the	2667
group shall be liable, in the event that the group representative	2668
fails to pay any bill issued to it pursuant to division (B) of	2669
this section, for payments in lieu of contributions with respect	2670
to each calendar quarter in the amount that bears the same ratio	2671
to the total benefits paid in the quarter that are attributable to	2672
service performed in the employ of all members of the group as the	2673
total wages paid for service in employment by the member in the	2674
quarter bear to the total wages paid during the quarter for	2675
service performed in the employ of all members of the group.	2676

(4) The director shall adopt regulations as considered	2677
necessary with respect to the following: applications for	2678
establishment, bonding, maintenance, and termination of group	2679
accounts that are authorized by this section; addition of new	2680
members to and withdrawal of active members from such accounts;	2681
and the determination of the amounts that are payable under this	2682
division by the group representative and in the event of default	2683
in payment by the group representative, members of the group, and	2684
the time and manner of payments.	2685

Sec. 4141.29.  Each eligible individual shall receive	2686
benefits as compensation for loss of remuneration due to	2687
involuntary total or partial unemployment in the amounts and	2688
subject to the conditions stipulated in this chapter.	2689

(A) No individual is entitled to a waiting period or benefits	2690
for any week unless the individual:	2691

(1) Has filed a valid application for determination of	2692
benefit rights in accordance with section 4141.28 of the Revised	2693
Code;	2694

(2) Has made a claim for benefits in accordance with section	2695
4141.28 of the Revised Code;	2696

(3) Has registered at an employment office or other	2697
registration place maintained or designated by the director of job	2698
and family services. Registration shall be made in accordance with	2699
the time limits, frequency, and manner prescribed by the director.	2700

(4)(a)(i) Is able to work and available for suitable work	2701
and, except as provided in division (A)(4)(a)(ii) of this section,	2702
is actively seeking suitable work either in a locality in which	2703
the individual has earned wages subject to this chapter during the	2704
individual's base period, or if the individual leaves that	2705
locality, then in a locality where suitable work normally is	2706
performed.	2707

(ii) The director may waive the requirement that a claimant	2708
be actively seeking work when the director finds that the	2709
individual has been laid off and the employer who laid the	2710
individual off has notified the director within ten days after the	2711
layoff, that work is expected to be available for the individual	2712
within a specified number of days not to exceed forty-five	2713
calendar days following the last day the individual worked. In the	2714
event the individual is not recalled within the specified period,	2715
this waiver shall cease to be operative with respect to that	2716
layoff.	2717

(b) The individual shall be instructed as to the efforts that	2718
the individual must make in the search for suitable work, except	2719
where the active search for work requirement has been waived under	2720
division (A)(4)(a) of this section, and shall keep a record of	2721
where and when the individual has sought work in complying with	2722
those instructions and, upon request, shall produce that record	2723
for examination by the director.	2724

(c) An individual who is attending a training course approved	2725
by the director meets the requirement of this division, if	2726
attendance was recommended by the director and the individual is	2727
regularly attending the course and is making satisfactory	2728
progress. An individual also meets the requirements of this	2729
division if the individual is participating and advancing in a	2730
training program, as defined in division (P) of section 5709.61 of	2731
the Revised Code, and if an enterprise, defined in division (B) of	2732
section 5709.61 of the Revised Code, is paying all or part of the	2733
cost of the individual's participation in the training program	2734
with the intention of hiring the individual for employment as a	2735
new employee, as defined in division (L) of section 5709.61 of the	2736
Revised Code, for at least ninety days after the individual's	2737
completion of the training program.	2738

(d) An individual who becomes unemployed while attending a	2739
regularly established school and whose base period qualifying	2740
weeks were earned in whole or in part while attending that school,	2741
meets the availability and active search for work requirements of	2742
division (A)(4)(a) of this section if the individual regularly	2743
attends the school during weeks with respect to which the	2744
individual claims unemployment benefits and makes self available	2745
on any shift of hours for suitable employment with the	2746
individual's most recent employer or any other employer in the	2747
individual's base period, or for any other suitable employment to	2748
which the individual is directed, under this chapter.	2749

(e) The director shall adopt any rules that the director	2750
deems necessary for the administration of division (A)(4) of this	2751
section.	2752

(f) Notwithstanding any other provisions of this section, no	2753
otherwise eligible individual shall be denied benefits for any	2754
week because the individual is in training approved under section	2755
236(a)(1) of the "Trade Act of 1974," 88 Stat. 1978, 19 U.S.C.A.	2756
2296, nor shall that individual be denied benefits by reason of	2757
leaving work to enter such training, provided the work left is not	2758
suitable employment, or because of the application to any week in	2759
training of provisions in this chapter, or any applicable federal	2760
unemployment compensation law, relating to availability for work,	2761
active search for work, or refusal to accept work.	2762

For the purposes of division (A)(4)(f) of this section,	2763
"suitable employment" means with respect to an individual, work of	2764
a substantially equal or higher skill level than the individual's	2765
past adversely affected employment, as defined for the purposes of	2766
the "Trade Act of 1974," 88 Stat. 1978, 19 U.S.C.A. 2101, and	2767
wages for such work at not less than eighty per cent of the	2768
individual's average weekly wage as determined for the purposes of	2769
that federal act.	2770

(5) Is unable to obtain suitable work. An individual who is	2771
provided temporary work assignments by the individual's employer	2772
under agreed terms and conditions of employment, and who is	2773
required pursuant to those terms and conditions to inquire with	2774
the individual's employer for available work assignments upon the	2775
conclusion of each work assignment, is not considered unable to	2776
obtain suitable employment if suitable work assignments are	2777
available with the employer but the individual fails to contact	2778
the employer to inquire about work assignments.	2779

(6) Participates in reemployment services, such as job search	2780
assistance services, if the individual has been determined to be	2781
likely to exhaust benefits under this chapter, including	2782
compensation payable pursuant to 5 U.S.C.A. Chapter 85, other than	2783
extended compensation, and needs reemployment services pursuant to	2784
the profiling system established by the director under division	2785
(K)(L) of this section, unless the director determines that:	2786

(a) The individual has completed such services; or

2787

(b) There is justifiable cause for the claimant's failure to	2788
participate in such services.	2789

(B) An individual suffering total or partial unemployment is	2790
eligible for benefits for unemployment occurring subsequent to a	2791
waiting period of one week and no benefits shall be payable during	2792
this required waiting period. Not more than one week of waiting	2793
period shall be required of any individual in any benefit year in	2794
order to establish the individual's eligibility for total or	2795
partial unemployment benefits.	2796

(C) The waiting period for total or partial unemployment	2797
shall commence on the first day of the first week with respect to	2798
which the individual first files a claim for benefits at an	2799
employment office or other place of registration maintained or	2800
designated by the director or on the first day of the first week	2801
with respect to which the individual has otherwise filed a claim	2802
for benefits in accordance with the rules of the department of job	2803
and family services, provided such claim is allowed by the	2804
director.	2805

(D) Notwithstanding division (A) of this section, no	2806
individual may serve a waiting period or be paid benefits under	2807
the following conditions:	2808

(1) For any week with respect to which the director finds	2809
that:	2810

(a) The individual's unemployment was due to a labor dispute	2811
other than a lockout at any factory, establishment, or other	2812
premises located in this or any other state and owned or operated	2813
by the employer by which the individual is or was last employed;	2814
and for so long as the individual's unemployment is due to such	2815
labor dispute. No individual shall be disqualified under this	2816
provision if either of the following applies:	2817

(i) The individual's employment was with such employer at any	2818
factory, establishment, or premises located in this state, owned	2819
or operated by such employer, other than the factory,	2820
establishment, or premises at which the labor dispute exists, if	2821
it is shown that the individual is not financing, participating	2822
in, or directly interested in such labor dispute;	2823

(ii) The individual's employment was with an employer not	2824
involved in the labor dispute but whose place of business was	2825
located within the same premises as the employer engaged in the	2826
dispute, unless the individual's employer is a wholly owned	2827
subsidiary of the employer engaged in the dispute, or unless the	2828
individual actively participates in or voluntarily stops work	2829
because of such dispute. If it is established that the claimant	2830
was laid off for an indefinite period and not recalled to work	2831
prior to the dispute, or was separated by the employer prior to	2832
the dispute for reasons other than the labor dispute, or that the	2833
individual obtained a bona fide job with another employer while	2834
the dispute was still in progress, such labor dispute shall not	2835
render the employee ineligible for benefits.	2836

(b) The individual has been given a disciplinary layoff for	2837
misconduct in connection with the individual's work.	2838

(2) For the duration of the individual's unemployment if the	2839
director finds that:	2840

(a) The individual quit work without just cause or has been	2841
discharged for just cause in connection with the individual's	2842
work, provided division (D)(2) of this section does not apply to	2843
the separation of a person under any of the following	2844
circumstances:	2845

(i) Separation from employment for the purpose of entering	2846
the armed forces of the United States if the individual is	2847
inducted into the armed forces within one of the following	2848
periods:	2849

(I) Thirty days after separation;

2850

(II) One hundred eighty days after separation if the	2851
individual's date of induction is delayed solely at the discretion	2852
of the armed forces.	2853

(ii) Separation from employment pursuant to a	2854
labor-management contract or agreement, or pursuant to an	2855
established employer plan, program, or policy, which permits the	2856
employee, because of lack of work, to accept a separation from	2857
employment;	2858

(iii) The individual has left employment to accept a recall	2859
from a prior employer or, except as provided in division	2860
(D)(2)(a)(iv) of this section, to accept other employment as	2861
provided under section 4141.291 of the Revised Code, or left or	2862
was separated from employment that was concurrent employment at	2863
the time of the most recent separation or within six weeks prior	2864
to the most recent separation where the remuneration, hours, or	2865
other conditions of such concurrent employment were substantially	2866
less favorable than the individual's most recent employment and	2867
where such employment, if offered as new work, would be considered	2868
not suitable under the provisions of divisions (E) and (F) of this	2869
section. Any benefits that would otherwise be chargeable to the	2870
account of the employer from whom an individual has left	2871
employment or was separated from employment that was concurrent	2872
employment under conditions described in division (D)(2)(a)(iii)	2873
of this section, shall instead be charged to the mutualized	2874
account created by division (B) of section 4141.25 of the Revised	2875
Code, except that any benefits chargeable to the account of a	2876
reimbursing employer under division (D)(2)(a)(iii) of this section	2877
shall be charged to the account of the reimbursing employer and	2878
not to the mutualized account, except as provided in division	2879
(D)(2) of section 4141.24 of the Revised Code.	2880

(iv) When an individual has been issued a definite layoff	2881
date by the individual's employer and before the layoff date, the	2882
individual quits to accept other employment, the provisions of	2883
division (D)(2)(a)(iii) of this section apply and no	2884
disqualification shall be imposed under division (D) of this	2885
section. However, if the individual fails to meet the employment	2886
and earnings requirements of division (A)(2) of section 4141.291	2887
of the Revised Code, then the individual, pursuant to division	2888
(A)(5) of this section, shall be ineligible for benefits for any	2889
week of unemployment that occurs prior to the layoff date.	2890

(b) The individual has refused without good cause to accept	2891
an offer of suitable work when made by an employer either in	2892
person or to the individual's last known address, or has refused	2893
or failed to investigate a referral to suitable work when directed	2894
to do so by a local employment office of this state or another	2895
state, provided that this division shall not cause a	2896
disqualification for a waiting week or benefits under the	2897
following circumstances:	2898

(i) When work is offered by the individual's employer and the	2899
individual is not required to accept the offer pursuant to the	2900
terms of the labor-management contract or agreement; or	2901

(ii) When the individual is attending a training course	2902
pursuant to division (A)(4) of this section except, in the event	2903
of a refusal to accept an offer of suitable work or a refusal or	2904
failure to investigate a referral, benefits thereafter paid to	2905
such individual shall not be charged to the account of any	2906
employer and, except as provided in division (B)(1)(b) of section	2907
4141.241 of the Revised Code, shall be charged to the mutualized	2908
account as provided in division (B) of section 4141.25 of the	2909
Revised Code.	2910

(c) SuchExcept as otherwise provided in section 4141.294 of	2911
the Revised Code, such individual quit work to marry or because of	2912
marital, parental, filial, or other domestic obligations.	2913

(d) The individual became unemployed by reason of commitment	2914
to any correctional institution.	2915

(e) The individual became unemployed because of dishonesty in	2916
connection with the individual's most recent or any base period	2917
work. Remuneration earned in such work shall be excluded from the	2918
individual's total base period remuneration and qualifying weeks	2919
that otherwise would be credited to the individual for such work	2920
in the individual's base period shall not be credited for the	2921
purpose of determining the total benefits to which the individual	2922
is eligible and the weekly benefit amount to be paid under section	2923
4141.30 of the Revised Code. Such excluded remuneration and	2924
noncredited qualifying weeks shall be excluded from the	2925
calculation of the maximum amount to be charged, under division	2926
(D) of section 4141.24 and section 4141.33 of the Revised Code,	2927
against the accounts of the individual's base period employers. In	2928
addition, no benefits shall thereafter be paid to the individual	2929
based upon such excluded remuneration or noncredited qualifying	2930
weeks.	2931

For purposes of division (D)(2)(e) of this section,	2932
"dishonesty" means the commission of substantive theft, fraud, or	2933
deceitful acts.	2934

(E) No individual otherwise qualified to receive benefits	2935
shall lose the right to benefits by reason of a refusal to accept	2936
new work if:	2937

(1) As a condition of being so employed the individual would	2938
be required to join a company union, or to resign from or refrain	2939
from joining any bona fide labor organization, or would be denied	2940
the right to retain membership in and observe the lawful rules of	2941
any such organization.	2942

(2) The position offered is vacant due directly to a strike,	2943
lockout, or other labor dispute.	2944

(3) The work is at an unreasonable distance from the	2945
individual's residence, having regard to the character of the work	2946
the individual has been accustomed to do, and travel to the place	2947
of work involves expenses substantially greater than that required	2948
for the individual's former work, unless the expense is provided	2949
for.	2950

(4) The remuneration, hours, or other conditions of the work	2951
offered are substantially less favorable to the individual than	2952
those prevailing for similar work in the locality.	2953

(F) Subject to the special exceptions contained in division	2954
(A)(4)(f) of this section and section 4141.301 of the Revised	2955
Code, in determining whether any work is suitable for a claimant	2956
in the administration of this chapter, the director, in addition	2957
to the determination required under division (E) of this section,	2958
shall consider the degree of risk to the claimant's health,	2959
safety, and morals, the individual's physical fitness for the	2960
work, the individual's prior training and experience, the length	2961
of the individual's unemployment, the distance of the available	2962
work from the individual's residence, and the individual's	2963
prospects for obtaining local work.	2964

(G) No claimant shall be denied regular unemployment benefits	2965
under this section due to failing to satisfy the requirement	2966
regarding availability for work, failing to actively search for	2967
suitable work, or refusing to accept suitable work as described	2968
under division (A) of this section, solely because the claimant is	2969
seeking only part-time work.	2970

(H) The "duration of unemployment" as used in this section	2971
means the full period of unemployment next ensuing after a	2972
separation from any base period or subsequent work and until an	2973
individual has become reemployed in employment subject to this	2974
chapter, or the unemployment compensation act of another state, or	2975
of the United States, and until such individual has worked six	2976
weeks and for those weeks has earned or been paid remuneration	2977
equal to six times an average weekly wage of not less than:	2978
eighty-five dollars and ten cents per week beginning on June 26,	2979
1990; and beginning on and after January 1, 1992, twenty-seven and	2980
one-half per cent of the statewide average weekly wage as computed	2981
each first day of January under division (B)(3) of section 4141.30	2982
of the Revised Code, rounded down to the nearest dollar, except	2983
for purposes of division (D)(2)(c) of this section, such term	2984
means the full period of unemployment next ensuing after a	2985
separation from such work and until such individual has become	2986
reemployed subject to the terms set forth above, and has earned	2987
wages equal to one-half of the individual's average weekly wage or	2988
sixty dollars, whichever is less.	2989

(H)(I) If a claimant is disqualified under division	2990
(D)(2)(a), (c), or (d) of this section or found to be qualified	2991
under the exceptions provided in division (D)(2)(a)(i), (iii), or	2992
(iv) of this section or, division (A)(2) of section 4141.291 of	2993
the Revised Code, or section 4141.294 of the Revised Code, then	2994
benefits that may become payable to such claimant, which are	2995
chargeable to the account of the employer from whom the individual	2996
was separated under such conditions, shall be charged to the	2997
mutualized account provided in section 4141.25 of the Revised	2998
Code, provided that no charge shall be made to the mutualized	2999
account for benefits chargeable to a reimbursing employer, except	3000
as provided in division (D)(2) of section 4141.24 of the Revised	3001
Code. In the case of a reimbursing employer, the director shall	3002
refund or credit to the account of the reimbursing employer any	3003
over-paid benefits that are recovered under division (B) of	3004
section 4141.35 of the Revised Code. Amounts chargeable to other	3005
states, the United States, or Canada that are subject to	3006
agreements and arrangements that are established pursuant to	3007
section 4141.43 of the Revised Code shall be credited or	3008
reimbursed according to the agreements and arrangements to which	3009
the chargeable amounts are subject.	3010

(I)(J)(1) Benefits based on service in employment as provided	3011
in divisions (B)(2)(a) and (b) of section 4141.01 of the Revised	3012
Code shall be payable in the same amount, on the same terms, and	3013
subject to the same conditions as benefits payable on the basis of	3014
other service subject to this chapter; except that after December	3015
31, 1977:	3016

(a) Benefits based on service in an instructional, research,	3017
or principal administrative capacity in an institution of higher	3018
education, as defined in division (Y) of section 4141.01 of the	3019
Revised Code; or for an educational institution as defined in	3020
division (CC) of section 4141.01 of the Revised Code, shall not be	3021
paid to any individual for any week of unemployment that begins	3022
during the period between two successive academic years or terms,	3023
or during a similar period between two regular but not successive	3024
terms or during a period of paid sabbatical leave provided for in	3025
the individual's contract, if the individual performs such	3026
services in the first of those academic years or terms and has a	3027
contract or a reasonable assurance that the individual will	3028
perform services in any such capacity for any such institution in	3029
the second of those academic years or terms.	3030

(b) Benefits based on service for an educational institution	3031
or an institution of higher education in other than an	3032
instructional, research, or principal administrative capacity,	3033
shall not be paid to any individual for any week of unemployment	3034
which begins during the period between two successive academic	3035
years or terms of the employing educational institution or	3036
institution of higher education, provided the individual performed	3037
those services for the educational institution or institution of	3038
higher education during the first such academic year or term and,	3039
there is a reasonable assurance that such individual will perform	3040
those services for any educational institution or institution of	3041
higher education in the second of such academic years or terms.	3042

If compensation is denied to any individual for any week	3043
under division (I)(J)(1)(b) of this section and the individual was	3044
not offered an opportunity to perform those services for an	3045
institution of higher education or for an educational institution	3046
for the second of such academic years or terms, the individual is	3047
entitled to a retroactive payment of compensation for each week	3048
for which the individual timely filed a claim for compensation and	3049
for which compensation was denied solely by reason of division	3050
(I)(J)(1)(b) of this section. An application for retroactive	3051
benefits shall be timely filed if received by the director or the	3052
director's deputy within or prior to the end of the fourth full	3053
calendar week after the end of the period for which benefits were	3054
denied because of reasonable assurance of employment. The	3055
provision for the payment of retroactive benefits under division	3056
(I)(J)(1)(b) of this section is applicable to weeks of	3057
unemployment beginning on and after November 18, 1983. The	3058
provisions under division (I)(J)(1)(b) of this section shall be	3059
retroactive to September 5, 1982, only if, as a condition for full	3060
tax credit against the tax imposed by the "Federal Unemployment	3061
Tax Act," 53 Stat. 183 (1939), 26 U.S.C.A. 3301 to 3311, the	3062
United States secretary of labor determines that retroactivity is	3063
required by federal law.	3064

(c) With respect to weeks of unemployment beginning after	3065
December 31, 1977, benefits shall be denied to any individual for	3066
any week which commences during an established and customary	3067
vacation period or holiday recess, if the individual performs any	3068
services described in divisions (I)(J)(1)(a) and (b) of this	3069
section in the period immediately before the vacation period or	3070
holiday recess, and there is a reasonable assurance that the	3071
individual will perform any such services in the period	3072
immediately following the vacation period or holiday recess.	3073

(d) With respect to any services described in division	3074
(I)(J)(1)(a), (b), or (c) of this section, benefits payable on the	3075
basis of services in any such capacity shall be denied as	3076
specified in division (I)(J)(1)(a), (b), or (c) of this section to	3077
any individual who performs such services in an educational	3078
institution or institution of higher education while in the employ	3079
of an educational service agency. For this purpose, the term	3080
"educational service agency" means a governmental agency or	3081
governmental entity that is established and operated exclusively	3082
for the purpose of providing services to one or more educational	3083
institutions or one or more institutions of higher education.	3084

(e) Any individual employed by a county board of	3085
developmental disabilities shall be notified by the thirtieth day	3086
of April each year if the individual is not to be reemployed the	3087
following academic year.	3088

(f) Any individual employed by a school district, other than	3089
a municipal school district as defined in section 3311.71 of the	3090
Revised Code, shall be notified by the first day of June each year	3091
if the individual is not to be reemployed the following academic	3092
year.	3093

(2) No disqualification will be imposed, between academic	3094
years or terms or during a vacation period or holiday recess under	3095
this division, unless the director or the director's deputy has	3096
received a statement in writing from the educational institution	3097
or institution of higher education that the claimant has a	3098
contract for, or a reasonable assurance of, reemployment for the	3099
ensuing academic year or term.	3100

(3) If an individual has employment with an educational	3101
institution or an institution of higher education and employment	3102
with a noneducational employer, during the base period of the	3103
individual's benefit year, then the individual may become eligible	3104
for benefits during the between-term, or vacation or holiday	3105
recess, disqualification period, based on employment performed for	3106
the noneducational employer, provided that the employment is	3107
sufficient to qualify the individual for benefit rights separately	3108
from the benefit rights based on school employment. The weekly	3109
benefit amount and maximum benefits payable during a	3110
disqualification period shall be computed based solely on the	3111
nonschool employment.	3112

(J)(K) Benefits shall not be paid on the basis of employment	3113
performed by an alien, unless the alien had been lawfully admitted	3114
to the United States for permanent residence at the time the	3115
services were performed, was lawfully present for purposes of	3116
performing the services, or was otherwise permanently residing in	3117
the United States under color of law at the time the services were	3118
performed, under section 212(d)(5) of the "Immigration and	3119
Nationality Act," 66 Stat. 163, 8 U.S.C.A. 1101:	3120

(1) Any data or information required of individuals applying	3121
for benefits to determine whether benefits are not payable to them	3122
because of their alien status shall be uniformly required from all	3123
applicants for benefits.	3124

(2) In the case of an individual whose application for	3125
benefits would otherwise be approved, no determination that	3126
benefits to the individual are not payable because of the	3127
individual's alien status shall be made except upon a	3128
preponderance of the evidence that the individual had not, in	3129
fact, been lawfully admitted to the United States.	3130

(K)(L) The director shall establish and utilize a system of	3131
profiling all new claimants under this chapter that:	3132

(1) Identifies which claimants will be likely to exhaust	3133
regular compensation and will need job search assistance services	3134
to make a successful transition to new employment;	3135

(2) Refers claimants identified pursuant to division	3136
(K)(L)(1) of this section to reemployment services, such as job	3137
search assistance services, available under any state or federal	3138
law;	3139

(3) Collects follow-up information relating to the services	3140
received by such claimants and the employment outcomes for such	3141
claimant's subsequent to receiving such services and utilizes such	3142
information in making identifications pursuant to division	3143
(K)(L)(1) of this section; and	3144

(4) Meets such other requirements as the United States	3145
secretary of labor determines are appropriate.	3146

(M) As used in this section, "seeking only part-time work"	3147
means the claimant is willing and able to work at least twelve	3148
hours per week.	3149

Sec. 4141.291.  (A) Notwithstanding section 4141.29 of the	3150
Revised Code, an individual who voluntarily quits work:	3151

(1) To accept a recall from a prior employer and establishes	3152
that the refusal or failure to accept the recall would have	3153
resulted in a substantial loss of employment rights, benefits, or	3154
pension, under a labor-management agreement or company policy;	3155

(2) To accept a recall to employment from a prior employer	3156
and cannot establish that a substantial loss of employment rights,	3157
benefits, or pension was involved in the recall, or to accept	3158
other employment subject to this chapter, or the unemployment	3159
compensation act of another state, or of the United States, where	3160
the individual obtains such employment while still employed or	3161
commences such employment within seven calendar days after the	3162
last day of employment with the prior employer, and subsequent to	3163
the last day of the employment with the prior employer, works	3164
three weeks in the new employment and earns wages equal to one and	3165
one-half times the individual's average weekly wage or one hundred	3166
eighty dollars, whichever is less;	3167

(3) Shall, under the conditions specified in either division	3168
(A)(1) or (2) of this section, remove the disqualification imposed	3169
by division (D)(2)(a) of section 4141.29 of the Revised Code and	3170
shall be deemed to have fully complied with division (G)(H) of	3171
such section.	3172

(B) Benefits which may become payable to such individual	3173
because of the individual's subsequent separation from the	3174
employer who recalled that individual shall be charged to employer	3175
accounts as provided in division (D) of section 4141.24 of the	3176
Revised Code.	3177

(C) Any benefits which would be chargeable to the account of	3178
the employer from whom such individual voluntarily quit to accept	3179
such recall or other employment which are not chargeable to the	3180
recalling employer as provided in this section shall be charged to	3181
the mutualized account provided in section 4141.25 of the Revised	3182
Code; except that any benefits chargeable to the account of a	3183
reimbursing employer under this division shall be charged to the	3184
account of the reimbursing employer and not the mutualized	3185
account, except as provided in division (D)(2) of section 4141.24	3186
of the Revised Code.	3187

Sec. 4141.293.  (A) As used in this section, "learn to earn	3188
program" means any program established by the department of job	3189
and family services that offers a structured, supervised training	3190
opportunity to an eligible unemployment compensation claimant with	3191
a designated worksite training provider.	3192

(B) Participation in a learn to earn program is voluntary.

3193

(C) If a learn to earn program participant is otherwise	3194
eligible for unemployment compensation benefits, the participant	3195
shall continue to receive unemployment compensation benefits	3196
pursuant to this chapter during participation in the program.	3197

(D) A participant in a learn to earn program shall be	3198
registered at an employment office or other registration place	3199
maintained or designated by the director of job and family	3200
services according to the procedure set forth in division (A)(3)	3201
of section 4141.29 of the Revised Code.	3202

(E) A learn to earn program participant may participate in a	3203
learn to earn program for a period not to exceed twenty-four hours	3204
a week for a maximum of six weeks.	3205

(F) A designated worksite training provider participating in	3206
a learn to earn program shall not use a participant in the program	3207
to displace any employee employed by the provider as of the date	3208
the provider participates in the program, including for any	3209
partial displacement, such as a reduction in the hours of	3210
nonovertime work, wages, or employment benefits.	3211

A designated worksite training provider participating in a	3212
learn to earn program shall not permit a claimant participating in	3213
the program to perform work activities related to any job for	3214
which any of the following circumstances apply:	3215

(1) Another individual is on layoff from the same or any	3216
substantially equivalent position.	3217

(2) The provider has terminated the employment of any	3218
employee or otherwise reduced the workforce of the provider with	3219
the intention of filling or partially filling the vacancy so	3220
created with the work activities to be performed by a program	3221
participant.	3222

(3) A strike or lockout is occurring at the worksite that is	3223
the designated worksite for a claimant participating in the	3224
program.	3225

(4) The position is created in a manner that infringes in any	3226
way upon the promotional opportunities of individuals currently	3227
employed by the provider as of the date of the employer's	3228
participation in a learn to earn program.	3229

(G) A designated worksite training provider participating in	3230
a learn to earn program shall not, by means of assigning work	3231
activities under the program, impair an existing contract for	3232
services or a collective bargaining agreement. Such a provider	3233
shall not undertake any activity that would be inconsistent with	3234
the terms of a collective bargaining agreement without the written	3235
concurrence of the labor organization that is signatory to the	3236
collective bargaining agreement.	3237

Sec. 4141.294.  (A) As used in this section:

3238

(1) "Compelling family circumstances" means any of the	3239
following:	3240

(a) The claimant was separated from employment with the	3241
claimant's employer because of the claimant's illness or	3242
disability and, based upon available information, the director of	3243
job and family services finds that it was medically necessary for	3244
the claimant to stop working or change occupations.	3245

(b) The claimant was separated from work due to an immediate	3246
family member's illness or disability.	3247

(c) The claimant's spouse was transferred or employed in	3248
another city or state, the family is required to move to the	3249
location of that job, the location is outside the commuting	3250
distance of the claimant's previous employment, and the claimant	3251
separates from employment in order to move to the new location	3252
with the claimant's spouse.	3253

(2) "Disability" means a verified disability that	3254
necessitates the care of the disabled person for a period of time	3255
that exceeds the amount of time an employer will provide paid or	3256
unpaid leave. "Disability" includes mental and physical	3257
disabilities, permanent and temporary disabilities, and partial	3258
and total disabilities.	3259

(3) "Immediate family member" means a claimant's spouse,	3260
parent, or child under the age of eighteen.	3261

(4) "Illness" means a verified illness that necessitates the	3262
care of the ill person for a period of time that exceeds the	3263
amount of time an employer will provide paid or unpaid leave.	3264

(B)(1) Notwithstanding section 4141.29 of the Revised Code, a	3265
claimant is eligible for waiting week credit and for unemployment	3266
compensation benefits if the director finds that the claimant has	3267
left work voluntarily or has been discharged because of	3268
circumstances directly resulting from domestic abuse and any of	3269
the following applies:	3270

(a) The claimant reasonably fears future domestic abuse at or	3271
en route to the workplace.	3272

(b) The claimant needs to relocate to avoid future domestic	3273
abuse.	3274

(c) The claimant reasonably believes that leaving work is	3275
necessary for the safety of the claimant or the claimant's family.	3276

(2) When determining if a claimant has experienced domestic	3277
abuse for the purpose of receiving unemployment compensation	3278
benefits, the director shall require the claimant to provide	3279
documentation of domestic abuse that may include police or court	3280
records or other documentation of abuse from a shelter worker,	3281
attorney, member of the clergy, or medical or other professional	3282
from whom the claimant has sought assistance.	3283

(3) The director shall keep confidential any documentation or	3284
evidence of domestic abuse acquired by the director pursuant to	3285
this section unless the claimant gives written consent for	3286
disclosure.	3287

(C) Notwithstanding section 4141.29 of the Revised Code, an	3288
individual is eligible for waiting week credit and for	3289
unemployment compensation benefits if the director determines that	3290
the claimant was separated from employment due to compelling	3291
family circumstances.	3292

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

3293

(1) "Declining occupation" means either of the following	3294
occupations:	3295

(a) An occupation in which a lack of sufficient current	3296
demand in a claimant's labor market area exists for the	3297
occupational skills for which the claimant is qualified by	3298
training and experience or current physical or mental capacity,	3299
and the lack of employment opportunities is expected to continue	3300
for an extended period of time;	3301

(b) An occupation for which a seasonal variation in demand	3302
exists in the labor market and a claimant has no other skills for	3303
which a current demand exists.	3304

(2) "Extended benefits" and "regular benefits" have the same	3305
meanings as in section 4141.301 of the Revised Code.	3306

(3) "High-demand occupation" means an occupation in a labor	3307
market area where work opportunities are available and qualified	3308
applicants are lacking as determined by the use of available labor	3309
market information.	3310

(4) "Similar stipend" means an amount provided under a	3311
program with similar aims, such as providing training to increase	3312
employability, as the program described in division (B)(3) of this	3313
section.	3314

(B) A claimant who otherwise is eligible for regular benefits	3315
is eligible to receive training extension benefits if the director	3316
of job and family services determines that the claimant satisfies	3317
all of the following criteria:	3318

(1) The claimant is unemployed.

3319

(2) The claimant has exhausted all rights to regular	3320
benefits, all rights to extended benefits, and all rights to	3321
benefits under section 2002 of division B, title n, known as "The	3322
Assistance for Unemployed Workers and Struggling Families Act" of	3323
the "American Recovery and Reinvestment Act of 2009," Pub. L. No.	3324
111-5, 123 Stat. 115, as amended.	3325

(3) The claimant is enrolled in a training program approved	3326
by the director or in a job training program authorized under the	3327
"Workforce Investment Act of 1998," 112 Stat. 936, 29 U.S.C. 2801	3328
et seq., as amended; except that the training program must prepare	3329
the claimant for entry into a high-demand occupation if the	3330
director determines that the claimant separated from a declining	3331
occupation or has been involuntarily and indefinitely separated	3332
from employment as a result of a permanent reduction of operations	3333
at the claimant's place of employment.	3334

(4) The claimant is making satisfactory progress to complete	3335
the training as determined by the director.	3336

(C) The amount of a claimant's weekly training extension	3337
benefit shall equal the claimant's weekly benefit amount as	3338
determined for the most recent benefit year, less any deductible	3339
income as determined under section 4141.31 of the Revised Code and	3340
any reduction required by division (D) of this section. The total	3341
amount of training extension benefits payable to a claimant shall	3342
be equal to twenty-six times the claimant's average weekly benefit	3343
amount for the most recent benefit year. A claimant who is	3344
receiving training extension benefits shall not be denied training	3345
extension benefits because the claimant may not satisfy the	3346
requirements of division (A)(4) or (5) of section 4141.29 of the	3347
Revised Code. The director shall charge any training extension	3348
benefits paid pursuant to this section to the mutualized account	3349
created in section 4141.25 of the Revised Code and shall not	3350
charge an employer's account for any training extension benefits	3351
paid to a claimant.	3352

(D) The amount of a claimant's weekly training extension	3353
benefit shall be reduced by the amount of any similar stipend or	3354
other training allowances for nontraining costs received by the	3355
claimant for the week that the weekly training extension benefit	3356
is due to the claimant.	3357

Sec. 4141.50.  (A) There is hereby created the short-time	3358
compensation program. An employer who wishes to participate in the	3359
program shall submit, on an application form provided by the	3360
director of job and family services, a plan to the director that	3361
satisfies the requirements listed in section 4141.51 of the	3362
Revised Code. If an employee the employer covers under the plan is	3363
subject to a collective bargaining agreement, the employer shall	3364
have the employee's collective bargaining agent approve the plan	3365
in writing. The written approval shall include a statement as to	3366
whether the agent believes the implementation of the plan is	3367
consistent with federal law. The employer shall submit that	3368
approval to the director with the employer's proposed plan.	3369

(B) The director may adopt rules as the director determines	3370
necessary, including additional plan requirements, to administer	3371
the short-time compensation program in accordance with any	3372
guidance issued by the United States secretary of labor with	3373
respect to the short-time compensation program.	3374

Sec. 4141.51.  (A) The director of job and family services	3375
shall approve a short-time compensation plan submitted by an	3376
employer under section 4141.50 of the Revised Code in which the	3377
employer does all of the following:	3378

(1) Identifies the specific affected unit or units to which	3379
the plan will apply, including the number of full-time or	3380
part-time workers in each affected unit and the percentage of	3381
workers in each affected unit who are to be covered by the plan;	3382

(2) Identifies in the plan the employees in the affected unit	3383
by name, social security number, the employer's unemployment tax	3384
identification number, and any other information required by the	3385
director to identify plan participants;	3386

(3) Identifies the normal weekly hours of work for each	3387
employee in the affected unit or units identified in the plan;	3388

(4) Includes the specific percentage by which the hours of	3389
each employee in the affected unit or units will be reduced, which	3390
shall be at least ten per cent but not more than sixty per cent;	3391

(5) Includes a certification by the employer that if the	3392
employer provides fringe benefits, the employer will continue to	3393
provide fringe benefits to participating employees under the same	3394
terms and conditions as though the normal weekly hours of work of	3395
those employees had not been reduced, or to the same extent as the	3396
benefits are provided to other employees not participating in the	3397
short-time compensation program;	3398

(6) Includes a certification by the employer that the	3399
implementation of a short-time compensation plan and resulting	3400
reduction in work hours is in lieu of temporary layoffs and	3401
includes an estimate of the number of layoffs that would have	3402
occurred absent the ability to participate in the short-time	3403
compensation plan.	3404

(7) Agrees in writing to furnish the director reports	3405
relating to the operation of the plan as the director requests in	3406
accordance with section 4141.54 of the Revised Code, to allow the	3407
director access to all records necessary to approve, disapprove,	3408
or evaluate the plan, and to follow any other directive that the	3409
director determines to be necessary to implement the plan and that	3410
is consistent with the requirements for plan approval provided in	3411
division (A) of this section;	3412

(8) Describes the manner in which the plan will be	3413
implemented, includes a plan to give advance notice, if feasible,	3414
to an employee whose normal weekly hours of work will be reduced	3415
under the plan, and, if advanced notice is not feasible, provides	3416
an explanation of why that notice is not feasible;	3417

(9) Identifies any week during the effective period of the	3418
plan for which the employer regularly provides no work, such as a	3419
holiday or other regularly scheduled plant closing;	3420

(10) Includes a certification by the employer that the	3421
employer's participation in the short-time compensation plan and	3422
the plan's implementation are consistent with the employer's	3423
obligations under applicable federal and state laws;	3424

(11) Includes the proposed effective date for the plan and a	3425
termination date, which shall be not more than twelve calendar	3426
months later than the proposed effective date;	3427

(12) Includes any other provision added to the application	3428
form by the director that the United States secretary of labor	3429
determines to be appropriate for purposes of a short-time	3430
compensation program.	3431

(B)(1) An employer shall not include in the employer's	3432
short-time compensation plan any employee employed by the employer	3433
on a seasonal, temporary, or intermittent basis.	3434

(2) As used in this division:

3435

(a) "Seasonal basis" has the same meaning as "seasonal	3436
employment" as defined in section 4141.33 of the Revised Code.	3437

(b) "Temporary basis" means any employment where an employee	3438
is expected to remain in a position for only a limited period of	3439
time or is hired by a temporary agency to fill a gap in the	3440
employer's workforce.	3441

(c) "Intermittent basis" means employment that is not	3442
continuous but may consist of periodic intervals of weekly work	3443
and intervals of no weekly work.	3444

(C) The director shall approve or deny a short-time	3445
compensation plan and shall send a written notice to the employer	3446
stating whether the director approved or denied the plan not later	3447
than thirty days after the director receives the plan. If the	3448
director denies approval of a short-time compensation plan, the	3449
director shall state the reasons for denying approval in the	3450
written notice sent to the employer. A decision denying a plan	3451
shall be final, but an employer subject to a denial shall be	3452
allowed to submit another short-time compensation plan for	3453
approval not earlier than fifteen days after the date of the	3454
denial.	3455

Sec. 4141.52.  (A) A short-time compensation plan approved	3456
under section 4141.51 of the Revised Code takes effect on the	3457
later of the date the director of job and family services approves	3458
the plan or the date specified in the plan as the effective date.	3459
Except as otherwise provided in division (B) of this section, an	3460
approved plan expires on the termination date specified in the	3461
plan.	3462

(B) The director may terminate an approved plan for good	3463
cause at any time, including upon the request of any employees in	3464
the affected unit. A termination order issued under this division	3465
shall be in writing and shall specify the reasons for the	3466
revocation and the effective date of the revocation.	3467

(C) The director may periodically review the operation of	3468
each employer's short-time compensation plan to assure that no	3469
good cause exists for termination of the plan pursuant to division	3470
(B) of this section. For purposes of this section, good cause	3471
shall include any of the following:	3472

(1) An employer's failure to comply with assurances given in	3473
the plan;	3474

(2) An employer's unreasonable revision of productivity	3475
standards for the affected unit;	3476

(3) An employer's violation of any criteria on which approval	3477
of the plan was based;	3478

(4) Circumstances tending to defeat the intent and effective	3479
operation of the employer's short-time compensation plan.	3480

(D) An employer may terminate a short-time compensation plan	3481
at any time upon written notice to the director. Upon receipt of a	3482
termination notice from an employer, the director shall promptly	3483
notify each member of the affected unit of the plan's termination	3484
date.	3485

(E) An employer may submit a new application to participate	3486
in a short-time compensation plan at any time after the expiration	3487
or termination date of an existing plan.	3488

Sec. 4141.53.  A participating employer may modify a	3489
short-time compensation plan approved under section 4141.51 of the	3490
Revised Code to meet changed conditions regarding the	3491
participating employer's business if the modification conforms to	3492
the basic provisions of the plan as approved by the director of	3493
job and family services. Before implementing the proposed change,	3494
the participating employer shall report the proposed change in	3495
writing to the director. If the director determines that the	3496
proposed change will result in a substantial modification of the	3497
plan approved under section 4141.51 of the Revised Code, the	3498
director shall reevaluate the proposed modified plan to determine	3499
whether the plan continues to satisfy the requirements listed in	3500
divisions (A)(1) to (12) of that section. The director shall	3501
approve or deny the modification in accordance with that section.	3502

The director shall approve or deny a proposed modification in	3503
writing, within thirty days after a modification request is	3504
received by the director. Any decision to approve or deny a	3505
proposed modification shall be promptly communicated to the	3506
employer. If a proposed modification is approved, the director	3507
shall notify the employer of the effective date of the	3508
modification.	3509

An employer is not required to request approval of a plan	3510
modification from the director if the change is not substantial,	3511
but the employer shall report every change to the director	3512
promptly and in writing. The director may terminate an employer's	3513
plan if the employer fails to comply with this reporting	3514
requirement.	3515

If an employer has reported a change to the director and has	3516
not requested approval of a plan modification, the director shall	3517
require the employer to request a modification to the plan if the	3518
director determines that the change is substantial.	3519

Approval of a modified plan does not affect the plan's	3520
original expiration date determined under section 4141.52 of the	3521
Revised Code.	3522

Sec. 4141.54.  Upon request of the director of job and family	3523
services, a participating employer shall monitor and evaluate the	3524
operation of the participating employer's short-time compensation	3525
plan and shall report the participating employer's findings to the	3526
director.	3527

Sec. 4141.55.  (A) Notwithstanding section 4141.01, 4141.29,	3528
4141.30, or 4141.31 of the Revised Code, an individual is	3529
unemployed for purposes of this chapter in a week during which the	3530
individual is a participating employee under a short-time	3531
compensation plan approved under section 4141.51 of the Revised	3532
Code that is in effect for that week.	3533

(B) An individual is eligible to receive short-time	3534
compensation benefits for a week in which the individual satisfies	3535
all of the following:	3536

(1) The individual is employed as a member of an affected	3537
unit subject to a shared-time compensation plan that was approved	3538
before that week and is in effect for that week.	3539

(2) The individual is able to work and is available for the	3540
individual's normal weekly hours of work with the short-time	3541
compensation employer, which may include, for purposes of this	3542
section, participating in training that is approved by the	3543
director to enhance job skills, such as employer-sponsored	3544
training, or training funded by the "Workforce Investment Act of	3545
1998," 112 Stat. 936, 29 U.S.C. 2832, as amended.	3546

(3) The individual's normal weekly hours of work have been	3547
reduced by at least ten per cent but not more than sixty per cent	3548
and the individual receives a corresponding reduction in wages.	3549

(4) The individual has been employed by an employer or	3550
employers subject to this chapter in at least twenty qualifying	3551
weeks within the individual's base period and has earned or been	3552
paid remuneration at an average weekly wage of not less than	3553
twenty-seven and one-half per cent of the statewide average weekly	3554
wage for those weeks.	3555

(5) The individual has been subject to a short-time	3556
compensation plan for at least one week prior to the week for	3557
which the short-time compensation benefits are to be paid, or	3558
otherwise satisfies the waiting period requirement of division (B)	3559
of section 4141.29 of the Revised Code for the individual's	3560
benefit year.	3561

(6) The individual otherwise satisfies the requirements of	3562
this chapter and is not otherwise disqualified from receiving	3563
unemployment compensation benefits.	3564

(C) Notwithstanding section 4141.29 of the Revised Code, the	3565
director of job and family services shall not deny short-time	3566
compensation benefits for a week to an otherwise eligible employee	3567
because the employee is unavailable for work other than as	3568
required under division (B)(2) of this section, is not actively	3569
searching for work, or refuses to apply for or to accept work with	3570
an employer other than with the employer who is implementing the	3571
plan.	3572

(D) The director shall pay an employee who is eligible for a	3573
weekly short-time compensation benefit in an amount equal to the	3574
employee's regular weekly benefit amount for a period of total	3575
unemployment as described in division (B) of section 4141.30 of	3576
the Revised Code multiplied by the nearest full percentage of	3577
reduction of the employee's normal weekly hours of work under the	3578
employer's short-time compensation plan. The director shall round	3579
the amount of a short-time compensation benefit that is not a	3580
multiple of one dollar to the next highest dollar amount.	3581

(E) An employee is not entitled to receive short-time	3582
compensation benefits and regular unemployment compensation	3583
benefits that, when combined, exceed the maximum total benefits	3584
payable to the employee in a benefit year under section 4141.30 of	3585
the Revised Code. An employee shall receive short-time	3586
compensation benefits for a maximum of fifty-two weeks regardless	3587
of whether the employee has received the total maximum benefits	3588
payable for the employee's benefit year. An individual who	3589
receives short-time compensation benefits is not entitled to	3590
receive benefits for partial unemployment under division (C) of	3591
section 4141.30 of the Revised Code for any week during which the	3592
individual participates in a short-time compensation plan. The	3593
director shall not pay an individual short-time compensation	3594
benefits for a week during which the individual performs paid work	3595
for the employer implementing the short-time compensation plan	3596
that exceeds the reduced hours established under the plan. Any	3597
short-time compensation benefits paid to an individual shall be	3598
deducted from the total benefits available to the individual for	3599
the individual's benefit year, as described in division (D) of	3600
section 4141.30 of the Revised Code.	3601

(F) An individual participating in a short-time compensation	3602
plan may participate in training, including a training program	3603
sponsored by the employer implementing the plan or funded under	3604
the federal "Workforce Development Act of 1998," 112 Stat. 936, 29	3605
U.S.C. 2801 et seq., as amended, to enhance job skills if the	3606
program is approved by the director.	3607

(G) An individual who has received all of the short-time	3608
compensation benefits and regular unemployment compensation	3609
benefits available in a benefit year is an individual who has	3610
exhausted regular benefits under section 4141.30 of the Revised	3611
Code and is entitled to receive extended benefits under section	3612
4141.301 of the Revised Code if the individual is otherwise	3613
eligible to receive benefits under that section.	3614

Sec. 4141.56.  (A) Notwithstanding section 4141.55 of the	3615
Revised Code:	3616

(1) An individual who is otherwise eligible to receive	3617
short-time compensation benefits pursuant to section 4141.55 of	3618
the Revised Code is ineligible to receive short-time compensation	3619
benefits for any week in which the employee performs work for a	3620
short-time compensation employer and another employer, and the	3621
individual's combined hours of work in the week exceed ninety per	3622
cent of the individual's normal weekly hours of work with the	3623
short-time employer.	3624

(2) An individual who is otherwise eligible to receive	3625
short-time compensation benefits pursuant to section 4141.55 of	3626
the Revised Code is eligible to receive a reduced benefit for any	3627
week in which the employee performs work for a short-time	3628
compensation employer and another employer, and the individual's	3629
combined hours of work in the week do not exceed ninety per cent	3630
of the individual's normal weekly hours of work with the	3631
short-time compensation employer. The reduced benefit amount shall	3632
be calculated by multiplying the employee's regular weekly benefit	3633
amount for a period of total unemployment, as described in	3634
division (B) of section 4141.30 of the Revised Code, by the	3635
nearest full percentage by which the employee's combined hours of	3636
work are less than the individual's normal weekly hours of work	3637
with the short-time compensation employer.	3638

(B) An individual who is not provided any work during a week	3639
by the individual's short-time compensation employer, or any other	3640
employer, and who is otherwise eligible, shall be paid benefits	3641
for being totally unemployed for that week.	3642

(C) An individual who is not provided any work by the	3643
individual's short-time compensation employer during a week, but	3644
who works for another employer during that time and is otherwise	3645
eligible may be paid benefits for being partially unemployed for	3646
that week.	3647

Sec. 4141.57.  Any short-time compensation benefits paid to	3648
an individual pursuant to sections 4141.55 and 4141.56 of the	3649
Revised Code shall be charged to an employer's account in	3650
accordance with division (D) of section 4141.24 of the Revised	3651
Code.	3652

Sec. 4301.20.  This chapter and Chapter 4303. of the Revised	3653
Code do not prevent the following:	3654

(A) The storage of intoxicating liquor in bonded warehouses,	3655
established in accordance with the acts of congress and under the	3656
regulation of the United States, located in this state, or the	3657
transportation of intoxicating liquor to or from bonded warehouses	3658
of the United States wherever located;	3659

(B) A bona fide resident of this state who is the owner of a	3660
warehouse receipt from obtaining or transporting to the resident's	3661
residence for the resident's own consumption and not for resale	3662
spirituous liquor stored in a government bonded warehouse in this	3663
state or in another state prior to December 1933, subject to such	3664
terms as are prescribed by the division of liquor control;	3665

(C) The manufacture of cider from fruit for the purpose of	3666
making vinegar, and nonintoxicating cider and fruit juices for use	3667
and sale;	3668

(D) A licensed physician or dentist from administering or	3669
dispensing intoxicating liquor or alcohol to a patient in good	3670
faith in the actual course of the practice of the physician's or	3671
dentist's profession;	3672

(E) The sale of alcohol to physicians, dentists, druggists,	3673
veterinary surgeons, manufacturers, hospitals, infirmaries, or	3674
medical or educational institutions using the alcohol for	3675
medicinal, mechanical, chemical, or scientific purposes;	3676

(F) The sale, gift, or keeping for sale by druggists and	3677
others of any of the medicinal preparations manufactured in	3678
accordance with the formulas prescribed by the United States	3679
Pharmacopoeia and National Formulary, patent or proprietary	3680
preparations, and other bona fide medicinal and technical	3681
preparations, which contain no more alcohol than is necessary to	3682
hold the medicinal agents in solution and to preserve the same,	3683
which are manufactured and sold as medicine and not as beverages,	3684
are unfit for use for beverage purposes, and the sale of which	3685
does not require the payment of a United States liquor dealer's	3686
tax;	3687

(G) The manufacture and sale of tinctures or of toilet,	3688
medicinal, and antiseptic preparations and solutions not intended	3689
for internal human use nor to be sold as beverages, and which are	3690
unfit for beverage purposes, if upon the outside of each bottle,	3691
box, or package of which there is printed in the English language,	3692
conspicuously and legibly, the quantity by volume of alcohol in	3693
the preparation or solution;	3694

(H) The manufacture and keeping for sale of the food products	3695
known as flavoring extracts when manufactured and sold for	3696
cooking, culinary, or flavoring purposes, and which are unfit for	3697
use for beverage purposes;	3698

(I) The lawful sale of wood alcohol or of ethyl alcohol for	3699
external use when combined with other substances as to make it	3700
unfit for internal use;	3701

(J) The manufacture, sale, and transport of ethanol or ethyl	3702
alcohol for use as fuel. As used in this division, "ethanol" has	3703
the same meaning as in section 5733.46122.075 of the Revised	3704
Code.	3705

(K) The purchase and importation into this state or the	3706
purchase at wholesale from A or B permit holders in this state of	3707
beer and intoxicating liquor for use in manufacturing processes of	3708
nonbeverage food products under terms prescribed by the division,	3709
provided that the terms prescribed by the division shall not	3710
increase the cost of the beer or intoxicating liquor to any	3711
person, firm, or corporation purchasing and importing it into this	3712
state or purchasing it from an A or B permit holder for that use;	3713

(L) Any resident of this state or any member of the armed	3714
forces of the United States, who has attained the age of	3715
twenty-one years, from bringing into this state, for personal use	3716
and not for resale, not more than one liter of spirituous liquor,	3717
four and one-half liters of wine, or two hundred eighty-eight	3718
ounces of beer in any thirty-day period, and the same is free of	3719
any tax consent fee when the resident or member of the armed	3720
forces physically possesses and accompanies the spirituous liquor,	3721
wine, or beer on returning from a foreign country, another state,	3722
or an insular possession of the United States;	3723

(M) Persons, at least twenty-one years of age, who collect	3724
ceramic commemorative bottles containing spirituous liquor that	3725
have unbroken federal tax stamps on them from selling or trading	3726
the bottles to other collectors. The bottles shall originally have	3727
been purchased at retail from the division, legally imported under	3728
division (L) of this section, or legally imported pursuant to a	3729
supplier registration issued by the division. The sales shall be	3730
for the purpose of exchanging a ceramic commemorative bottle	3731
between private collectors and shall not be for the purpose of	3732
selling the spirituous liquor for personal consumption. The sale	3733
or exchange authorized by this division shall not occur on the	3734
premises of any permit holder, shall not be made in connection	3735
with the business of any permit holder, and shall not be made in	3736
connection with any mercantile business.	3737

(N) The sale of beer or intoxicating liquor without a liquor	3738
permit at a private residence, not more than five times per	3739
calendar year at a residence address, at an event that has the	3740
following characteristics:	3741

(1) The event is for a charitable, benevolent, or political	3742
purpose, but shall not include any event the proceeds of which are	3743
for the profit or gain of any individual;	3744

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

3745

(3) The event shall be for a period not to exceed twelve	3746
hours;	3747

(4) The sale of beer and intoxicating liquor at the event	3748
shall not take place between two-thirty a.m. and five-thirty a.m.;	3749

(5) No person under twenty-one years of age shall purchase or	3750
consume beer or intoxicating liquor at the event and no beer or	3751
intoxicating liquor shall be sold to any person under twenty-one	3752
years of age at the event; and	3753

(6) No person at the event shall sell or furnish beer or	3754
intoxicating liquor to an intoxicated person.	3755

(O) The possession or consumption of beer or intoxicating	3756
liquor by a person who is under twenty-one years of age and who is	3757
a student at an accredited college or university, provided that	3758
both of the following apply:	3759

(1) The person is required to taste and expectorate the beer	3760
or intoxicating liquor for a culinary, food service, or	3761
hospitality course.	3762

(2) The person is under the direct supervision of the	3763
instructor of the culinary, food service, or hospitality course.	3764

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

3765

(1) "Distressed residential or commercial property" means	3766
real property that was or is used exclusively for residential or	3767
commercial purposes as classified in the county real property tax	3768
records and that is vacant, abandoned, foreclosed-upon, or located	3769
in a blighted area.	3770

(2) "Blighted area" has the same meaning as in section 1.08	3771
of the Revised Code.	3772

(3) "Qualifying improvement" means the increase in the	3773
assessed value of distressed residential or commercial property as	3774
shown on the tax list for a tax year after the tax year in which	3775
the owner of that property remodels the property.	3776

(4) "Remodel" means to make any change to a building that	3777
constitutes distressed residential or commercial property for the	3778
purpose of making it structurally more sound or more habitable or	3779
to improve its appearance.	3780

(B) If the owner of distressed residential or commercial	3781
property remodels the property within one year after first	3782
acquiring title to the property, the qualifying improvement is	3783
exempt from taxation until the tax year immediately following the	3784
tax year in which that owner transfers title to the property to	3785
another person.	3786

Sec. 5733.01.  (A) The tax provided by this chapter for	3787
domestic corporations shall be the amount charged against each	3788
corporation organized for profit under the laws of this state and	3789
each nonprofit corporation organized pursuant to Chapter 1729. of	3790
the Revised Code, except as provided in sections 5733.09 and	3791
5733.10 of the Revised Code, for the privilege of exercising its	3792
franchise during the calendar year in which that amount is	3793
payable, and the tax provided by this chapter for foreign	3794
corporations shall be the amount charged against each corporation	3795
organized for profit and each nonprofit corporation organized or	3796
operating in the same or similar manner as nonprofit corporations	3797
organized under Chapter 1729. of the Revised Code, under the laws	3798
of any state or country other than this state, except as provided	3799
in sections 5733.09 and 5733.10 of the Revised Code, for the	3800
privilege of doing business in this state, owning or using a part	3801
or all of its capital or property in this state, holding a	3802
certificate of compliance with the laws of this state authorizing	3803
it to do business in this state, or otherwise having nexus in or	3804
with this state under the Constitution of the United States,	3805
during the calendar year in which that amount is payable.	3806

(B) A corporation is subject to the tax imposed by section	3807
5733.06 of the Revised Code for each calendar year prior to 2014	3808
that it is so organized, doing business, owning or using a part or	3809
all of its capital or property, holding a certificate of	3810
compliance, or otherwise having nexus in or with this state under	3811
the Constitution of the United States, on the first day of January	3812
of that calendar year. No credit authorized by this chapter may be	3813
claimed for tax year 2014 or any tax year thereafter.	3814

(C) Any corporation subject to this chapter that is not	3815
subject to the federal income tax shall file its returns and	3816
compute its tax liability as required by this chapter in the same	3817
manner as if that corporation were subject to the federal income	3818
tax.	3819

(D) For purposes of this chapter, a federally chartered	3820
financial institution shall be deemed to be organized under the	3821
laws of the state within which its principal office is located.	3822

(E) For purposes of this chapter, any person, as defined in	3823
section 5701.01 of the Revised Code, shall be treated as a	3824
corporation if the person is classified for federal income tax	3825
purposes as an association taxable as a corporation, and an equity	3826
interest in the person shall be treated as capital stock of the	3827
person.	3828

(F) For the purposes of this chapter, "disregarded entity"	3829
has the same meaning as in division (D) of section 5745.01 of the	3830
Revised Code.	3831

(1) A person's interest in a disregarded entity, whether held	3832
directly or indirectly, shall be treated as the person's ownership	3833
of the assets and liabilities of the disregarded entity, and the	3834
income, including gain or loss, shall be included in the person's	3835
net income under this chapter.	3836

(2) Any sale, exchange, or other disposition of the person's	3837
interest in the disregarded entity, whether held directly or	3838
indirectly, shall be treated as a sale, exchange, or other	3839
disposition of the person's share of the disregarded entity's	3840
underlying assets or liabilities, and the gain or loss from such	3841
sale, exchange, or disposition shall be included in the person's	3842
net income under this chapter.	3843

(3) The disregarded entity's payroll, property, and sales	3844
factors shall be included in the person's factors.	3845

(G) The tax a corporation is required to pay under this	3846
chapter shall be as follows:	3847

(1)(a) For financial institutions, the greater of the minimum	3848
payment required under division (E) of section 5733.06 of the	3849
Revised Code or the difference between all taxes charged the	3850
financial institution under this chapter, without regard to	3851
division (G)(2) of this section, less any credits allowable	3852
against such tax.	3853

(b) A corporation satisfying the description in division	3854
(E)(5), (6), (7), (8), or (10) of section 5751.01 of the Revised	3855
Code, as that section existed before its amendment by H.B. 510 of	3856
the 129th general assembly, that is not a financial institution,	3857
insurance company, or dealer in intangibles is subject to the	3858
taxes imposed under this chapter as a corporation and not subject	3859
to tax as a financial institution, and shall pay the greater of	3860
the minimum payment required under division (E) of section 5733.06	3861
of the Revised Code or the difference between all the taxes	3862
charged under this chapter, without regard to division (G)(2) of	3863
this section, less any credits allowable against such tax.	3864

(2) For all corporations other than those persons described	3865
in division (G)(1)(a) or (b) of this section, the amount under	3866
division (G)(2)(a) of this section applicable to the tax year	3867
specified less the amount under division (G)(2)(b) of this	3868
section:	3869

(a)(i) For tax year 2005, the greater of the minimum payment	3870
required under division (E) of section 5733.06 of the Revised Code	3871
or the difference between all taxes charged the corporation under	3872
this chapter and any credits allowable against such tax;	3873

(ii) For tax year 2006, the greater of the minimum payment	3874
required under division (E) of section 5733.06 of the Revised Code	3875
or four-fifths of the difference between all taxes charged the	3876
corporation under this chapter and any credits allowable against	3877
such tax, except the qualifying pass-through entity tax credit	3878
described in division (A)(30) and the refundable credits described	3879
in divisions (A)(31) to (35) of section 5733.98 of the Revised	3880
Code;	3881

(iii) For tax year 2007, the greater of the minimum payment	3882
required under division (E) of section 5733.06 of the Revised Code	3883
or three-fifths of the difference between all taxes charged the	3884
corporation under this chapter and any credits allowable against	3885
such tax, except the qualifying pass-through entity tax credit	3886
described in division (A)(30) and the refundable credits described	3887
in divisions (A)(31) to (35) of section 5733.98 of the Revised	3888
Code;	3889

(iv) For tax year 2008, the greater of the minimum payment	3890
required under division (E) of section 5733.06 of the Revised Code	3891
or two-fifths of the difference between all taxes charged the	3892
corporation under this chapter and any credits allowable against	3893
such tax, except the qualifying pass-through entity tax credit	3894
described in division (A)(30) and the refundable credits described	3895
in divisions (A)(31) to (35) of section 5733.98 of the Revised	3896
Code;	3897

(v) For tax year 2009, the greater of the minimum payment	3898
required under division (E) of section 5733.06 of the Revised Code	3899
or one-fifth of the difference between all taxes charged the	3900
corporation under this chapter and any credits allowable against	3901
such tax, except the qualifying pass-through entity tax credit	3902
described in division (A)(30) and the refundable credits described	3903
in divisions (A)(31), (32), (33), and (34) of section 5733.98 of	3904
the Revised Code;	3905

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

3906

(b) A corporation shall subtract from the amount calculated	3907
under division (G)(2)(a)(ii), (iii), (iv), or (v) of this section	3908
any qualifying pass-through entity tax credit described in	3909
division (A)(30)(28) and any refundable credits described in	3910
divisions (A)(31)(29) to (35)(33) of section 5733.98 of the	3911
Revised Code to which the corporation is entitled. Any unused	3912
qualifying pass-through entity tax credit is not refundable.	3913

(c) For the purposes of computing the amount of a credit that	3914
may be carried forward to a subsequent tax year under division	3915
(G)(2) of this section, a credit is utilized against the tax for a	3916
tax year to the extent the credit applies against the tax for that	3917
tax year, even if the difference is then multiplied by the	3918
applicable fraction under division (G)(2)(a) of this section.	3919

(3) Nothing in division (G) of this section eliminates or	3920
reduces the tax imposed by section 5733.41 of the Revised Code on	3921
a qualifying pass-through entity.	3922

Sec. 5733.98.  (A) To provide a uniform procedure for	3923
calculating the amount of tax imposed by section 5733.06 of the	3924
Revised Code that is due under this chapter, a taxpayer shall	3925
claim any credits to which it is entitled in the following order,	3926
except as otherwise provided in section 5733.058 of the Revised	3927
Code:	3928

(1) For tax year 2005, the credit for taxes paid by a	3929
qualifying pass-through entity allowed under section 5733.0611 of	3930
the Revised Code;	3931

(2) The credit allowed for financial institutions under	3932
section 5733.45 of the Revised Code;	3933

(3) The credit for qualifying affiliated groups under section	3934
5733.068 of the Revised Code;	3935

(4) The subsidiary corporation credit under section 5733.067	3936
of the Revised Code;	3937

(5) The savings and loan assessment credit under section	3938
5733.063 of the Revised Code;	3939

(6) The credit for recycling and litter prevention donations	3940
under section 5733.064 of the Revised Code;	3941

(7) The credit for employers that enter into agreements with	3942
child day-care centers under section 5733.36 of the Revised Code;	3943

(8) The credit for employers that reimburse employee child	3944
care expenses under section 5733.38 of the Revised Code;	3945

(9) The credit for maintaining railroad active grade crossing	3946
warning devices under section 5733.43 of the Revised Code;	3947

(10) The credit for purchases of lights and reflectors under	3948
section 5733.44 of the Revised Code;	3949

(11) The nonrefundable job retention credit under division	3950
(B) of section 5733.0610 of the Revised Code;	3951

(12) The credit for tax years 2008 and 2009 for selling	3952
alternative fuel under section 5733.48 of the Revised Code;	3953

(13) The second credit for purchases of new manufacturing	3954
machinery and equipment under section 5733.33 of the Revised Code;	3955

(14)(13) The job training credit under section 5733.42 of the	3956
Revised Code;	3957

(15)(14) The credit for qualified research expenses under	3958
section 5733.351 of the Revised Code;	3959

(16)(15) The enterprise zone credit under section 5709.66 of	3960
the Revised Code;	3961

(17)(16) The credit for the eligible costs associated with a	3962
voluntary action under section 5733.34 of the Revised Code;	3963

(18)(17) The credit for employers that establish on-site	3964
child day-care centers under section 5733.37 of the Revised Code;	3965

(19) The ethanol plant investment credit under section	3966
5733.46 of the Revised Code;	3967

(20)(18) The credit for purchases of qualifying grape	3968
production property under section 5733.32 of the Revised Code;	3969

(21)(19) The export sales credit under section 5733.069 of	3970
the Revised Code;	3971

(22)(20) The credit for research and development and	3972
technology transfer investors under section 5733.35 of the Revised	3973
Code;	3974

(23)(21) The enterprise zone credits under section 5709.65 of	3975
the Revised Code;	3976

(24)(22) The credit for using Ohio coal under section 5733.39	3977
of the Revised Code;	3978

(25)(23) The credit for purchases of qualified low-income	3979
community investments under section 5733.58 of the Revised Code;	3980

(26)(24) The credit for small telephone companies under	3981
section 5733.57 of the Revised Code;	3982

(27)(25) The credit for eligible nonrecurring 9-1-1 charges	3983
under section 5733.55 of the Revised Code;	3984

(28)(26) For tax year 2005, the credit for providing programs	3985
to aid the communicatively impaired under division (A) of section	3986
5733.56 of the Revised Code;	3987

(29)(27) The research and development credit under section	3988
5733.352 of the Revised Code;	3989

(30)(28) For tax years 2006 and subsequent tax years, the	3990
credit for taxes paid by a qualifying pass-through entity allowed	3991
under section 5733.0611 of the Revised Code;	3992

(31)(29) The refundable credit for rehabilitating a historic	3993
building under section 5733.47 of the Revised Code;	3994

(32)(30) The refundable jobs creation credit or job retention	3995
credit under division (A) of section 5733.0610 of the Revised	3996
Code;	3997

(33)(31) The refundable credit for tax withheld under	3998
division (B)(2) of section 5747.062 of the Revised Code;	3999

(34)(32) The refundable credit under section 5733.49 of the	4000
Revised Code for losses on loans made to the Ohio venture capital	4001
program under sections 150.01 to 150.10 of the Revised Code;	4002

(35)(33) For tax years 2006, 2007, and 2008, the refundable	4003
credit allowable under division (B) of section 5733.56 of the	4004
Revised Code;	4005

(36)(34) The refundable motion picture production credit	4006
under section 5733.59 of the Revised Code.	4007

(B) For any credit except the refundable credits enumerated	4008
in this section, the amount of the credit for a tax year shall not	4009
exceed the tax due after allowing for any other credit that	4010
precedes it in the order required under this section. Any excess	4011
amount of a particular credit may be carried forward if authorized	4012
under the section creating that credit.	4013

Sec. 5739.01.  As used in this chapter:

4014

(A) "Person" includes individuals, receivers, assignees,	4015
trustees in bankruptcy, estates, firms, partnerships,	4016
associations, joint-stock companies, joint ventures, clubs,	4017
societies, corporations, the state and its political subdivisions,	4018
and combinations of individuals of any form.	4019

(B) "Sale" and "selling" include all of the following	4020
transactions for a consideration in any manner, whether absolutely	4021
or conditionally, whether for a price or rental, in money or by	4022
exchange, and by any means whatsoever:	4023

(1) All transactions by which title or possession, or both,	4024
of tangible personal property, is or is to be transferred, or a	4025
license to use or consume tangible personal property is or is to	4026
be granted;	4027

(2) All transactions by which lodging by a hotel is or is to	4028
be furnished to transient guests;	4029

(3) All transactions by which:

4030

(a) An item of tangible personal property is or is to be	4031
repaired, except property, the purchase of which would not be	4032
subject to the tax imposed by section 5739.02 of the Revised Code;	4033

(b) An item of tangible personal property is or is to be	4034
installed, except property, the purchase of which would not be	4035
subject to the tax imposed by section 5739.02 of the Revised Code	4036
or property that is or is to be incorporated into and will become	4037
a part of a production, transmission, transportation, or	4038
distribution system for the delivery of a public utility service;	4039

(c) The service of washing, cleaning, waxing, polishing, or	4040
painting a motor vehicle is or is to be furnished;	4041

(d) Until August 1, 2003, industrial laundry cleaning	4042
services are or are to be provided and, on and after August 1,	4043
2003, laundry and dry cleaning services are or are to be provided;	4044

(e) Automatic data processing, computer services, or	4045
electronic information services are or are to be provided for use	4046
in business when the true object of the transaction is the receipt	4047
by the consumer of automatic data processing, computer services,	4048
or electronic information services rather than the receipt of	4049
personal or professional services to which automatic data	4050
processing, computer services, or electronic information services	4051
are incidental or supplemental. Notwithstanding any other	4052
provision of this chapter, such transactions that occur between	4053
members of an affiliated group are not sales. An "affiliated	4054
group" means two or more persons related in such a way that one	4055
person owns or controls the business operation of another member	4056
of the group. In the case of corporations with stock, one	4057
corporation owns or controls another if it owns more than fifty	4058
per cent of the other corporation's common stock with voting	4059
rights.	4060

(f) Telecommunications service, including prepaid calling	4061
service, prepaid wireless calling service, or ancillary service,	4062
is or is to be provided, but not including coin-operated telephone	4063
service;	4064

(g) Landscaping and lawn care service is or is to be	4065
provided;	4066

(h) Private investigation and security service is or is to be	4067
provided;	4068

(i) Information services or tangible personal property is	4069
provided or ordered by means of a nine hundred telephone call;	4070

(j) Building maintenance and janitorial service is or is to	4071
be provided;	4072

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

4073

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

4074

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

4075

(n) Physical fitness facility service is or is to be	4076
provided;	4077

(o) Recreation and sports club service is or is to be	4078
provided;	4079

(p) On and after August 1, 2003, satellite broadcasting	4080
service is or is to be provided;	4081

(q) On and after August 1, 2003, personal care service is or	4082
is to be provided to an individual. As used in this division,	4083
"personal care service" includes skin care, the application of	4084
cosmetics, manicuring, pedicuring, hair removal, tattooing, body	4085
piercing, tanning, massage, and other similar services. "Personal	4086
care service" does not include a service provided by or on the	4087
order of a licensed physician or licensed chiropractor, or the	4088
cutting, coloring, or styling of an individual's hair.	4089

(r) On and after August 1, 2003, the transportation of	4090
persons by motor vehicle or aircraft is or is to be provided, when	4091
the transportation is entirely within this state, except for	4092
transportation provided by an ambulance service, by a transit bus,	4093
as defined in section 5735.01 of the Revised Code, and	4094
transportation provided by a citizen of the United States holding	4095
a certificate of public convenience and necessity issued under 49	4096
U.S.C. 41102;	4097

(s) On and after August 1, 2003, motor vehicle towing service	4098
is or is to be provided. As used in this division, "motor vehicle	4099
towing service" means the towing or conveyance of a wrecked,	4100
disabled, or illegally parked motor vehicle.	4101

(t) On and after August 1, 2003, snow removal service is or	4102
is to be provided. As used in this division, "snow removal	4103
service" means the removal of snow by any mechanized means, but	4104
does not include the providing of such service by a person that	4105
has less than five thousand dollars in sales of such service	4106
during the calendar year.	4107

(u) Electronic publishing service is or is to be provided to	4108
a consumer for use in business, except that such transactions	4109
occurring between members of an affiliated group, as defined in	4110
division (B)(3)(e) of this section, are not sales.	4111

(4) All transactions by which printed, imprinted,	4112
overprinted, lithographic, multilithic, blueprinted, photostatic,	4113
or other productions or reproductions of written or graphic matter	4114
are or are to be furnished or transferred;	4115

(5) The production or fabrication of tangible personal	4116
property for a consideration for consumers who furnish either	4117
directly or indirectly the materials used in the production of	4118
fabrication work; and include the furnishing, preparing, or	4119
serving for a consideration of any tangible personal property	4120
consumed on the premises of the person furnishing, preparing, or	4121
serving such tangible personal property. Except as provided in	4122
section 5739.03 of the Revised Code, a construction contract	4123
pursuant to which tangible personal property is or is to be	4124
incorporated into a structure or improvement on and becoming a	4125
part of real property is not a sale of such tangible personal	4126
property. The construction contractor is the consumer of such	4127
tangible personal property, provided that the sale and	4128
installation of carpeting, the sale and installation of	4129
agricultural land tile, the sale and erection or installation of	4130
portable grain bins, or the provision of landscaping and lawn care	4131
service and the transfer of property as part of such service is	4132
never a construction contract.	4133

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

4134

(a) "Agricultural land tile" means fired clay or concrete	4135
tile, or flexible or rigid perforated plastic pipe or tubing,	4136
incorporated or to be incorporated into a subsurface drainage	4137
system appurtenant to land used or to be used primarily in	4138
production by farming, agriculture, horticulture, or floriculture.	4139
The term does not include such materials when they are or are to	4140
be incorporated into a drainage system appurtenant to a building	4141
or structure even if the building or structure is used or to be	4142
used in such production.	4143

(b) "Portable grain bin" means a structure that is used or to	4144
be used by a person engaged in farming or agriculture to shelter	4145
the person's grain and that is designed to be disassembled without	4146
significant damage to its component parts.	4147

(6) All transactions in which all of the shares of stock of a	4148
closely held corporation are transferred, or an ownership interest	4149
in a pass-through entity, as defined in section 5733.04 of the	4150
Revised Code, is transferred, if the corporation or pass-through	4151
entity is not engaging in business and its entire assets consist	4152
of boats, planes, motor vehicles, or other tangible personal	4153
property operated primarily for the use and enjoyment of the	4154
shareholders or owners;	4155

(7) All transactions in which a warranty, maintenance or	4156
service contract, or similar agreement by which the vendor of the	4157
warranty, contract, or agreement agrees to repair or maintain the	4158
tangible personal property of the consumer is or is to be	4159
provided;	4160

(8) The transfer of copyrighted motion picture films used	4161
solely for advertising purposes, except that the transfer of such	4162
films for exhibition purposes is not a sale;	4163

(9) On and after August 1, 2003, all transactions by which	4164
tangible personal property is or is to be stored, except such	4165
property that the consumer of the storage holds for sale in the	4166
regular course of business;	4167

(10) All transactions in which "guaranteed auto protection"	4168
is provided whereby a person promises to pay to the consumer the	4169
difference between the amount the consumer receives from motor	4170
vehicle insurance and the amount the consumer owes to a person	4171
holding title to or a lien on the consumer's motor vehicle in the	4172
event the consumer's motor vehicle suffers a total loss under the	4173
terms of the motor vehicle insurance policy or is stolen and not	4174
recovered, if the protection and its price are included in the	4175
purchase or lease agreement;	4176

(11)(a) Except as provided in division (B)(11)(b) of this	4177
section, on and after October 1, 2009, all transactions by which	4178
health care services are paid for, reimbursed, provided,	4179
delivered, arranged for, or otherwise made available by a medicaid	4180
health insuring corporation pursuant to the corporation's contract	4181
with the state.	4182

(b) If the centers for medicare and medicaid services of the	4183
United States department of health and human services determines	4184
that the taxation of transactions described in division (B)(11)(a)	4185
of this section constitutes an impermissible health care-related	4186
tax under section 1903(w) of the "Social Security Act," 49 Stat.	4187
620 (1935), 42 U.S.C. 1396b(w), as amended, and regulations	4188
adopted thereunder, the director of job and family services shall	4189
notify the tax commissioner of that determination. Beginning with	4190
the first day of the month following that notification, the	4191
transactions described in division (B)(11)(a) of this section are	4192
not sales for the purposes of this chapter or Chapter 5741. of the	4193
Revised Code. The tax commissioner shall order that the collection	4194
of taxes under sections 5739.02, 5739.021, 5739.023, 5739.026,	4195
5741.02, 5741.021, 5741.022, and 5741.023 of the Revised Code	4196
shall cease for transactions occurring on or after that date.	4197

Except as provided in this section, "sale" and "selling" do	4198
not include transfers of interest in leased property where the	4199
original lessee and the terms of the original lease agreement	4200
remain unchanged, or professional, insurance, or personal service	4201
transactions that involve the transfer of tangible personal	4202
property as an inconsequential element, for which no separate	4203
charges are made.	4204

(C) "Vendor" means the person providing the service or by	4205
whom the transfer effected or license given by a sale is or is to	4206
be made or given and, for sales described in division (B)(3)(i) of	4207
this section, the telecommunications service vendor that provides	4208
the nine hundred telephone service; if two or more persons are	4209
engaged in business at the same place of business under a single	4210
trade name in which all collections on account of sales by each	4211
are made, such persons shall constitute a single vendor.	4212

Physicians, dentists, hospitals, and veterinarians who are	4213
engaged in selling tangible personal property as received from	4214
others, such as eyeglasses, mouthwashes, dentifrices, or similar	4215
articles, are vendors. Veterinarians who are engaged in	4216
transferring to others for a consideration drugs, the dispensing	4217
of which does not require an order of a licensed veterinarian or	4218
physician under federal law, are vendors.	4219

(D)(1) "Consumer" means the person for whom the service is	4220
provided, to whom the transfer effected or license given by a sale	4221
is or is to be made or given, to whom the service described in	4222
division (B)(3)(f) or (i) of this section is charged, or to whom	4223
the admission is granted.	4224

(2) Physicians, dentists, hospitals, and blood banks operated	4225
by nonprofit institutions and persons licensed to practice	4226
veterinary medicine, surgery, and dentistry are consumers of all	4227
tangible personal property and services purchased by them in	4228
connection with the practice of medicine, dentistry, the rendition	4229
of hospital or blood bank service, or the practice of veterinary	4230
medicine, surgery, and dentistry. In addition to being consumers	4231
of drugs administered by them or by their assistants according to	4232
their direction, veterinarians also are consumers of drugs that	4233
under federal law may be dispensed only by or upon the order of a	4234
licensed veterinarian or physician, when transferred by them to	4235
others for a consideration to provide treatment to animals as	4236
directed by the veterinarian.	4237

(3) A person who performs a facility management, or similar	4238
service contract for a contractee is a consumer of all tangible	4239
personal property and services purchased for use in connection	4240
with the performance of such contract, regardless of whether title	4241
to any such property vests in the contractee. The purchase of such	4242
property and services is not subject to the exception for resale	4243
under division (E)(1) of this section.	4244

(4)(a) In the case of a person who purchases printed matter	4245
for the purpose of distributing it or having it distributed to the	4246
public or to a designated segment of the public, free of charge,	4247
that person is the consumer of that printed matter, and the	4248
purchase of that printed matter for that purpose is a sale.	4249

(b) In the case of a person who produces, rather than	4250
purchases, printed matter for the purpose of distributing it or	4251
having it distributed to the public or to a designated segment of	4252
the public, free of charge, that person is the consumer of all	4253
tangible personal property and services purchased for use or	4254
consumption in the production of that printed matter. That person	4255
is not entitled to claim exemption under division (B)(42)(f) of	4256
section 5739.02 of the Revised Code for any material incorporated	4257
into the printed matter or any equipment, supplies, or services	4258
primarily used to produce the printed matter.	4259

(c) The distribution of printed matter to the public or to a	4260
designated segment of the public, free of charge, is not a sale to	4261
the members of the public to whom the printed matter is	4262
distributed or to any persons who purchase space in the printed	4263
matter for advertising or other purposes.	4264

(5) A person who makes sales of any of the services listed in	4265
division (B)(3) of this section is the consumer of any tangible	4266
personal property used in performing the service. The purchase of	4267
that property is not subject to the resale exception under	4268
division (E)(1) of this section.	4269

(6) A person who engages in highway transportation for hire	4270
is the consumer of all packaging materials purchased by that	4271
person and used in performing the service, except for packaging	4272
materials sold by such person in a transaction separate from the	4273
service.	4274

(7) In the case of a transaction for health care services	4275
under division (B)(11) of this section, a medicaid health insuring	4276
corporation is the consumer of such services. The purchase of such	4277
services by a medicaid health insuring corporation is not subject	4278
to the exception for resale under division (E)(1) of this section	4279
or to the exemptions provided under divisions (B)(12), (18), (19),	4280
and (22) of section 5739.02 of the Revised Code.	4281

(E) "Retail sale" and "sales at retail" include all sales,	4282
except those in which the purpose of the consumer is to resell the	4283
thing transferred or benefit of the service provided, by a person	4284
engaging in business, in the form in which the same is, or is to	4285
be, received by the person.	4286

(F) "Business" includes any activity engaged in by any person	4287
with the object of gain, benefit, or advantage, either direct or	4288
indirect. "Business" does not include the activity of a person in	4289
managing and investing the person's own funds.	4290

(G) "Engaging in business" means commencing, conducting, or	4291
continuing in business, and liquidating a business when the	4292
liquidator thereof holds itself out to the public as conducting	4293
such business. Making a casual sale is not engaging in business.	4294

(H)(1)(a) "Price," except as provided in divisions (H)(2),	4295
(3), and (4) of this section, means the total amount of	4296
consideration, including cash, credit, property, and services, for	4297
which tangible personal property or services are sold, leased, or	4298
rented, valued in money, whether received in money or otherwise,	4299
without any deduction for any of the following:	4300

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

4301

(ii) The cost of materials used, labor or service costs,	4302
interest, losses, all costs of transportation to the vendor, all	4303
taxes imposed on the vendor, including the tax imposed under	4304
Chapter 5751. of the Revised Code, and any other expense of the	4305
vendor;	4306

(iii) Charges by the vendor for any services necessary to	4307
complete the sale;	4308

(iv) On and after August 1, 2003, delivery charges. As used	4309
in this division, "delivery charges" means charges by the vendor	4310
for preparation and delivery to a location designated by the	4311
consumer of tangible personal property or a service, including	4312
transportation, shipping, postage, handling, crating, and packing.	4313

(v) Installation charges;

4314

(vi) Credit for any trade-in.

4315

(b) "Price" includes consideration received by the vendor	4316
from a third party, if the vendor actually receives the	4317
consideration from a party other than the consumer, and the	4318
consideration is directly related to a price reduction or discount	4319
on the sale; the vendor has an obligation to pass the price	4320
reduction or discount through to the consumer; the amount of the	4321
consideration attributable to the sale is fixed and determinable	4322
by the vendor at the time of the sale of the item to the consumer;	4323
and one of the following criteria is met:	4324

(i) The consumer presents a coupon, certificate, or other	4325
document to the vendor to claim a price reduction or discount	4326
where the coupon, certificate, or document is authorized,	4327
distributed, or granted by a third party with the understanding	4328
that the third party will reimburse any vendor to whom the coupon,	4329
certificate, or document is presented;	4330

(ii) The consumer identifies the consumer's self to the	4331
seller as a member of a group or organization entitled to a price	4332
reduction or discount. A preferred customer card that is available	4333
to any patron does not constitute membership in such a group or	4334
organization.	4335

(iii) The price reduction or discount is identified as a	4336
third party price reduction or discount on the invoice received by	4337
the consumer, or on a coupon, certificate, or other document	4338
presented by the consumer.	4339

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

4340

(i) Discounts, including cash, term, or coupons that are not	4341
reimbursed by a third party that are allowed by a vendor and taken	4342
by a consumer on a sale;	4343

(ii) Interest, financing, and carrying charges from credit	4344
extended on the sale of tangible personal property or services, if	4345
the amount is separately stated on the invoice, bill of sale, or	4346
similar document given to the purchaser;	4347

(iii) Any taxes legally imposed directly on the consumer that	4348
are separately stated on the invoice, bill of sale, or similar	4349
document given to the consumer. For the purpose of this division,	4350
the tax imposed under Chapter 5751. of the Revised Code is not a	4351
tax directly on the consumer, even if the tax or a portion thereof	4352
is separately stated.	4353

(iv) Notwithstanding divisions (H)(1)(b)(i) to (iii) of this	4354
section, any discount allowed by an automobile manufacturer to its	4355
employee, or to the employee of a supplier, on the purchase of a	4356
new motor vehicle from a new motor vehicle dealer in this state.	4357

(v) The dollar value of a gift card that is not sold by a	4358
vendor or purchased by a consumer and that is redeemed by the	4359
consumer in purchasing tangible personal property or services if	4360
the vendor is not reimbursed and does not receive compensation	4361
from a third party to cover all or part of the gift card value.	4362
For the purposes of this division, a gift card is not sold by a	4363
vendor or purchased by a consumer if it is distributed pursuant to	4364
an awards, loyalty, or promotional program. Past and present	4365
purchases of tangible personal property or services by the	4366
consumer shall not be treated as consideration exchanged for a	4367
gift card.	4368

(2) In the case of a sale of any new motor vehicle by a new	4369
motor vehicle dealer, as defined in section 4517.01 of the Revised	4370
Code, in which another motor vehicle is accepted by the dealer as	4371
part of the consideration received, "price" has the same meaning	4372
as in division (H)(1) of this section, reduced by the credit	4373
afforded the consumer by the dealer for the motor vehicle received	4374
in trade.	4375

(3) In the case of a sale of any watercraft or outboard motor	4376
by a watercraft dealer licensed in accordance with section	4377
1547.543 of the Revised Code, in which another watercraft,	4378
watercraft and trailer, or outboard motor is accepted by the	4379
dealer as part of the consideration received, "price" has the same	4380
meaning as in division (H)(1) of this section, reduced by the	4381
credit afforded the consumer by the dealer for the watercraft,	4382
watercraft and trailer, or outboard motor received in trade. As	4383
used in this division, "watercraft" includes an outdrive unit	4384
attached to the watercraft.	4385

(4) In the case of transactions for health care services	4386
under division (B)(11) of this section, "price" means the amount	4387
of managed care premiums received each month by a medicaid health	4388
insuring corporation.	4389

(I) "Receipts" means the total amount of the prices of the	4390
sales of vendors, provided that the dollar value of gift cards	4391
distributed pursuant to an awards, loyalty, or promotional	4392
program, and cash discounts allowed and taken on sales at the time	4393
they are consummated are not included, minus any amount deducted	4394
as a bad debt pursuant to section 5739.121 of the Revised Code.	4395
"Receipts" does not include the sale price of property returned or	4396
services rejected by consumers when the full sale price and tax	4397
are refunded either in cash or by credit.	4398

(J) "Place of business" means any location at which a person	4399
engages in business.	4400

(K) "Premises" includes any real property or portion thereof	4401
upon which any person engages in selling tangible personal	4402
property at retail or making retail sales and also includes any	4403
real property or portion thereof designated for, or devoted to,	4404
use in conjunction with the business engaged in by such person.	4405

(L) "Casual sale" means a sale of an item of tangible	4406
personal property that was obtained by the person making the sale,	4407
through purchase or otherwise, for the person's own use and was	4408
previously subject to any state's taxing jurisdiction on its sale	4409
or use, and includes such items acquired for the seller's use that	4410
are sold by an auctioneer employed directly by the person for such	4411
purpose, provided the location of such sales is not the	4412
auctioneer's permanent place of business. As used in this	4413
division, "permanent place of business" includes any location	4414
where such auctioneer has conducted more than two auctions during	4415
the year.	4416

(M) "Hotel" means every establishment kept, used, maintained,	4417
advertised, or held out to the public to be a place where sleeping	4418
accommodations are offered to guests, in which five or more rooms	4419
are used for the accommodation of such guests, whether the rooms	4420
are in one or several structures, except as otherwise provided in	4421
division (G) of section 5739.09 of the Revised Code.	4422

(N) "Transient guests" means persons occupying a room or	4423
rooms for sleeping accommodations for less than thirty consecutive	4424
days.	4425

(O) "Making retail sales" means the effecting of transactions	4426
wherein one party is obligated to pay the price and the other	4427
party is obligated to provide a service or to transfer title to or	4428
possession of the item sold. "Making retail sales" does not	4429
include the preliminary acts of promoting or soliciting the retail	4430
sales, other than the distribution of printed matter which	4431
displays or describes and prices the item offered for sale, nor	4432
does it include delivery of a predetermined quantity of tangible	4433
personal property or transportation of property or personnel to or	4434
from a place where a service is performed.	4435

(P) "Used directly in the rendition of a public utility	4436
service" means that property that is to be incorporated into and	4437
will become a part of the consumer's production, transmission,	4438
transportation, or distribution system and that retains its	4439
classification as tangible personal property after such	4440
incorporation; fuel or power used in the production, transmission,	4441
transportation, or distribution system; and tangible personal	4442
property used in the repair and maintenance of the production,	4443
transmission, transportation, or distribution system, including	4444
only such motor vehicles as are specially designed and equipped	4445
for such use. Tangible personal property and services used	4446
primarily in providing highway transportation for hire are not	4447
used directly in the rendition of a public utility service. In	4448
this definition, "public utility" includes a citizen of the United	4449
States holding, and required to hold, a certificate of public	4450
convenience and necessity issued under 49 U.S.C. 41102.	4451

(Q) "Refining" means removing or separating a desirable	4452
product from raw or contaminated materials by distillation or	4453
physical, mechanical, or chemical processes.	4454

(R) "Assembly" and "assembling" mean attaching or fitting	4455
together parts to form a product, but do not include packaging a	4456
product.	4457

(S) "Manufacturing operation" means a process in which	4458
materials are changed, converted, or transformed into a different	4459
state or form from which they previously existed and includes	4460
refining materials, assembling parts, and preparing raw materials	4461
and parts by mixing, measuring, blending, or otherwise committing	4462
such materials or parts to the manufacturing process.	4463
"Manufacturing operation" does not include packaging.	4464

(T) "Fiscal officer" means, with respect to a regional	4465
transit authority, the secretary-treasurer thereof, and with	4466
respect to a county that is a transit authority, the fiscal	4467
officer of the county transit board if one is appointed pursuant	4468
to section 306.03 of the Revised Code or the county auditor if the	4469
board of county commissioners operates the county transit system.	4470

(U) "Transit authority" means a regional transit authority	4471
created pursuant to section 306.31 of the Revised Code or a county	4472
in which a county transit system is created pursuant to section	4473
306.01 of the Revised Code. For the purposes of this chapter, a	4474
transit authority must extend to at least the entire area of a	4475
single county. A transit authority that includes territory in more	4476
than one county must include all the area of the most populous	4477
county that is a part of such transit authority. County population	4478
shall be measured by the most recent census taken by the United	4479
States census bureau.	4480

(V) "Legislative authority" means, with respect to a regional	4481
transit authority, the board of trustees thereof, and with respect	4482
to a county that is a transit authority, the board of county	4483
commissioners.	4484

(W) "Territory of the transit authority" means all of the	4485
area included within the territorial boundaries of a transit	4486
authority as they from time to time exist. Such territorial	4487
boundaries must at all times include all the area of a single	4488
county or all the area of the most populous county that is a part	4489
of such transit authority. County population shall be measured by	4490
the most recent census taken by the United States census bureau.	4491

(X) "Providing a service" means providing or furnishing	4492
anything described in division (B)(3) of this section for	4493
consideration.	4494

(Y)(1)(a) "Automatic data processing" means processing of	4495
others' data, including keypunching or similar data entry services	4496
together with verification thereof, or providing access to	4497
computer equipment for the purpose of processing data.	4498

(b) "Computer services" means providing services consisting	4499
of specifying computer hardware configurations and evaluating	4500
technical processing characteristics, computer programming, and	4501
training of computer programmers and operators, provided in	4502
conjunction with and to support the sale, lease, or operation of	4503
taxable computer equipment or systems.	4504

(c) "Electronic information services" means providing access	4505
to computer equipment by means of telecommunications equipment for	4506
the purpose of either of the following:	4507

(i) Examining or acquiring data stored in or accessible to	4508
the computer equipment;	4509

(ii) Placing data into the computer equipment to be retrieved	4510
by designated recipients with access to the computer equipment.	4511

For transactions occurring on or after the effective date of	4512
the amendment of this section by H.B. 157 of the 127th general	4513
assembly, December 21, 2007, "electronic information services"	4514
does not include electronic publishing as defined in division	4515
(LLL) of this section.	4516

(d) "Automatic data processing, computer services, or	4517
electronic information services" shall not include personal or	4518
professional services.	4519

(2) As used in divisions (B)(3)(e) and (Y)(1) of this	4520
section, "personal and professional services" means all services	4521
other than automatic data processing, computer services, or	4522
electronic information services, including but not limited to:	4523

(a) Accounting and legal services such as advice on tax	4524
matters, asset management, budgetary matters, quality control,	4525
information security, and auditing and any other situation where	4526
the service provider receives data or information and studies,	4527
alters, analyzes, interprets, or adjusts such material;	4528

(b) Analyzing business policies and procedures;

4529

(c) Identifying management information needs;

4530

(d) Feasibility studies, including economic and technical	4531
analysis of existing or potential computer hardware or software	4532
needs and alternatives;	4533

(e) Designing policies, procedures, and custom software for	4534
collecting business information, and determining how data should	4535
be summarized, sequenced, formatted, processed, controlled, and	4536
reported so that it will be meaningful to management;	4537

(f) Developing policies and procedures that document how	4538
business events and transactions are to be authorized, executed,	4539
and controlled;	4540

(g) Testing of business procedures;

4541

(h) Training personnel in business procedure applications;

4542

(i) Providing credit information to users of such information	4543
by a consumer reporting agency, as defined in the "Fair Credit	4544
Reporting Act," 84 Stat. 1114, 1129 (1970), 15 U.S.C. 1681a(f), or	4545
as hereafter amended, including but not limited to gathering,	4546
organizing, analyzing, recording, and furnishing such information	4547
by any oral, written, graphic, or electronic medium;	4548

(j) Providing debt collection services by any oral, written,	4549
graphic, or electronic means.	4550

The services listed in divisions (Y)(2)(a) to (j) of this	4551
section are not automatic data processing or computer services.	4552

(Z) "Highway transportation for hire" means the	4553
transportation of personal property belonging to others for	4554
consideration by any of the following:	4555

(1) The holder of a permit or certificate issued by this	4556
state or the United States authorizing the holder to engage in	4557
transportation of personal property belonging to others for	4558
consideration over or on highways, roadways, streets, or any	4559
similar public thoroughfare;	4560

(2) A person who engages in the transportation of personal	4561
property belonging to others for consideration over or on	4562
highways, roadways, streets, or any similar public thoroughfare	4563
but who could not have engaged in such transportation on December	4564
11, 1985, unless the person was the holder of a permit or	4565
certificate of the types described in division (Z)(1) of this	4566
section;	4567

(3) A person who leases a motor vehicle to and operates it	4568
for a person described by division (Z)(1) or (2) of this section.	4569

(AA)(1) "Telecommunications service" means the electronic	4570
transmission, conveyance, or routing of voice, data, audio, video,	4571
or any other information or signals to a point, or between or	4572
among points. "Telecommunications service" includes such	4573
transmission, conveyance, or routing in which computer processing	4574
applications are used to act on the form, code, or protocol of the	4575
content for purposes of transmission, conveyance, or routing	4576
without regard to whether the service is referred to as voice-over	4577
internet protocol service or is classified by the federal	4578
communications commission as enhanced or value-added.	4579
"Telecommunications service" does not include any of the	4580
following:	4581

(a) Data processing and information services that allow data	4582
to be generated, acquired, stored, processed, or retrieved and	4583
delivered by an electronic transmission to a consumer where the	4584
consumer's primary purpose for the underlying transaction is the	4585
processed data or information;	4586

(b) Installation or maintenance of wiring or equipment on a	4587
customer's premises;	4588

(c) Tangible personal property;

4589

(d) Advertising, including directory advertising;

4590

(e) Billing and collection services provided to third	4591
parties;	4592

(f) Internet access service;

4593

(g) Radio and television audio and video programming	4594
services, regardless of the medium, including the furnishing of	4595
transmission, conveyance, and routing of such services by the	4596
programming service provider. Radio and television audio and video	4597
programming services include, but are not limited to, cable	4598
service, as defined in 47 U.S.C. 522(6), and audio and video	4599
programming services delivered by commercial mobile radio service	4600
providers, as defined in 47 C.F.R. 20.3;	4601

(h) Ancillary service;

4602

(i) Digital products delivered electronically, including	4603
software, music, video, reading materials, or ring tones.	4604

(2) "Ancillary service" means a service that is associated	4605
with or incidental to the provision of telecommunications service,	4606
including conference bridging service, detailed telecommunications	4607
billing service, directory assistance, vertical service, and voice	4608
mail service. As used in this division:	4609

(a) "Conference bridging service" means an ancillary service	4610
that links two or more participants of an audio or video	4611
conference call, including providing a telephone number.	4612
"Conference bridging service" does not include telecommunications	4613
services used to reach the conference bridge.	4614

(b) "Detailed telecommunications billing service" means an	4615
ancillary service of separately stating information pertaining to	4616
individual calls on a customer's billing statement.	4617

(c) "Directory assistance" means an ancillary service of	4618
providing telephone number or address information.	4619

(d) "Vertical service" means an ancillary service that is	4620
offered in connection with one or more telecommunications	4621
services, which offers advanced calling features that allow	4622
customers to identify callers and manage multiple calls and call	4623
connections, including conference bridging service.	4624

(e) "Voice mail service" means an ancillary service that	4625
enables the customer to store, send, or receive recorded messages.	4626
"Voice mail service" does not include any vertical services that	4627
the customer may be required to have in order to utilize the voice	4628
mail service.	4629

(3) "900 service" means an inbound toll telecommunications	4630
service purchased by a subscriber that allows the subscriber's	4631
customers to call in to the subscriber's prerecorded announcement	4632
or live service, and which is typically marketed under the name	4633
"900" service" and any subsequent numbers designated by the	4634
federal communications commission. "900 service" does not include	4635
the charge for collection services provided by the seller of the	4636
telecommunications service to the subscriber, or services or	4637
products sold by the subscriber to the subscriber's customer.	4638

(4) "Prepaid calling service" means the right to access	4639
exclusively telecommunications services, which must be paid for in	4640
advance and which enables the origination of calls using an access	4641
number or authorization code, whether manually or electronically	4642
dialed, and that is sold in predetermined units or dollars of	4643
which the number declines with use in a known amount.	4644

(5) "Prepaid wireless calling service" means a	4645
telecommunications service that provides the right to utilize	4646
mobile telecommunications service as well as other	4647
non-telecommunications services, including the download of digital	4648
products delivered electronically, and content and ancillary	4649
services, that must be paid for in advance and that is sold in	4650
predetermined units or dollars of which the number declines with	4651
use in a known amount.	4652

(6) "Value-added non-voice data service" means a	4653
telecommunications service in which computer processing	4654
applications are used to act on the form, content, code, or	4655
protocol of the information or data primarily for a purpose other	4656
than transmission, conveyance, or routing.	4657

(7) "Coin-operated telephone service" means a	4658
telecommunications service paid for by inserting money into a	4659
telephone accepting direct deposits of money to operate.	4660

(8) "Customer" has the same meaning as in section 5739.034 of	4661
the Revised Code.	4662

(BB) "Laundry and dry cleaning services" means removing soil	4663
or dirt from towels, linens, articles of clothing, or other fabric	4664
items that belong to others and supplying towels, linens, articles	4665
of clothing, or other fabric items. "Laundry and dry cleaning	4666
services" does not include the provision of self-service	4667
facilities for use by consumers to remove soil or dirt from	4668
towels, linens, articles of clothing, or other fabric items.	4669

(CC) "Magazines distributed as controlled circulation	4670
publications" means magazines containing at least twenty-four	4671
pages, at least twenty-five per cent editorial content, issued at	4672
regular intervals four or more times a year, and circulated	4673
without charge to the recipient, provided that such magazines are	4674
not owned or controlled by individuals or business concerns which	4675
conduct such publications as an auxiliary to, and essentially for	4676
the advancement of the main business or calling of, those who own	4677
or control them.	4678

(DD) "Landscaping and lawn care service" means the services	4679
of planting, seeding, sodding, removing, cutting, trimming,	4680
pruning, mulching, aerating, applying chemicals, watering,	4681
fertilizing, and providing similar services to establish, promote,	4682
or control the growth of trees, shrubs, flowers, grass, ground	4683
cover, and other flora, or otherwise maintaining a lawn or	4684
landscape grown or maintained by the owner for ornamentation or	4685
other nonagricultural purpose. However, "landscaping and lawn care	4686
service" does not include the providing of such services by a	4687
person who has less than five thousand dollars in sales of such	4688
services during the calendar year.	4689

(EE) "Private investigation and security service" means the	4690
performance of any activity for which the provider of such service	4691
is required to be licensed pursuant to Chapter 4749. of the	4692
Revised Code, or would be required to be so licensed in performing	4693
such services in this state, and also includes the services of	4694
conducting polygraph examinations and of monitoring or overseeing	4695
the activities on or in, or the condition of, the consumer's home,	4696
business, or other facility by means of electronic or similar	4697
monitoring devices. "Private investigation and security service"	4698
does not include special duty services provided by off-duty police	4699
officers, deputy sheriffs, and other peace officers regularly	4700
employed by the state or a political subdivision.	4701

(FF) "Information services" means providing conversation,	4702
giving consultation or advice, playing or making a voice or other	4703
recording, making or keeping a record of the number of callers,	4704
and any other service provided to a consumer by means of a nine	4705
hundred telephone call, except when the nine hundred telephone	4706
call is the means by which the consumer makes a contribution to a	4707
recognized charity.	4708

(GG) "Research and development" means designing, creating, or	4709
formulating new or enhanced products, equipment, or manufacturing	4710
processes, and also means conducting scientific or technological	4711
inquiry and experimentation in the physical sciences with the goal	4712
of increasing scientific knowledge which may reveal the bases for	4713
new or enhanced products, equipment, or manufacturing processes.	4714

(HH) "Qualified research and development equipment" means	4715
capitalized tangible personal property, and leased personal	4716
property that would be capitalized if purchased, used by a person	4717
primarily to perform research and development. Tangible personal	4718
property primarily used in testing, as defined in division (A)(4)	4719
of section 5739.011 of the Revised Code, or used for recording or	4720
storing test results, is not qualified research and development	4721
equipment unless such property is primarily used by the consumer	4722
in testing the product, equipment, or manufacturing process being	4723
created, designed, or formulated by the consumer in the research	4724
and development activity or in recording or storing such test	4725
results.	4726

(II) "Building maintenance and janitorial service" means	4727
cleaning the interior or exterior of a building and any tangible	4728
personal property located therein or thereon, including any	4729
services incidental to such cleaning for which no separate charge	4730
is made. However, "building maintenance and janitorial service"	4731
does not include the providing of such service by a person who has	4732
less than five thousand dollars in sales of such service during	4733
the calendar year.	4734

(JJ) "Employment service" means providing or supplying	4735
personnel, on a temporary or long-term basis, to perform work or	4736
labor under the supervision or control of another, when the	4737
personnel so provided or supplied receive their wages, salary, or	4738
other compensation from the provider or supplier of the employment	4739
service or from a third party that provided or supplied the	4740
personnel to the provider or supplier. "Employment service" does	4741
not include:	4742

(1) Acting as a contractor or subcontractor, where the	4743
personnel performing the work are not under the direct control of	4744
the purchaser.	4745

(2) Medical and health care services.

4746

(3) Supplying personnel to a purchaser pursuant to a contract	4747
of at least one year between the service provider and the	4748
purchaser that specifies that each employee covered under the	4749
contract is assigned to the purchaser on a permanent basis.	4750

(4) Transactions between members of an affiliated group, as	4751
defined in division (B)(3)(e) of this section.	4752

(5) Transactions where the personnel so provided or supplied	4753
by a provider or supplier to a purchaser of an employment service	4754
are then provided or supplied by that purchaser to a third party	4755
as an employment service, except "employment service" does include	4756
the transaction between that purchaser and the third party.	4757

(KK) "Employment placement service" means locating or finding	4758
employment for a person or finding or locating an employee to fill	4759
an available position.	4760

(LL) "Exterminating service" means eradicating or attempting	4761
to eradicate vermin infestations from a building or structure, or	4762
the area surrounding a building or structure, and includes	4763
activities to inspect, detect, or prevent vermin infestation of a	4764
building or structure.	4765

(MM) "Physical fitness facility service" means all	4766
transactions by which a membership is granted, maintained, or	4767
renewed, including initiation fees, membership dues, renewal fees,	4768
monthly minimum fees, and other similar fees and dues, by a	4769
physical fitness facility such as an athletic club, health spa, or	4770
gymnasium, which entitles the member to use the facility for	4771
physical exercise.	4772

(NN) "Recreation and sports club service" means all	4773
transactions by which a membership is granted, maintained, or	4774
renewed, including initiation fees, membership dues, renewal fees,	4775
monthly minimum fees, and other similar fees and dues, by a	4776
recreation and sports club, which entitles the member to use the	4777
facilities of the organization. "Recreation and sports club" means	4778
an organization that has ownership of, or controls or leases on a	4779
continuing, long-term basis, the facilities used by its members	4780
and includes an aviation club, gun or shooting club, yacht club,	4781
card club, swimming club, tennis club, golf club, country club,	4782
riding club, amateur sports club, or similar organization.	4783

(OO) "Livestock" means farm animals commonly raised for food,	4784
food production, or other agricultural purposes, including, but	4785
not limited to, cattle, sheep, goats, swine, poultry, and captive	4786
deer. "Livestock" does not include invertebrates, amphibians,	4787
reptiles, domestic pets, animals for use in laboratories or for	4788
exhibition, or other animals not commonly raised for food or food	4789
production.	4790

(PP) "Livestock structure" means a building or structure used	4791
exclusively for the housing, raising, feeding, or sheltering of	4792
livestock, and includes feed storage or handling structures and	4793
structures for livestock waste handling.	4794

(QQ) "Horticulture" means the growing, cultivation, and	4795
production of flowers, fruits, herbs, vegetables, sod, mushrooms,	4796
and nursery stock. As used in this division, "nursery stock" has	4797
the same meaning as in section 927.51 of the Revised Code.	4798

(RR) "Horticulture structure" means a building or structure	4799
used exclusively for the commercial growing, raising, or	4800
overwintering of horticultural products, and includes the area	4801
used for stocking, storing, and packing horticultural products	4802
when done in conjunction with the production of those products.	4803

(SS) "Newspaper" means an unbound publication bearing a title	4804
or name that is regularly published, at least as frequently as	4805
biweekly, and distributed from a fixed place of business to the	4806
public in a specific geographic area, and that contains a	4807
substantial amount of news matter of international, national, or	4808
local events of interest to the general public.	4809

(TT) "Professional racing team" means a person that employs	4810
at least twenty full-time employees for the purpose of conducting	4811
a motor vehicle racing business for profit. The person must	4812
conduct the business with the purpose of racing one or more motor	4813
racing vehicles in at least ten competitive professional racing	4814
events each year that comprise all or part of a motor racing	4815
series sanctioned by one or more motor racing sanctioning	4816
organizations. A "motor racing vehicle" means a vehicle for which	4817
the chassis, engine, and parts are designed exclusively for motor	4818
racing, and does not include a stock or production model vehicle	4819
that may be modified for use in racing. For the purposes of this	4820
division:	4821

(1) A "competitive professional racing event" is a motor	4822
vehicle racing event sanctioned by one or more motor racing	4823
sanctioning organizations, at which aggregate cash prizes in	4824
excess of eight hundred thousand dollars are awarded to the	4825
competitors.	4826

(2) "Full-time employee" means an individual who is employed	4827
for consideration for thirty-five or more hours a week, or who	4828
renders any other standard of service generally accepted by custom	4829
or specified by contract as full-time employment"Managed care	4830
premium" means any premium, capitation, or other payment a	4831
medicaid health insuring corporation receives for providing or	4832
arranging for the provision of health care services to its members	4833
or enrollees residing in this state.	4834

(UU)(1) "Lease" or "rental" means any transfer of the	4835
possession or control of tangible personal property for a fixed or	4836
indefinite term, for consideration. "Lease" or "rental" includes	4837
future options to purchase or extend, and agreements described in	4838
26 U.S.C. 7701(h)(1) covering motor vehicles and trailers where	4839
the amount of consideration may be increased or decreased by	4840
reference to the amount realized upon the sale or disposition of	4841
the property. "Lease" or "rental" does not include:	4842

(a) A transfer of possession or control of tangible personal	4843
property under a security agreement or a deferred payment plan	4844
that requires the transfer of title upon completion of the	4845
required payments;	4846

(b) A transfer of possession or control of tangible personal	4847
property under an agreement that requires the transfer of title	4848
upon completion of required payments and payment of an option	4849
price that does not exceed the greater of one hundred dollars or	4850
one per cent of the total required payments;	4851

(c) Providing tangible personal property along with an	4852
operator for a fixed or indefinite period of time, if the operator	4853
is necessary for the property to perform as designed. For purposes	4854
of this division, the operator must do more than maintain,	4855
inspect, or set-up the tangible personal property.	4856

(2) "Lease" and "rental," as defined in division (UU) of this	4857
section, shall not apply to leases or rentals that exist before	4858
June 26, 2003.	4859

(3) "Lease" and "rental" have the same meaning as in division	4860
(UU)(1) of this section regardless of whether a transaction is	4861
characterized as a lease or rental under generally accepted	4862
accounting principles, the Internal Revenue Code, Title XIII of	4863
the Revised Code, or other federal, state, or local laws.	4864

(VV) "Mobile telecommunications service" has the same meaning	4865
as in the "Mobile Telecommunications Sourcing Act," Pub. L. No.	4866
106-252, 114 Stat. 631 (2000), 4 U.S.C.A. 124(7), as amended, and,	4867
on and after August 1, 2003, includes related fees and ancillary	4868
services, including universal service fees, detailed billing	4869
service, directory assistance, service initiation, voice mail	4870
service, and vertical services, such as caller ID and three-way	4871
calling.	4872

(WW) "Certified service provider" has the same meaning as in	4873
section 5740.01 of the Revised Code.	4874

(XX) "Satellite broadcasting service" means the distribution	4875
or broadcasting of programming or services by satellite directly	4876
to the subscriber's receiving equipment without the use of ground	4877
receiving or distribution equipment, except the subscriber's	4878
receiving equipment or equipment used in the uplink process to the	4879
satellite, and includes all service and rental charges, premium	4880
channels or other special services, installation and repair	4881
service charges, and any other charges having any connection with	4882
the provision of the satellite broadcasting service.	4883

(YY) "Tangible personal property" means personal property	4884
that can be seen, weighed, measured, felt, or touched, or that is	4885
in any other manner perceptible to the senses. For purposes of	4886
this chapter and Chapter 5741. of the Revised Code, "tangible	4887
personal property" includes motor vehicles, electricity, water,	4888
gas, steam, and prewritten computer software.	4889

(ZZ) "Direct mail" means printed material delivered or	4890
distributed by United States mail or other delivery service to a	4891
mass audience or to addressees on a mailing list provided by the	4892
consumer or at the direction of the consumer when the cost of the	4893
items are not billed directly to the recipients. "Direct mail"	4894
includes tangible personal property supplied directly or	4895
indirectly by the consumer to the direct mail vendor for inclusion	4896
in the package containing the printed material. "Direct mail" does	4897
not include multiple items of printed material delivered to a	4898
single address.	4899

(AAA) "Computer" means an electronic device that accepts	4900
information in digital or similar form and manipulates it for a	4901
result based on a sequence of instructions.	4902

(BBB) "Computer software" means a set of coded instructions	4903
designed to cause a computer or automatic data processing	4904
equipment to perform a task.	4905

(CCC) "Delivered electronically" means delivery of computer	4906
software from the seller to the purchaser by means other than	4907
tangible storage media.	4908

(DDD) "Prewritten computer software" means computer software,	4909
including prewritten upgrades, that is not designed and developed	4910
by the author or other creator to the specifications of a specific	4911
purchaser. The combining of two or more prewritten computer	4912
software programs or prewritten portions thereof does not cause	4913
the combination to be other than prewritten computer software.	4914
"Prewritten computer software" includes software designed and	4915
developed by the author or other creator to the specifications of	4916
a specific purchaser when it is sold to a person other than the	4917
purchaser. If a person modifies or enhances computer software of	4918
which the person is not the author or creator, the person shall be	4919
deemed to be the author or creator only of such person's	4920
modifications or enhancements. Prewritten computer software or a	4921
prewritten portion thereof that is modified or enhanced to any	4922
degree, where such modification or enhancement is designed and	4923
developed to the specifications of a specific purchaser, remains	4924
prewritten computer software; provided, however, that where there	4925
is a reasonable, separately stated charge or an invoice or other	4926
statement of the price given to the purchaser for the modification	4927
or enhancement, the modification or enhancement shall not	4928
constitute prewritten computer software.	4929

(EEE)(1) "Food" means substances, whether in liquid,	4930
concentrated, solid, frozen, dried, or dehydrated form, that are	4931
sold for ingestion or chewing by humans and are consumed for their	4932
taste or nutritional value. "Food" does not include alcoholic	4933
beverages, dietary supplements, soft drinks, or tobacco.	4934

(2) As used in division (EEE)(1) of this section:

4935

(a) "Alcoholic beverages" means beverages that are suitable	4936
for human consumption and contain one-half of one per cent or more	4937
of alcohol by volume.	4938

(b) "Dietary supplements" means any product, other than	4939
tobacco, that is intended to supplement the diet and that is	4940
intended for ingestion in tablet, capsule, powder, softgel,	4941
gelcap, or liquid form, or, if not intended for ingestion in such	4942
a form, is not represented as conventional food for use as a sole	4943
item of a meal or of the diet; that is required to be labeled as a	4944
dietary supplement, identifiable by the "supplement facts" box	4945
found on the label, as required by 21 C.F.R. 101.36; and that	4946
contains one or more of the following dietary ingredients:	4947

(i) A vitamin;

4948

(ii) A mineral;

4949

(iii) An herb or other botanical;

4950

(iv) An amino acid;

4951

(v) A dietary substance for use by humans to supplement the	4952
diet by increasing the total dietary intake;	4953

(vi) A concentrate, metabolite, constituent, extract, or	4954
combination of any ingredient described in divisions	4955
(EEE)(2)(b)(i) to (v) of this section.	4956

(c) "Soft drinks" means nonalcoholic beverages that contain	4957
natural or artificial sweeteners. "Soft drinks" does not include	4958
beverages that contain milk or milk products, soy, rice, or	4959
similar milk substitutes, or that contains greater than fifty per	4960
cent vegetable or fruit juice by volume.	4961

(d) "Tobacco" means cigarettes, cigars, chewing or pipe	4962
tobacco, or any other item that contains tobacco.	4963

(FFF) "Drug" means a compound, substance, or preparation, and	4964
any component of a compound, substance, or preparation, other than	4965
food, dietary supplements, or alcoholic beverages that is	4966
recognized in the official United States pharmacopoeia, official	4967
homeopathic pharmacopoeia of the United States, or official	4968
national formulary, and supplements to them; is intended for use	4969
in the diagnosis, cure, mitigation, treatment, or prevention of	4970
disease; or is intended to affect the structure or any function of	4971
the body.	4972

(GGG) "Prescription" means an order, formula, or recipe	4973
issued in any form of oral, written, electronic, or other means of	4974
transmission by a duly licensed practitioner authorized by the	4975
laws of this state to issue a prescription.	4976

(HHH) "Durable medical equipment" means equipment, including	4977
repair and replacement parts for such equipment, that can	4978
withstand repeated use, is primarily and customarily used to serve	4979
a medical purpose, generally is not useful to a person in the	4980
absence of illness or injury, and is not worn in or on the body.	4981
"Durable medical equipment" does not include mobility enhancing	4982
equipment.	4983

(III) "Mobility enhancing equipment" means equipment,	4984
including repair and replacement parts for such equipment, that is	4985
primarily and customarily used to provide or increase the ability	4986
to move from one place to another and is appropriate for use	4987
either in a home or a motor vehicle, that is not generally used by	4988
persons with normal mobility, and that does not include any motor	4989
vehicle or equipment on a motor vehicle normally provided by a	4990
motor vehicle manufacturer. "Mobility enhancing equipment" does	4991
not include durable medical equipment.	4992

(JJJ) "Prosthetic device" means a replacement, corrective, or	4993
supportive device, including repair and replacement parts for the	4994
device, worn on or in the human body to artificially replace a	4995
missing portion of the body, prevent or correct physical deformity	4996
or malfunction, or support a weak or deformed portion of the body.	4997
As used in this division, "prosthetic device" does not include	4998
corrective eyeglasses, contact lenses, or dental prosthesis.	4999

(KKK)(1) "Fractional aircraft ownership program" means a	5000
program in which persons within an affiliated group sell and	5001
manage fractional ownership program aircraft, provided that at	5002
least one hundred airworthy aircraft are operated in the program	5003
and the program meets all of the following criteria:	5004

(a) Management services are provided by at least one program	5005
manager within an affiliated group on behalf of the fractional	5006
owners.	5007

(b) Each program aircraft is owned or possessed by at least	5008
one fractional owner.	5009

(c) Each fractional owner owns or possesses at least a	5010
one-sixteenth interest in at least one fixed-wing program	5011
aircraft.	5012

(d) A dry-lease aircraft interchange arrangement is in effect	5013
among all of the fractional owners.	5014

(e) Multi-year program agreements are in effect regarding the	5015
fractional ownership, management services, and dry-lease aircraft	5016
interchange arrangement aspects of the program.	5017

(2) As used in division (KKK)(1) of this section:

5018

(a) "Affiliated group" has the same meaning as in division	5019
(B)(3)(e) of this section.	5020

(b) "Fractional owner" means a person that owns or possesses	5021
at least a one-sixteenth interest in a program aircraft and has	5022
entered into the agreements described in division (KKK)(1)(e) of	5023
this section.	5024

(c) "Fractional ownership program aircraft" or "program	5025
aircraft" means a turbojet aircraft that is owned or possessed by	5026
a fractional owner and that has been included in a dry-lease	5027
aircraft interchange arrangement and agreement under divisions	5028
(KKK)(1)(d) and (e) of this section, or an aircraft a program	5029
manager owns or possesses primarily for use in a fractional	5030
aircraft ownership program.	5031

(d) "Management services" means administrative and aviation	5032
support services furnished under a fractional aircraft ownership	5033
program in accordance with a management services agreement under	5034
division (KKK)(1)(e) of this section, and offered by the program	5035
manager to the fractional owners, including, at a minimum, the	5036
establishment and implementation of safety guidelines; the	5037
coordination of the scheduling of the program aircraft and crews;	5038
program aircraft maintenance; program aircraft insurance; crew	5039
training for crews employed, furnished, or contracted by the	5040
program manager or the fractional owner; the satisfaction of	5041
record-keeping requirements; and the development and use of an	5042
operations manual and a maintenance manual for the fractional	5043
aircraft ownership program.	5044

(e) "Program manager" means the person that offers management	5045
services to fractional owners pursuant to a management services	5046
agreement under division (KKK)(1)(e) of this section"Captive	5047
deer" means deer and other cervidae that have been legally	5048
acquired, or their offspring, that are privately owned for	5049
agricultural or farming purposes.	5050

(LLL) "Electronic publishing" means providing access to one	5051
or more of the following primarily for business customers,	5052
including the federal government or a state government or a	5053
political subdivision thereof, to conduct research: news;	5054
business, financial, legal, consumer, or credit materials;	5055
editorials, columns, reader commentary, or features; photos or	5056
images; archival or research material; legal notices, identity	5057
verification, or public records; scientific, educational,	5058
instructional, technical, professional, trade, or other literary	5059
materials; or other similar information which has been gathered	5060
and made available by the provider to the consumer in an	5061
electronic format. Providing electronic publishing includes the	5062
functions necessary for the acquisition, formatting, editing,	5063
storage, and dissemination of data or information that is the	5064
subject of a sale.	5065

(MMM) "Medicaid health insuring corporation" means a health	5066
insuring corporation that holds a certificate of authority under	5067
Chapter 1751. of the Revised Code and is under contract with the	5068
department of job and family services pursuant to section 5111.17	5069
of the Revised Code.	5070

(NNN) "Managed care premium" means any premium, capitation,	5071
or other payment a medicaid health insuring corporation receives	5072
for providing or arranging for the provision of health care	5073
services to its members or enrollees residing in this state.	5074

(OOO) "Captive deer" means deer and other cervidae that have	5075
been legally acquired, or their offspring, that are privately	5076
owned for agricultural or farming purposes.	5077

(PPP) "Gift card" means a document, card, certificate, or	5078
other record, whether tangible or intangible, that may be redeemed	5079
by a consumer for a dollar value when making a purchase of	5080
tangible personal property or services.	5081

Sec. 5739.02.  For the purpose of providing revenue with	5082
which to meet the needs of the state, for the use of the general	5083
revenue fund of the state, for the purpose of securing a thorough	5084
and efficient system of common schools throughout the state, for	5085
the purpose of affording revenues, in addition to those from	5086
general property taxes, permitted under constitutional	5087
limitations, and from other sources, for the support of local	5088
governmental functions, and for the purpose of reimbursing the	5089
state for the expense of administering this chapter, an excise tax	5090
is hereby levied on each retail sale made in this state.	5091

(A)(1) The tax shall be collected as provided in section	5092
5739.025 of the Revised Code. The rate of the tax shall be five	5093
and one-half per cent. The tax applies and is collectible when the	5094
sale is made, regardless of the time when the price is paid or	5095
delivered.	5096

(2) In the case of the lease or rental, with a fixed term of	5097
more than thirty days or an indefinite term with a minimum period	5098
of more than thirty days, of any motor vehicles designed by the	5099
manufacturer to carry a load of not more than one ton, watercraft,	5100
outboard motor, or aircraft, or of any tangible personal property,	5101
other than motor vehicles designed by the manufacturer to carry a	5102
load of more than one ton, to be used by the lessee or renter	5103
primarily for business purposes, the tax shall be collected by the	5104
vendor at the time the lease or rental is consummated and shall be	5105
calculated by the vendor on the basis of the total amount to be	5106
paid by the lessee or renter under the lease agreement. If the	5107
total amount of the consideration for the lease or rental includes	5108
amounts that are not calculated at the time the lease or rental is	5109
executed, the tax shall be calculated and collected by the vendor	5110
at the time such amounts are billed to the lessee or renter. In	5111
the case of an open-end lease or rental, the tax shall be	5112
calculated by the vendor on the basis of the total amount to be	5113
paid during the initial fixed term of the lease or rental, and for	5114
each subsequent renewal period as it comes due. As used in this	5115
division, "motor vehicle" has the same meaning as in section	5116
4501.01 of the Revised Code, and "watercraft" includes an outdrive	5117
unit attached to the watercraft.	5118

A lease with a renewal clause and a termination penalty or	5119
similar provision that applies if the renewal clause is not	5120
exercised is presumed to be a sham transaction. In such a case,	5121
the tax shall be calculated and paid on the basis of the entire	5122
length of the lease period, including any renewal periods, until	5123
the termination penalty or similar provision no longer applies.	5124
The taxpayer shall bear the burden, by a preponderance of the	5125
evidence, that the transaction or series of transactions is not a	5126
sham transaction.	5127

(3) Except as provided in division (A)(2) of this section, in	5128
the case of a sale, the price of which consists in whole or in	5129
part of the lease or rental of tangible personal property, the tax	5130
shall be measured by the installments of that lease or rental.	5131

(4) In the case of a sale of a physical fitness facility	5132
service or recreation and sports club service, the price of which	5133
consists in whole or in part of a membership for the receipt of	5134
the benefit of the service, the tax applicable to the sale shall	5135
be measured by the installments thereof.	5136

(B) The tax does not apply to the following:

5137

(1) Sales to the state or any of its political subdivisions,	5138
or to any other state or its political subdivisions if the laws of	5139
that state exempt from taxation sales made to this state and its	5140
political subdivisions;	5141

(2) Sales of food for human consumption off the premises	5142
where sold;	5143

(3) Sales of food sold to students only in a cafeteria,	5144
dormitory, fraternity, or sorority maintained in a private,	5145
public, or parochial school, college, or university;	5146

(4) Sales of newspapers and of magazine subscriptions and	5147
sales or transfers of magazines distributed as controlled	5148
circulation publications;	5149

(5) The furnishing, preparing, or serving of meals without	5150
charge by an employer to an employee provided the employer records	5151
the meals as part compensation for services performed or work	5152
done;	5153

(6) Sales of motor fuel upon receipt, use, distribution, or	5154
sale of which in this state a tax is imposed by the law of this	5155
state, but this exemption shall not apply to the sale of motor	5156
fuel on which a refund of the tax is allowable under division (A)	5157
of section 5735.14 of the Revised Code; and the tax commissioner	5158
may deduct the amount of tax levied by this section applicable to	5159
the price of motor fuel when granting a refund of motor fuel tax	5160
pursuant to division (A) of section 5735.14 of the Revised Code	5161
and shall cause the amount deducted to be paid into the general	5162
revenue fund of this state;	5163

(7) Sales of natural gas by a natural gas company, of water	5164
by a water-works company, or of steam by a heating company, if in	5165
each case the thing sold is delivered to consumers through pipes	5166
or conduits, and all sales of communications services by a	5167
telegraph company, all terms as defined in section 5727.01 of the	5168
Revised Code, and sales of electricity delivered through wires;	5169

(8) Casual sales by a person, or auctioneer employed directly	5170
by the person to conduct such sales, except as to such sales of	5171
motor vehicles, watercraft or outboard motors required to be	5172
titled under section 1548.06 of the Revised Code, watercraft	5173
documented with the United States coast guard, snowmobiles, and	5174
all-purpose vehicles as defined in section 4519.01 of the Revised	5175
Code;	5176

(9)(a) Sales of services or tangible personal property, other	5177
than motor vehicles, mobile homes, and manufactured homes, by	5178
churches, organizations exempt from taxation under section	5179
501(c)(3) of the Internal Revenue Code of 1986, or nonprofit	5180
organizations operated exclusively for charitable purposes as	5181
defined in division (B)(12) of this section, provided that the	5182
number of days on which such tangible personal property or	5183
services, other than items never subject to the tax, are sold does	5184
not exceed six in any calendar year, except as otherwise provided	5185
in division (B)(9)(b) of this section. If the number of days on	5186
which such sales are made exceeds six in any calendar year, the	5187
church or organization shall be considered to be engaged in	5188
business and all subsequent sales by it shall be subject to the	5189
tax. In counting the number of days, all sales by groups within a	5190
church or within an organization shall be considered to be sales	5191
of that church or organization.	5192

(b) The limitation on the number of days on which tax-exempt	5193
sales may be made by a church or organization under division	5194
(B)(9)(a) of this section does not apply to sales made by student	5195
clubs and other groups of students of a primary or secondary	5196
school, or a parent-teacher association, booster group, or similar	5197
organization that raises money to support or fund curricular or	5198
extracurricular activities of a primary or secondary school.	5199

(c) Divisions (B)(9)(a) and (b) of this section do not apply	5200
to sales by a noncommercial educational radio or television	5201
broadcasting station.	5202

(10) Sales not within the taxing power of this state under	5203
the Constitution of the United States;	5204

(11) Except for transactions that are sales under division	5205
(B)(3)(r) of section 5739.01 of the Revised Code, the	5206
transportation of persons or property, unless the transportation	5207
is by a private investigation and security service;	5208

(12) Sales of tangible personal property or services to	5209
churches, to organizations exempt from taxation under section	5210
501(c)(3) of the Internal Revenue Code of 1986, and to any other	5211
nonprofit organizations operated exclusively for charitable	5212
purposes in this state, no part of the net income of which inures	5213
to the benefit of any private shareholder or individual, and no	5214
substantial part of the activities of which consists of carrying	5215
on propaganda or otherwise attempting to influence legislation;	5216
sales to offices administering one or more homes for the aged or	5217
one or more hospital facilities exempt under section 140.08 of the	5218
Revised Code; and sales to organizations described in division (D)	5219
of section 5709.12 of the Revised Code.	5220

"Charitable purposes" means the relief of poverty; the	5221
improvement of health through the alleviation of illness, disease,	5222
or injury; the operation of an organization exclusively for the	5223
provision of professional, laundry, printing, and purchasing	5224
services to hospitals or charitable institutions; the operation of	5225
a home for the aged, as defined in section 5701.13 of the Revised	5226
Code; the operation of a radio or television broadcasting station	5227
that is licensed by the federal communications commission as a	5228
noncommercial educational radio or television station; the	5229
operation of a nonprofit animal adoption service or a county	5230
humane society; the promotion of education by an institution of	5231
learning that maintains a faculty of qualified instructors,	5232
teaches regular continuous courses of study, and confers a	5233
recognized diploma upon completion of a specific curriculum; the	5234
operation of a parent-teacher association, booster group, or	5235
similar organization primarily engaged in the promotion and	5236
support of the curricular or extracurricular activities of a	5237
primary or secondary school; the operation of a community or area	5238
center in which presentations in music, dramatics, the arts, and	5239
related fields are made in order to foster public interest and	5240
education therein; the production of performances in music,	5241
dramatics, and the arts; or the promotion of education by an	5242
organization engaged in carrying on research in, or the	5243
dissemination of, scientific and technological knowledge and	5244
information primarily for the public.	5245

Nothing in this division shall be deemed to exempt sales to	5246
any organization for use in the operation or carrying on of a	5247
trade or business, or sales to a home for the aged for use in the	5248
operation of independent living facilities as defined in division	5249
(A) of section 5709.12 of the Revised Code.	5250

(13) Building and construction materials and services sold to	5251
construction contractors for incorporation into a structure or	5252
improvement to real property under a construction contract with	5253
this state or a political subdivision of this state, or with the	5254
United States government or any of its agencies; building and	5255
construction materials and services sold to construction	5256
contractors for incorporation into a structure or improvement to	5257
real property that are accepted for ownership by this state or any	5258
of its political subdivisions, or by the United States government	5259
or any of its agencies at the time of completion of the structures	5260
or improvements; building and construction materials sold to	5261
construction contractors for incorporation into a horticulture	5262
structure or livestock structure for a person engaged in the	5263
business of horticulture or producing livestock; building	5264
materials and services sold to a construction contractor for	5265
incorporation into a house of public worship or religious	5266
education, or a building used exclusively for charitable purposes	5267
under a construction contract with an organization whose purpose	5268
is as described in division (B)(12) of this section; building	5269
materials and services sold to a construction contractor for	5270
incorporation into a building under a construction contract with	5271
an organization exempt from taxation under section 501(c)(3) of	5272
the Internal Revenue Code of 1986 when the building is to be used	5273
exclusively for the organization's exempt purposes; building and	5274
construction materials sold for incorporation into the original	5275
construction of a sports facility under section 307.696 of the	5276
Revised Code; building and construction materials and services	5277
sold to a construction contractor for incorporation into real	5278
property outside this state if such materials and services, when	5279
sold to a construction contractor in the state in which the real	5280
property is located for incorporation into real property in that	5281
state, would be exempt from a tax on sales levied by that state;	5282
and, until one calendar year after the construction of a	5283
convention center that qualifies for property tax exemption under	5284
section 5709.084 of the Revised Code is completed, building and	5285
construction materials and services sold to a construction	5286
contractor for incorporation into the real property comprising	5287
that convention center;	5288

(14) Sales of ships or vessels or rail rolling stock used or	5289
to be used principally in interstate or foreign commerce, and	5290
repairs, alterations, fuel, and lubricants for such ships or	5291
vessels or rail rolling stock;	5292

(15) Sales to persons primarily engaged in any of the	5293
activities mentioned in division (B)(42)(a), (g), or (h) of this	5294
section, to persons engaged in making retail sales, or to persons	5295
who purchase for sale from a manufacturer tangible personal	5296
property that was produced by the manufacturer in accordance with	5297
specific designs provided by the purchaser, of packages, including	5298
material, labels, and parts for packages, and of machinery,	5299
equipment, and material for use primarily in packaging tangible	5300
personal property produced for sale, including any machinery,	5301
equipment, and supplies used to make labels or packages, to	5302
prepare packages or products for labeling, or to label packages or	5303
products, by or on the order of the person doing the packaging, or	5304
sold at retail. "Packages" includes bags, baskets, cartons,	5305
crates, boxes, cans, bottles, bindings, wrappings, and other	5306
similar devices and containers, but does not include motor	5307
vehicles or bulk tanks, trailers, or similar devices attached to	5308
motor vehicles. "Packaging" means placing in a package. Division	5309
(B)(15) of this section does not apply to persons engaged in	5310
highway transportation for hire.	5311

(16) Sales of food to persons using supplemental nutrition	5312
assistance program benefits to purchase the food. As used in this	5313
division, "food" has the same meaning as in 7 U.S.C. 2012 and	5314
federal regulations adopted pursuant to the Food and Nutrition Act	5315
of 2008.	5316

(17) Sales to persons engaged in farming, agriculture,	5317
horticulture, or floriculture, of tangible personal property for	5318
use or consumption primarily in the production by farming,	5319
agriculture, horticulture, or floriculture of other tangible	5320
personal property for use or consumption primarily in the	5321
production of tangible personal property for sale by farming,	5322
agriculture, horticulture, or floriculture; or material and parts	5323
for incorporation into any such tangible personal property for use	5324
or consumption in production; and of tangible personal property	5325
for such use or consumption in the conditioning or holding of	5326
products produced by and for such use, consumption, or sale by	5327
persons engaged in farming, agriculture, horticulture, or	5328
floriculture, except where such property is incorporated into real	5329
property;	5330

(18) Sales of drugs for a human being that may be dispensed	5331
only pursuant to a prescription; insulin as recognized in the	5332
official United States pharmacopoeia; urine and blood testing	5333
materials when used by diabetics or persons with hypoglycemia to	5334
test for glucose or acetone; hypodermic syringes and needles when	5335
used by diabetics for insulin injections; epoetin alfa when	5336
purchased for use in the treatment of persons with medical	5337
disease; hospital beds when purchased by hospitals, nursing homes,	5338
or other medical facilities; and medical oxygen and medical	5339
oxygen-dispensing equipment when purchased by hospitals, nursing	5340
homes, or other medical facilities;	5341

(19) Sales of prosthetic devices, durable medical equipment	5342
for home use, or mobility enhancing equipment, when made pursuant	5343
to a prescription and when such devices or equipment are for use	5344
by a human being.	5345

(20) Sales of emergency and fire protection vehicles and	5346
equipment to nonprofit organizations for use solely in providing	5347
fire protection and emergency services, including trauma care and	5348
emergency medical services, for political subdivisions of the	5349
state;	5350

(21) Sales of tangible personal property manufactured in this	5351
state, if sold by the manufacturer in this state to a retailer for	5352
use in the retail business of the retailer outside of this state	5353
and if possession is taken from the manufacturer by the purchaser	5354
within this state for the sole purpose of immediately removing the	5355
same from this state in a vehicle owned by the purchaser;	5356

(22) Sales of services provided by the state or any of its	5357
political subdivisions, agencies, instrumentalities, institutions,	5358
or authorities, or by governmental entities of the state or any of	5359
its political subdivisions, agencies, instrumentalities,	5360
institutions, or authorities;	5361

(23) Sales of motor vehicles to nonresidents of this state	5362
under the circumstances described in division (B) of section	5363
5739.029 of the Revised Code;	5364

(24) Sales to persons engaged in the preparation of eggs for	5365
sale of tangible personal property used or consumed directly in	5366
such preparation, including such tangible personal property used	5367
for cleaning, sanitizing, preserving, grading, sorting, and	5368
classifying by size; packages, including material and parts for	5369
packages, and machinery, equipment, and material for use in	5370
packaging eggs for sale; and handling and transportation equipment	5371
and parts therefor, except motor vehicles licensed to operate on	5372
public highways, used in intraplant or interplant transfers or	5373
shipment of eggs in the process of preparation for sale, when the	5374
plant or plants within or between which such transfers or	5375
shipments occur are operated by the same person. "Packages"	5376
includes containers, cases, baskets, flats, fillers, filler flats,	5377
cartons, closure materials, labels, and labeling materials, and	5378
"packaging" means placing therein.	5379

(25)(a) Sales of water to a consumer for residential use;

5380

(b) Sales of water by a nonprofit corporation engaged	5381
exclusively in the treatment, distribution, and sale of water to	5382
consumers, if such water is delivered to consumers through pipes	5383
or tubing.	5384

(26) Fees charged for inspection or reinspection of motor	5385
vehicles under section 3704.14 of the Revised Code;	5386

(27) Sales to persons licensed to conduct a food service	5387
operation pursuant to section 3717.43 of the Revised Code, of	5388
tangible personal property primarily used directly for the	5389
following:	5390

(a) To prepare food for human consumption for sale;

5391

(b) To preserve food that has been or will be prepared for	5392
human consumption for sale by the food service operator, not	5393
including tangible personal property used to display food for	5394
selection by the consumer;	5395

(c) To clean tangible personal property used to prepare or	5396
serve food for human consumption for sale.Sales of	5397
telecommunications service that is used directly and primarily to	5398
perform the functions of a call center. As used in this division,	5399
"call center" means any physical location where telephone calls	5400
are placed or received in high volume for the purpose of making	5401
sales, marketing, customer service, technical support, or other	5402
specialized business activity, and that employs at least fifty	5403
individuals that engage in call center activities on a full-time	5404
basis, or sufficient individuals to fill fifty full-time	5405
equivalent positions;	5406

(28) Sales of animals by nonprofit animal adoption services	5407
or county humane societies;	5408

(29) Sales of services to a corporation described in division	5409
(A) of section 5709.72 of the Revised Code, and sales of tangible	5410
personal property that qualifies for exemption from taxation under	5411
section 5709.72 of the Revised Code;	5412

(30) Sales and installation of agricultural land tile, as	5413
defined in division (B)(5)(a) of section 5739.01 of the Revised	5414
Codeby a telecommunications service vendor of 900 service to a	5415
subscriber. This division does not apply to information services,	5416
as defined in division (FF) of section 5739.01 of the Revised	5417
Code;	5418

(31) Sales and erection or installation of portable grain	5419
bins, as defined in division (B)(5)(b) of section 5739.01 of the	5420
Revised Codeof value-added non-voice data service. This division	5421
does not apply to any similar service that is not otherwise a	5422
telecommunications service;	5423

(32) The sale, lease, repair, and maintenance of, parts for,	5424
or items attached to or incorporated in, motor vehicles that are	5425
primarily used for transporting tangible personal property	5426
belonging to others by a person engaged in highway transportation	5427
for hire, except for packages and packaging used for the	5428
transportation of tangible personal property;	5429

(33) Sales to the state headquarters of any veterans'	5430
organization in this state that is either incorporated and issued	5431
a charter by the congress of the United States or is recognized by	5432
the United States veterans administration, for use by the	5433
headquarters;	5434

(34) Sales to a telecommunications service vendor, mobile	5435
telecommunications service vendor, or satellite broadcasting	5436
service vendor of tangible personal property and services used	5437
directly and primarily in transmitting, receiving, switching, or	5438
recording any interactive, one- or two-way electromagnetic	5439
communications, including voice, image, data, and information,	5440
through the use of any medium, including, but not limited to,	5441
poles, wires, cables, switching equipment, computers, and record	5442
storage devices and media, and component parts for the tangible	5443
personal property. The exemption provided in this division shall	5444
be in lieu of all other exemptions under division (B)(42)(a) or	5445
(n) of this section to which the vendor may otherwise be entitled,	5446
based upon the use of the thing purchased in providing the	5447
telecommunications, mobile telecommunications, or satellite	5448
broadcasting service.	5449

(35)(a) Sales where the purpose of the consumer is to use or	5450
consume the things transferred in making retail sales and	5451
consisting of newspaper inserts, catalogues, coupons, flyers, gift	5452
certificates, or other advertising material that prices and	5453
describes tangible personal property offered for retail sale.	5454

(b) Sales to direct marketing vendors of preliminary	5455
materials such as photographs, artwork, and typesetting that will	5456
be used in printing advertising material; and of printed matter	5457
that offers free merchandise or chances to win sweepstake prizes	5458
and that is mailed to potential customers with advertising	5459
material described in division (B)(35)(a) of this section;	5460

(c) Sales of equipment such as telephones, computers,	5461
facsimile machines, and similar tangible personal property	5462
primarily used to accept orders for direct marketing retail sales.	5463

(d) Sales of automatic food vending machines that preserve	5464
food with a shelf life of forty-five days or less by refrigeration	5465
and dispense it to the consumer.	5466

For purposes of division (B)(35) of this section, "direct	5467
marketing" means the method of selling where consumers order	5468
tangible personal property by United States mail, delivery	5469
service, or telecommunication and the vendor delivers or ships the	5470
tangible personal property sold to the consumer from a warehouse,	5471
catalogue distribution center, or similar fulfillment facility by	5472
means of the United States mail, delivery service, or common	5473
carrierof machinery, equipment, and software to a qualified	5474
direct selling entity for use in a warehouse or distribution	5475
center primarily for storing, transporting, or otherwise handling	5476
inventory that is held for sale to independent salespersons who	5477
operate as direct sellers and that is held primarily for	5478
distribution outside this state;	5479

(b) As used in division (B)(35)(a) of this section:

5480

(i) "Direct seller" means a person selling consumer products	5481
to individuals for personal or household use and not from a fixed	5482
retail location, including selling such product at in-home product	5483
demonstrations, parties, and other one-on-one selling.	5484

(ii) "Qualified direct selling entity" means an entity	5485
selling to direct sellers at the time the entity enters into a tax	5486
credit agreement with the tax credit authority pursuant to section	5487
122.17 of the Revised Code, provided that the agreement was	5488
entered into on or after January 1, 2007. Neither contingencies	5489
relevant to the granting of, nor later developments with respect	5490
to, the tax credit shall impair the status of the qualified direct	5491
selling entity under division (B)(35) of this section after	5492
execution of the tax credit agreement by the tax credit authority.	5493

(c) Division (B)(35) of this section is limited to machinery,	5494
equipment, and software first stored, used, or consumed in this	5495
state within the period commencing June 24, 2008, and ending June	5496
24, 2013.	5497

(36) Sales to a person engaged in the business of	5498
horticulture or producing livestock of materials to be	5499
incorporated into a horticulture structure or livestock structure;	5500

(37) Sales of personal computers, computer monitors, computer	5501
keyboards, modems, and other peripheral computer equipment to an	5502
individual who is licensed or certified to teach in an elementary	5503
or a secondary school in this state for use by that individual in	5504
preparation for teaching elementary or secondary school students;	5505

(38) Sales to a professional racing team of any of the	5506
following:	5507

(a) Motor racing vehicles;

5508

(b) Repair services for motor racing vehicles;

5509

(c) Items of property that are attached to or incorporated in	5510
motor racing vehicles, including engines, chassis, and all other	5511
components of the vehicles, and all spare, replacement, and	5512
rebuilt parts or components of the vehicles; except not including	5513
tires, consumable fluids, paint, and accessories consisting of	5514
instrumentation sensors and related items added to the vehicle to	5515
collect and transmit data by means of telemetry and other forms of	5516
communicationAny transfer or lease of tangible personal property	5517
between the state and a successful proposer in accordance with	5518
sections 126.60 to 126.605 of the Revised Code, provided the	5519
property is part of a project as defined in section 126.60 of the	5520
Revised Code and the state retains ownership of the project or	5521
part thereof that is being transferred or leased, between the	5522
state and JobsOhio in accordance with section 4313.02 of the	5523
Revised Code.	5524

(39) Sales of used manufactured homes and used mobile homes,	5525
as defined in section 5739.0210 of the Revised Code, made on or	5526
after January 1, 2000;	5527

(40) Sales of tangible personal property and services to a	5528
provider of electricity used or consumed directly and primarily in	5529
generating, transmitting, or distributing electricity for use by	5530
others, including property that is or is to be incorporated into	5531
and will become a part of the consumer's production, transmission,	5532
or distribution system and that retains its classification as	5533
tangible personal property after incorporation; fuel or power used	5534
in the production, transmission, or distribution of electricity;	5535
energy conversion equipment as defined in section 5727.01 of the	5536
Revised Code; and tangible personal property and services used in	5537
the repair and maintenance of the production, transmission, or	5538
distribution system, including only those motor vehicles as are	5539
specially designed and equipped for such use. The exemption	5540
provided in this division shall be in lieu of all other exemptions	5541
in division (B)(42)(a) or (n) of this section to which a provider	5542
of electricity may otherwise be entitled based on the use of the	5543
tangible personal property or service purchased in generating,	5544
transmitting, or distributing electricity.	5545

(41) Sales to a person providing services under division	5546
(B)(3)(r) of section 5739.01 of the Revised Code of tangible	5547
personal property and services used directly and primarily in	5548
providing taxable services under that section.	5549

(42) Sales where the purpose of the purchaser is to do any of	5550
the following:	5551

(a) To incorporate the thing transferred as a material or a	5552
part into tangible personal property to be produced for sale by	5553
manufacturing, assembling, processing, or refining; or to use or	5554
consume the thing transferred directly in producing tangible	5555
personal property for sale by mining, including, without	5556
limitation, the extraction from the earth of all substances that	5557
are classed geologically as minerals, production of crude oil and	5558
natural gas, or directly in the rendition of a public utility	5559
service, except that the sales tax levied by this section shall be	5560
collected upon all meals, drinks, and food for human consumption	5561
sold when transporting persons. Persons engaged in rendering	5562
services in the exploration for, and production of, crude oil and	5563
natural gas for others are deemed engaged directly in the	5564
exploration for, and production of, crude oil and natural gas.	5565
This paragraph does not exempt from "retail sale" or "sales at	5566
retail" the sale of tangible personal property that is to be	5567
incorporated into a structure or improvement to real property.	5568

(b) To hold the thing transferred as security for the	5569
performance of an obligation of the vendor;	5570

(c) To resell, hold, use, or consume the thing transferred as	5571
evidence of a contract of insurance;	5572

(d) To use or consume the thing directly in commercial	5573
fishing;	5574

(e) To incorporate the thing transferred as a material or a	5575
part into, or to use or consume the thing transferred directly in	5576
the production of, magazines distributed as controlled circulation	5577
publications;	5578

(f) To use or consume the thing transferred in the production	5579
and preparation in suitable condition for market and sale of	5580
printed, imprinted, overprinted, lithographic, multilithic,	5581
blueprinted, photostatic, or other productions or reproductions of	5582
written or graphic matter;	5583

(g) To use the thing transferred, as described in section	5584
5739.011 of the Revised Code, primarily in a manufacturing	5585
operation to produce tangible personal property for sale;	5586

(h) To use the benefit of a warranty, maintenance or service	5587
contract, or similar agreement, as described in division (B)(7) of	5588
section 5739.01 of the Revised Code, to repair or maintain	5589
tangible personal property, if all of the property that is the	5590
subject of the warranty, contract, or agreement would not be	5591
subject to the tax imposed by this section;	5592

(i) To use the thing transferred as qualified research and	5593
development equipment;	5594

(j) To use or consume the thing transferred primarily in	5595
storing, transporting, mailing, or otherwise handling purchased	5596
sales inventory in a warehouse, distribution center, or similar	5597
facility when the inventory is primarily distributed outside this	5598
state to retail stores of the person who owns or controls the	5599
warehouse, distribution center, or similar facility, to retail	5600
stores of an affiliated group of which that person is a member, or	5601
by means of direct marketing. This division does not apply to	5602
motor vehicles registered for operation on the public highways. As	5603
used in this division, "affiliated group" has the same meaning as	5604
in division (B)(3)(e) of section 5739.01 of the Revised Code and	5605
"direct marketing" has the same meaning as in division (B)(35) of	5606
this sectionmeans the method of selling where consumers order	5607
tangible personal property by United States mail, delivery	5608
service, or telecommunication and the vendor delivers or ships the	5609
tangible personal property sold to the consumer from a warehouse,	5610
catalogue distribution center, or similar fulfillment facility by	5611
means of the United States mail, delivery service, or common	5612
carrier.	5613

(k) To use or consume the thing transferred to fulfill a	5614
contractual obligation incurred by a warrantor pursuant to a	5615
warranty provided as a part of the price of the tangible personal	5616
property sold or by a vendor of a warranty, maintenance or service	5617
contract, or similar agreement the provision of which is defined	5618
as a sale under division (B)(7) of section 5739.01 of the Revised	5619
Code;	5620

(l) To use or consume the thing transferred in the production	5621
of a newspaper for distribution to the public;	5622

(m) To use tangible personal property to perform a service	5623
listed in division (B)(3) of section 5739.01 of the Revised Code,	5624
if the property is or is to be permanently transferred to the	5625
consumer of the service as an integral part of the performance of	5626
the service;	5627

(n) To use or consume the thing transferred primarily in	5628
producing tangible personal property for sale by farming,	5629
agriculture, horticulture, or floriculture. Persons engaged in	5630
rendering farming, agriculture, horticulture, or floriculture	5631
services for others are deemed engaged primarily in farming,	5632
agriculture, horticulture, or floriculture. This paragraph does	5633
not exempt from "retail sale" or "sales at retail" the sale of	5634
tangible personal property that is to be incorporated into a	5635
structure or improvement to real property.	5636

(o) To use or consume the thing transferred in acquiring,	5637
formatting, editing, storing, and disseminating data or	5638
information by electronic publishing.	5639

As used in division (B)(42) of this section, "thing" includes	5640
all transactions included in divisions (B)(3)(a), (b), and (e) of	5641
section 5739.01 of the Revised Code.	5642

(43) Sales conducted through a coin operated device that	5643
activates vacuum equipment or equipment that dispenses water,	5644
whether or not in combination with soap or other cleaning agents	5645
or wax, to the consumer for the consumer's use on the premises in	5646
washing, cleaning, or waxing a motor vehicle, provided no other	5647
personal property or personal service is provided as part of the	5648
transaction.	5649

(44) Sales of replacement and modification parts for engines,	5650
airframes, instruments, and interiors in, and paint for, aircraft	5651
used primarily in a fractional aircraft ownership program, and	5652
sales of services for the repair, modification, and maintenance of	5653
such aircraft, and machinery, equipment, and supplies primarily	5654
used to provide those services.	5655

(45) Sales of telecommunications service that is used	5656
directly and primarily to perform the functions of a call center.	5657
As used in this division, "call center" means any physical	5658
location where telephone calls are placed or received in high	5659
volume for the purpose of making sales, marketing, customer	5660
service, technical support, or other specialized business	5661
activity, and that employs at least fifty individuals that engage	5662
in call center activities on a full-time basis, or sufficient	5663
individuals to fill fifty full-time equivalent positions.	5664

(46) Sales by a telecommunications service vendor of 900	5665
service to a subscriber. This division does not apply to	5666
information services, as defined in division (FF) of section	5667
5739.01 of the Revised Code.	5668

(47) Sales of value-added non-voice data service. This	5669
division does not apply to any similar service that is not	5670
otherwise a telecommunications service.	5671

(48)(a) Sales of machinery, equipment, and software to a	5672
qualified direct selling entity for use in a warehouse or	5673
distribution center primarily for storing, transporting, or	5674
otherwise handling inventory that is held for sale to independent	5675
salespersons who operate as direct sellers and that is held	5676
primarily for distribution outside this state;	5677

(b) As used in division (B)(48)(a) of this section:

5678

(i) "Direct seller" means a person selling consumer products	5679
to individuals for personal or household use and not from a fixed	5680
retail location, including selling such product at in-home product	5681
demonstrations, parties, and other one-on-one selling.	5682

(ii) "Qualified direct selling entity" means an entity	5683
selling to direct sellers at the time the entity enters into a tax	5684
credit agreement with the tax credit authority pursuant to section	5685
122.17 of the Revised Code, provided that the agreement was	5686
entered into on or after January 1, 2007. Neither contingencies	5687
relevant to the granting of, nor later developments with respect	5688
to, the tax credit shall impair the status of the qualified direct	5689
selling entity under division (B)(48) of this section after	5690
execution of the tax credit agreement by the tax credit authority.	5691

(c) Division (B)(48) of this section is limited to machinery,	5692
equipment, and software first stored, used, or consumed in this	5693
state within the period commencing June 24, 2008, and ending on	5694
the date that is five years after that date.	5695

(49) Sales of materials, parts, equipment, or engines used in	5696
the repair or maintenance of aircraft or avionics systems of such	5697
aircraft, and sales of repair, remodeling, replacement, or	5698
maintenance services in this state performed on aircraft or on an	5699
aircraft's avionics, engine, or component materials or parts. As	5700
used in division (B)(49) of this section, "aircraft" means	5701
aircraft of more than six thousand pounds maximum certified	5702
takeoff weight or used exclusively in general aviation.	5703

(50) Sales of full flight simulators that are used for pilot	5704
or flight-crew training, sales of repair or replacement parts or	5705
components, and sales of repair or maintenance services for such	5706
full flight simulators. "Full flight simulator" means a replica of	5707
a specific type, or make, model, and series of aircraft cockpit.	5708
It includes the assemblage of equipment and computer programs	5709
necessary to represent aircraft operations in ground and flight	5710
conditions, a visual system providing an out-of-the-cockpit view,	5711
and a system that provides cues at least equivalent to those of a	5712
three-degree-of-freedom motion system, and has the full range of	5713
capabilities of the systems installed in the device as described	5714
in appendices A and B of part 60 of chapter 1 of title 14 of the	5715
Code of Federal Regulations.	5716

(51) Any transfer or lease of tangible personal property	5717
between the state and a successful proposer in accordance with	5718
sections 126.60 to 126.605 of the Revised Code, provided the	5719
property is part of a project as defined in section 126.60 of the	5720
Revised Code and the state retains ownership of the project or	5721
part thereof that is being transferred or leased, between the	5722
state and JobsOhio in accordance with section 4313.02 of the	5723
Revised Code.	5724

(C) For the purpose of the proper administration of this	5725
chapter, and to prevent the evasion of the tax, it is presumed	5726
that all sales made in this state are subject to the tax until the	5727
contrary is established.	5728

(D) The levy of this tax on retail sales of recreation and	5729
sports club service shall not prevent a municipal corporation from	5730
levying any tax on recreation and sports club dues or on any	5731
income generated by recreation and sports club dues.	5732

(E) The tax collected by the vendor from the consumer under	5733
this chapter is not part of the price, but is a tax collection for	5734
the benefit of the state, and of counties levying an additional	5735
sales tax pursuant to section 5739.021 or 5739.026 of the Revised	5736
Code and of transit authorities levying an additional sales tax	5737
pursuant to section 5739.023 of the Revised Code. Except for the	5738
discount authorized under section 5739.12 of the Revised Code and	5739
the effects of any rounding pursuant to section 5703.055 of the	5740
Revised Code, no person other than the state or such a county or	5741
transit authority shall derive any benefit from the collection or	5742
payment of the tax levied by this section or section 5739.021,	5743
5739.023, or 5739.026 of the Revised Code.	5744

Sec. 5739.025.  As used in this section, "local tax" means a	5745
tax imposed pursuant to section 5739.021, 5739.023, 5739.026,	5746
5741.021, 5741.022, or 5741.023 of the Revised Code.	5747

(A) The taxes levied by sections 5739.02 and 5741.02 of the	5748
Revised Code shall be collected as follows:	5749

(1) On and after July 1, 2003, and on or before June 30,	5750
2005, in accordance with the following schedule:	5751

If the price		The amount of			5752
is at least		But not more than		the tax is			5753
	$ .01		$ .15		No tax		5754
	.16		.16		1¢		5755
	.17		.33		2¢		5756
	.34		.50		3¢		5757
	.51		.66		4¢		5758
	.67		.83		5¢		5759
	.84		1.00		6¢		5760

If the price exceeds one dollar, the tax is six cents on each	5761
one dollar. If the price exceeds one dollar or a multiple thereof	5762
by not more than seventeen cents, the amount of tax is six cents	5763
for each one dollar plus one cent. If the price exceeds one dollar	5764
or a multiple thereof by more than seventeen cents, the amount of	5765
tax is six cents for each one dollar plus the amount of tax for	5766
prices eighteen cents through ninety-nine cents in accordance with	5767
the schedule above.	5768

(2) On and after July 1, 2005, and on and before December 31,	5769
2005, in accordance with the following schedule:	5770

	If the price		But not		The amount			5771
	is at least		more than		of the tax is			5772

	$ .01		$ .15		No tax			5773
	.16		.18		1¢			5774
	.19		.36		2¢			5775
	.37		.54		3¢			5776
	.55		.72		4¢			5777
	.73		.90		5¢			5778
	.91		1.09		6¢			5779
	1.10		1.27		7¢			5780
	1.28		1.46		8¢			5781
	1.47		1.64		9¢			5782
	1.65		1.82		10¢			5783
	1.83		2.00		11¢			5784

If the price exceeds two dollars, the tax is eleven cents on	5785
each two dollars. If the price exceeds two dollars or a multiple	5786
thereof by not more than eighteen cents, the amount of tax is	5787
eleven cents for each two dollars plus one cent. If the price	5788
exceeds two dollars or a multiple thereof by more than eighteen	5789
cents, the amount of tax is eleven cents for each two dollars plus	5790
the amount of tax for prices nineteen cents through one dollar and	5791
ninety-nine cents in accordance with the schedule above.	5792

(B) On and after July 1, 2003, and on and before June 30,	5793
2005, the combined taxes levied by sections 5739.02 and 5741.02	5794
and pursuant to sections 5739.021, 5739.023, 5739.026, 5741.021,	5795
5741.022, and 5741.023 of the Revised Code shall be collected in	5796
accordance with the following schedules:	5797

(1) When the combined rate of state and local tax is six and	5798
one-fourth per cent:	5799

If the price		The amount of			5800
is at least		But not more than		the tax is			5801
	$ .01		$ .15		No tax		5802
	.16		.16		1¢		5803
	.17		.32		2¢		5804
	.33		.48		3¢		5805
	.49		.64		4¢		5806
	.65		.80		5¢		5807
	.81		.96		6¢		5808
	.97		1.12		7¢		5809
	1.13		1.28		8¢		5810
	1.29		1.44		9¢		5811
	1.45		1.60		10¢		5812
	1.61		1.76		11¢		5813
	1.77		1.92		12¢		5814
	1.93		2.08		13¢		5815
	2.09		2.24		14¢		5816
	2.25		2.40		15¢		5817
	2.41		2.56		16¢		5818
	2.57		2.72		17¢		5819
	2.73		2.88		18¢		5820
	2.89		3.04		19¢		5821
	3.05		3.20		20¢		5822
	3.21		3.36		21¢		5823
	3.37		3.52		22¢		5824
	3.53		3.68		23¢		5825
	3.69		3.84		24¢		5826
	3.85		4.00		25¢		5827

If the price exceeds four dollars, the tax is twenty-five	5828
cents on each four dollars. If the price exceeds four dollars or a	5829
multiple thereof by not more than sixteen cents, the amount of tax	5830
is twenty-five cents for each four dollars plus one cent. If the	5831
price exceeds four dollars or a multiple thereof by more than	5832
sixteen cents, the amount of tax is twenty-five cents for each	5833
four dollars plus the amount of tax for prices seventeen cents	5834
through three dollars and ninety-nine cents in accordance with the	5835
schedule above.	5836

(2) When the combined rate of state and local tax is six and	5837
one-half per cent:	5838

If the price		The amount of			5839
is at least		But not more than		the tax is			5840
	$ .01		$ .15		No tax		5841
	.16		.30		2¢		5842
	.31		.46		3¢		5843
	.47		.61		4¢		5844
	.62		.76		5¢		5845
	.77		.92		6¢		5846
	.93		1.07		7¢		5847
	1.08		1.23		8¢		5848
	1.24		1.38		9¢		5849
	1.39		1.53		10¢		5850
	1.54		1.69		11¢		5851
	1.70		1.84		12¢		5852
	1.85		2.00		13¢		5853

If the price exceeds two dollars, the tax is thirteen cents	5854
on each two dollars. If the price exceeds two dollars or a	5855
multiple thereof by not more than fifteen cents, the amount of tax	5856
is thirteen cents for each two dollars plus one cent. If the price	5857
exceeds two dollars or a multiple thereof by more than fifteen	5858
cents, the amount of tax is thirteen cents for each two dollars	5859
plus the amount of tax for prices sixteen cents through one dollar	5860
and ninety-nine cents in accordance with the schedule above.	5861

(3) When the combined rate of state and local tax is six and	5862
three-fourths per cent:	5863

If the price		The amount of			5864
is at least		But not more than		the tax is			5865
	$ .01		$ .15		No tax		5866
	.16		.29		2¢		5867
	.30		.44		3¢		5868
	.45		.59		4¢		5869
	.60		.74		5¢		5870
	.75		.88		6¢		5871
	.89		1.03		7¢		5872
	1.04		1.18		8¢		5873
	1.19		1.33		9¢		5874
	1.34		1.48		10¢		5875
	1.49		1.62		11¢		5876
	1.63		1.77		12¢		5877
	1.78		1.92		13¢		5878
	1.93		2.07		14¢		5879
	2.08		2.22		15¢		5880
	2.23		2.37		16¢		5881
	2.38		2.51		17¢		5882
	2.52		2.66		18¢		5883
	2.67		2.81		19¢		5884
	2.82		2.96		20¢		5885
	2.97		3.11		21¢		5886
	3.12		3.25		22¢		5887
	3.26		3.40		23¢		5888
	3.41		3.55		24¢		5889
	3.56		3.70		25¢		5890
	3.71		3.85		26¢		5891
	3.86		4.00		27¢		5892

If the price exceeds four dollars, the tax is twenty-seven	5893
cents on each four dollars. If the price exceeds four dollars or a	5894
multiple thereof by not more than fourteen cents, the amount of	5895
tax is twenty-seven cents for each four dollars plus one cent. If	5896
the price exceeds four dollars or a multiple thereof by more than	5897
fourteen but by not more than twenty-nine cents, the amount of tax	5898
is twenty-seven cents for each four dollars plus two cents. If the	5899
price exceeds four dollars or a multiple thereof by more than	5900
twenty-nine cents the amount of tax is twenty-seven cents for each	5901
four dollars plus the amount of tax for prices thirty cents	5902
through three dollars and ninety-nine cents in accordance with the	5903
schedule above.	5904

(4) When the combined rate of state and local tax is seven	5905
per cent:	5906

If the price		The amount of			5907
is at least		But not more than		the tax is			5908
	$ .01		$ .15		No tax		5909
	.16		.28		2¢		5910
	.29		.42		3¢		5911
	.43		.57		4¢		5912
	.58		.71		5¢		5913
	.72		.85		6¢		5914
	.86		1.00		7¢		5915

If the price exceeds one dollar, the tax is seven cents on	5916
each one dollar. If the price exceeds one dollar or a multiple	5917
thereof by not more than fifteen cents, the amount of tax is seven	5918
cents for each one dollar plus one cent. If the price exceeds one	5919
dollar or a multiple thereof by more than fifteen cents, the	5920
amount of tax is seven cents for each one dollar plus the amount	5921
of tax for prices sixteen cents through ninety-nine cents in	5922
accordance with the schedule above.	5923

(5) When the combined rate of state and local tax is seven	5924
and one-fourth per cent:	5925

If the price		The amount of			5926
is at least		But not more than		the tax is			5927
	$ .01		$ .15		No tax		5928
	.16		.27		2¢		5929
	.28		.41		3¢		5930
	.42		.55		4¢		5931
	.56		.68		5¢		5932
	.69		.82		6¢		5933
	.83		.96		7¢		5934
	.97		1.10		8¢		5935
	1.11		1.24		9¢		5936
	1.25		1.37		10¢		5937
	1.38		1.51		11¢		5938
	1.52		1.65		12¢		5939
	1.66		1.79		13¢		5940
	1.80		1.93		14¢		5941
	1.94		2.06		15¢		5942
	2.07		2.20		16¢		5943
	2.21		2.34		17¢		5944
	2.35		2.48		18¢		5945
	2.49		2.62		19¢		5946
	2.63		2.75		20¢		5947
	2.76		2.89		21¢		5948
	2.90		3.03		22¢		5949
	3.04		3.17		23¢		5950
	3.18		3.31		24¢		5951
	3.32		3.44		25¢		5952
	3.45		3.58		26¢		5953
	3.59		3.72		27¢		5954
	3.73		3.86		28¢		5955
	3.87		4.00		29¢		5956

If the price exceeds four dollars, the tax is twenty-nine	5957
cents on each four dollars. If the price exceeds four dollars or a	5958
multiple thereof by not more than thirteen cents, the amount of	5959
tax is twenty-nine cents for each four dollars plus one cent. If	5960
the price exceeds four dollars or a multiple thereof by more than	5961
thirteen cents but by not more than twenty-seven cents, the amount	5962
of tax is twenty-nine cents for each four dollars plus two cents.	5963
If the price exceeds four dollars or a multiple thereof by more	5964
than twenty-seven cents, the amount of tax is twenty-nine cents	5965
for each four dollars plus the amount of tax for prices	5966
twenty-eight cents through three dollars and ninety-nine cents in	5967
accordance with the schedule above.	5968

(6) When the combined rate of state and local tax is seven	5969
and one-half per cent:	5970

If the price		The amount of			5971
is at least		But not more than		the tax is			5972
	$ .01		$ .15		No tax		5973
	.16		.26		2¢		5974
	.27		.40		3¢		5975
	.41		.53		4¢		5976
	.54		.65		5¢		5977
	.66		.80		6¢		5978
	.81		.93		7¢		5979
	.94		1.06		8¢		5980
	1.07		1.20		9¢		5981
	1.21		1.33		10¢		5982
	1.34		1.46		11¢		5983
	1.47		1.60		12¢		5984
	1.61		1.73		13¢		5985
	1.74		1.86		14¢		5986
	1.87		2.00		15¢		5987

If the price exceeds two dollars, the tax is fifteen cents on	5988
each two dollars. If the price exceeds two dollars or a multiple	5989
thereof by not more than fifteen cents, the amount of tax is	5990
fifteen cents for each two dollars plus one cent. If the price	5991
exceeds two dollars or a multiple thereof by more than fifteen	5992
cents, the amount of tax is fifteen cents for each two dollars	5993
plus the amount of tax for prices sixteen cents through one dollar	5994
and ninety-nine cents in accordance with the schedule above.	5995

(7) When the combined rate of state and local tax is seven	5996
and three-fourths per cent:	5997

If the price		The amount of			5998
is at least		But not more than		the tax is			5999
	$ .01		$ .15		No tax		6000
	.16		.25		2¢		6001
	.26		.38		3¢		6002
	.39		.51		4¢		6003
	.52		.64		5¢		6004
	.65		.77		6¢		6005
	.78		.90		7¢		6006
	.91		1.03		8¢		6007
	1.04		1.16		9¢		6008
	1.17		1.29		10¢		6009
	1.30		1.41		11¢		6010
	1.42		1.54		12¢		6011
	1.55		1.67		13¢		6012
	1.68		1.80		14¢		6013
	1.81		1.93		15¢		6014
	1.94		2.06		16¢		6015
	2.07		2.19		17¢		6016
	2.20		2.32		18¢		6017
	2.33		2.45		19¢		6018
	2.46		2.58		20¢		6019
	2.59		2.70		21¢		6020
	2.71		2.83		22¢		6021
	2.84		2.96		23¢		6022
	2.97		3.09		24¢		6023
	3.10		3.22		25¢		6024
	3.23		3.35		26¢		6025
	3.36		3.48		27¢		6026
	3.49		3.61		28¢		6027
	3.62		3.74		29¢		6028
	3.75		3.87		30¢		6029
	3.88		4.00		31¢		6030

If the price exceeds four dollars, the tax is thirty-one	6031
cents on each four dollars. If the price exceeds four dollars or a	6032
multiple thereof by not more than twelve cents, the amount of tax	6033
is thirty-one cents for each four dollars plus one cent. If the	6034
price exceeds four dollars or a multiple thereof by more than	6035
twelve cents but by not more than twenty-five cents, the amount of	6036
tax is thirty-one cents for each four dollars plus two cents. If	6037
the price exceeds four dollars or a multiple thereof by more than	6038
twenty-five cents, the amount of tax is thirty-one cents for each	6039
four dollars plus the amount of tax for prices twenty-six cents	6040
through three dollars and ninety-nine cents in accordance with the	6041
schedule above.	6042

(8) When the combined rate of state and local tax is eight	6043
per cent:	6044

If the price		The amount of			6045
is at least		But not more than		the tax is			6046
	$ .01		$ .15		No tax		6047
	.16		.25		2¢		6048
	.26		.37		3¢		6049
	.38		.50		4¢		6050
	.51		.62		5¢		6051
	.63		.75		6¢		6052
	.76		.87		7¢		6053
	.88		1.00		8¢		6054

If the price exceeds one dollar, the tax is eight cents on	6055
each one dollar. If the price exceeds one dollar or a multiple	6056
thereof by not more than twelve cents, the amount of tax is eight	6057
cents for each one dollar plus one cent. If the price exceeds one	6058
dollar or a multiple thereof by more than twelve cents but not	6059
more than twenty-five cents, the amount of tax is eight cents for	6060
each one dollar plus two cents. If the price exceeds one dollar or	6061
a multiple thereof by more than twenty-five cents, the amount of	6062
tax is eight cents for each one dollar plus the amount of tax for	6063
prices twenty-six cents through ninety-nine cents in accordance	6064
with the schedule above.	6065

(9) When the combined rate of state and local tax is eight	6066
and one-fourth per cent:	6067

If the price		The amount of			6068
is at least		But not more than		the tax is			6069
	$ .01		$ .15		No tax		6070
	.16		.24		2¢		6071
	.25		.36		3¢		6072
	.37		.48		4¢		6073
	.49		.60		5¢		6074
	.61		.72		6¢		6075
	.73		.84		7¢		6076
	.85		.96		8¢		6077
	.97		1.09		9¢		6078
	1.10		1.21		10¢		6079
	1.22		1.33		11¢		6080
	1.34		1.45		12¢		6081
	1.46		1.57		13¢		6082
	1.58		1.69		14¢		6083
	1.70		1.81		15¢		6084
	1.82		1.93		16¢		6085
	1.94		2.06		17¢		6086
	2.07		2.18		18¢		6087
	2.19		2.30		19¢		6088
	2.31		2.42		20¢		6089
	2.43		2.54		21¢		6090
	2.55		2.66		22¢		6091
	2.67		2.78		23¢		6092
	2.79		2.90		24¢		6093
	2.91		3.03		25¢		6094
	3.04		3.15		26¢		6095
	3.16		3.27		27¢		6096
	3.28		3.39		28¢		6097
	3.40		3.51		29¢		6098
	3.52		3.63		30¢		6099
	3.64		3.75		31¢		6100
	3.76		3.87		32¢		6101
	3.88		4.00		33¢		6102

If the price exceeds four dollars, the tax is thirty-three	6103
cents on each four dollars. If the price exceeds four dollars or a	6104
multiple thereof by not more than eleven cents, the amount of tax	6105
is thirty-three cents for each four dollars plus one cent. If the	6106
price exceeds four dollars or a multiple thereof by more than	6107
eleven cents but by not more than twenty-four cents, the amount of	6108
tax is thirty-three cents for each four dollars plus two cents. If	6109
the price exceeds four dollars or a multiple thereof by more than	6110
twenty-four cents, the amount of tax is thirty-three cents for	6111
each four dollars plus the amount of tax for prices twenty-six	6112
cents through three dollars and ninety-nine cents in accordance	6113
with the schedule above.	6114

(10) When the combined rate of state and local tax is eight	6115
and one-half per cent:	6116

If the price		The amount of			6117
is at least		But not more than		the tax is			6118
	$ .01		$ .15		No tax		6119
	.16		.23		2¢		6120
	.24		.35		3¢		6121
	.36		.47		4¢		6122
	.48		.58		5¢		6123
	.59		.70		6¢		6124
	.71		.82		7¢		6125
	.83		.94		8¢		6126
	.95		1.05		9¢		6127
	1.06		1.17		10¢		6128
	1.18		1.29		11¢		6129
	1.30		1.41		12¢		6130
	1.42		1.52		13¢		6131
	1.53		1.64		14¢		6132
	1.65		1.76		15¢		6133
	1.77		1.88		16¢		6134
	1.89		2.00		17¢		6135

If the price exceeds two dollars, the tax is seventeen cents	6136
on each two dollars. If the price exceeds two dollars or a	6137
multiple thereof by not more than eleven cents, the amount of tax	6138
is seventeen cents for each two dollars plus one cent. If the	6139
price exceeds two dollars or a multiple thereof by more than	6140
eleven cents but by not more than twenty-three cents, the amount	6141
of tax is seventeen cents for each two dollars plus two cents. If	6142
the price exceeds two dollars or a multiple thereof by more than	6143
twenty-three cents, the amount of tax is seventeen cents for each	6144
two dollars plus the amount of tax for prices twenty-four cents	6145
through one dollar and ninety-nine cents in accordance with the	6146
schedule above.	6147

(11) When the combined rate of state and local tax is eight	6148
and three-fourths per cent:	6149

If the price		The amount of			6150
is at least		But not more than		the tax is			6151
	$ .01		$ .15		No tax		6152
	.16		.22		2¢		6153
	.23		.34		3¢		6154
	.35		.45		4¢		6155
	.46		.57		5¢		6156
	.58		.68		6¢		6157
	.69		.80		7¢		6158
	.81		.91		8¢		6159
	.92		1.02		9¢		6160
	1.03		1.14		10¢		6161
	1.15		1.25		11¢		6162
	1.26		1.37		12¢		6163
	1.38		1.48		13¢		6164
	1.49		1.60		14¢		6165
	1.61		1.71		15¢		6166
	1.72		1.82		16¢		6167
	1.83		1.94		17¢		6168
	1.95		2.05		18¢		6169
	2.06		2.17		19¢		6170
	2.18		2.28		20¢		6171
	2.29		2.40		21¢		6172
	2.41		2.51		22¢		6173
	2.52		2.62		23¢		6174
	2.63		2.74		24¢		6175
	2.75		2.85		25¢		6176
	2.86		2.97		26¢		6177
	2.98		3.08		27¢		6178
	3.09		3.20		28¢		6179
	3.21		3.31		29¢		6180
	3.32		3.42		30¢		6181
	3.43		3.54		31¢		6182
	3.55		3.65		32¢		6183
	3.66		3.77		33¢		6184
	3.78		3.88		34¢		6185
	3.89		4.00		35¢		6186

If the price exceeds four dollars, the tax is thirty-five	6187
cents on each four dollars. If the price exceeds four dollars or a	6188
multiple thereof by not more than eleven cents, the amount of tax	6189
is thirty-five cents for each four dollars plus one cent. If the	6190
price exceeds four dollars or a multiple thereof by more than	6191
eleven cents but by not more than twenty-two cents, the amount of	6192
tax is thirty-five cents for each four dollars plus two cents. If	6193
the price exceeds four dollars or a multiple thereof by more than	6194
twenty-two cents, the amount of tax is thirty-five cents for each	6195
four dollars plus the amount of tax for prices twenty-three cents	6196
through three dollars and ninety-nine cents in accordance with the	6197
schedule above.	6198

(12) When the combined rate of state and local tax is nine	6199
per cent:	6200

If the price		The amount of			6201
is at least		But not more than		the tax is			6202
	$ .01		$ .15		No tax		6203
	.16		.22		2¢		6204
	.23		.33		3¢		6205
	.34		.44		4¢		6206
	.45		.55		5¢		6207
	.56		.66		6¢		6208
	.67		.77		7¢		6209
	.78		.88		8¢		6210
	.89		1.00		9¢		6211

If the price exceeds one dollar, the tax is nine cents on	6212
each one dollar. If the price exceeds one dollar or a multiple	6213
thereof by not more than eleven cents, the amount of tax is nine	6214
cents for each one dollar plus one cent. If the price exceeds one	6215
dollar or a multiple thereof by more than eleven cents but by not	6216
more than twenty-two cents, the amount of tax is nine cents for	6217
each one dollar plus two cents. If the price exceeds one dollar or	6218
a multiple thereof by more than twenty-two cents, the amount of	6219
tax is nine cents for each one dollar plus the amount of tax for	6220
prices twenty-three cents through ninety-nine cents in accordance	6221
with the schedule above.	6222

(C) On and after July 1, 2005, and on and before December 31,	6223
2005, the combined taxes levied by sections 5739.02 and 5741.02	6224
and pursuant to sections 5739.021, 5739.023, 5739.026, 5741.021,	6225
5741.022, and 5741.023 of the Revised Code shall be collected in	6226
accordance with the following schedules:	6227

(1) When the total rate of local tax is one-fourth per cent:

6228

	If the price		But not		The amount			6229
	is at least		more than		of the tax is			6230

	$ .01		$ .15		No tax			6231
	.16		.17		1¢			6232
	.18		.34		2¢			6233
	.35		.52		3¢			6234
	.53		.69		4¢			6235
	.70		.86		5¢			6236
	.87		1.04		6¢			6237
	1.05		1.21		7¢			6238
	1.22		1.39		8¢			6239
	1.40		1.56		9¢			6240
	1.57		1.73		10¢			6241
	1.74		1.91		11¢			6242
	1.92		2.08		12¢			6243
	2.09		2.26		13¢			6244
	2.27		2.43		14¢			6245
	2.44		2.60		15¢			6246
	2.61		2.78		16¢			6247
	2.79		2.95		17¢			6248
	2.96		3.13		18¢			6249
	3.14		3.30		19¢			6250
	3.31		3.47		20¢			6251
	3.48		3.65		21¢			6252
	3.66		3.82		22¢			6253
	3.83		4.00		23¢			6254

If the price exceeds four dollars, the tax is twenty-three	6255
cents on each four dollars. If the price exceeds four dollars or a	6256
multiple thereof by not more than seventeen cents, the amount of	6257
tax is twenty-three cents for each four dollars plus one cent. If	6258
the price exceeds four dollars or a multiple thereof by more than	6259
seventeen cents, the amount of tax is twenty-three cents for each	6260
four dollars plus the amount of tax for prices eighteen cents	6261
through three dollars and ninety-nine cents in accordance with the	6262
schedule above.	6263

(2) When the combined rate of local tax is one-half per cent:

6264

	If the price		But not		The amount			6265
	is at least		more than		of the tax is			6266

	$ .01		$ .15		No tax			6267
	.16		.17		1¢			6268
	.18		.34		2¢			6269
	.35		.50		3¢			6270
	.51		.67		4¢			6271
	.68		.83		5¢			6272
	.84		1.00		6¢			6273

If the price exceeds one dollar, the tax is six cents on each	6274
one dollar. If the price exceeds one dollar or a multiple thereof	6275
by not more than seventeen cents, the amount of tax is six cents	6276
for each one dollar plus one cent. If the price exceeds one dollar	6277
or a multiple thereof by more than seventeen cents, the amount of	6278
tax is six cents for each one dollar plus the amount of tax for	6279
prices eighteen cents through ninety-nine cents in accordance with	6280
the schedule above.	6281

(3) When the combined rate of local tax is three-fourths per	6282
cent:	6283

	If the price		But not		The amount			6284
	is at least		more than		of the tax is			6285

	$ .01		$ .15		No tax			6286
	.16		.16		1¢			6287
	.17		.32		2¢			6288
	.33		.48		3¢			6289
	.49		.64		4¢			6290
	.65		.80		5¢			6291
	.81		.96		6¢			6292
	.97		1.12		7¢			6293
	1.13		1.28		8¢			6294
	1.29		1.44		9¢			6295
	1.45		1.60		10¢			6296
	1.61		1.76		11¢			6297
	1.77		1.92		12¢			6298
	1.93		2.08		13¢			6299
	2.09		2.24		14¢			6300
	2.25		2.40		15¢			6301
	2.41		2.56		16¢			6302
	2.57		2.72		17¢			6303
	2.73		2.88		18¢			6304
	2.89		3.04		19¢			6305
	3.05		3.20		20¢			6306
	3.21		3.36		21¢			6307
	3.37		3.52		22¢			6308
	3.53		3.68		23¢			6309
	3.69		3.84		24¢			6310
	3.85		4.00		25¢			6311

If the price exceeds four dollars, the tax is twenty-five	6312
cents on each four dollars. If the price exceeds four dollars or a	6313
multiple thereof by not more than sixteen cents, the amount of tax	6314
is twenty-five cents for each four dollars plus one cent. If the	6315
price exceeds four dollars or a multiple thereof by more than	6316
sixteen cents, the amount of tax is twenty-five cents for each	6317
four dollars plus the amount of tax for prices seventeen cents	6318
through three dollars and ninety-nine cents in accordance with the	6319
schedule above.	6320

(4) When the combined rate of local tax is one per cent:

6321

	If the price		But not		The amount			6322
	is at least		more than		of the tax is			6323

	$ .01		$ .15		No tax			6324
	.16		.30		2¢			6325
	.31		.46		3¢			6326
	.47		.61		4¢			6327
	.62		.76		5¢			6328
	.77		.92		6¢			6329
	.93		1.07		7¢			6330
	1.08		1.23		8¢			6331
	1.24		1.38		9¢			6332
	1.39		1.53		10¢			6333
	1.54		1.69		11¢			6334
	1.70		1.84		12¢			6335
	1.85		2.00		13¢			6336

If the price exceeds two dollars, the tax is thirteen cents	6337
on each two dollars. If the price exceeds two dollars or a	6338
multiple thereof by not more than fifteen cents, the amount of tax	6339
is thirteen cents for each two dollars plus one cent. If the price	6340
exceeds two dollars or a multiple thereof by more than fifteen	6341
cents, the amount of tax is thirteen cents for each two dollars	6342
plus the amount of tax for prices sixteen cents through one dollar	6343
and ninety-nine cents in accordance with the schedule above.	6344

(5) When the combined rate of local tax is one and one-fourth	6345
per cent:	6346

	If the price		But not		The amount			6347
	is at least		more than		of the tax is			6348

	$ .01		$ .15		No tax			6349
	.16		.29		2¢			6350
	.30		.44		3¢			6351
	.45		.59		4¢			6352
	.60		.74		5¢			6353
	.75		.88		6¢			6354
	.89		1.03		7¢			6355
	1.04		1.18		8¢			6356
	1.19		1.33		9¢			6357
	1.34		1.48		10¢			6358
	1.49		1.62		11¢			6359
	1.63		1.77		12¢			6360
	1.78		1.92		13¢			6361
	1.93		2.07		14¢			6362
	2.08		2.22		15¢			6363
	2.23		2.37		16¢			6364
	2.38		2.51		17¢			6365
	2.52		2.66		18¢			6366
	2.67		2.81		19¢			6367
	2.82		2.96		20¢			6368
	2.97		3.11		21¢			6369
	3.12		3.25		22¢			6370
	3.26		3.40		23¢			6371
	3.41		3.55		24¢			6372
	3.56		3.70		25¢			6373
	3.71		3.85		26¢			6374
	3.86		4.00		27¢			6375

If the price exceeds four dollars, the tax is twenty-seven	6376
cents on each four dollars. If the price exceeds four dollars or a	6377
multiple thereof by not more than fourteen cents, the amount of	6378
tax is twenty-seven cents for each four dollars plus one cent. If	6379
the price exceeds four dollars or a multiple thereof by more than	6380
fourteen but by not more than twenty-nine cents, the amount of tax	6381
is twenty-seven cents for each four dollars plus two cents. If the	6382
price exceeds four dollars or a multiple thereof by more than	6383
twenty-nine cents the amount of tax is twenty-seven cents for each	6384
four dollars plus the amount of tax for prices thirty cents	6385
through three dollars and ninety-nine cents in accordance with the	6386
schedule above.	6387

(6) When the combined rate of local tax is one and one-half	6388
per cent:	6389

	If the price		But not		The amount			6390
	is at least		more than		of the tax is			6391

	$ .01		$ .15		No tax			6392
	.16		.28		2¢			6393
	.29		.42		3¢			6394
	.43		.57		4¢			6395
	.58		.71		5¢			6396
	.72		.85		6¢			6397
	.86		1.00		7¢			6398

If the price exceeds one dollar, the tax is seven cents on	6399
each one dollar. If the price exceeds one dollar or a multiple	6400
thereof by not more than fifteen cents, the amount of tax is seven	6401
cents for each one dollar plus one cent. If the price exceeds one	6402
dollar or a multiple thereof by more than fifteen cents, the	6403
amount of tax is seven cents for each one dollar plus the amount	6404
of tax for prices sixteen cents through ninety-nine cents in	6405
accordance with the schedule above.	6406

(7) When the combined rate of local tax is one and	6407
three-fourths per cent:	6408

	If the price		But not		The amount			6409
	is at least		more than		of the tax is			6410

	$ .01		$ .15		No tax			6411
	.16		.27		2¢			6412
	.28		.41		3¢			6413
	.42		.55		4¢			6414
	.56		.68		5¢			6415
	.69		.82		6¢			6416
	.83		.96		7¢			6417
	.97		1.10		8¢			6418
	1.11		1.24		9¢			6419
	1.25		1.37		10¢			6420
	1.38		1.51		11¢			6421
	1.52		1.65		12¢			6422
	1.66		1.79		13¢			6423
	1.80		1.93		14¢			6424
	1.94		2.06		15¢			6425
	2.07		2.20		16¢			6426
	2.21		2.34		17¢			6427
	2.35		2.48		18¢			6428
	2.49		2.62		19¢			6429
	2.63		2.75		20¢			6430
	2.76		2.89		21¢			6431
	2.90		3.03		22¢			6432
	3.04		3.17		23¢			6433
	3.18		3.31		24¢			6434
	3.32		3.44		25¢			6435
	3.45		3.58		26¢			6436
	3.59		3.72		27¢			6437
	3.73		3.86		28¢			6438
	3.87		4.00		29¢			6439

If the price exceeds four dollars, the tax is twenty-nine	6440
cents on each four dollars. If the price exceeds four dollars or a	6441
multiple thereof by not more than thirteen cents, the amount of	6442
tax is twenty-nine cents for each four dollars plus one cent. If	6443
the price exceeds four dollars or a multiple thereof by more than	6444
thirteen cents but by not more than twenty-seven cents, the amount	6445
of tax is twenty-nine cents for each four dollars plus two cents.	6446
If the price exceeds four dollars or a multiple thereof by more	6447
than twenty-seven cents, the amount of tax is twenty-nine cents	6448
for each four dollars plus the amount of tax for prices	6449
twenty-eight cents through three dollars and ninety-nine cents in	6450
accordance with the schedule above.	6451

(8) When the combined rate of local tax is two per cent:

6452

	If the price		But not		The amount			6453
	is at least		more than		of the tax is			6454

	$ .01		$ .15		No tax			6455
	.16		.26		2¢			6456
	.27		.40		3¢			6457
	.41		.53		4¢			6458
	.54		.65		5¢			6459
	.66		.80		6¢			6460
	.81		.93		7¢			6461
	.94		1.06		8¢			6462
	1.07		1.20		9¢			6463
	1.21		1.33		10¢			6464
	1.34		1.46		11¢			6465
	1.47		1.60		12¢			6466
	1.61		1.73		13¢			6467
	1.74		1.86		14¢			6468
	1.87		2.00		15¢			6469

If the price exceeds two dollars, the tax is fifteen cents on	6470
each two dollars. If the price exceeds two dollars or a multiple	6471
thereof by not more than fifteen cents, the amount of tax is	6472
fifteen cents for each two dollars plus one cent. If the price	6473
exceeds two dollars or a multiple thereof by more than fifteen	6474
cents, the amount of tax is fifteen cents for each two dollars	6475
plus the amount of tax for prices sixteen cents through one dollar	6476
and ninety-nine cents in accordance with the schedule above.	6477

(9) When the combined rate of local tax is two and one-fourth	6478
per cent:	6479

	If the price		But not		The amount			6480
	is at least		more than		of the tax is			6481

	$ .01		$ .15		No tax			6482
	.16		.25		2¢			6483
	.26		.38		3¢			6484
	.39		.51		4¢			6485
	.52		.64		5¢			6486
	.65		.77		6¢			6487
	.78		.90		7¢			6488
	.91		1.03		8¢			6489
	1.04		1.16		9¢			6490
	1.17		1.29		10¢			6491
	1.30		1.41		11¢			6492
	1.42		1.54		12¢			6493
	1.55		1.67		13¢			6494
	1.68		1.80		14¢			6495
	1.81		1.93		15¢			6496
	1.94		2.06		16¢			6497
	2.07		2.19		17¢			6498
	2.20		2.32		18¢			6499
	2.33		2.45		19¢			6500
	2.46		2.58		20¢			6501
	2.59		2.70		21¢			6502
	2.71		2.83		22¢			6503
	2.84		2.96		23¢			6504
	2.97		3.09		24¢			6505
	3.10		3.22		25¢			6506
	3.23		3.35		26¢			6507
	3.36		3.48		27¢			6508
	3.49		3.61		28¢			6509
	3.62		3.74		29¢			6510
	3.75		3.87		30¢			6511
	3.88		4.00		31¢			6512

If the price exceeds four dollars, the tax is thirty-one	6513
cents on each four dollars. If the price exceeds four dollars or a	6514
multiple thereof by not more than twelve cents, the amount of tax	6515
is thirty-one cents for each four dollars plus one cent. If the	6516
price exceeds four dollars or a multiple thereof by more than	6517
twelve cents but not more than twenty-five cents, the amount of	6518
tax is thirty-one cents for each four dollars plus two cents. If	6519
the price exceeds four dollars or a multiple thereof by more than	6520
twenty-five cents, the amount of tax is thirty-one cents for each	6521
four dollars plus the amount of tax for prices twenty-six cents	6522
through three dollars and ninety-nine cents in accordance with the	6523
schedule above.	6524

(10) When the combined rate of local tax is two and one-half	6525
per cent:	6526

new	old		6527
existing	new		6528
new and old	old and new		6529
TEST	TEST		6530
old	new		6531

	If the price		But not		The amount			6532
	is at least		more than		of the tax is			6533

	$ .01		$ .15		No tax			6534
	.16		.25		2¢			6535
	.26		.37		3¢			6536
	.38		.50		4¢			6537
	.51		.62		5¢			6538
	.63		.75		6¢			6539
	.76		.87		7¢			6540
	.88		1.00		8¢			6541

If the price exceeds one dollar, the tax is eight cents on	6542
each one dollar. If the price exceeds one dollar or a multiple	6543
thereof by not more than twelve cents, the amount of tax is eight	6544
cents for each one dollar plus one cent. If the price exceeds one	6545
dollar or a multiple thereof by more than twelve cents but not	6546
more than twenty-five cents, the amount of tax is eight cents for	6547
each one dollar plus two cents. If the price exceeds one dollar or	6548
a multiple thereof by more than twenty-five cents, the amount of	6549
tax is eight cents for each one dollar plus the amount of tax for	6550
prices twenty-six cents through ninety-nine cents in accordance	6551
with the schedule above.	6552

(11) When the combined rate of local tax is two and	6553
three-fourths per cent:	6554

	If the price		But not		The amount			6555
	is at least		more than		of the tax is			6556

	$ .01		$ .15		No tax			6557
	.16		.24		2¢			6558
	.25		.36		3¢			6559
	.37		.48		4¢			6560
	.49		.60		5¢			6561
	.61		.72		6¢			6562
	.73		.84		7¢			6563
	.85		.96		8¢			6564
	.97		1.09		9¢			6565
	1.10		1.21		10¢			6566
	1.22		1.33		11¢			6567
	1.34		1.45		12¢			6568
	1.46		1.57		13¢			6569
	1.58		1.69		14¢			6570
	1.70		1.81		15¢			6571
	1.82		1.93		16¢			6572
	1.94		2.06		17¢			6573
	2.07		2.18		18¢			6574
	2.19		2.30		19¢			6575
	2.31		2.42		20¢			6576
	2.43		2.54		21¢			6577
	2.55		2.66		22¢			6578
	2.67		2.78		23¢			6579
	2.79		2.90		24¢			6580
	2.91		3.03		25¢			6581
	3.04		3.15		26¢			6582
	3.16		3.27		27¢			6583
	3.28		3.39		28¢			6584
	3.40		3.51		29¢			6585
	3.52		3.63		30¢			6586
	3.64		3.75		31¢			6587
	3.76		3.87		32¢			6588
	3.88		4.00		33¢			6589

If the price exceeds four dollars, the tax is thirty-three	6590
cents on each four dollars. If the price exceeds four dollars or a	6591
multiple thereof by not more than eleven cents, the amount of tax	6592
is thirty-three cents for each four dollars plus one cent. If the	6593
price exceeds four dollars or a multiple thereof by more than	6594
eleven cents but not more than twenty-four cents, the amount of	6595
tax is thirty-three cents for each four dollars plus two cents. If	6596
the price exceeds four dollars or a multiple thereof by more than	6597
twenty-four cents, the amount of tax is thirty-three cents for	6598
each four dollars plus the amount of tax for prices twenty-six	6599
cents through three dollars and ninety-nine cents in accordance	6600
with the schedule above.	6601

(12) When the combined rate of local tax is three per cent:

6602

	If the price		But not		The amount			6603
	is at least		more than		of the tax is			6604

	$ .01		$ .15		No tax			6605
	.16		.23		2¢			6606
	.24		.35		3¢			6607
	.36		.47		4¢			6608
	.48		.58		5¢			6609
	.59		.70		6¢			6610
	.71		.82		7¢			6611
	.83		.94		8¢			6612
	.95		1.05		9¢			6613
	1.06		1.17		10¢			6614
	1.18		1.29		11¢			6615
	1.30		1.41		12¢			6616
	1.42		1.52		13¢			6617
	1.53		1.64		14¢			6618
	1.65		1.76		15¢			6619
	1.77		1.88		16¢			6620
	1.89		2.00		17¢			6621

If the price exceeds two dollars, the tax is seventeen cents	6622
on each two dollars. If the price exceeds two dollars or a	6623
multiple thereof by not more than eleven cents, the amount of tax	6624
is seventeen cents for each two dollars plus one cent. If the	6625
price exceeds two dollars or a multiple thereof by more than	6626
eleven cents but not more than twenty-three cents, the amount of	6627
tax is seventeen cents for each two dollars plus two cents. If the	6628
price exceeds two dollars or a multiple thereof by more than	6629
twenty-three cents, the amount of tax is seventeen cents for each	6630
two dollars plus the amount of tax for prices twenty-four cents	6631
through one dollar and ninety-nine cents in accordance with the	6632
schedule above.	6633

(D) In lieu of collecting the tax pursuant to the schedules	6634
set forth in divisions (A), (B), and (C) of this section, a vendor	6635
may compute the tax on each sale as follows:	6636

(1) On sales of fifteen cents or less, no tax shall apply.

6637

(2) On sales in excess of fifteen cents, multiply the price	6638
by the aggregate rate of taxes in effect under sections 5739.02	6639
and 5741.02 and sections 5739.021, 5739.023, 5739.026, 5741.021,	6640
5741.022, and 5741.023 of the Revised Code. The computation shall	6641
be carried out to six decimal places. If the result is a	6642
fractional amount of a cent, the calculated tax shall be increased	6643
to the next highest cent and that amount shall be collected by the	6644
vendor.	6645

(E) On and after January 1, 2006, a vendor shall compute the	6646
tax on each sale by multiplying the price by the aggregate rate of	6647
taxes in effect under sections 5739.02 and 5741.02, and sections	6648
5739.021, 5739.023, 5739.026, 5741.021, 5741.022, and 5741.023 of	6649
the Revised Code. The computation shall be carried out to three	6650
decimal places. If the result is a fractional amount of a cent,	6651
the calculated tax shall be rounded to a whole cent using a method	6652
that rounds up to the next cent whenever the third decimal place	6653
is greater than four. A vendor may elect to compute the tax due on	6654
a transaction on an item or an invoice basis.	6655

(F) In auditing a vendor, the tax commissioner shall consider	6656
the method prescribed by this section that was used by the vendor	6657
in determining and collecting the tax due under this chapter on	6658
taxable transactions. If the vendor correctly collects and remits	6659
the tax due under this chapter in accordance with the schedules in	6660
divisions (A), (B), and (C) of this section or in accordance with	6661
the computation prescribed in division (D) or (E) of this section,	6662
the commissioner shall not assess any additional tax on those	6663
transactions.	6664

(G)(1) With respect to a sale of a fractional ownership	6665
program aircraft used primarily in a fractional aircraft ownership	6666
program, including all accessories attached to such aircraft, the	6667
tax shall be calculated pursuant to divisions (A) to (E) of this	6668
section, provided that the tax commissioner shall modify those	6669
calculations so that the maximum tax on each program aircraft is	6670
eight hundred dollars. In the case of a sale of a fractional	6671
interest that is less than one hundred per cent of the program	6672
aircraft, the tax charged on the transaction shall be eight	6673
hundred dollars multiplied by a fraction, the numerator of which	6674
is the percentage of ownership or possession in the aircraft being	6675
purchased in the transaction, and the denominator of which is one	6676
hundred per cent.	6677

(2) Notwithstanding any other provision of law to the	6678
contrary, the tax calculated under division (G)(1) of this section	6679
and paid with respect to the sale of a fractional ownership	6680
program aircraft used primarily in a fractional aircraft ownership	6681
program shall be credited to the general revenue fund.	6682

Sec. 5747.01.  Except as otherwise expressly provided or	6683
clearly appearing from the context, any term used in this chapter	6684
that is not otherwise defined in this section has the same meaning	6685
as when used in a comparable context in the laws of the United	6686
States relating to federal income taxes or if not used in a	6687
comparable context in those laws, has the same meaning as in	6688
section 5733.40 of the Revised Code. Any reference in this chapter	6689
to the Internal Revenue Code includes other laws of the United	6690
States relating to federal income taxes.	6691

As used in this chapter:

6692

(A) "Adjusted gross income" or "Ohio adjusted gross income"	6693
means federal adjusted gross income, as defined and used in the	6694
Internal Revenue Code, adjusted as provided in this section:	6695

(1) Add interest or dividends on obligations or securities of	6696
any state or of any political subdivision or authority of any	6697
state, other than this state and its subdivisions and authorities.	6698

(2) Add interest or dividends on obligations of any	6699
authority, commission, instrumentality, territory, or possession	6700
of the United States to the extent that the interest or dividends	6701
are exempt from federal income taxes but not from state income	6702
taxes.	6703

(3) Deduct interest or dividends on obligations of the United	6704
States and its territories and possessions or of any authority,	6705
commission, or instrumentality of the United States to the extent	6706
that the interest or dividends are included in federal adjusted	6707
gross income but exempt from state income taxes under the laws of	6708
the United States.	6709

(4) Deduct disability and survivor's benefits to the extent	6710
included in federal adjusted gross income.	6711

(5) Deduct benefits under Title II of the Social Security Act	6712
and tier 1 railroad retirement benefits to the extent included in	6713
federal adjusted gross income under section 86 of the Internal	6714
Revenue Code.	6715

(6) In the case of a taxpayer who is a beneficiary of a trust	6716
that makes an accumulation distribution as defined in section 665	6717
of the Internal Revenue Code, add, for the beneficiary's taxable	6718
years beginning before 2002, the portion, if any, of such	6719
distribution that does not exceed the undistributed net income of	6720
the trust for the three taxable years preceding the taxable year	6721
in which the distribution is made to the extent that the portion	6722
was not included in the trust's taxable income for any of the	6723
trust's taxable years beginning in 2002 or thereafter.	6724
"Undistributed net income of a trust" means the taxable income of	6725
the trust increased by (a)(i) the additions to adjusted gross	6726
income required under division (A) of this section and (ii) the	6727
personal exemptions allowed to the trust pursuant to section	6728
642(b) of the Internal Revenue Code, and decreased by (b)(i) the	6729
deductions to adjusted gross income required under division (A) of	6730
this section, (ii) the amount of federal income taxes attributable	6731
to such income, and (iii) the amount of taxable income that has	6732
been included in the adjusted gross income of a beneficiary by	6733
reason of a prior accumulation distribution. Any undistributed net	6734
income included in the adjusted gross income of a beneficiary	6735
shall reduce the undistributed net income of the trust commencing	6736
with the earliest years of the accumulation period.	6737

(7) Deduct the amount of wages and salaries, if any, not	6738
otherwise allowable as a deduction but that would have been	6739
allowable as a deduction in computing federal adjusted gross	6740
income for the taxable year, had the targeted jobs credit allowed	6741
and determined under sections 38, 51, and 52 of the Internal	6742
Revenue Code not been in effect.	6743

(8) Deduct any interest or interest equivalent on public	6744
obligations and purchase obligations to the extent that the	6745
interest or interest equivalent is included in federal adjusted	6746
gross income.	6747

(9) Add any loss or deduct any gain resulting from the sale,	6748
exchange, or other disposition of public obligations to the extent	6749
that the loss has been deducted or the gain has been included in	6750
computing federal adjusted gross income.	6751

(10) Deduct or add amounts, as provided under section 5747.70	6752
of the Revised Code, related to contributions to variable college	6753
savings program accounts made or tuition units purchased pursuant	6754
to Chapter 3334. of the Revised CodeFor a taxpayer that provides	6755
broadband service, deduct the taxpayer's net profits from	6756
providing broadband service in this state multiplied by a	6757
fraction, the numerator of which is the original cost of tangible	6758
personal property necessary for the provision of broadband service	6759
in rural areas of this state installed on or after the effective	6760
date of this amendment, and the denominator of which is the	6761
original cost of tangible personal property necessary for the	6762
provision of broadband service in this state and installed on or	6763
after that date. A taxpayer that is an equity owner of a	6764
pass-through entity that provides broadband service may deduct the	6765
taxpayer's distributive or proportionate share of the entity's net	6766
profits from providing such service multiplied by that fraction. A	6767
deduction is not allowed under this division if the taxpayer	6768
claims the exclusion under division (F)(2)(ll) of section 5751.01	6769
of the Revised Code for any tax period that is included partly or	6770
wholly in the taxable year. For the purposes of this division,	6771
"broadband service" and "rural area" have the same meanings as in	6772
7 U.S.C. 950bb.	6773

(11)(a) Deduct, to the extent not otherwise allowable as a	6774
deduction or exclusion in computing federal or Ohio adjusted gross	6775
income for the taxable year, the amount the taxpayer paid during	6776
the taxable year for medical care insurance and qualified	6777
long-term care insurance for the taxpayer, the taxpayer's spouse,	6778
and dependents. No deduction for medical care insurance under	6779
division (A)(11) of this section shall be allowed either to any	6780
taxpayer who is eligible to participate in any subsidized health	6781
plan maintained by any employer of the taxpayer or of the	6782
taxpayer's spouse, or to any taxpayer who is entitled to, or on	6783
application would be entitled to, benefits under part A of Title	6784
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.	6785
301, as amended. For the purposes of division (A)(11)(a) of this	6786
section, "subsidized health plan" means a health plan for which	6787
the employer pays any portion of the plan's cost. The deduction	6788
allowed under division (A)(11)(a) of this section shall be the net	6789
of any related premium refunds, related premium reimbursements, or	6790
related insurance premium dividends received during the taxable	6791
year.	6792

(b) Deduct, to the extent not otherwise deducted or excluded	6793
in computing federal or Ohio adjusted gross income during the	6794
taxable year, the amount the taxpayer paid during the taxable	6795
year, not compensated for by any insurance or otherwise, for	6796
medical care of the taxpayer, the taxpayer's spouse, and	6797
dependents, to the extent the expenses exceed seven and one-half	6798
per cent of the taxpayer's federal adjusted gross income.	6799

(c) Deduct, to the extent not otherwise deducted or excluded	6800
in computing federal or Ohio adjusted gross income, any amount	6801
included in federal adjusted gross income under section 105 or not	6802
excluded under section 106 of the Internal Revenue Code solely	6803
because it relates to an accident and health plan for a person who	6804
otherwise would be a "qualifying relative" and thus a "dependent"	6805
under section 152 of the Internal Revenue Code but for the fact	6806
that the person fails to meet the income and support limitations	6807
under section 152(d)(1)(B) and (C) of the Internal Revenue Code.	6808

(d) For purposes of division (A)(11) of this section,	6809
"medical care" has the meaning given in section 213 of the	6810
Internal Revenue Code, subject to the special rules, limitations,	6811
and exclusions set forth therein, and "qualified long-term care"	6812
has the same meaning given in section 7702B(c) of the Internal	6813
Revenue Code. Solely for purposes of divisions (A)(11)(a) and (c)	6814
of this section, "dependent" includes a person who otherwise would	6815
be a "qualifying relative" and thus a "dependent" under section	6816
152 of the Internal Revenue Code but for the fact that the person	6817
fails to meet the income and support limitations under section	6818
152(d)(1)(B) and (C) of the Internal Revenue Code.	6819

(12)(a) Deduct any amount included in federal adjusted gross	6820
income solely because the amount represents a reimbursement or	6821
refund of expenses that in any year the taxpayer had deducted as	6822
an itemized deduction pursuant to section 63 of the Internal	6823
Revenue Code and applicable United States department of the	6824
treasury regulations. The deduction otherwise allowed under	6825
division (A)(12)(a) of this section shall be reduced to the extent	6826
the reimbursement is attributable to an amount the taxpayer	6827
deducted under this section in any taxable year.	6828

(b) Add any amount not otherwise included in Ohio adjusted	6829
gross income for any taxable year to the extent that the amount is	6830
attributable to the recovery during the taxable year of any amount	6831
deducted or excluded in computing federal or Ohio adjusted gross	6832
income in any taxable year.	6833

(13) Deduct any portion of the deduction described in section	6834
1341(a)(2) of the Internal Revenue Code, for repaying previously	6835
reported income received under a claim of right, that meets both	6836
of the following requirements:	6837

(a) It is allowable for repayment of an item that was	6838
included in the taxpayer's adjusted gross income for a prior	6839
taxable year and did not qualify for a credit under division (A)	6840
or (B) of section 5747.05 of the Revised Code for that year;	6841

(b) It does not otherwise reduce the taxpayer's adjusted	6842
gross income for the current or any other taxable year.	6843

(14) Deduct an amount equal to the deposits made to, and net	6844
investment earnings of, a medical savings account during the	6845
taxable year, in accordance with section 3924.66 of the Revised	6846
Code. The deduction allowed by division (A)(14) of this section	6847
does not apply to medical savings account deposits and earnings	6848
otherwise deducted or excluded for the current or any other	6849
taxable year from the taxpayer's federal adjusted gross income.	6850

(15)(a) Add an amount equal to the funds withdrawn from a	6851
medical savings account during the taxable year, and the net	6852
investment earnings on those funds, when the funds withdrawn were	6853
used for any purpose other than to reimburse an account holder	6854
for, or to pay, eligible medical expenses, in accordance with	6855
section 3924.66 of the Revised Code;	6856

(b) Add the amounts distributed from a medical savings	6857
account under division (A)(2) of section 3924.68 of the Revised	6858
Code during the taxable year.	6859

(16) Add any amount claimed as a credit under section	6860
5747.059 or 5747.65 of the Revised Code to the extent that such	6861
amount satisfies either of the following:	6862

(a) The amount was deducted or excluded from the computation	6863
of the taxpayer's federal adjusted gross income as required to be	6864
reported for the taxpayer's taxable year under the Internal	6865
Revenue Code;	6866

(b) The amount resulted in a reduction of the taxpayer's	6867
federal adjusted gross income as required to be reported for any	6868
of the taxpayer's taxable years under the Internal Revenue Code.	6869

(17) Deduct the amount contributed by the taxpayer to an	6870
individual development account program established by a county	6871
department of job and family services pursuant to sections 329.11	6872
to 329.14 of the Revised Code for the purpose of matching funds	6873
deposited by program participants. On request of the tax	6874
commissioner, the taxpayer shall provide any information that, in	6875
the tax commissioner's opinion, is necessary to establish the	6876
amount deducted under division (A)(17) of this section.	6877

(18) Beginning in taxable year 2001 but not for any taxable	6878
year beginning after December 31, 2005, if the taxpayer is married	6879
and files a joint return and the combined federal adjusted gross	6880
income of the taxpayer and the taxpayer's spouse for the taxable	6881
year does not exceed one hundred thousand dollars, or if the	6882
taxpayer is single and has a federal adjusted gross income for the	6883
taxable year not exceeding fifty thousand dollars, deduct amounts	6884
paid during the taxable year for qualified tuition and fees paid	6885
to an eligible institution for the taxpayer, the taxpayer's	6886
spouse, or any dependent of the taxpayer, who is a resident of	6887
this state and is enrolled in or attending a program that	6888
culminates in a degree or diploma at an eligible institution. The	6889
deduction may be claimed only to the extent that qualified tuition	6890
and fees are not otherwise deducted or excluded for any taxable	6891
year from federal or Ohio adjusted gross income. The deduction may	6892
not be claimed for educational expenses for which the taxpayer	6893
claims a credit under section 5747.27 of the Revised Code.	6894

(19) Add any reimbursement received during the taxable year	6895
of any amount the taxpayer deducted under division (A)(18) of this	6896
section in any previous taxable year to the extent the amount is	6897
not otherwise included in Ohio adjusted gross income.	6898

(20)(a)(i) Subject to divisions (A)(20)(a)(iii), (iv), and	6899
(v) of this section, add five-sixths of the amount of depreciation	6900
expense allowed by subsection (k) of section 168 of the Internal	6901
Revenue Code, including the taxpayer's proportionate or	6902
distributive share of the amount of depreciation expense allowed	6903
by that subsection to a pass-through entity in which the taxpayer	6904
has a direct or indirect ownership interest.	6905

(ii) Subject to divisions (A)(20)(a)(iii), (iv), and (v) of	6906
this section, add five-sixths of the amount of qualifying section	6907
179 depreciation expense, including the taxpayer's proportionate	6908
or distributive share of the amount of qualifying section 179	6909
depreciation expense allowed to any pass-through entity in which	6910
the taxpayer has a direct or indirect ownership interest.	6911

(iii) Subject to division (A)(20)(a)(v) of this section, for	6912
taxable years beginning in 2012 or thereafter, if the increase in	6913
income taxes withheld by the taxpayer is equal to or greater than	6914
ten per cent of income taxes withheld by the taxpayer during the	6915
taxpayer's immediately preceding taxable year, "two-thirds" shall	6916
be substituted for "five-sixths" for the purpose of divisions	6917
(A)(20)(a)(i) and (ii) of this section.	6918

(iv) Subject to division (A)(20)(a)(v) of this section, for	6919
taxable years beginning in 2012 or thereafter, a taxpayer is not	6920
required to add an amount under division (A)(20) of this section	6921
if the increase in income taxes withheld by the taxpayer and by	6922
any pass-through entity in which the taxpayer has a direct or	6923
indirect ownership interest is equal to or greater than the sum of	6924
(I) the amount of qualifying section 179 depreciation expense and	6925
(II) the amount of depreciation expense allowed to the taxpayer by	6926
subsection (k) of section 168 of the Internal Revenue Code, and	6927
including the taxpayer's proportionate or distributive shares of	6928
such amounts allowed to any such pass-through entities.	6929

(v) If a taxpayer directly or indirectly incurs a net	6930
operating loss for the taxable year for federal income tax	6931
purposes, to the extent such loss resulted from depreciation	6932
expense allowed by subsection (k) of section 168 of the Internal	6933
Revenue Code and by qualifying section 179 depreciation expense,	6934
"the entire" shall be substituted for "five-sixths of the" for the	6935
purpose of divisions (A)(20)(a)(i) and (ii) of this section.	6936

The tax commissioner, under procedures established by the	6937
commissioner, may waive the add-backs related to a pass-through	6938
entity if the taxpayer owns, directly or indirectly, less than	6939
five per cent of the pass-through entity.	6940

(b) Nothing in division (A)(20) of this section shall be	6941
construed to adjust or modify the adjusted basis of any asset.	6942

(c) To the extent the add-back required under division	6943
(A)(20)(a) of this section is attributable to property generating	6944
nonbusiness income or loss allocated under section 5747.20 of the	6945
Revised Code, the add-back shall be sitused to the same location	6946
as the nonbusiness income or loss generated by the property for	6947
the purpose of determining the credit under division (A) of	6948
section 5747.05 of the Revised Code. Otherwise, the add-back shall	6949
be apportioned, subject to one or more of the four alternative	6950
methods of apportionment enumerated in section 5747.21 of the	6951
Revised Code.	6952

(d) For the purposes of division (A)(20)(a)(v) of this	6953
section, net operating loss carryback and carryforward shall not	6954
include the allowance of any net operating loss deduction	6955
carryback or carryforward to the taxable year to the extent such	6956
loss resulted from depreciation allowed by section 168(k) of the	6957
Internal Revenue Code and by the qualifying section 179	6958
depreciation expense amount.	6959

(e) For the purposes of divisions (A)(20) and (21) of this	6960
section:	6961

(i) "Income taxes withheld" means the total amount withheld	6962
and remitted under sections 5747.06 and 5747.07 of the Revised	6963
Code by an employer during the employer's taxable year.	6964

(ii) "Increase in income taxes withheld" means the amount by	6965
which the amount of income taxes withheld by an employer during	6966
the employer's current taxable year exceeds the amount of income	6967
taxes withheld by that employer during the employer's immediately	6968
preceding taxable year.	6969

(iii) "Qualifying section 179 depreciation expense" means the	6970
difference between (I) the amount of depreciation expense directly	6971
or indirectly allowed to a taxpayer under section 179 of the	6972
Internal Revised Code, and (II) the amount of depreciation expense	6973
directly or indirectly allowed to the taxpayer under section 179	6974
of the Internal Revenue Code as that section existed on December	6975
31, 2002.	6976

(21)(a) If the taxpayer was required to add an amount under	6977
division (A)(20)(a) of this section for a taxable year, deduct one	6978
of the following:	6979

(i) One-fifth of the amount so added for each of the five	6980
succeeding taxable years if the amount so added was five-sixths of	6981
qualifying section 179 depreciation expense or depreciation	6982
expense allowed by subsection (k) of section 168 of the Internal	6983
Revenue Code;	6984

(ii) One-half of the amount so added for each of the two	6985
succeeding taxable years if the amount so added was two-thirds of	6986
such depreciation expense;	6987

(iii) One-sixth of the amount so added for each of the six	6988
succeeding taxable years if the entire amount of such depreciation	6989
expense was so added.	6990

(b) If the amount deducted under division (A)(21)(a) of this	6991
section is attributable to an add-back allocated under division	6992
(A)(20)(c) of this section, the amount deducted shall be sitused	6993
to the same location. Otherwise, the add-back shall be apportioned	6994
using the apportionment factors for the taxable year in which the	6995
deduction is taken, subject to one or more of the four alternative	6996
methods of apportionment enumerated in section 5747.21 of the	6997
Revised Code.	6998

(c) No deduction is available under division (A)(21)(a) of	6999
this section with regard to any depreciation allowed by section	7000
168(k) of the Internal Revenue Code and by the qualifying section	7001
179 depreciation expense amount to the extent that such	7002
depreciation results in or increases a federal net operating loss	7003
carryback or carryforward. If no such deduction is available for a	7004
taxable year, the taxpayer may carry forward the amount not	7005
deducted in such taxable year to the next taxable year and add	7006
that amount to any deduction otherwise available under division	7007
(A)(21)(a) of this section for that next taxable year. The	7008
carryforward of amounts not so deducted shall continue until the	7009
entire addition required by division (A)(20)(a) of this section	7010
has been deducted.	7011

(d) No refund shall be allowed as a result of adjustments	7012
made by division (A)(21) of this section.	7013

(22) Deduct, to the extent not otherwise deducted or excluded	7014
in computing federal or Ohio adjusted gross income for the taxable	7015
year, the amount the taxpayer received during the taxable year as	7016
reimbursement for life insurance premiums under section 5919.31 of	7017
the Revised Code.	7018

(23) Deduct, to the extent not otherwise deducted or excluded	7019
in computing federal or Ohio adjusted gross income for the taxable	7020
year, the amount the taxpayer received during the taxable year as	7021
a death benefit paid by the adjutant general under section 5919.33	7022
of the Revised Code.	7023

(24) Deduct, to the extent included in federal adjusted gross	7024
income and not otherwise allowable as a deduction or exclusion in	7025
computing federal or Ohio adjusted gross income for the taxable	7026
year, military pay and allowances received by the taxpayer during	7027
the taxable year for active duty service in the United States	7028
army, air force, navy, marine corps, or coast guard or reserve	7029
components thereof or the national guard. The deduction may not be	7030
claimed for military pay and allowances received by the taxpayer	7031
while the taxpayer is stationed in this state.	7032

(25) Deduct, to the extent not otherwise allowable as a	7033
deduction or exclusion in computing federal or Ohio adjusted gross	7034
income for the taxable year and not otherwise compensated for by	7035
any other source, the amount of qualified organ donation expenses	7036
incurred by the taxpayer during the taxable year, not to exceed	7037
ten thousand dollars. A taxpayer may deduct qualified organ	7038
donation expenses only once for all taxable years beginning with	7039
taxable years beginning in 2007.	7040

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

7041

(a) "Human organ" means all or any portion of a human liver,	7042
pancreas, kidney, intestine, or lung, and any portion of human	7043
bone marrow.	7044

(b) "Qualified organ donation expenses" means travel	7045
expenses, lodging expenses, and wages and salary forgone by a	7046
taxpayer in connection with the taxpayer's donation, while living,	7047
of one or more of the taxpayer's human organs to another human	7048
being.	7049

(26) Deduct, to the extent not otherwise deducted or excluded	7050
in computing federal or Ohio adjusted gross income for the taxable	7051
year, amounts received by the taxpayer as retired military	7052
personnel pay for service in the United States army, navy, air	7053
force, coast guard, or marine corps or reserve components thereof,	7054
or the national guard, or received by the surviving spouse or	7055
former spouse of such a taxpayer under the survivor benefit plan	7056
on account of such a taxpayer's death. If the taxpayer receives	7057
income on account of retirement paid under the federal civil	7058
service retirement system or federal employees retirement system,	7059
or under any successor retirement program enacted by the congress	7060
of the United States that is established and maintained for	7061
retired employees of the United States government, and such	7062
retirement income is based, in whole or in part, on credit for the	7063
taxpayer's military service, the deduction allowed under this	7064
division shall include only that portion of such retirement income	7065
that is attributable to the taxpayer's military service, to the	7066
extent that portion of such retirement income is otherwise	7067
included in federal adjusted gross income and is not otherwise	7068
deducted under this section. Any amount deducted under division	7069
(A)(26) of this section is not included in a taxpayer's adjusted	7070
gross income for the purposes of section 5747.055 of the Revised	7071
Code. No amount may be deducted under division (A)(26) of this	7072
section on the basis of which a credit was claimed under section	7073
5747.055 of the Revised Code.	7074

(27) Deduct, to the extent not otherwise deducted or excluded	7075
in computing federal or Ohio adjusted gross income for the taxable	7076
year, the amount the taxpayer received during the taxable year	7077
from the military injury relief fund created in section 5101.98 of	7078
the Revised Code.	7079

(28) Deduct, to the extent not otherwise deducted or excluded	7080
in computing federal or Ohio adjusted gross income for the taxable	7081
year, the amount the taxpayer received as a veterans bonus during	7082
the taxable year from the Ohio department of veterans services as	7083
authorized by Section 2r of Article VIII, Ohio Constitution.	7084

(29) Deduct, to the extent not otherwise deducted or excluded	7085
in computing federal or Ohio adjusted gross income for the taxable	7086
year, any loss from wagering transactions that is allowed as an	7087
itemized deduction under section 165 of the Internal Revenue Code	7088
and that the taxpayer deducted in computing federal taxable	7089
income.	7090

(30) Deduct, to the extent not otherwise deducted or excluded	7091
in computing federal or Ohio adjusted gross income for the taxable	7092
year, any income derived from providing public services under a	7093
contract through a project owned by the state, as described in	7094
section 126.604 of the Revised Code or derived from a transfer	7095
agreement or from the enterprise transferred under that agreement	7096
under section 4313.02 of the Revised Code.	7097

(31) Deduct, to the extent not otherwise deducted or excluded	7098
in computing federal or Ohio adjusted gross income for the taxable	7099
year, Ohio college opportunity or federal Pell grant amounts	7100
received by the taxpayer or the taxpayer's spouse or dependent	7101
pursuant to section 3333.122 of the Revised Code or 20 U.S.C.	7102
1070a, et seq., and used to pay room or board furnished by the	7103
educational institution for which the grant was awarded at the	7104
institution's facilities, including meal plans administered by the	7105
institution. For the purposes of this division, receipt of a grant	7106
includes the distribution of a grant directly to an educational	7107
institution and the crediting of the grant to the enrollee's	7108
account with the institution.	7109

(32) Deduct, to the extent not otherwise deducted or excluded	7110
in computing federal or Ohio adjusted gross income for the taxable	7111
year, income a qualifying landlord received from the lease or	7112
rental of qualifying residential rental property during the first	7113
taxable year in which the qualifying landlord received rental	7114
income from the property and during the four succeeding years.	7115

For purposes of division (A)(32) of this section:

7116

(a) "Distressed property" means real property that is vacant,	7117
abandoned, foreclosed-upon, or located in a blighted area and that	7118
is not currently in use as residential rental property.	7119

(b) "Blighted area" has the same meaning as in section 1.08	7120
of the Revised Code.	7121

(c) "Residential rental property" means real property on	7122
which is located one or more dwelling units leased or otherwise	7123
rented to tenants solely for residential use by those tenants.	7124

(d) "Qualifying residential rental property" means	7125
residential rental property that is leased or otherwise rented	7126
exclusively to individuals or families whose annual incomes do not	7127
exceed one hundred twenty per cent of the median income for the	7128
county in which they live, as determined by the development	7129
services agency under section 174.04 of the Revised Code.	7130

(e) "Qualifying landlord" means a taxpayer that converts	7131
distressed property into qualifying residential rental property.	7132

(B) "Business income" means income, including gain or loss,	7133
arising from transactions, activities, and sources in the regular	7134
course of a trade or business and includes income, gain, or loss	7135
from real property, tangible property, and intangible property if	7136
the acquisition, rental, management, and disposition of the	7137
property constitute integral parts of the regular course of a	7138
trade or business operation. "Business income" includes income,	7139
including gain or loss, from a partial or complete liquidation of	7140
a business, including, but not limited to, gain or loss from the	7141
sale or other disposition of goodwill.	7142

(C) "Nonbusiness income" means all income other than business	7143
income and may include, but is not limited to, compensation, rents	7144
and royalties from real or tangible personal property, capital	7145
gains, interest, dividends and distributions, patent or copyright	7146
royalties, or lottery winnings, prizes, and awards.	7147

(D) "Compensation" means any form of remuneration paid to an	7148
employee for personal services.	7149

(E) "Fiduciary" means a guardian, trustee, executor,	7150
administrator, receiver, conservator, or any other person acting	7151
in any fiduciary capacity for any individual, trust, or estate.	7152

(F) "Fiscal year" means an accounting period of twelve months	7153
ending on the last day of any month other than December.	7154

(G) "Individual" means any natural person.

7155

(H) "Internal Revenue Code" means the "Internal Revenue Code	7156
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	7157

(I) "Resident" means any of the following, provided that	7158
division (I)(3) of this section applies only to taxable years of a	7159
trust beginning in 2002 or thereafter:	7160

(1) An individual who is domiciled in this state, subject to	7161
section 5747.24 of the Revised Code;	7162

(2) The estate of a decedent who at the time of death was	7163
domiciled in this state. The domicile tests of section 5747.24 of	7164
the Revised Code are not controlling for purposes of division	7165
(I)(2) of this section.	7166

(3) A trust that, in whole or part, resides in this state. If	7167
only part of a trust resides in this state, the trust is a	7168
resident only with respect to that part.	7169

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

7170

(a) A trust resides in this state for the trust's current	7171
taxable year to the extent, as described in division (I)(3)(d) of	7172
this section, that the trust consists directly or indirectly, in	7173
whole or in part, of assets, net of any related liabilities, that	7174
were transferred, or caused to be transferred, directly or	7175
indirectly, to the trust by any of the following:	7176

(i) A person, a court, or a governmental entity or	7177
instrumentality on account of the death of a decedent, but only if	7178
the trust is described in division (I)(3)(e)(i) or (ii) of this	7179
section;	7180

(ii) A person who was domiciled in this state for the	7181
purposes of this chapter when the person directly or indirectly	7182
transferred assets to an irrevocable trust, but only if at least	7183
one of the trust's qualifying beneficiaries is domiciled in this	7184
state for the purposes of this chapter during all or some portion	7185
of the trust's current taxable year;	7186

(iii) A person who was domiciled in this state for the	7187
purposes of this chapter when the trust document or instrument or	7188
part of the trust document or instrument became irrevocable, but	7189
only if at least one of the trust's qualifying beneficiaries is a	7190
resident domiciled in this state for the purposes of this chapter	7191
during all or some portion of the trust's current taxable year. If	7192
a trust document or instrument became irrevocable upon the death	7193
of a person who at the time of death was domiciled in this state	7194
for purposes of this chapter, that person is a person described in	7195
division (I)(3)(a)(iii) of this section.	7196

(b) A trust is irrevocable to the extent that the transferor	7197
is not considered to be the owner of the net assets of the trust	7198
under sections 671 to 678 of the Internal Revenue Code.	7199

(c) With respect to a trust other than a charitable lead	7200
trust, "qualifying beneficiary" has the same meaning as "potential	7201
current beneficiary" as defined in section 1361(e)(2) of the	7202
Internal Revenue Code, and with respect to a charitable lead trust	7203
"qualifying beneficiary" is any current, future, or contingent	7204
beneficiary, but with respect to any trust "qualifying	7205
beneficiary" excludes a person or a governmental entity or	7206
instrumentality to any of which a contribution would qualify for	7207
the charitable deduction under section 170 of the Internal Revenue	7208
Code.	7209

(d) For the purposes of division (I)(3)(a) of this section,	7210
the extent to which a trust consists directly or indirectly, in	7211
whole or in part, of assets, net of any related liabilities, that	7212
were transferred directly or indirectly, in whole or part, to the	7213
trust by any of the sources enumerated in that division shall be	7214
ascertained by multiplying the fair market value of the trust's	7215
assets, net of related liabilities, by the qualifying ratio, which	7216
shall be computed as follows:	7217

(i) The first time the trust receives assets, the numerator	7218
of the qualifying ratio is the fair market value of those assets	7219
at that time, net of any related liabilities, from sources	7220
enumerated in division (I)(3)(a) of this section. The denominator	7221
of the qualifying ratio is the fair market value of all the	7222
trust's assets at that time, net of any related liabilities.	7223

(ii) Each subsequent time the trust receives assets, a	7224
revised qualifying ratio shall be computed. The numerator of the	7225
revised qualifying ratio is the sum of (1) the fair market value	7226
of the trust's assets immediately prior to the subsequent	7227
transfer, net of any related liabilities, multiplied by the	7228
qualifying ratio last computed without regard to the subsequent	7229
transfer, and (2) the fair market value of the subsequently	7230
transferred assets at the time transferred, net of any related	7231
liabilities, from sources enumerated in division (I)(3)(a) of this	7232
section. The denominator of the revised qualifying ratio is the	7233
fair market value of all the trust's assets immediately after the	7234
subsequent transfer, net of any related liabilities.	7235

(iii) Whether a transfer to the trust is by or from any of	7236
the sources enumerated in division (I)(3)(a) of this section shall	7237
be ascertained without regard to the domicile of the trust's	7238
beneficiaries.	7239

(e) For the purposes of division (I)(3)(a)(i) of this	7240
section:	7241

(i) A trust is described in division (I)(3)(e)(i) of this	7242
section if the trust is a testamentary trust and the testator of	7243
that testamentary trust was domiciled in this state at the time of	7244
the testator's death for purposes of the taxes levied under	7245
Chapter 5731. of the Revised Code.	7246

(ii) A trust is described in division (I)(3)(e)(ii) of this	7247
section if the transfer is a qualifying transfer described in any	7248
of divisions (I)(3)(f)(i) to (vi) of this section, the trust is an	7249
irrevocable inter vivos trust, and at least one of the trust's	7250
qualifying beneficiaries is domiciled in this state for purposes	7251
of this chapter during all or some portion of the trust's current	7252
taxable year.	7253

(f) For the purposes of division (I)(3)(e)(ii) of this	7254
section, a "qualifying transfer" is a transfer of assets, net of	7255
any related liabilities, directly or indirectly to a trust, if the	7256
transfer is described in any of the following:	7257

(i) The transfer is made to a trust, created by the decedent	7258
before the decedent's death and while the decedent was domiciled	7259
in this state for the purposes of this chapter, and, prior to the	7260
death of the decedent, the trust became irrevocable while the	7261
decedent was domiciled in this state for the purposes of this	7262
chapter.	7263

(ii) The transfer is made to a trust to which the decedent,	7264
prior to the decedent's death, had directly or indirectly	7265
transferred assets, net of any related liabilities, while the	7266
decedent was domiciled in this state for the purposes of this	7267
chapter, and prior to the death of the decedent the trust became	7268
irrevocable while the decedent was domiciled in this state for the	7269
purposes of this chapter.	7270

(iii) The transfer is made on account of a contractual	7271
relationship existing directly or indirectly between the	7272
transferor and either the decedent or the estate of the decedent	7273
at any time prior to the date of the decedent's death, and the	7274
decedent was domiciled in this state at the time of death for	7275
purposes of the taxes levied under Chapter 5731. of the Revised	7276
Code.	7277

(iv) The transfer is made to a trust on account of a	7278
contractual relationship existing directly or indirectly between	7279
the transferor and another person who at the time of the	7280
decedent's death was domiciled in this state for purposes of this	7281
chapter.	7282

(v) The transfer is made to a trust on account of the will of	7283
a testator who was domiciled in this state at the time of the	7284
testator's death for purposes of the taxes levied under Chapter	7285
5731. of the Revised Code.	7286

(vi) The transfer is made to a trust created by or caused to	7287
be created by a court, and the trust was directly or indirectly	7288
created in connection with or as a result of the death of an	7289
individual who, for purposes of the taxes levied under Chapter	7290
5731. of the Revised Code, was domiciled in this state at the time	7291
of the individual's death.	7292

(g) The tax commissioner may adopt rules to ascertain the	7293
part of a trust residing in this state.	7294

(J) "Nonresident" means an individual or estate that is not a	7295
resident. An individual who is a resident for only part of a	7296
taxable year is a nonresident for the remainder of that taxable	7297
year.	7298

(K) "Pass-through entity" has the same meaning as in section	7299
5733.04 of the Revised Code.	7300

(L) "Return" means the notifications and reports required to	7301
be filed pursuant to this chapter for the purpose of reporting the	7302
tax due and includes declarations of estimated tax when so	7303
required.	7304

(M) "Taxable year" means the calendar year or the taxpayer's	7305
fiscal year ending during the calendar year, or fractional part	7306
thereof, upon which the adjusted gross income is calculated	7307
pursuant to this chapter.	7308

(N) "Taxpayer" means any person subject to the tax imposed by	7309
section 5747.02 of the Revised Code or any pass-through entity	7310
that makes the election under division (D) of section 5747.08 of	7311
the Revised Code.	7312

(O) "Dependents" means dependents as defined in the Internal	7313
Revenue Code and as claimed in the taxpayer's federal income tax	7314
return for the taxable year or which the taxpayer would have been	7315
permitted to claim had the taxpayer filed a federal income tax	7316
return.	7317

(P) "Principal county of employment" means, in the case of a	7318
nonresident, the county within the state in which a taxpayer	7319
performs services for an employer or, if those services are	7320
performed in more than one county, the county in which the major	7321
portion of the services are performed.	7322

(Q) As used in sections 5747.50 to 5747.55 of the Revised	7323
Code:	7324

(1) "Subdivision" means any county, municipal corporation,	7325
park district, or township.	7326

(2) "Essential local government purposes" includes all	7327
functions that any subdivision is required by general law to	7328
exercise, including like functions that are exercised under a	7329
charter adopted pursuant to the Ohio Constitution.	7330

(R) "Overpayment" means any amount already paid that exceeds	7331
the figure determined to be the correct amount of the tax.	7332

(S) "Taxable income" or "Ohio taxable income" applies only to	7333
estates and trusts, and means federal taxable income, as defined	7334
and used in the Internal Revenue Code, adjusted as follows:	7335

(1) Add interest or dividends, net of ordinary, necessary,	7336
and reasonable expenses not deducted in computing federal taxable	7337
income, on obligations or securities of any state or of any	7338
political subdivision or authority of any state, other than this	7339
state and its subdivisions and authorities, but only to the extent	7340
that such net amount is not otherwise includible in Ohio taxable	7341
income and is described in either division (S)(1)(a) or (b) of	7342
this section:	7343

(a) The net amount is not attributable to the S portion of an	7344
electing small business trust and has not been distributed to	7345
beneficiaries for the taxable year;	7346

(b) The net amount is attributable to the S portion of an	7347
electing small business trust for the taxable year.	7348

(2) Add interest or dividends, net of ordinary, necessary,	7349
and reasonable expenses not deducted in computing federal taxable	7350
income, on obligations of any authority, commission,	7351
instrumentality, territory, or possession of the United States to	7352
the extent that the interest or dividends are exempt from federal	7353
income taxes but not from state income taxes, but only to the	7354
extent that such net amount is not otherwise includible in Ohio	7355
taxable income and is described in either division (S)(1)(a) or	7356
(b) of this section;	7357

(3) Add the amount of personal exemption allowed to the	7358
estate pursuant to section 642(b) of the Internal Revenue Code;	7359

(4) Deduct interest or dividends, net of related expenses	7360
deducted in computing federal taxable income, on obligations of	7361
the United States and its territories and possessions or of any	7362
authority, commission, or instrumentality of the United States to	7363
the extent that the interest or dividends are exempt from state	7364
taxes under the laws of the United States, but only to the extent	7365
that such amount is included in federal taxable income and is	7366
described in either division (S)(1)(a) or (b) of this section;	7367

(5) Deduct the amount of wages and salaries, if any, not	7368
otherwise allowable as a deduction but that would have been	7369
allowable as a deduction in computing federal taxable income for	7370
the taxable year, had the targeted jobs credit allowed under	7371
sections 38, 51, and 52 of the Internal Revenue Code not been in	7372
effect, but only to the extent such amount relates either to	7373
income included in federal taxable income for the taxable year or	7374
to income of the S portion of an electing small business trust for	7375
the taxable year;	7376

(6) Deduct any interest or interest equivalent, net of	7377
related expenses deducted in computing federal taxable income, on	7378
public obligations and purchase obligations, but only to the	7379
extent that such net amount relates either to income included in	7380
federal taxable income for the taxable year or to income of the S	7381
portion of an electing small business trust for the taxable year;	7382

(7) Add any loss or deduct any gain resulting from sale,	7383
exchange, or other disposition of public obligations to the extent	7384
that such loss has been deducted or such gain has been included in	7385
computing either federal taxable income or income of the S portion	7386
of an electing small business trust for the taxable year;	7387

(8) Except in the case of the final return of an estate, add	7388
any amount deducted by the taxpayer on both its Ohio estate tax	7389
return pursuant to section 5731.14 of the Revised Code, and on its	7390
federal income tax return in determining federal taxable income;	7391

(9)(a) Deduct any amount included in federal taxable income	7392
solely because the amount represents a reimbursement or refund of	7393
expenses that in a previous year the decedent had deducted as an	7394
itemized deduction pursuant to section 63 of the Internal Revenue	7395
Code and applicable treasury regulations. The deduction otherwise	7396
allowed under division (S)(9)(a) of this section shall be reduced	7397
to the extent the reimbursement is attributable to an amount the	7398
taxpayer or decedent deducted under this section in any taxable	7399
year.	7400

(b) Add any amount not otherwise included in Ohio taxable	7401
income for any taxable year to the extent that the amount is	7402
attributable to the recovery during the taxable year of any amount	7403
deducted or excluded in computing federal or Ohio taxable income	7404
in any taxable year, but only to the extent such amount has not	7405
been distributed to beneficiaries for the taxable year.	7406

(10) Deduct any portion of the deduction described in section	7407
1341(a)(2) of the Internal Revenue Code, for repaying previously	7408
reported income received under a claim of right, that meets both	7409
of the following requirements:	7410

(a) It is allowable for repayment of an item that was	7411
included in the taxpayer's taxable income or the decedent's	7412
adjusted gross income for a prior taxable year and did not qualify	7413
for a credit under division (A) or (B) of section 5747.05 of the	7414
Revised Code for that year.	7415

(b) It does not otherwise reduce the taxpayer's taxable	7416
income or the decedent's adjusted gross income for the current or	7417
any other taxable year.	7418

(11) Add any amount claimed as a credit under section	7419
5747.059 or 5747.65 of the Revised Code to the extent that the	7420
amount satisfies either of the following:	7421

(a) The amount was deducted or excluded from the computation	7422
of the taxpayer's federal taxable income as required to be	7423
reported for the taxpayer's taxable year under the Internal	7424
Revenue Code;	7425

(b) The amount resulted in a reduction in the taxpayer's	7426
federal taxable income as required to be reported for any of the	7427
taxpayer's taxable years under the Internal Revenue Code.	7428

(12) Deduct any amount, net of related expenses deducted in	7429
computing federal taxable income, that a trust is required to	7430
report as farm income on its federal income tax return, but only	7431
if the assets of the trust include at least ten acres of land	7432
satisfying the definition of "land devoted exclusively to	7433
agricultural use" under section 5713.30 of the Revised Code,	7434
regardless of whether the land is valued for tax purposes as such	7435
land under sections 5713.30 to 5713.38 of the Revised Code. If the	7436
trust is a pass-through entity investor, section 5747.231 of the	7437
Revised Code applies in ascertaining if the trust is eligible to	7438
claim the deduction provided by division (S)(12) of this section	7439
in connection with the pass-through entity's farm income.	7440

Except for farm income attributable to the S portion of an	7441
electing small business trust, the deduction provided by division	7442
(S)(12) of this section is allowed only to the extent that the	7443
trust has not distributed such farm income. Division (S)(12) of	7444
this section applies only to taxable years of a trust beginning in	7445
2002 or thereafter.	7446

(13) Add the net amount of income described in section 641(c)	7447
of the Internal Revenue Code to the extent that amount is not	7448
included in federal taxable income.	7449

(14) Add or deduct the amount the taxpayer would be required	7450
to add or deduct under division (A)(20) or (21) of this section if	7451
the taxpayer's Ohio taxable income were computed in the same	7452
manner as an individual's Ohio adjusted gross income is computed	7453
under this section. In the case of a trust, division (S)(14) of	7454
this section applies only to any of the trust's taxable years	7455
beginning in 2002 or thereafter.	7456

(15) Deduct, to the extent not otherwise deducted or excluded	7457
in computing federal or Ohio taxable income for the taxable year,	7458
income a qualifying landlord received from the lease or rental of	7459
qualifying residential rental property during the first taxable	7460
year in which the qualifying landlord received rental income from	7461
the property and during the four succeeding years. As used in this	7462
division, "qualifying landlord" and "qualifying residential rental	7463
property" have the same meanings as in division (A)(32) of this	7464
section.	7465

(16) For a taxpayer that provides broadband service, deduct	7466
the taxpayer's net profits from providing broadband service in	7467
this state multiplied by a fraction, the numerator of which is the	7468
original cost of tangible personal property necessary for the	7469
provision of broadband service in rural areas of this state	7470
installed on or after the effective date of this amendment, and	7471
the denominator of which is the original cost of tangible personal	7472
property necessary for the provision of broadband service in this	7473
state and installed on or after that date. A taxpayer that is an	7474
equity owner of a pass-through entity that provides broadband	7475
service may deduct the taxpayer's distributive or proportionate	7476
share of the entity's net profits from providing such service	7477
multiplied by that fraction. A deduction is not allowed under this	7478
division if the taxpayer claims the exclusion under division	7479
(F)(2)(ll) of section 5751.01 of the Revised Code for any tax	7480
period that is included partly or wholly in the taxable year. For	7481
the purposes of this division, "broadband service" and "rural	7482
area" have the same meanings as in 7 U.S.C. 950bb.	7483

(T) "School district income" and "school district income tax"	7484
have the same meanings as in section 5748.01 of the Revised Code.	7485

(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7)	7486
of this section, "public obligations," "purchase obligations," and	7487
"interest or interest equivalent" have the same meanings as in	7488
section 5709.76 of the Revised Code.	7489

(V) "Limited liability company" means any limited liability	7490
company formed under Chapter 1705. of the Revised Code or under	7491
the laws of any other state.	7492

(W) "Pass-through entity investor" means any person who,	7493
during any portion of a taxable year of a pass-through entity, is	7494
a partner, member, shareholder, or equity investor in that	7495
pass-through entity.	7496

(X) "Banking day" has the same meaning as in section 1304.01	7497
of the Revised Code.	7498

(Y) "Month" means a calendar month.

7499

(Z) "Quarter" means the first three months, the second three	7500
months, the third three months, or the last three months of the	7501
taxpayer's taxable year.	7502

(AA)(1) "Eligible institution" means a state university or	7503
state institution of higher education as defined in section	7504
3345.011 of the Revised Code, or a private, nonprofit college,	7505
university, or other post-secondary institution located in this	7506
state that possesses a certificate of authorization issued by the	7507
Ohio board of regents pursuant to Chapter 1713. of the Revised	7508
Code or a certificate of registration issued by the state board of	7509
career colleges and schools under Chapter 3332. of the Revised	7510
Code.	7511

(2) "Qualified tuition and fees" means tuition and fees	7512
imposed by an eligible institution as a condition of enrollment or	7513
attendance, not exceeding two thousand five hundred dollars in	7514
each of the individual's first two years of post-secondary	7515
education. If the individual is a part-time student, "qualified	7516
tuition and fees" includes tuition and fees paid for the academic	7517
equivalent of the first two years of post-secondary education	7518
during a maximum of five taxable years, not exceeding a total of	7519
five thousand dollars. "Qualified tuition and fees" does not	7520
include:	7521

(a) Expenses for any course or activity involving sports,	7522
games, or hobbies unless the course or activity is part of the	7523
individual's degree or diploma program;	7524

(b) The cost of books, room and board, student activity fees,	7525
athletic fees, insurance expenses, or other expenses unrelated to	7526
the individual's academic course of instruction;	7527

(c) Tuition, fees, or other expenses paid or reimbursed	7528
through an employer, scholarship, grant in aid, or other	7529
educational benefit program.	7530

(BB)(1) "Modified business income" means the business income	7531
included in a trust's Ohio taxable income after such taxable	7532
income is first reduced by the qualifying trust amount, if any.	7533

(2) "Qualifying trust amount" of a trust means capital gains	7534
and losses from the sale, exchange, or other disposition of equity	7535
or ownership interests in, or debt obligations of, a qualifying	7536
investee to the extent included in the trust's Ohio taxable	7537
income, but only if the following requirements are satisfied:	7538

(a) The book value of the qualifying investee's physical	7539
assets in this state and everywhere, as of the last day of the	7540
qualifying investee's fiscal or calendar year ending immediately	7541
prior to the date on which the trust recognizes the gain or loss,	7542
is available to the trust.	7543

(b) The requirements of section 5747.011 of the Revised Code	7544
are satisfied for the trust's taxable year in which the trust	7545
recognizes the gain or loss.	7546

Any gain or loss that is not a qualifying trust amount is	7547
modified business income, qualifying investment income, or	7548
modified nonbusiness income, as the case may be.	7549

(3) "Modified nonbusiness income" means a trust's Ohio	7550
taxable income other than modified business income, other than the	7551
qualifying trust amount, and other than qualifying investment	7552
income, as defined in section 5747.012 of the Revised Code, to the	7553
extent such qualifying investment income is not otherwise part of	7554
modified business income.	7555

(4) "Modified Ohio taxable income" applies only to trusts,	7556
and means the sum of the amounts described in divisions (BB)(4)(a)	7557
to (c) of this section:	7558

(a) The fraction, calculated under section 5747.013, and	7559
applying section 5747.231 of the Revised Code, multiplied by the	7560
sum of the following amounts:	7561

(i) The trust's modified business income;

7562

(ii) The trust's qualifying investment income, as defined in	7563
section 5747.012 of the Revised Code, but only to the extent the	7564
qualifying investment income does not otherwise constitute	7565
modified business income and does not otherwise constitute a	7566
qualifying trust amount.	7567

(b) The qualifying trust amount multiplied by a fraction, the	7568
numerator of which is the sum of the book value of the qualifying	7569
investee's physical assets in this state on the last day of the	7570
qualifying investee's fiscal or calendar year ending immediately	7571
prior to the day on which the trust recognizes the qualifying	7572
trust amount, and the denominator of which is the sum of the book	7573
value of the qualifying investee's total physical assets	7574
everywhere on the last day of the qualifying investee's fiscal or	7575
calendar year ending immediately prior to the day on which the	7576
trust recognizes the qualifying trust amount. If, for a taxable	7577
year, the trust recognizes a qualifying trust amount with respect	7578
to more than one qualifying investee, the amount described in	7579
division (BB)(4)(b) of this section shall equal the sum of the	7580
products so computed for each such qualifying investee.	7581

(c)(i) With respect to a trust or portion of a trust that is	7582
a resident as ascertained in accordance with division (I)(3)(d) of	7583
this section, its modified nonbusiness income.	7584

(ii) With respect to a trust or portion of a trust that is	7585
not a resident as ascertained in accordance with division	7586
(I)(3)(d) of this section, the amount of its modified nonbusiness	7587
income satisfying the descriptions in divisions (B)(2) to (5) of	7588
section 5747.20 of the Revised Code, except as otherwise provided	7589
in division (BB)(4)(c)(ii) of this section. With respect to a	7590
trust or portion of a trust that is not a resident as ascertained	7591
in accordance with division (I)(3)(d) of this section, the trust's	7592
portion of modified nonbusiness income recognized from the sale,	7593
exchange, or other disposition of a debt interest in or equity	7594
interest in a section 5747.212 entity, as defined in section	7595
5747.212 of the Revised Code, without regard to division (A) of	7596
that section, shall not be allocated to this state in accordance	7597
with section 5747.20 of the Revised Code but shall be apportioned	7598
to this state in accordance with division (B) of section 5747.212	7599
of the Revised Code without regard to division (A) of that	7600
section.	7601

If the allocation and apportionment of a trust's income under	7602
divisions (BB)(4)(a) and (c) of this section do not fairly	7603
represent the modified Ohio taxable income of the trust in this	7604
state, the alternative methods described in division (C) of	7605
section 5747.21 of the Revised Code may be applied in the manner	7606
and to the same extent provided in that section.	7607

(5)(a) Except as set forth in division (BB)(5)(b) of this	7608
section, "qualifying investee" means a person in which a trust has	7609
an equity or ownership interest, or a person or unit of government	7610
the debt obligations of either of which are owned by a trust. For	7611
the purposes of division (BB)(2)(a) of this section and for the	7612
purpose of computing the fraction described in division (BB)(4)(b)	7613
of this section, all of the following apply:	7614

(i) If the qualifying investee is a member of a qualifying	7615
controlled group on the last day of the qualifying investee's	7616
fiscal or calendar year ending immediately prior to the date on	7617
which the trust recognizes the gain or loss, then "qualifying	7618
investee" includes all persons in the qualifying controlled group	7619
on such last day.	7620

(ii) If the qualifying investee, or if the qualifying	7621
investee and any members of the qualifying controlled group of	7622
which the qualifying investee is a member on the last day of the	7623
qualifying investee's fiscal or calendar year ending immediately	7624
prior to the date on which the trust recognizes the gain or loss,	7625
separately or cumulatively own, directly or indirectly, on the	7626
last day of the qualifying investee's fiscal or calendar year	7627
ending immediately prior to the date on which the trust recognizes	7628
the qualifying trust amount, more than fifty per cent of the	7629
equity of a pass-through entity, then the qualifying investee and	7630
the other members are deemed to own the proportionate share of the	7631
pass-through entity's physical assets which the pass-through	7632
entity directly or indirectly owns on the last day of the	7633
pass-through entity's calendar or fiscal year ending within or	7634
with the last day of the qualifying investee's fiscal or calendar	7635
year ending immediately prior to the date on which the trust	7636
recognizes the qualifying trust amount.	7637

(iii) For the purposes of division (BB)(5)(a)(iii) of this	7638
section, "upper level pass-through entity" means a pass-through	7639
entity directly or indirectly owning any equity of another	7640
pass-through entity, and "lower level pass-through entity" means	7641
that other pass-through entity.	7642

An upper level pass-through entity, whether or not it is also	7643
a qualifying investee, is deemed to own, on the last day of the	7644
upper level pass-through entity's calendar or fiscal year, the	7645
proportionate share of the lower level pass-through entity's	7646
physical assets that the lower level pass-through entity directly	7647
or indirectly owns on the last day of the lower level pass-through	7648
entity's calendar or fiscal year ending within or with the last	7649
day of the upper level pass-through entity's fiscal or calendar	7650
year. If the upper level pass-through entity directly and	7651
indirectly owns less than fifty per cent of the equity of the	7652
lower level pass-through entity on each day of the upper level	7653
pass-through entity's calendar or fiscal year in which or with	7654
which ends the calendar or fiscal year of the lower level	7655
pass-through entity and if, based upon clear and convincing	7656
evidence, complete information about the location and cost of the	7657
physical assets of the lower pass-through entity is not available	7658
to the upper level pass-through entity, then solely for purposes	7659
of ascertaining if a gain or loss constitutes a qualifying trust	7660
amount, the upper level pass-through entity shall be deemed as	7661
owning no equity of the lower level pass-through entity for each	7662
day during the upper level pass-through entity's calendar or	7663
fiscal year in which or with which ends the lower level	7664
pass-through entity's calendar or fiscal year. Nothing in division	7665
(BB)(5)(a)(iii) of this section shall be construed to provide for	7666
any deduction or exclusion in computing any trust's Ohio taxable	7667
income.	7668

(b) With respect to a trust that is not a resident for the	7669
taxable year and with respect to a part of a trust that is not a	7670
resident for the taxable year, "qualifying investee" for that	7671
taxable year does not include a C corporation if both of the	7672
following apply:	7673

(i) During the taxable year the trust or part of the trust	7674
recognizes a gain or loss from the sale, exchange, or other	7675
disposition of equity or ownership interests in, or debt	7676
obligations of, the C corporation.	7677

(ii) Such gain or loss constitutes nonbusiness income.

7678

(6) "Available" means information is such that a person is	7679
able to learn of the information by the due date plus extensions,	7680
if any, for filing the return for the taxable year in which the	7681
trust recognizes the gain or loss.	7682

(CC) "Qualifying controlled group" has the same meaning as in	7683
section 5733.04 of the Revised Code.	7684

(DD) "Related member" has the same meaning as in section	7685
5733.042 of the Revised Code.	7686

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

7687

(a) "Qualifying person" means any person other than a	7688
qualifying corporation.	7689

(b) "Qualifying corporation" means any person classified for	7690
federal income tax purposes as an association taxable as a	7691
corporation, except either of the following:	7692

(i) A corporation that has made an election under subchapter	7693
S, chapter one, subtitle A, of the Internal Revenue Code for its	7694
taxable year ending within, or on the last day of, the investor's	7695
taxable year;	7696

(ii) A subsidiary that is wholly owned by any corporation	7697
that has made an election under subchapter S, chapter one,	7698
subtitle A of the Internal Revenue Code for its taxable year	7699
ending within, or on the last day of, the investor's taxable year.	7700

(2) For the purposes of this chapter, unless expressly stated	7701
otherwise, no qualifying person indirectly owns any asset directly	7702
or indirectly owned by any qualifying corporation.	7703

(FF) For purposes of this chapter and Chapter 5751. of the	7704
Revised Code:	7705

(1) "Trust" does not include a qualified pre-income tax	7706
trust.	7707

(2) A "qualified pre-income tax trust" is any pre-income tax	7708
trust that makes a qualifying pre-income tax trust election as	7709
described in division (FF)(3) of this section.	7710

(3) A "qualifying pre-income tax trust election" is an	7711
election by a pre-income tax trust to subject to the tax imposed	7712
by section 5751.02 of the Revised Code the pre-income tax trust	7713
and all pass-through entities of which the trust owns or controls,	7714
directly, indirectly, or constructively through related interests,	7715
five per cent or more of the ownership or equity interests. The	7716
trustee shall notify the tax commissioner in writing of the	7717
election on or before April 15, 2006. The election, if timely	7718
made, shall be effective on and after January 1, 2006, and shall	7719
apply for all tax periods and tax years until revoked by the	7720
trustee of the trust.	7721

(4) A "pre-income tax trust" is a trust that satisfies all of	7722
the following requirements:	7723

(a) The document or instrument creating the trust was	7724
executed by the grantor before January 1, 1972;	7725

(b) The trust became irrevocable upon the creation of the	7726
trust; and	7727

(c) The grantor was domiciled in this state at the time the	7728
trust was created.	7729

Sec. 5747.61.  (A) As used in this section:

7730

(1) "Qualified unemployed individual" means an individual who	7731
is subject to the tax imposed by section 5747.02 of the Revised	7732
Code, who was not a student for at least six months during the	7733
one-year period preceding the date the employer hired the	7734
individual, and who was unemployed for at least six months during	7735
that one-year period.	7736

(2) "Qualified unemployed veteran" means a veteran who is	7737
subject to the tax imposed by section 5747.02 of the Revised Code	7738
and who was unemployed for at least six months during the one-year	7739
period ending on the date the employer hired the veteran.	7740

(3) "Qualified unemployed disabled veteran" means a disabled	7741
veteran who is subject to the tax imposed by section 5747.02 of	7742
the Revised Code and who was unemployed for at least six months	7743
during the one-year period ending on the date the employer hired	7744
the disabled veteran.	7745

(4) "Student" means an individual enrolled at least half-time	7746
in a program that leads to a degree, certificate, or other	7747
recognized educational credential.	7748

(5) "Veteran" means an individual who was not serving	7749
extended active duty in the armed forces of the United States at	7750
any time during the sixty-day period ending on the day the	7751
individual was hired and who either (a) served on active military	7752
duty in the armed forces for more than one hundred eighty days and	7753
has not received a discharge or separation under dishonorable	7754
conditions, or (b) is a former member of the armed forces who has	7755
been discharged or released from active duty in the armed forces	7756
for a service-connected disability.	7757

(6) "Disabled veteran" means a veteran who is entitled to	7758
compensation for a disability recognized by the department of	7759
veteran affairs or department of defense as a service-connected	7760
disability. As used in this division, "compensation" means a	7761
monthly payment made by the United States secretary of veterans	7762
affairs to a veteran.	7763

(7) "Extended active duty" has the same meaning as in section	7764
51 of the Internal Revenue Code.	7765

(8) "Service-connected disability" means a disability that	7766
was incurred or aggravated in line of duty in the active service	7767
to the armed forces of the United States.	7768

(9) "Credit period" means the period that begins on the	7769
effective date of the enactment of this section and ends on the	7770
earlier of the following dates:	7771

(a) The last day of the sixth year after that effective date;

7772

(b) The last day of the first six-month period after that	7773
effective date during which the state unemployment rate remained	7774
equal to or less than six per cent for six consecutive months.	7775

(B)(1) There is hereby allowed a nonrefundable credit against	7776
the tax imposed by section 5747.02 of the Revised Code for a	7777
taxpayer who meets all of the following criteria:	7778

(a) The taxpayer hires a qualified unemployed individual,	7779
qualified unemployed veteran, or qualified unemployed disabled	7780
veteran during the credit period;	7781

(b) The taxpayer deducts and withholds income tax from the	7782
compensation paid to the qualified unemployed individual,	7783
qualified unemployed veteran, or qualified unemployed disabled	7784
veteran and remits such amounts under sections 5747.06 and 5747.07	7785
of the Revised Code;	7786

(c) The taxpayer employs the qualified unemployed individual,	7787
qualified unemployed veteran, or qualified unemployed disabled	7788
veteran for a minimum of thirty-five hours per week for six	7789
consecutive months or, if the taxpayer terminates the qualified	7790
unemployed individual, qualified unemployed veteran, or qualified	7791
unemployed disabled veteran within the first six months of	7792
employment, the termination is for good cause.	7793

(2) The amount of the credit shall be as follows:

7794

(a) For the hiring of a qualified unemployed individual, one	7795
thousand five hundred dollars.	7796

(b) For the hiring of a qualified unemployed veteran, two	7797
thousand dollars.	7798

(c) For the hiring of a qualified unemployed disabled	7799
veteran, two thousand five hundred dollars.	7800

The credit shall be claimed for the taxable year that	7801
includes the one hundred eightieth day after the qualified	7802
unemployed individual, qualified unemployed veteran, or qualified	7803
unemployed disabled veteran is hired or the date on which the	7804
qualified unemployed individual, qualified unemployed veteran, or	7805
qualified unemployed disabled veteran is terminated for good	7806
cause, whichever is earlier. The credit shall be claimed in the	7807
order required under section 5747.98 of the Revised Code. The	7808
amount of credit claimed may not exceed the tax otherwise due	7809
after allowing for all preceding credits in that order.	7810

A credit may be claimed under this section or section 5751.55	7811
of the Revised Code only once with respect to any particular	7812
qualified unemployed individual, qualified unemployed veteran, or	7813
qualified unemployed disabled veteran. A person that claims the	7814
credit under section 5751.55 of the Revised Code may not claim the	7815
credit under this section for the same qualified unemployed	7816
individual, qualified unemployed veteran, or qualified unemployed	7817
disabled veteran.	7818

If an employer that qualifies for a credit under this section	7819
is a pass-through entity, a taxpayer that holds a direct or	7820
indirect interest in the pass-through entity may claim the	7821
taxpayer's distributive or proportionate share of the credit.	7822

(C) Not later than two years after the effective date of the	7823
enactment of this section, the tax commissioner shall submit to	7824
the president of the senate and the speaker of the house of	7825
representatives a comprehensive report on the tax credits	7826
authorized under this section and section 5751.55 of the Revised	7827
Code. The report shall provide an overview of the effectiveness of	7828
the tax credits, evaluate the costs and benefits of the tax credit	7829
program, and include information on the number of tax credits	7830
authorized, the number of employers claiming the tax credits, the	7831
fiscal impact of the tax credit program on the state budget, and	7832
any other information the commissioner considers relevant to the	7833
topics addressed in the report. The commissioner may request that	7834
any other appropriate state agency assist in the preparation of	7835
the report.	7836

(D) The tax commissioner may require a taxpayer to furnish	7837
any information necessary to support a claim for a credit under	7838
this section, and no credit shall be allowed unless such	7839
information is provided.	7840

Sec. 5747.98.  (A) To provide a uniform procedure for	7841
calculating the amount of tax due under section 5747.02 of the	7842
Revised Code, a taxpayer shall claim any credits to which the	7843
taxpayer is entitled in the following order:	7844

(1) The retirement income credit under division (B) of	7845
section 5747.055 of the Revised Code;	7846

(2) The senior citizen credit under division (C) of section	7847
5747.05 of the Revised Code;	7848

(3) The lump sum distribution credit under division (D) of	7849
section 5747.05 of the Revised Code;	7850

(4) The dependent care credit under section 5747.054 of the	7851
Revised Code;	7852

(5) The lump sum retirement income credit under division (C)	7853
of section 5747.055 of the Revised Code;	7854

(6) The lump sum retirement income credit under division (D)	7855
of section 5747.055 of the Revised Code;	7856

(7) The lump sum retirement income credit under division (E)	7857
of section 5747.055 of the Revised Code;	7858

(8) The low-income credit under section 5747.056 of the	7859
Revised Code;	7860

(9) The credit for displaced workers who pay for job training	7861
under section 5747.27 of the Revised Code;	7862

(10) The campaign contribution credit under section 5747.29	7863
of the Revised Code;	7864

(11) The twenty-dollar personal exemption credit under	7865
section 5747.022 of the Revised Code;	7866

(12)(11) The joint filing credit under division (G) of	7867
section 5747.05 of the Revised Code;	7868

(13)(12) The nonresident credit under division (A) of section	7869
5747.05 of the Revised Code;	7870

(14)(13) The credit for a resident's out-of-state income	7871
under division (B) of section 5747.05 of the Revised Code;	7872

(15)(14) The credit for employers that enter into agreements	7873
with child day-care centers under section 5747.34 of the Revised	7874
Code;	7875

(16)(15) The credit for employers that reimburse employee	7876
child care expenses under section 5747.36 of the Revised Code;	7877

(17)(16) The credit for adoption of a minor child under	7878
section 5747.37 of the Revised Code;	7879

(18)(17) The credit for purchases of lights and reflectors	7880
under section 5747.38 of the Revised Code;	7881

(19)(18) The nonrefundable job retention credit under	7882
division (B) of section 5747.058 of the Revised Code;	7883

(20) The credit for selling alternative fuel under section	7884
5747.77 of the Revised Code;	7885

(21)(19) The nonrefundable credit for hiring a qualified	7886
unemployed individual, qualified unemployed veteran, or qualified	7887
unemployed disabled veteran under section 5747.61 of the Revised	7888
Code;	7889

(20) The second credit for purchases of new manufacturing	7890
machinery and equipment and the credit for using Ohio coal under	7891
section 5747.31 of the Revised Code;	7892

(22)(21) The job training credit under section 5747.39 of the	7893
Revised Code;	7894

(23)(22) The enterprise zone credit under section 5709.66 of	7895
the Revised Code;	7896

(24)(23) The credit for the eligible costs associated with a	7897
voluntary action under section 5747.32 of the Revised Code;	7898

(25)(24) The credit for employers that establish on-site	7899
child day-care centers under section 5747.35 of the Revised Code;	7900

(26) The ethanol plant investment credit under section	7901
5747.75 of the Revised Code;	7902

(27) The credit for purchases of qualifying grape production	7903
property under section 5747.28 of the Revised Code;	7904

(28)(25) The small business investment credit under section	7905
5747.81 of the Revised Code;	7906

(29)(26) The credit for research and development and	7907
technology transfer investors under section 5747.33 of the Revised	7908
Code;	7909

(30)(27) The enterprise zone credits under section 5709.65 of	7910
the Revised Code;	7911

(31)(28) The research and development credit under section	7912
5747.331 of the Revised Code;	7913

(32)(29) The credit for rehabilitating a historic building	7914
under section 5747.76 of the Revised Code;	7915

(33)(30) The refundable credit for rehabilitating a historic	7916
building under section 5747.76 of the Revised Code;	7917

(34)(31) The refundable jobs creation credit or job retention	7918
credit under division (A) of section 5747.058 of the Revised Code;	7919

(35)(32) The refundable credit for taxes paid by a qualifying	7920
entity granted under section 5747.059 of the Revised Code;	7921

(36)(33) The refundable credits for taxes paid by a	7922
qualifying pass-through entity granted under division (J) of	7923
section 5747.08 of the Revised Code;	7924

(37)(34) The refundable credit under section 5747.80 of the	7925
Revised Code for losses on loans made to the Ohio venture capital	7926
program under sections 150.01 to 150.10 of the Revised Code;	7927

(38)(35) The refundable motion picture production credit	7928
under section 5747.66 of the Revised Code.	7929

(39)(36) The refundable credit for financial institution	7930
taxes paid by a pass-through entity granted under section 5747.65	7931
of the Revised Code.	7932

(B) For any credit, except the refundable credits enumerated	7933
in this section and the credit granted under division (I) of	7934
section 5747.08 of the Revised Code, the amount of the credit for	7935
a taxable year shall not exceed the tax due after allowing for any	7936
other credit that precedes it in the order required under this	7937
section. Any excess amount of a particular credit may be carried	7938
forward if authorized under the section creating that credit.	7939
Nothing in this chapter shall be construed to allow a taxpayer to	7940
claim, directly or indirectly, a credit more than once for a	7941
taxable year.	7942

Sec. 5751.01.  As used in this chapter:

7943

(A) "Person" means, but is not limited to, individuals,	7944
combinations of individuals of any form, receivers, assignees,	7945
trustees in bankruptcy, firms, companies, joint-stock companies,	7946
business trusts, estates, partnerships, limited liability	7947
partnerships, limited liability companies, associations, joint	7948
ventures, clubs, societies, for-profit corporations, S	7949
corporations, qualified subchapter S subsidiaries, qualified	7950
subchapter S trusts, trusts, entities that are disregarded for	7951
federal income tax purposes, and any other entities.	7952

(B) "Consolidated elected taxpayer" means a group of two or	7953
more persons treated as a single taxpayer for purposes of this	7954
chapter as the result of an election made under section 5751.011	7955
of the Revised Code.	7956

(C) "Combined taxpayer" means a group of two or more persons	7957
treated as a single taxpayer for purposes of this chapter under	7958
section 5751.012 of the Revised Code.	7959

(D) "Taxpayer" means any person, or any group of persons in	7960
the case of a consolidated elected taxpayer or combined taxpayer	7961
treated as one taxpayer, required to register or pay tax under	7962
this chapter. "Taxpayer" does not include excluded persons.	7963

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

7964

(1) Any person with not more than one hundred fifty thousand	7965
dollars of taxable gross receipts during the calendar year.	7966
Division (E)(1) of this section does not apply to a person that is	7967
a member of a consolidated elected taxpayer;	7968

(2) A public utility that paid the excise tax imposed by	7969
section 5727.24 or 5727.30 of the Revised Code based on one or	7970
more measurement periods that include the entire tax period under	7971
this chapter, except that a public utility that is a combined	7972
company is a taxpayer with regard to the following gross receipts:	7973

(a) Taxable gross receipts directly attributed to a public	7974
utility activity, but not directly attributed to an activity that	7975
is subject to the excise tax imposed by section 5727.24 or 5727.30	7976
of the Revised Code;	7977

(b) Taxable gross receipts that cannot be directly attributed	7978
to any activity, multiplied by a fraction whose numerator is the	7979
taxable gross receipts described in division (E)(2)(a) of this	7980
section and whose denominator is the total taxable gross receipts	7981
that can be directly attributed to any activity;	7982

(c) Except for any differences resulting from the use of an	7983
accrual basis method of accounting for purposes of determining	7984
gross receipts under this chapter and the use of the cash basis	7985
method of accounting for purposes of determining gross receipts	7986
under section 5727.24 of the Revised Code, the gross receipts	7987
directly attributed to the activity of a natural gas company shall	7988
be determined in a manner consistent with division (D) of section	7989
5727.03 of the Revised Code.	7990

As used in division (E)(2) of this section, "combined	7991
company" and "public utility" have the same meanings as in section	7992
5727.01 of the Revised Code.	7993

(3) A financial institution, as defined in section 5726.01 of	7994
the Revised Code, that paid the tax imposed by section 5726.02 of	7995
the Revised Code based on one or more taxable years that include	7996
the entire tax period under this chapter;	7997

(4) A person directly or indirectly owned by one or more	7998
financial institutions, as defined in section 5726.01 of the	7999
Revised Code, that paid the tax imposed by section 5726.02 of the	8000
Revised Code based on one or more taxable years that include the	8001
entire tax period under this chapter.	8002

For the purposes of division (E)(4) of this section, a person	8003
owns another person under the following circumstances:	8004

(a) In the case of corporations issuing capital stock, one	8005
corporation owns another corporation if it owns fifty per cent or	8006
more of the other corporation's capital stock with current voting	8007
rights;	8008

(b) In the case of a limited liability company, one person	8009
owns the company if that person's membership interest, as defined	8010
in section 1705.01 of the Revised Code, is fifty per cent or more	8011
of the combined membership interests of all persons owning such	8012
interests in the company;	8013

(c) In the case of a partnership, trust, or other	8014
unincorporated business organization other than a limited	8015
liability company, one person owns the organization if, under the	8016
articles of organization or other instrument governing the affairs	8017
of the organization, that person has a beneficial interest in the	8018
organization's profits, surpluses, losses, or distributions of	8019
fifty per cent or more of the combined beneficial interests of all	8020
persons having such an interest in the organization.	8021

(5) A domestic insurance company or foreign insurance	8022
company, as defined in section 5725.01 of the Revised Code, that	8023
paid the insurance company premiums tax imposed by section 5725.18	8024
or Chapter 5729. of the Revised Code, or an unauthorized insurance	8025
company whose gross premiums are subject to tax under section	8026
3905.36 of the Revised Code based on one or more measurement	8027
periods that include the entire tax period under this chapter;	8028

(6) A person that solely facilitates or services one or more	8029
securitizations of phase-in-recovery property pursuant to a final	8030
financing order as those terms are defined in section 4928.23 of	8031
the Revised Code. For purposes of this division, "securitization"	8032
means transferring one or more assets to one or more persons and	8033
then issuing securities backed by the right to receive payment	8034
from the asset or assets so transferred.	8035

(7) Except as otherwise provided in this division, a	8036
pre-income tax trust as defined in division (FF)(4) of section	8037
5747.01 of the Revised Code and any pass-through entity of which	8038
such pre-income tax trust owns or controls, directly, indirectly,	8039
or constructively through related interests, more than five per	8040
cent of the ownership or equity interests. If the pre-income tax	8041
trust has made a qualifying pre-income tax trust election under	8042
division (FF)(3) of section 5747.01 of the Revised Code, then the	8043
trust and the pass-through entities of which it owns or controls,	8044
directly, indirectly, or constructively through related interests,	8045
more than five per cent of the ownership or equity interests,	8046
shall not be excluded persons for purposes of the tax imposed	8047
under section 5751.02 of the Revised Code.	8048

(8) Nonprofit organizations or the state and its agencies,	8049
instrumentalities, or political subdivisions.	8050

(F) Except as otherwise provided in divisions (F)(2), (3),	8051
and (4) of this section, "gross receipts" means the total amount	8052
realized by a person, without deduction for the cost of goods sold	8053
or other expenses incurred, that contributes to the production of	8054
gross income of the person, including the fair market value of any	8055
property and any services received, and any debt transferred or	8056
forgiven as consideration.	8057

(1) The following are examples of gross receipts:

8058

(a) Amounts realized from the sale, exchange, or other	8059
disposition of the taxpayer's property to or with another;	8060

(b) Amounts realized from the taxpayer's performance of	8061
services for another;	8062

(c) Amounts realized from another's use or possession of the	8063
taxpayer's property or capital;	8064

(d) Any combination of the foregoing amounts.

8065

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

8066

(a) Interest income except interest on credit sales;

8067

(b) Dividends and distributions from corporations, and	8068
distributive or proportionate shares of receipts and income from a	8069
pass-through entity as defined under section 5733.04 of the	8070
Revised Code;	8071

(c) Receipts from the sale, exchange, or other disposition of	8072
an asset described in section 1221 or 1231 of the Internal Revenue	8073
Code, without regard to the length of time the person held the	8074
asset. Notwithstanding section 1221 of the Internal Revenue Code,	8075
receipts from hedging transactions also are excluded to the extent	8076
the transactions are entered into primarily to protect a financial	8077
position, such as managing the risk of exposure to (i) foreign	8078
currency fluctuations that affect assets, liabilities, profits,	8079
losses, equity, or investments in foreign operations; (ii)	8080
interest rate fluctuations; or (iii) commodity price fluctuations.	8081
As used in division (F)(2)(c) of this section, "hedging	8082
transaction" has the same meaning as used in section 1221 of the	8083
Internal Revenue Code and also includes transactions accorded	8084
hedge accounting treatment under statement of financial accounting	8085
standards number 133 of the financial accounting standards board.	8086
For the purposes of division (F)(2)(c) of this section, the actual	8087
transfer of title of real or tangible personal property to another	8088
entity is not a hedging transaction.	8089

(d) Proceeds received attributable to the repayment,	8090
maturity, or redemption of the principal of a loan, bond, mutual	8091
fund, certificate of deposit, or marketable instrument;	8092

(e) The principal amount received under a repurchase	8093
agreement or on account of any transaction properly characterized	8094
as a loan to the person;	8095

(f) Contributions received by a trust, plan, or other	8096
arrangement, any of which is described in section 501(a) of the	8097
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter	8098
1, Subchapter (D) of the Internal Revenue Code applies;	8099

(g) Compensation, whether current or deferred, and whether in	8100
cash or in kind, received or to be received by an employee, former	8101
employee, or the employee's legal successor for services rendered	8102
to or for an employer, including reimbursements received by or for	8103
an individual for medical or education expenses, health insurance	8104
premiums, or employee expenses, or on account of a dependent care	8105
spending account, legal services plan, any cafeteria plan	8106
described in section 125 of the Internal Revenue Code, or any	8107
similar employee reimbursement;	8108

(h) Proceeds received from the issuance of the taxpayer's own	8109
stock, options, warrants, puts, or calls, or from the sale of the	8110
taxpayer's treasury stock;	8111

(i) Proceeds received on the account of payments from	8112
insurance policies, except those proceeds received for the loss of	8113
business revenue;	8114

(j) Gifts or charitable contributions received; membership	8115
dues received by trade, professional, homeowners', or condominium	8116
associations; and payments received for educational courses,	8117
meetings, meals, or similar payments to a trade, professional, or	8118
other similar association; and fundraising receipts received by	8119
any person when any excess receipts are donated or used	8120
exclusively for charitable purposes;	8121

(k) Damages received as the result of litigation in excess of	8122
amounts that, if received without litigation, would be gross	8123
receipts;	8124

(l) Property, money, and other amounts received or acquired	8125
by an agent on behalf of another in excess of the agent's	8126
commission, fee, or other remuneration;	8127

(m) Tax refunds, other tax benefit recoveries, and	8128
reimbursements for the tax imposed under this chapter made by	8129
entities that are part of the same combined taxpayer or	8130
consolidated elected taxpayer group, and reimbursements made by	8131
entities that are not members of a combined taxpayer or	8132
consolidated elected taxpayer group that are required to be made	8133
for economic parity among multiple owners of an entity whose tax	8134
obligation under this chapter is required to be reported and paid	8135
entirely by one owner, pursuant to the requirements of sections	8136
5751.011 and 5751.012 of the Revised Code;	8137

(n) Pension reversions;

8138

(o) Contributions to capital;

8139

(p) Sales or use taxes collected as a vendor or an	8140
out-of-state seller on behalf of the taxing jurisdiction from a	8141
consumer or other taxes the taxpayer is required by law to collect	8142
directly from a purchaser and remit to a local, state, or federal	8143
tax authority;	8144

(q) In the case of receipts from the sale of cigarettes or	8145
tobacco products by a wholesale dealer, retail dealer,	8146
distributor, manufacturer, or seller, all as defined in section	8147
5743.01 of the Revised Code, an amount equal to the federal and	8148
state excise taxes paid by any person on or for such cigarettes or	8149
tobacco products under subtitle E of the Internal Revenue Code or	8150
Chapter 5743. of the Revised Code;	8151

(r) In the case of receipts from the sale of motor fuel by a	8152
licensed motor fuel dealer, licensed retail dealer, or licensed	8153
permissive motor fuel dealer, all as defined in section 5735.01 of	8154
the Revised Code, an amount equal to federal and state excise	8155
taxes paid by any person on such motor fuel under section 4081 of	8156
the Internal Revenue Code or Chapter 5735. of the Revised Code;	8157

(s) In the case of receipts from the sale of beer or	8158
intoxicating liquor, as defined in section 4301.01 of the Revised	8159
Code, by a person holding a permit issued under Chapter 4301. or	8160
4303. of the Revised Code, an amount equal to federal and state	8161
excise taxes paid by any person on or for such beer or	8162
intoxicating liquor under subtitle E of the Internal Revenue Code	8163
or Chapter 4301. or 4305. of the Revised Code;	8164

(t) Receipts realized by a new motor vehicle dealer or used	8165
motor vehicle dealer, as defined in section 4517.01 of the Revised	8166
Code, from the sale or other transfer of a motor vehicle, as	8167
defined in that section, to another motor vehicle dealer for the	8168
purpose of resale by the transferee motor vehicle dealer, but only	8169
if the sale or other transfer was based upon the transferee's need	8170
to meet a specific customer's preference for a motor vehicle;	8171

(u) Receipts from a financial institution described in	8172
division (E)(3) of this section for services provided to the	8173
financial institution in connection with the issuance, processing,	8174
servicing, and management of loans or credit accounts, if such	8175
financial institution and the recipient of such receipts have at	8176
least fifty per cent of their ownership interests owned or	8177
controlled, directly or constructively through related interests,	8178
by common owners;	8179

(v) Receipts realized from administering anti-neoplastic	8180
drugs and other cancer chemotherapy, biologicals, therapeutic	8181
agents, and supportive drugs in a physician's office to patients	8182
with cancer;	8183

(w) Funds received or used by a mortgage broker that is not a	8184
dealer in intangibles, other than fees or other consideration,	8185
pursuant to a table-funding mortgage loan or warehouse-lending	8186
mortgage loan. Terms used in division (F)(2)(w) of this section	8187
have the same meanings as in section 1322.01 of the Revised Code,	8188
except "mortgage broker" means a person assisting a buyer in	8189
obtaining a mortgage loan for a fee or other consideration paid by	8190
the buyer or a lender, or a person engaged in table-funding or	8191
warehouse-lending mortgage loans that are first lien mortgage	8192
loans.	8193

(x) Property, money, and other amounts received by a	8194
professional employer organization, as defined in section 4125.01	8195
of the Revised Code, from a client employer, as defined in that	8196
section, in excess of the administrative fee charged by the	8197
professional employer organization to the client employer;	8198

(y) In the case of amounts retained as commissions by a	8199
permit holder under Chapter 3769. of the Revised Code, an amount	8200
equal to the amounts specified under that chapter that must be	8201
paid to or collected by the tax commissioner as a tax and the	8202
amounts specified under that chapter to be used as purse money;	8203

(z) Qualifying distribution center receipts.

8204

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

8205

(I) "Qualifying distribution center receipts" means receipts	8206
of a supplier from qualified property that is delivered to a	8207
qualified distribution center, multiplied by a quantity that	8208
equals one minus the Ohio delivery percentage. If the qualified	8209
distribution center is a refining facility, "supplier" includes	8210
all dealers, brokers, processors, sellers, vendors, cosigners, and	8211
distributors of qualified property.	8212

(II) "Qualified property" means tangible personal property	8213
delivered to a qualified distribution center that is shipped to	8214
that qualified distribution center solely for further shipping by	8215
the qualified distribution center to another location in this	8216
state or elsewhere or, in the case of gold, silver, platinum, or	8217
palladium delivered to a refining facility solely for refining to	8218
a grade and fineness acceptable for delivery to a registered	8219
commodities exchange. "Further shipping" includes storing and	8220
repackaging property into smaller or larger bundles, so long as	8221
the property is not subject to further manufacturing or	8222
processing. "Refining" is limited to extracting impurities from	8223
gold, silver, platinum, or palladium through smelting or some	8224
other process at a refining facility.	8225

(III) "Qualified distribution center" means a warehouse, a	8226
facility similar to a warehouse, or a refining facility in this	8227
state that, for the qualifying year, is operated by a person that	8228
is not part of a combined taxpayer group and that has a qualifying	8229
certificate. All warehouses or facilities similar to warehouses	8230
that are operated by persons in the same taxpayer group and that	8231
are located within one mile of each other shall be treated as one	8232
qualified distribution center. All refining facilities that are	8233
operated by persons in the same taxpayer group and that are	8234
located in the same or adjacent counties may be treated as one	8235
qualified distribution center.	8236

(IV) "Qualifying year" means the calendar year to which the	8237
qualifying certificate applies.	8238

(V) "Qualifying period" means the period of the first day of	8239
July of the second year preceding the qualifying year through the	8240
thirtieth day of June of the year preceding the qualifying year.	8241

(VI) "Qualifying certificate" means the certificate issued by	8242
the tax commissioner after the operator of a distribution center	8243
files an annual application with the commissioner. The application	8244
and annual fee shall be filed and paid for each qualified	8245
distribution center on or before the first day of September before	8246
the qualifying year or within forty-five days after the	8247
distribution center opens, whichever is later.	8248

The applicant must substantiate to the commissioner's	8249
satisfaction that, for the qualifying period, all persons	8250
operating the distribution center have more than fifty per cent of	8251
the cost of the qualified property shipped to a location such that	8252
it would be sitused outside this state under the provisions of	8253
division (E) of section 5751.033 of the Revised Code. The	8254
applicant must also substantiate that the distribution center	8255
cumulatively had costs from its suppliers equal to or exceeding	8256
five hundred million dollars during the qualifying period. (For	8257
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"	8258
excludes any person that is part of the consolidated elected	8259
taxpayer group, if applicable, of the operator of the qualified	8260
distribution center.) The commissioner may require the applicant	8261
to have an independent certified public accountant certify that	8262
the calculation of the minimum thresholds required for a qualified	8263
distribution center by the operator of a distribution center has	8264
been made in accordance with generally accepted accounting	8265
principles. The commissioner shall issue or deny the issuance of a	8266
certificate within sixty days after the receipt of the	8267
application. A denial is subject to appeal under section 5717.02	8268
of the Revised Code. If the operator files a timely appeal under	8269
section 5717.02 of the Revised Code, the operator shall be granted	8270
a qualifying certificate, provided that the operator is liable for	8271
any tax, interest, or penalty upon amounts claimed as qualifying	8272
distribution center receipts, other than those receipts exempt	8273
under division (C)(1) of section 5751.011 of the Revised Code,	8274
that would have otherwise not been owed by its suppliers if the	8275
qualifying certificate was valid.	8276

(VII) "Ohio delivery percentage" means the proportion of the	8277
total property delivered to a destination inside Ohio from the	8278
qualified distribution center during the qualifying period	8279
compared with total deliveries from such distribution center	8280
everywhere during the qualifying period.	8281

(VIII) "Refining facility" means one or more buildings	8282
located in a county in the Appalachian region of this state as	8283
defined by section 107.21 of the Revised Code and utilized for	8284
refining or smelting gold, silver, platinum, or palladium to a	8285
grade and fineness acceptable for delivery to a registered	8286
commodities exchange.	8287

(IX) "Registered commodities exchange" means a board of	8288
trade, such as New York mercantile exchange, inc. or commodity	8289
exchange, inc., designated as a contract market by the commodity	8290
futures trading commission under the "Commodity Exchange Act," 7	8291
U.S.C. 1 et seq., as amended.	8292

(ii) If the distribution center is new and was not open for	8293
the entire qualifying period, the operator of the distribution	8294
center may request that the commissioner grant a qualifying	8295
certificate. If the certificate is granted and it is later	8296
determined that more than fifty per cent of the qualified property	8297
during that year was not shipped to a location such that it would	8298
be sitused outside of this state under the provisions of division	8299
(E) of section 5751.033 of the Revised Code or if it is later	8300
determined that the person that operates the distribution center	8301
had average monthly costs from its suppliers of less than forty	8302
million dollars during that year, then the operator of the	8303
distribution center shall be liable for any tax, interest, or	8304
penalty upon amounts claimed as qualifying distribution center	8305
receipts, other than those receipts exempt under division (C)(1)	8306
of section 5751.011 of the Revised Code, that would have not	8307
otherwise been owed by its suppliers during the qualifying year if	8308
the qualifying certificate was valid. (For purposes of division	8309
(F)(2)(z)(ii) of this section, "supplier" excludes any person that	8310
is part of the consolidated elected taxpayer group, if applicable,	8311
of the operator of the qualified distribution center.)	8312

(iii) When filing an application for a qualifying certificate	8313
under division (F)(2)(z)(i)(VI) of this section, the operator of a	8314
qualified distribution center also shall provide documentation, as	8315
the commissioner requires, for the commissioner to ascertain the	8316
Ohio delivery percentage. The commissioner, upon issuing the	8317
qualifying certificate, also shall certify the Ohio delivery	8318
percentage. The operator of the qualified distribution center may	8319
appeal the commissioner's certification of the Ohio delivery	8320
percentage in the same manner as an appeal is taken from the	8321
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)	8322
of this section.	8323

Within thirty days after all appeals have been exhausted, the	8324
operator of the qualified distribution center shall notify the	8325
affected suppliers of qualified property that such suppliers are	8326
required to file, within sixty days after receiving notice from	8327
the operator of the qualified distribution center, amended reports	8328
for the impacted calendar quarter or quarters or calendar year,	8329
whichever the case may be. Any additional tax liability or tax	8330
overpayment shall be subject to interest but shall not be subject	8331
to the imposition of any penalty so long as the amended returns	8332
are timely filed. The supplier of tangible personal property	8333
delivered to the qualified distribution center shall include in	8334
its report of taxable gross receipts the receipts from the total	8335
sales of property delivered to the qualified distribution center	8336
for the calendar quarter or calendar year, whichever the case may	8337
be, multiplied by the Ohio delivery percentage for the qualifying	8338
year. Nothing in division (F)(2)(z)(iii) of this section shall be	8339
construed as imposing liability on the operator of a qualified	8340
distribution center for the tax imposed by this chapter arising	8341
from any change to the Ohio delivery percentage.	8342

(iv) In the case where the distribution center is new and not	8343
open for the entire qualifying period, the operator shall make a	8344
good faith estimate of an Ohio delivery percentage for use by	8345
suppliers in their reports of taxable gross receipts for the	8346
remainder of the qualifying period. The operator of the facility	8347
shall disclose to the suppliers that such Ohio delivery percentage	8348
is an estimate and is subject to recalculation. By the due date of	8349
the next application for a qualifying certificate, the operator	8350
shall determine the actual Ohio delivery percentage for the	8351
estimated qualifying period and proceed as provided in division	8352
(F)(2)(z)(iii) of this section with respect to the calculation and	8353
recalculation of the Ohio delivery percentage. The supplier is	8354
required to file, within sixty days after receiving notice from	8355
the operator of the qualified distribution center, amended reports	8356
for the impacted calendar quarter or quarters or calendar year,	8357
whichever the case may be. Any additional tax liability or tax	8358
overpayment shall be subject to interest but shall not be subject	8359
to the imposition of any penalty so long as the amended returns	8360
are timely filed.	8361

(v) Qualifying certificates and Ohio delivery percentages	8362
issued by the commissioner shall be open to public inspection and	8363
shall be timely published by the commissioner. A supplier relying	8364
in good faith on a certificate issued under this division shall	8365
not be subject to tax on the qualifying distribution center	8366
receipts under division (F)(2)(z) of this section. A person	8367
receiving a qualifying certificate is responsible for paying the	8368
tax, interest, and penalty upon amounts claimed as qualifying	8369
distribution center receipts that would not otherwise have been	8370
owed by the supplier if the qualifying certificate were available	8371
when it is later determined that the qualifying certificate should	8372
not have been issued because the statutory requirements were in	8373
fact not met.	8374

(vi) The annual fee for a qualifying certificate shall be one	8375
hundred thousand dollars for each qualified distribution center.	8376
If a qualifying certificate is not issued, the annual fee is	8377
subject to refund after the exhaustion of all appeals provided for	8378
in division (F)(2)(z)(i)(VI) of this section. The fee imposed	8379
under this division may be assessed in the same manner as the tax	8380
imposed under this chapter. The first one hundred thousand dollars	8381
of the annual application fees collected each calendar year shall	8382
be credited to the revenue enhancement fund. The remainder of the	8383
annual application fees collected shall be distributed in the same	8384
manner required under section 5751.20 of the Revised Code.	8385

(vii) The tax commissioner may require that adequate security	8386
be posted by the operator of the distribution center on appeal	8387
when the commissioner disagrees that the applicant has met the	8388
minimum thresholds for a qualified distribution center as set	8389
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this	8390
section.	8391

(aa) Receipts of an employer from payroll deductions relating	8392
to the reimbursement of the employer for advancing moneys to an	8393
unrelated third party on an employee's behalf;	8394

(bb) Cash discounts allowed and taken;

8395

(cc) Returns and allowances;

8396

(dd) Bad debts from receipts on the basis of which the tax	8397
imposed by this chapter was paid in a prior quarterly tax payment	8398
period. For the purpose of this division, "bad debts" means any	8399
debts that have become worthless or uncollectible between the	8400
preceding and current quarterly tax payment periods, have been	8401
uncollected for at least six months, and that may be claimed as a	8402
deduction under section 166 of the Internal Revenue Code and the	8403
regulations adopted under that section, or that could be claimed	8404
as such if the taxpayer kept its accounts on the accrual basis.	8405
"Bad debts" does not include repossessed property, uncollectible	8406
amounts on property that remains in the possession of the taxpayer	8407
until the full purchase price is paid, or expenses in attempting	8408
to collect any account receivable or for any portion of the debt	8409
recovered;	8410

(ee) Any amount realized from the sale of an account	8411
receivable to the extent the receipts from the underlying	8412
transaction giving rise to the account receivable were included in	8413
the gross receipts of the taxpayer;	8414

(ff) Any receipts directly attributed to providing public	8415
services pursuant to sections 126.60 to 126.605 of the Revised	8416
Code, or any receipts directly attributed to a transfer agreement	8417
or to the enterprise transferred under that agreement under	8418
section 4313.02 of the Revised Code.	8419

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

8420

(I) "Qualified uranium receipts" means receipts from the	8421
sale, exchange, lease, loan, production, processing, or other	8422
disposition of uranium within a uranium enrichment zone certified	8423
by the tax commissioner under division (F)(2)(gg)(ii) of this	8424
section. "Qualified uranium receipts" does not include any	8425
receipts with a situs in this state outside a uranium enrichment	8426
zone certified by the tax commissioner under division	8427
(F)(2)(gg)(ii) of this section.	8428

(II) "Uranium enrichment zone" means all real property that	8429
is part of a uranium enrichment facility licensed by the United	8430
States nuclear regulatory commission and that was or is owned or	8431
controlled by the United States department of energy or its	8432
successor.	8433

(ii) Any person that owns, leases, or operates real or	8434
tangible personal property constituting or located within a	8435
uranium enrichment zone may apply to the tax commissioner to have	8436
the uranium enrichment zone certified for the purpose of excluding	8437
qualified uranium receipts under division (F)(2)(gg) of this	8438
section. The application shall include such information that the	8439
tax commissioner prescribes. Within sixty days after receiving the	8440
application, the tax commissioner shall certify the zone for that	8441
purpose if the commissioner determines that the property qualifies	8442
as a uranium enrichment zone as defined in division (F)(2)(gg) of	8443
this section, or, if the tax commissioner determines that the	8444
property does not qualify, the commissioner shall deny the	8445
application or request additional information from the applicant.	8446
If the tax commissioner denies an application, the commissioner	8447
shall state the reasons for the denial. The applicant may appeal	8448
the denial of an application to the board of tax appeals pursuant	8449
to section 5717.02 of the Revised Code. If the applicant files a	8450
timely appeal, the tax commissioner shall conditionally certify	8451
the applicant's property. The conditional certification shall	8452
expire when all of the applicant's appeals are exhausted. Until	8453
final resolution of the appeal, the applicant shall retain the	8454
applicant's records in accordance with section 5751.12 of the	8455
Revised Code, notwithstanding any time limit on the preservation	8456
of records under that section.	8457

(hh) Amounts realized by licensed motor fuel dealers or	8458
licensed permissive motor fuel dealers from the exchange of	8459
petroleum products, including motor fuel, between such dealers,	8460
provided that delivery of the petroleum products occurs at a	8461
refinery, terminal, pipeline, or marine vessel and that the	8462
exchanging dealers agree neither dealer shall require monetary	8463
compensation from the other for the value of the exchanged	8464
petroleum products other than such compensation for differences in	8465
product location or grade. Division (F)(2)(hh) of this section	8466
does not apply to amounts realized as a result of differences in	8467
location or grade of exchanged petroleum products or from	8468
handling, lubricity, dye, or other additive injections fees,	8469
pipeline security fees, or similar fees. As used in this division,	8470
"motor fuel," "licensed motor fuel dealer," "licensed permissive	8471
motor fuel dealer," and "terminal" have the same meanings as in	8472
section 5735.01 of the Revised Code.	8473

(ii) In the case of amounts collected by a licensed casino	8474
operator from casino gaming, amounts in excess of the casino	8475
operator's gross casino revenue. In this division, "casino	8476
operator" and "casino gaming" have the meanings defined in section	8477
3772.01 of the Revised Code, and "gross casino revenue" has the	8478
meaning defined in section 5753.01 of the Revised Code.	8479

(jj) Receipts realized by a qualifying landlord from the	8480
lease or rental of qualifying residential rental property during	8481
the first tax period in which the qualifying landlord received	8482
rental income from the property and, if the qualifying landlord is	8483
a calendar quarter taxpayer, during the nineteen succeeding tax	8484
periods or, if the qualifying landlord is a calendar year	8485
taxpayer, during the four succeeding tax periods. As used in this	8486
division, "qualifying landlord" and "qualifying residential rental	8487
property" have the same meanings as in division (A)(32) of section	8488
5747.01 of the Revised Code.	8489

(kk) Receipts realized from providing broadband service	8490
multiplied by a fraction, the numerator of which is the original	8491
cost of tangible personal property necessary for the provision of	8492
broadband service in rural areas of this state installed on or	8493
after the effective date of this amendment, and the denominator of	8494
which is the original cost of tangible personal property necessary	8495
for the provision of broadband service in this state on or after	8496
that date. An exclusion is not allowed under this division if the	8497
taxpayer claims a deduction under division (A)(10) or (S)(16) of	8498
section 5747.01 of the Revised Code for a taxable year that	8499
includes all or any part of the tax period. For the purposes of	8500
this division, "broadband service" and "rural area" have the same	8501
meanings as in 7 U.S.C. 950bb.	8502

(ll) Any receipts for which the tax imposed by this chapter	8503
is prohibited by the constitution or laws of the United States or	8504
the constitution of this state.	8505

(3) In the case of a taxpayer when acting as a real estate	8506
broker, "gross receipts" includes only the portion of any fee for	8507
the service of a real estate broker, or service of a real estate	8508
salesperson associated with that broker, that is retained by the	8509
broker and not paid to an associated real estate salesperson or	8510
another real estate broker. For the purposes of this division,	8511
"real estate broker" and "real estate salesperson" have the same	8512
meanings as in section 4735.01 of the Revised Code.	8513

(4) A taxpayer's method of accounting for gross receipts for	8514
a tax period shall be the same as the taxpayer's method of	8515
accounting for federal income tax purposes for the taxpayer's	8516
federal taxable year that includes the tax period. If a taxpayer's	8517
method of accounting for federal income tax purposes changes, its	8518
method of accounting for gross receipts under this chapter shall	8519
be changed accordingly.	8520

(G) "Taxable gross receipts" means gross receipts sitused to	8521
this state under section 5751.033 of the Revised Code.	8522

(H) A person has "substantial nexus with this state" if any	8523
of the following applies. The person:	8524

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

8525

(2) Holds a certificate of compliance with the laws of this	8526
state authorizing the person to do business in this state;	8527

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

8528

(4) Otherwise has nexus with this state to an extent that the	8529
person can be required to remit the tax imposed under this chapter	8530
under the Constitution of the United States.	8531

(I) A person has "bright-line presence" in this state for a	8532
reporting period and for the remaining portion of the calendar	8533
year if any of the following applies. The person:	8534

(1) Has at any time during the calendar year property in this	8535
state with an aggregate value of at least fifty thousand dollars.	8536
For the purpose of division (I)(1) of this section, owned property	8537
is valued at original cost and rented property is valued at eight	8538
times the net annual rental charge.	8539

(2) Has during the calendar year payroll in this state of at	8540
least fifty thousand dollars. Payroll in this state includes all	8541
of the following:	8542

(a) Any amount subject to withholding by the person under	8543
section 5747.06 of the Revised Code;	8544

(b) Any other amount the person pays as compensation to an	8545
individual under the supervision or control of the person for work	8546
done in this state; and	8547

(c) Any amount the person pays for services performed in this	8548
state on its behalf by another.	8549

(3) Has during the calendar year taxable gross receipts of at	8550
least five hundred thousand dollars.	8551

(4) Has at any time during the calendar year within this	8552
state at least twenty-five per cent of the person's total	8553
property, total payroll, or total gross receipts.	8554

(5) Is domiciled in this state as an individual or for	8555
corporate, commercial, or other business purposes.	8556

(J) "Tangible personal property" has the same meaning as in	8557
section 5739.01 of the Revised Code.	8558

(K) "Internal Revenue Code" means the Internal Revenue Code	8559
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in	8560
this chapter that is not otherwise defined has the same meaning as	8561
when used in a comparable context in the laws of the United States	8562
relating to federal income taxes unless a different meaning is	8563
clearly required. Any reference in this chapter to the Internal	8564
Revenue Code includes other laws of the United States relating to	8565
federal income taxes.	8566

(L) "Calendar quarter" means a three-month period ending on	8567
the thirty-first day of March, the thirtieth day of June, the	8568
thirtieth day of September, or the thirty-first day of December.	8569

(M) "Tax period" means the calendar quarter or calendar year	8570
on the basis of which a taxpayer is required to pay the tax	8571
imposed under this chapter.	8572

(N) "Calendar year taxpayer" means a taxpayer for which the	8573
tax period is a calendar year.	8574

(O) "Calendar quarter taxpayer" means a taxpayer for which	8575
the tax period is a calendar quarter.	8576

(P) "Agent" means a person authorized by another person to	8577
act on its behalf to undertake a transaction for the other,	8578
including any of the following:	8579

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

8580

(2) A person retaining only a commission from a transaction	8581
with the other proceeds from the transaction being remitted to	8582
another person;	8583

(3) A person issuing licenses and permits under section	8584
1533.13 of the Revised Code;	8585

(4) A lottery sales agent holding a valid license issued	8586
under section 3770.05 of the Revised Code;	8587

(5) A person acting as an agent of the division of liquor	8588
control under section 4301.17 of the Revised Code.	8589

(Q) "Received" includes amounts accrued under the accrual	8590
method of accounting.	8591

(R) "Reporting person" means a person in a consolidated	8592
elected taxpayer or combined taxpayer group that is designated by	8593
that group to legally bind the group for all filings and tax	8594
liabilities and to receive all legal notices with respect to	8595
matters under this chapter, or, for the purposes of section	8596
5751.04 of the Revised Code, a separate taxpayer that is not a	8597
member of such a group.	8598

Sec. 5751.55.  (A) As used in this section, "qualified	8599
unemployed individual," "qualified unemployed veteran," "qualified	8600
unemployed disabled veteran," and "credit period" have the same	8601
meanings as in section 5747.61 of the Revised Code.	8602

(B)(1) There is hereby allowed a nonrefundable credit against	8603
the tax imposed by section 5751.02 of the Revised Code for a	8604
taxpayer that meets all of the following criteria:	8605

(a) The taxpayer hires a qualified unemployed individual,	8606
qualified unemployed veteran, or qualified unemployed disabled	8607
veteran during the credit period;	8608

(b) The taxpayer deducts and withholds income tax from the	8609
compensation paid to the qualified unemployed individual,	8610
qualified unemployed veteran, or qualified unemployed disabled	8611
veteran and remits such amounts under sections 5747.06 and 5747.07	8612
of the Revised Code;	8613

(c) The taxpayer employs the qualified unemployed individual,	8614
qualified unemployed veteran, or qualified unemployed disabled	8615
veteran for a minimum of thirty-five hours per week for six	8616
consecutive months or, if the taxpayer terminates the qualified	8617
unemployed individual, qualified unemployed veteran, or qualified	8618
unemployed disabled veteran within the first six months of	8619
employment, the termination is for good cause.	8620

(2) The amount of the credit shall be as follows:

8621

(a) For the hiring of a qualified unemployed individual, one	8622
thousand five hundred dollars.	8623

(b) For the hiring of a qualified unemployed veteran, two	8624
thousand dollars.	8625

(c) For the hiring of a qualified unemployed disabled	8626
veteran, two thousand five hundred dollars.	8627

The credit shall be claimed with the annual return required	8628
under section 5751.051 of the Revised Code for the calendar year	8629
that includes the one hundred eightieth day after the qualified	8630
unemployed individual, qualified unemployed veteran, or qualified	8631
unemployed disabled veteran is hired or the date on which the	8632
qualified unemployed individual, qualified unemployed veteran, or	8633
qualified unemployed disabled veteran is terminated for good	8634
cause, whichever is earlier. The credit shall be claimed in the	8635
order required under section 5751.98 of the Revised Code. The	8636
amount of credit claimed may not exceed the tax otherwise due	8637
after allowing for all preceding credits in that order.	8638

A credit may be claimed under this section or section 5747.61	8639
of the Revised Code only once with respect to any particular	8640
qualified unemployed individual, qualified unemployed veteran, or	8641
qualified unemployed disabled veteran. A person that claims the	8642
credit under section 5747.61 of the Revised Code may not claim the	8643
credit under this section for the same qualified unemployed	8644
individual, qualified unemployed veteran, or qualified unemployed	8645
disabled veteran.	8646

(C) The tax commissioner may require a taxpayer to furnish	8647
any information necessary to support a claim for a credit under	8648
this section, and no credit shall be allowed unless such	8649
information is provided.	8650

Sec. 5751.98.  (A) To provide a uniform procedure for	8651
calculating the amount of tax due under this chapter, a taxpayer	8652
shall claim any credits to which it is entitled in the following	8653
order:	8654

(1) The nonrefundable jobs retention credit under division	8655
(B) of section 5751.50 of the Revised Code;	8656

(2) The nonrefundable credit for hiring a qualified	8657
unemployed individual, qualified unemployed veteran, or qualified	8658
unemployed disabled veteran under section 5751.55 of the Revised	8659
Code;	8660

(3) The nonrefundable credit for qualified research expenses	8661
under division (B) of section 5751.51 of the Revised Code;	8662

(3)(4) The nonrefundable credit for a borrower's qualified	8663
research and development loan payments under division (B) of	8664
section 5751.52 of the Revised Code;	8665

(4) The nonrefundable credit for calendar years 2010 to 2029	8666
for unused net operating losses under division (B) of section	8667
5751.53 of the Revised Code;	8668

(5) The refundable motion picture production credit under	8669
section 5751.54 of the Revised Code;	8670

(6) The refundable jobs creation credit or job retention	8671
credit under division (A) of section 5751.50 of the Revised Code;	8672

(7) The refundable credit for calendar year 2030 for unused	8673
net operating losses under division (C) of section 5751.53 of the	8674
Revised Code.	8675

(B) For any credit except the refundable credits enumerated	8676
in this section, the amount of the credit for a tax period shall	8677
not exceed the tax due after allowing for any other credit that	8678
precedes it in the order required under this section. Any excess	8679
amount of a particular credit may be carried forward if authorized	8680
under the section creating the credit.	8681

Sec. 6301.021.  The office of workforce development, under	8682
the department of job and family services, shall provide	8683
assistance to local workforce policy boards to do all of the	8684
following:	8685

(A) Work with entities as necessary to identify and track	8686
local skill shortages;	8687

(B) Work with community colleges and other educational	8688
agencies in the local area served by the board to develop	8689
curricula and programs to meet workforce demands, including	8690
industry-recognized credentialing;	8691

(C) Regularly and systematically interview employers in	8692
industries experiencing skill shortages to do both of the	8693
following:	8694

(1) Determine what skills are necessary for an individual to	8695
gain employment in the industry;	8696

(2) Quantify and describe those necessary skills to the	8697
extent possible.	8698

Sec. 6301.06.  (A) The chief elected officials of a local	8699
area shall create a workforce policy board, which shall consist of	8700
the following individuals:	8701

(1) The chief elected official from the municipal corporation	8702
with the largest population in the local area, except that if the	8703
municipal corporation is a local area as defined in division	8704
(A)(1) of section 6301.01 of the Revised Code, the chief elected	8705
official of that municipal corporation may determine whether to be	8706
a member of the board. Notwithstanding division (B) of section	8707
6301.01 of the Revised Code, as used in division (A)(1) of this	8708
section, "municipal corporation" means any municipal corporation.	8709

(2) The following individuals appointed to the board by the	8710
chief elected officials of the local area, who shall make those	8711
appointments according to all of the following specifications:	8712

(a) At least five members of the board shall be	8713
representatives of private sector businesses in the general labor	8714
market area that includes that local area, and shall be appointed	8715
from among individuals nominated by local business organizations	8716
and business trade associations. Among these members, at least one	8717
shall represent small businesses, at least one shall represent	8718
medium-sized businesses, and at least one shall represent large	8719
businesses. When determining what constitutes small, medium-sized,	8720
and large businesses for purposes of this division, the chief	8721
elected officials of the local area shall define those sizes as	8722
those sizes are generally understood within the labor market area	8723
that includes that local area. A majority of the members of the	8724
board shall be representatives of private sector businesses.	8725

(b) At least two members of the board shall represent	8726
organized labor and shall be appointed from nominations submitted	8727
by local federations of labor representing workers employed in the	8728
local area.	8729

(c) At least two members of the board shall be	8730
representatives of local educational entities. For purposes of	8731
this division, "local educational entities" includes local	8732
educational agencies, school district boards of education,	8733
entities providing educational and literacy activities, and	8734
post-secondary educational institutions.	8735

(d)(i) At least one member shall be a representative of a	8736
community college or university branch that is located within the	8737
local area served by the board.	8738

(ii) A chief elected official is exempted from the	8739
requirement of division (A)(2)(d)(i) of this section if no	8740
community college or university branch is located within the local	8741
area served by the board.	8742

(e) At least one member of the board shall be a	8743
representative of consumers of workforce development activities.	8744

(e)(f) Any other individuals the chief elected officials of	8745
the local area determine are necessary.	8746

(B) Members of the board serve at the pleasure of the chief	8747
elected officials of the local area. Members shall not be	8748
compensated but may be reimbursed for actual, reasonable, and	8749
necessary expenses incurred in the performance of their duties as	8750
board members. Those expenses shall be paid from funds allocated	8751
pursuant to section 6301.03 of the Revised Code.	8752

The chief elected officials of a local area may provide	8753
office space, staff, or other administrative support as needed to	8754
the board. For purposes of section 102.02 of the Revised Code,	8755
members of the board are not public officials or employees.	8756

(C) The chief elected officials of a local area other than a	8757
local area as defined in division (A)(1) of section 6301.01 of the	8758
Revised Code, shall coordinate the workforce development	8759
activities of the county family services planning committees and	8760
the workforce policy boards in the local area in any manner that	8761
is efficient and effective to meet the needs of the local area.	8762
The chief elected officials of the local area may, but are not	8763
required to, consolidate all boards and committees as they	8764
determine appropriate into a single board for purposes of	8765
workforce development activities. A majority of the members of	8766
that consolidated board shall represent private sector businesses.	8767
The membership of that consolidated board shall include a	8768
representative from each group granted representation as described	8769
in division (A) of this section and also a member who represents	8770
consumers of family services and a member who represents the	8771
county department of job and family services. The membership of	8772
that consolidated board may include a representative of one or	8773
more groups and entities that may be represented on a county	8774
family services planning committee, as specified in section 329.06	8775
of the Revised Code.	8776

Sec. 6303.01.  (A) As used in this section:

8777

(1) "Eligible youth" means an individual eighteen to	8778
twenty-four years of age who fulfills either of the following:	8779

(a) The individual is not enrolled in secondary or	8780
post-secondary school.	8781

(b) The individual is or has been subject to any stage of the	8782
criminal justice process.	8783

(2) "Recidivism" means a tendency to return to criminal	8784
behavior.	8785

(3) "Unsubsidized job" means an employment position with an	8786
employer who fulfills both of the following:	8787

(a) The employer pays the wages for the position.

8788

(b) The employer does not receive public funds for the	8789
creation and maintenance of the employment position.	8790

(B) The director of job and family services may adopt rules	8791
to make grants, on a competitive basis, to nonprofit organizations	8792
for the purpose of carrying out urban jobs programs that provide a	8793
comprehensive set of services to eligible youth in urban	8794
communities to provide such youth with a pathway to employment, or	8795
education leading to employment.	8796

(C) To be eligible to receive a grant under this section, a	8797
nonprofit organization shall submit an application at such time,	8798
in such manner, and accompanied by such information as the	8799
director may require in rules the director adopts under division	8800
(B) of this section.	8801

(D) The director shall require, in the rules the director	8802
adopts pursuant to division (B) of this section, that the	8803
application contain all of the following:	8804

(1) A request for the grant, specifying the amount of the	8805
grant requested and proposed uses of the grant funds;	8806

(2) A description of how the nonprofit organization will	8807
fulfill, for participants in the urban jobs program, goals	8808
consisting of all of the following:	8809

(a) Increased long-term employment in unsubsidized jobs;

8810

(b) Reduced recidivism;

8811

(c) Increased attainment of a certificate of high school	8812
equivalence or other recognized equivalent of a high school	8813
diploma;	8814

(d) Improved literacy and numeracy;

8815

(e) Increased attainment of industry-recognized certificates	8816
or credentials, or preparation for entry into an institution of	8817
higher education without need for further remediation.	8818

(3) A description of underlying supports for the program,	8819
including all of the following:	8820

(a) Engaged community partners;

8821

(b) Staff expertise in youth development;

8822

(c) Demonstrated understanding of youth characteristics.

8823

(4) A description of how the program will enable program	8824
participants to achieve outcomes consisting of all of the	8825
following:	8826

(a) Creation of caring relationships with peers and staff;

8827

(b) Creation of goals, such as the attainment described in	8828
division (D)(2)(c) of this section, attainment of employment,	8829
admission to or completion of a degree at an institution of higher	8830
education, attainment of industry-recognized certificates or	8831
credentials, or preparation for entry into an institution of	8832
higher education without need for further remediation;	8833

(c) Participation in opportunities to contribute to the	8834
community through service or volunteerism;	8835

(d) Development of twenty-first century workplace skills,	8836
including critical thinking and collaboration;	8837

(e) Development of a sense of responsibility for the future	8838
of an individual;	8839

(f) Development of plans or strategies to meet the goals of	8840
an individual;	8841

(g) Reduction of risk-taking behaviors;

8842

(h) Achievement of improved educational outcomes, such as	8843
numeracy, literacy, or the attainment described in division	8844
(D)(2)(c) of this section;	8845

(i) Achievement of improved employment outcomes;

8846

(j) Reduction of recidivism.

8847

(5) A description of activities to be provided through the	8848
urban jobs program that lead to the attainment of	8849
industry-recognized certificates or credentials described in	8850
division (E) of this section.	8851

(E) A nonprofit organization that receives a grant under this	8852
section shall use the funds made available through the grant to	8853
carry out an urban jobs program, which shall include the following	8854
comprehensive set of services:	8855

(1) Case management, through an individual responsible for	8856
helping participants navigate the urban jobs program activities;	8857

(2) Educational services, including skill assessment, reading	8858
and math remediation, educational enrichment, services involving	8859
preparation for and opportunities for attainment of the recognized	8860
equivalent of a high school diploma, services that connect to	8861
career pathways such as opportunities for attainment of	8862
industry-recognized certificates or credentials or for preparation	8863
for entry into an institution of higher education without the need	8864
for further remediation, and postsecondary education;	8865

(3) Employment and job readiness activities, including	8866
mentoring, community service opportunities, internships,	8867
on-the-job training, occupational skills training, personal	8868
development, and unsubsidized jobs;	8869

(4) Support services, health and nutrition service referral,	8870
substance abuse counseling and treatment, and provision of housing	8871
assistance, interpersonal and basic living skills, and	8872
transportation, child care, clothing, and other assistance as	8873
needed.	8874

Sec. 6303.02.  (A) As used in this section, "eligible youth"	8875
means an individual who is at least sixteen years of age but not	8876
more than twenty-one years of age and who resides in an area of	8877
high poverty.	8878

(B) The director of job and family services shall adopt rules	8879
to create a program to award competitive grants to nonprofit or	8880
for-profit organizations, or coalitions thereof, to fund programs	8881
that provide summer employment opportunities for eligible youth in	8882
this state. The director shall require any recipient of a grant	8883
under this section to provide matching funds in an amount equal to	8884
at least twenty per cent of the amount of the grant.	8885

Section 2. That existing sections 122.075, 122.71, 122.72,	8886
122.74, 122.75, 122.87, 122.88, 122.89, 122.90, 125.831, 169.05,	8887
4141.01, 4141.09, 4141.241, 4141.29, 4141.291, 4141.293, 4301.20,	8888
5733.01, 5733.98, 5739.01, 5739.02, 5739.025, 5747.01, 5747.98,	8889
5751.01, 5751.98, and 6301.06 and sections 901.13, 5733.46,	8890
5733.48, 5747.28, 5747.29, 5747.70, 5747.75, 5747.77, and	8891
5751.53 of the Revised Code are hereby repealed.	8892

Section 3.  Except as otherwise provided by this act, all	8893
appropriation items in this act are hereby appropriated as	8894
designated out of any moneys in the state treasury to the credit	8895
of the General Revenue Fund and the State Special Revenue Fund	8896
Group. For all appropriations made in this act, those in the first	8897
column are for fiscal year 2014 and those in the second column are	8898
for fiscal year 2015. The appropriations made in Sections 4 to 12	8899
of this act are in addition to any other appropriations made for	8900
the FY 2014-FY 2015 biennium.	8901

Appropriations

Section 4. DEV DEVELOPMENT SERVICES AGENCY

8902

General Revenue Fund	8903

GRF	195529		Neighborhood Revitalization Block Grants		$	70,000,000		$	0		8904
TOTAL GRF General Revenue Fund					$	70,000,000		$	0		8905

State Special Revenue Fund Group	8906

5KS0	195666		Small Business Revolving Microloans		$	40,000,000		$	0		8907
TOTAL SSR State Special Revenue Fund Group					$	40,000,000		$	0		8908
TOTAL ALL BUDGET FUND GROUPS					$	110,000,000		$	0		8909

NEIGHBORHOOD REVITALIZATION BLOCK GRANTS

8910

The foregoing appropriation item 195529, Neighborhood	8911
Revitalization Block Grants, shall be used to provide block grants	8912
to counties for eligible revitalization purposes as set forth in	8913
this section. A county receiving funds shall make awards to	8914
political subdivisions, nonprofit organizations, or for-profit	8915
organizations for the following purposes:	8916

(A) Providing capital infusions to county land banks;

8917

(B) Rehabilitating, rebuilding, or repurposing distressed	8918
commercial and residential real estate, with special emphasis on	8919
using local sources of labor;	8920

(C) Creating property maintenance programs to mitigate	8921
visible scars left by foreclosure and abandonment, with special	8922
emphasis on using local sources of labor and providing youth	8923
employment.	8924

SMALL BUSINESS REVOLVING MICROLOANS

8925

On the effective date of this section, or as soon as possible	8926
thereafter, the Director of Budget and Management shall transfer	8927
$40,000,000 cash from the General Revenue Fund to the Microloan	8928
Revolving Fund (Fund 5KS0). The foregoing appropriation item	8929
195666, Small Business Revolving Microloans, shall be used for the	8930
purposes of section 122.084 of the Revised Code.	8931

Section 5. Notwithstanding section 122.658 of the Revised	8932
Code, on the effective date of this section, or as soon as	8933
possible thereafter, the Director of Budget and Management shall	8934
transfer $30,000,000 cash from the General Revenue Fund to the	8935
Clean Ohio Revitalization Fund (Fund 7003). The amount transferred	8936
is hereby appropriated for fiscal year 2014 in appropriation item	8937
C19500, Clean Ohio Revitalization, for the purposes of the Clean	8938
Ohio Revitalization Program.	8939

Appropriations

Section 6. PWC PUBLIC WORKS COMMISSION

8940

State Special Revenue Fund Group	8941

5KV0	150601		Infrastructure Development Loans		$	40,000,000		$	0		8942
TOTAL SSR State Special Revenue Fund Group					$	40,000,000		$	0		8943
TOTAL ALL BUDGET FUND GROUPS					$	40,000,000		$	0		8944

INFRASTRUCTURE DEVELOPMENT LOANS

8945

On the effective date of this section, or as soon as possible	8946
thereafter, the Director of Budget and Management shall transfer	8947
$40,000,000 cash from the General Revenue Fund to the	8948
Infrastructure Development Loan Fund (Fund 5KV0), which is hereby	8949
created in the state treasury. The foregoing appropriation item	8950
150601, Infrastructure Development Loans, shall be used in	8951
accordance with the remainder of this section.	8952

As used in the following paragraph, "local subdivision,"	8953
"capital improvement project," and "costs of capital improvement	8954
project" have the same meanings as in section 164.01 of the	8955
Revised Code.	8956

Money to the credit of the Infrastructure Development Loan	8957
Fund (Fund 5KV0) shall be provided as loans or grants to local	8958
subdivisions solely for the costs of capital improvement projects	8959
undertaken within the territory of the subdivision. Loans or	8960
grants shall be made by the Public Works Commission on a	8961
competitive basis and upon application by local subdivisions in a	8962
manner to be prescribed by the Commission. A local subdivision	8963
receiving a loan or grant under this section may use the proceeds	8964
of its loan or grant to satisfy any requirement to provide a	8965
matching contribution to draw federal funds either directly or	8966
through the state. Loans shall be made according to terms	8967
established by the Commission. All loan repayments, including	8968
principal and interest, shall be credited to the Infrastructure	8969
Development Loan Fund (Fund 5KV0) and made available for further	8970
lending under this section. Any county, township, or municipal	8971
corporation receiving a loan under this division shall agree, as a	8972
condition for receiving a loan, to adopt one or more resolutions	8973
or ordinances under section 5709.40, 5709.73, or 5709.78 of the	8974
Revised Code declaring improvements that benefit from the projects	8975
financed by the loan to be exempted from taxation under that	8976
section, and requiring the owners of such improvements to make	8977
payments in lieu of taxes as provided in section 5709.42, 5709.74,	8978
or 5709.79 of the Revised Code. The payments in lieu of taxes	8979
shall be used to repay the loan to the extent of the loan amount,	8980
notwithstanding those sections.	8981

Appropriations

Section 7. EDU DEPARTMENT OF EDUCATION

8982

General Revenue Fund	8983

GRF	200545		Career-Technical Enhancements		$	19,000,000		$	0		8984
GRF	200550		Foundation Funding		$	50,000,000		$	0		8985
TOTAL GRF General Revenue Fund					$	69,000,000		$	0		8986
TOTAL ALL BUDGET FUND GROUPS					$	69,000,000		$	0		8987

CAREER-TECHNICAL EDUCATION ENHANCEMENTS

8988

The foregoing appropriation item 200545, Career-Technical	8989
Education Enhancements, shall be used to support the High School	8990
Job Training Grants Program. The High School Job Training Grants	8991
Program shall provide grants to school districts and community	8992
colleges partnering with sponsoring local employers to create or	8993
strengthen 11th and 12th grade career-technical job training	8994
programs. Sponsoring employers shall be involved in the design of	8995
the career-technical job training curricula and classroom	8996
education. Sponsoring employers and school district administrators	8997
shall ensure that the career-technical job training curricula	8998
includes the development of skills that are transferable to the	8999
workplace and on the job experience with the sponsoring employer.	9000
The Superintendent of Public Instruction shall administer the High	9001
School Job Training Grants Program and shall establish a method of	9002
awarding grants to school districts and community colleges.	9003
Sponsoring employers must match at least 25 per cent of awarded	9004
grant amounts.	9005

Appropriations

Section 8. JFS DEPARTMENT OF JOB AND FAMILY SERVICES

9006

General Revenue Fund	9007

GRF	600536		Youth Employment Programs		$	17,000,000		$	0		9008
TOTAL GRF General Revenue Fund					$	17,000,000		$	0		9009
TOTAL ALL BUDGET FUND GROUPS					$	17,000,000		$	0		9010

YOUTH EMPLOYMENT PROGRAMS

9011

Of the foregoing appropriation item 600536, Youth Employment	9012
Programs, $12,000,000 in fiscal year 2014 shall be used to provide	9013
services to urban youth in accordance with section 6303.01 of the	9014
Revised Code and $5,000,000 in fiscal year 2014 shall be used to	9015
provide summer employment opportunities for youth in accordance	9016
with section 6303.02 of the Revised Code.	9017

Appropriations

Section 9. BOR BOARD OF REGENTS

9018

General Revenue Fund	9019

GRF	235551		Workforce Realignment Program		$	45,000,000		$	0		9020
GRF	235598		Ohio Skills Bank Grant		$	9,000,000		$	0		9021
TOTAL GRF General Revenue Fund					$	54,000,000		$	0		9022
TOTAL ALL BUDGET FUND GROUPS					$	54,000,000		$	0		9023

WORKFORCE REALIGNMENT PROGRAM

9024

The foregoing appropriation item, 235551, Workforce	9025
Realignment Program, shall be used to support the Workforce	9026
Realignment Program in fiscal year 2014. The Workforce Realignment	9027
Program shall provide scholarships and grants that assist	9028
unemployed individuals in obtaining the necessary	9029
industry-recognized credentials to find employment in high-growth	9030
fields. The Chancellor of the Board of Regents shall administer	9031
the Workforce Realignment Program and shall establish a method of	9032
awarding scholarships to individuals who have remained unemployed	9033
for six consecutive months or longer. The Chancellor's method of	9034
awarding scholarships shall target community colleges,	9035
career-technical schools, and other institutions that offer	9036
degrees or certificates in two years or fewer.	9037

OHIO SKILLS BANK GRANT

9038

The foregoing appropriation item, 235598, Ohio Skills Bank	9039
Grant, shall be used to support the activities of the Ohio Skills	9040
Bank Grant Program in fiscal year 2014. The Ohio Skills Bank Grant	9041
Program shall provide competitive grants to partnerships and	9042
coalitions between institutions of higher education and industry	9043
actors. The Chancellor of the Board of Regents shall establish a	9044
method of awarding grants to partnerships and coalitions that	9045
identify and mitigate critical skill shortages within targeted	9046
industries and facilitate worker training opportunities. Recipient	9047
partnerships and coalitions shall obtain matching private sector	9048
funding equal to 25% of grant amounts.	9049

Appropriations

Section 10. SFC SCHOOL FACILITIES COMMISSION

9050

General Revenue Fund	9051

GRF	230525		Energy Efficiency Grants		$	30,000,000		$	0		9052
TOTAL GRF General Revenue Fund					$	30,000,000		$	0		9053
TOTAL ALL BUDGET FUND GROUPS					$	30,000,000		$	0		9054

ENERGY EFFICIENCY GRANTS

9055

The foregoing appropriation item 230525, Energy Efficiency	9056
Grants, shall be used for grants to assist schools in becoming	9057
more energy efficient.	9058

Section 11. Within the limits set forth in this act, the	9059
Director of Budget and Management shall establish accounts	9060
indicating the source and amount of funds for each appropriation	9061
made in this act, and shall determine the form and manner in which	9062
appropriation accounts shall be maintained. Expenditures from	9063
appropriations contained in this act shall be accounted for as	9064
though made in the main operating appropriations act of the 130th	9065
General Assembly.	9066

The appropriations made in this act are subject to all	9067
provisions of main operating appropriations act of the 130th	9068
General Assembly that are generally applicable to such	9069
appropriations.	9070

Section 12. In addition to other amounts to be credited to	9071
the Local Government Fund, the Director of Budget and Management	9072
shall credit from the General Revenue Fund to the Local Government	9073
Fund $50,000,000 as soon as possible in fiscal year 2014. The	9074
additional $50,000,000 in the Local Government Fund is hereby	9075
appropriated.	9076

Section 13.  Sections 3 to 12 of this act, and the items of	9077
law of which they are composed, are not subject to the referendum	9078
because they are or relate to an appropriation for current	9079
expenses within the meaning of Ohio Constitution, Article II,	9080
Section 1d and section 1.471 of the Revised Code and, therefore,	9081
go into immediate effect when this act becomes law.	9082

Section 14. (A) TRANSFER TO GRF FROM BUDGET STABILIZATION	9083
FUND	9084

Notwithstanding sections 131.43 and 131.44 of the Revised	9085
Code, on the effective date of this section, or as soon as	9086
possible thereafter, the Director of Budget and Management shall	9087
transfer $240,000,000 cash from the Budget Stabilization Fund	9088
(Fund 7013) to the General Revenue Fund.	9089

(B) CASH TRANSFER FROM THE ECONOMIC DEVELOPMENT PROGRAMS FUND	9090
TO THE GRF	9091

As soon as possible in fiscal year 2014, the Director of	9092
Budget and Management shall transfer up to $90,000,000 in cash	9093
from the Economic Development Programs Fund (Fund 5JC0) created in	9094
section 3772.17 of the Revised Code to the GRF. Amounts	9095
transferred to the GRF shall be used for various workforce	9096
development initiatives in this act.	9097

(C) TRANSFERS OF UNCLAIMED FUNDS TO GRF

9098

Notwithstanding division (A) of section 169.05 of the Revised	9099
Code, prior to June 30, 2014, and upon the request of the Director	9100
of Budget and Management, the Director of Commerce shall transfer	9101
to the General Revenue Fund $27,250,000 of unclaimed funds that	9102
have been reported by holders of unclaimed funds under section	9103
169.05 of the Revised Code, irrespective of the allocation of the	9104
unclaimed funds under that section.	9105

Notwithstanding division (A) of section 169.05 of the Revised	9106
Code, prior to June 30, 2015, and upon the request of the Director	9107
of Budget and Management, the Director of Commerce shall transfer	9108
to the General Revenue Fund $27,250,000 of unclaimed funds that	9109
have been reported by holders of unclaimed funds under section	9110
169.05 of the Revised Code, irrespective of the allocation of the	9111
unclaimed funds under that section.	9112

The transfers of unclaimed funds made pursuant to this act	9113
are in addition to any other transfers of unclaimed funds	9114
authorized for the FY 2014-FY 2015 biennium.	9115

Section 15.01.  As used in this section:

9116

(A) "Local chief elected official" means the chief elected	9117
executive officer of a unit of local government in a local	9118
workforce investment area or in the case where there is more than	9119
one unit of general government, the individuals designated under	9120
an agreement described in section 117(c)(1)(B) of the "Workforce	9121
Investment Act of 1998," 112 Stat. 936, 29 U.S.C. 2801, as	9122
amended.	9123

(B) "Local workforce investment area" means such area	9124
designated under section 116 of the "Workforce Investment Act of	9125
1998," 112 Stat. 936, 29 U.S.C. 2801, as amended.	9126

(C) "Local workforce investment board" means such board	9127
established under section 117 of the "Workforce Investment Act of	9128
1998," 112 Stat. 936, 29 U.S.C. 2801, as amended.	9129

(D) "Low-income youth" means an individual who is aged	9130
sixteen through twenty-four, is in one or more of the categories	9131
specified in section 101(13)(C) of the "Workforce Investment Act	9132
of 1998," 112 Stat. 936, 29 U.S.C. 2801, as amended, and meets the	9133
definition of a low-income individual provided in section 101(25)	9134
of the "Workforce Investment Act of 1998," 112 Stat. 936, 29	9135
U.S.C. 2801, as amended, except that local workforce investment	9136
areas and eligible entities subject to approval in the applicable	9137
local plans and applications for funds may increase the income	9138
level specified in subparagraph (B)(i) of that section to an	9139
amount not in excess of two hundred per cent of the poverty line	9140
for purposes of determining eligibility for participation in	9141
activities under Sections 15.05 and 15.06 of this act.	9142

(E) "Unemployed, low-income adult" means an individual who	9143
fulfills all of the following:	9144

(1) Is age eighteen or older;

9145

(2) Is without employment and is seeking assistance under	9146
this chapter to obtain employment;	9147

(3) Meets the definition of a "low-income individual" under	9148
section 101(25) of the "Workforce Investment Act of 1998," 112	9149
Stat. 936, 29 U.S.C. 2801, as amended, except that for local	9150
entities and eligible entities, subject to approval in the	9151
applicable local plans and applications for funds, may increase	9152
the income level specified in subparagraph (B)(i) of that section	9153
to an amount not in excess of two hundred per cent of the poverty	9154
line for purposes of determining eligibility for participation in	9155
activities under Sections 15.04 and 15.06 of this act.	9156

Section 15.02.  There is hereby created in the state treasury	9157
the Pathways Back to Work Fund. All moneys that are deposited or	9158
paid into this fund are available to the Director of Job and	9159
Family Services only for the administration of Sections 15.01 to	9160
15.07 of this act. All moneys in this fund that are received from	9161
the United States or any agency thereof or that are appropriated	9162
by this state shall be expended solely for the purposes of the	9163
proper and efficient administration of those sections. The fund	9164
shall consist of all moneys appropriated by this state, and all	9165
moneys received from the United States or any agency thereof for	9166
such purpose. All moneys in this fund shall be deposited,	9167
administered, and disbursed in the same manner and under the same	9168
conditions and requirements as are other special funds in the	9169
state treasury. The Treasurer of State is liable on the Treasurer	9170
of State's official bond for the faithful performance of the	9171
Treasurer of State's duties in connection with this fund. Any	9172
balances in this fund shall not lapse at any time, but shall be	9173
continuously available to the Director for expenditure.	9174

Section 15.03.  Of the funds available in the Pathways Back	9175
to Work Fund under Section 15.02 of this act, the Director of Job	9176
and Family Services shall do all of the following:	9177

(A) Provide subsidized employment to unemployed and	9178
low-income adults under Section 15.04 of this act;	9179

(B) Provide summer and year-round employment opportunities to	9180
low-income youth under Section 15.05 of this act;	9181

(C) Provide competitive grants to local entities to carry out	9182
work-based training and other work-related and educational	9183
strategies and activities of demonstrated effectiveness to	9184
unemployed, low-income adults and low-income youth to provide the	9185
skills and assistance needed to obtain employment under Section	9186
15.06 of this act.	9187

Section 15.04.  (A) From the Pathways Back to Work Fund, the	9188
Director of Job and Family Services shall make a grant to each	9189
local workforce investment board that has a plan approved under	9190
division (C) of this section for the purpose of providing	9191
subsidized employment opportunities to unemployed, low-income	9192
adults.	9193

(B) Not later than thirty days after the effective date of	9194
this section, the Director shall adopt rules regarding the	9195
implementation of this section. The rules shall, consistent with	9196
this section, include procedures for the submission and approval	9197
of plans and the grant of funds that promote the expeditious and	9198
effective implementation of the activities authorized under this	9199
section.	9200

(C) For a board to be eligible to receive a grant of the	9201
funds under division (A) of this section, the board shall submit	9202
to the Director a plan in such form and containing such	9203
information as the Director may require. At a minimum, such plan	9204
shall include all of the following:	9205

(1) A description of the strategies and activities to be	9206
carried out by the board, in coordination with employers in the	9207
state, to provide subsidized employment opportunities to	9208
unemployed, low-income adults, including strategies relating to	9209
the level and duration of subsidies;	9210

(2) A description of the requirements the board will apply	9211
relating to the eligibility of unemployed, low-income adults for	9212
subsidized employment opportunities, which may include criteria to	9213
target assistance to particular categories of such adults, such as	9214
individuals with disabilities or individuals who have exhausted	9215
all rights to unemployment compensation;	9216

(3) A description of how the funds granted to provide	9217
subsidized employment opportunities will be administered by the	9218
board;	9219

(4) A description of the performance outcomes to be achieved	9220
by the board through the activities carried out under this section	9221
and the processes the board will use to track performance,	9222
consistent with rules adopted by the Director regarding such	9223
outcomes and processes;	9224

(5) A description of the coordination of activities to be	9225
carried out with the grant provided under this section with	9226
activities under Title I of the "Workforce Investment Act of	9227
1998," 112 Stat. 936, 29 U.S.C. 2801, as amended, the temporary	9228
assistance for needy families program under Part A of Title IV of	9229
the "Social Security Act," 110 Stat. 2113 (1996), 42 U.S.C. 601,	9230
as amended, and other appropriate federal and state programs that	9231
may assist unemployed, low-income adults in obtaining and	9232
retaining employment;	9233

(6) A description of the timelines for implementation of the	9234
activities and the number of unemployed, low-income adults	9235
expected to be placed in subsidized employment by quarter;	9236

(7) Assurances that the board will report such information as	9237
the Director may require relating to fiscal, performance, and	9238
other matters that the Director determines is necessary to	9239
effectively monitor the activities carried out under this section;	9240

(8) Assurances that the board will ensure compliance with the	9241
labor standards and protections described in Section 15.07 of this	9242
act.	9243

(D) The board shall submit a plan to the Director not later	9244
than thirty days after the effective date of this section and the	9245
Director shall make a determination regarding the approval or	9246
disapproval of such plans not later than thirty days after the	9247
submission of such plan. If the plan is disapproved, the Director	9248
may provide a reasonable period of time in which a disapproved	9249
plan may be amended and resubmitted for approval.	9250

(E) The Director shall approve a plan that the Director	9251
determines is consistent with requirements of this section and	9252
reasonably appropriate and adequate to carry out the purposes of	9253
this section. If the plan is approved, the Director shall grant	9254
funds to the board within thirty days after such approval.	9255

(F) The board may submit a modification to a plan consistent	9256
with the requirements of this section.	9257

(G) The funds granted under this section shall be used to	9258
provide subsidized employment for unemployed, low-income adults.	9259
The board may use a variety of strategies in recruiting employers	9260
and identifying appropriate employment opportunities, with a	9261
priority to be provided to employment opportunities likely to lead	9262
to unsubsidized employment in emerging or in-demand occupations in	9263
the local area. Funds under this section may be used to provide	9264
support services, such as transportation and child care, that are	9265
necessary to enable the participation of individuals in subsidized	9266
employment opportunities.	9267

(H) The board may determine the percentage of the wages and	9268
costs of employing a participant for which an employer may receive	9269
a subsidy with the funds provided under this section, and the	9270
duration of such subsidy, in accordance with guidance issued by	9271
the Director. The board may establish criteria for determining	9272
such percentage or duration using appropriate factors such as the	9273
size of the employer and types of employment.	9274

Section 15.05.  (A) From the Pathways Back to Work Fund, the	9275
Director of Job and Family Services shall make a grant to each	9276
local workforce investment board that has a plan that meets the	9277
requirements of this section for the purpose of providing summer	9278
employment and year-round employment opportunities to low-income	9279
youth.	9280

(B) Not later than twenty days after the effective date of	9281
this section, the Director shall adopt rules regarding the	9282
implementation of this section. The rules shall, consistent with	9283
this section, include procedures for the submission and approval	9284
of plans and the grant of funds that promote the expeditious and	9285
effective implementation of the activities authorized under this	9286
section.	9287

(C) For a board to be eligible to receive a grant of funds	9288
under division (A) of this section, the board shall submit to the	9289
Director a plan in such form and containing such information as	9290
the Director may require. At a minimum, such plan shall include	9291
all of the following:	9292

(1) A description of the strategies and activities to be	9293
carried out to provide summer employment opportunities and	9294
year-round employment opportunities, including the linkages to	9295
educational activities;	9296

(2) A description of the requirements the board will apply	9297
relating to the eligibility of low-income youth for summer	9298
employment opportunities and year-round employment opportunities,	9299
which may include criteria to target assistance to particular	9300
categories of such low-income youth, such as youth with	9301
disabilities;	9302

(3) A description of the performance outcomes to be achieved	9303
by the board through the activities carried out under this section	9304
and the processes the board will use to track performance,	9305
consistent with rules adopted by the Director regarding such	9306
outcomes and processes and with Section 12.07 of this act;	9307

(4) A description of the timelines for implementation of the	9308
activities described in division (C)(1) of this section, and the	9309
number of low-income youth expected to be placed in summer	9310
employment opportunities, and year-round employment opportunities,	9311
respectively, by quarter;	9312

(5) Assurances that the board will report such information as	9313
the Director may require relating to fiscal, performance, and	9314
other matters that the Director determines is necessary to	9315
effectively monitor the activities carried out under this section;	9316

(6) Assurances that the board will ensure compliance with the	9317
labor standards protections described in Section 15.07 of this	9318
act.	9319

(D) The board shall submit a plan described in rules adopted	9320
by the Director to the Director not later than thirty days after	9321
the rules are adopted. The plan required under this division may	9322
be submitted in conjunction with the plan required under Section	9323
12.04 of this act.	9324

(E) The Director shall approve the plan submitted under	9325
division (D) of this section within thirty days after submission,	9326
unless the Director determines that the plan is inconsistent with	9327
the requirements of this section. If the Director has not made a	9328
determination within thirty days, the plan shall be considered	9329
approved. If the plan is disapproved, the Director may provide a	9330
reasonable period of time in which a disapproved plan may be	9331
amended and resubmitted for approval. If the plan is approved, the	9332
Director shall grant funds to the board within thirty days after	9333
such approval.	9334

(F) The funds provided under this section shall be used for	9335
both of the following:	9336

(1) To provide summer employment opportunities for low-income	9337
youth, ages sixteen through twenty-four, with direct linkages to	9338
academic and occupational learning, and may include the provision	9339
of supportive services, such as transportation or child care,	9340
necessary to enable such youth to participate;	9341

(2) To provide year-round employment opportunities, which may	9342
be combined with other activities authorized under section 129 of	9343
the "Workforce Investment Act of 1998," 112 Stat. 936, 29 U.S.C.	9344
2801, as amended, to low-income youth, ages sixteen through	9345
twenty-four, with a priority to out-of-school youth who are high	9346
school dropouts or recipients of a high school diploma or	9347
certificate of high school equivalence but who are basic skills	9348
deficient and unemployed or underemployed.	9349

(G) In administering the funds under this section, the board	9350
shall give a priority to both of the following:	9351

(1) Identifying employment opportunities that are in emerging	9352
or in-demand occupations in the local workforce investment area or	9353
in the public or nonprofit sector that meet community needs;	9354

(2) Linking year-round program participants to training and	9355
educational activities that will provide such participants an	9356
industry-recognized certificate or credential.	9357

(H) For activities funded under this section, the board shall	9358
provide such reports as the Director may require regarding the	9359
performance outcomes described in Section 15.07 of this act.	9360

Section 15.06. (A) From the Pathways Back to Work Fund the	9361
Director of Job and Family services shall award grants on a	9362
competitive basis to eligible entities to carry out work-based	9363
strategies of demonstrated effectiveness.	9364

(B) The grants awarded under this section shall be used to	9365
support strategies and activities of demonstrated effectiveness	9366
that are designed to provide unemployed, low-income adults or	9367
low-income youth with the skills that will lead to employment as	9368
part of or upon completion of participation in such activities.	9369
Such strategies and activities may include any of the following:	9370

(1) On-the-job training, registered apprenticeship programs,	9371
or other programs that combine work with skills development;	9372

(2) Sector-based training programs that have been designed to	9373
meet the specific requirements of an employer or group of	9374
employers in that sector and where employers are committed to	9375
hiring individuals upon successful completion of the training;	9376

(3) Training that supports an industry sector or an	9377
employer-based or labor-management committee industry partnership	9378
which includes a significant work-experience component;	9379

(4) Acquisition of industry-recognized credentials in a field	9380
identified by the local workforce investment area as a growth	9381
sector or demand industry in which there are likely to be	9382
significant job opportunities in the short-term;	9383

(5) Connections to immediate work opportunities, including	9384
subsidized employment opportunities, or summer employment	9385
opportunities for youth, that include concurrent skills training	9386
and other supports;	9387

(6) Career academies that provide students with the academic	9388
preparation and training, including paid internships and	9389
concurrent enrollment in community colleges or other postsecondary	9390
institutions, needed to pursue a career pathway that leads to	9391
postsecondary credentials and high-demand jobs;	9392

(7) Adult basic education and integrated basic education and	9393
training models for low-skilled adults, hosted at community	9394
colleges or at other sites, to prepare individuals for jobs that	9395
are in demand in a local area.	9396

(C) An eligible entity shall include a local chief elected	9397
official, in collaboration with the local workforce investment	9398
board for the local workforce investment area involved, which may	9399
include a partnership with such officials and boards in the region	9400
and in the state, or an entity eligible to apply for an Indian and	9401
Native American grant under section 166 of the "Workforce	9402
Investment Act of 1998," 112 Stat. 936, 29 U.S.C. 2801, as	9403
amended, and may include, in partnership with such officials,	9404
boards, and entities, any of the following:	9405

(1) Employers or employer associations;

9406

(2) Adult education providers and postsecondary educational	9407
institutions, including community colleges;	9408

(3) Community-based organizations;

9409

(4) Joint labor-management committees;

9410

(5) Work-related intermediaries;

9411

(6) Other appropriate organizations.

9412

(D) An eligible entity seeking to receive a grant under this	9413
section shall submit to the Director an application at such time,	9414
in such manner, and containing such information as the Director	9415
may require. At a minimum, the application shall do all of the	9416
following:	9417

(1) Describe the strategies and activities of demonstrated	9418
effectiveness that the eligible entities will carry out to provide	9419
unemployed, low-income adults and low-income youth with the skills	9420
that will lead to employment upon completion of participation in	9421
such activities;	9422

(2) Describe the requirements that will apply relating to the	9423
eligibility of unemployed, low-income adults or low-income youth	9424
for activities carried out under this section, which may include	9425
criteria to target assistance to particular categories of such	9426
adults and youth, such as individuals with disabilities or	9427
individuals who have exhausted all rights to unemployment	9428
compensation;	9429

(3) Describe how the strategies and activities address the	9430
needs of the target populations identified in division (D)(2) of	9431
this section and the needs of employers in the local area;	9432

(4) Describe the expected outcomes to be achieved by	9433
implementing the strategies and activities;	9434

(5) Provide evidence that the funds provided may be expended	9435
expeditiously and efficiently to implement the strategies and	9436
activities;	9437

(6) Describe how the strategies and activities will be	9438
coordinated with other federal, state, and local programs	9439
providing employment, education, and supportive activities;	9440

(7) Provide evidence of employer commitment to participate in	9441
the activities funded under this section, including identification	9442
of anticipated occupational and skill needs;	9443

(8) Provide assurances that the grant recipient will report	9444
such information as the Director may require relating to fiscal,	9445
performance, and other matters that the Director determines is	9446
necessary to effectively monitor the activities carried out under	9447
this section;	9448

(9) Provide assurances that the use of the funds provided	9449
under this section will comply with the labor standards and	9450
protections described in Section 15.07 of this act.	9451

(E) In awarding grants under this section, the Director shall	9452
give a priority to applications submitted by eligible entities	9453
from areas of high poverty and high unemployment, as defined by	9454
the Director, such as public use microdata areas as designated by	9455
the United States census bureau.	9456

(F) The Director shall administer this section in	9457
coordination with other appropriate agency heads, to ensure the	9458
effective implementation of this section.	9459

Section 15.07. (A) Activities provided with funds under	9460
Sections 15.01 to 15.07 of this act shall be subject to the	9461
requirements and restrictions, including the labor standards,	9462
described in section 181 of the "Workforce Investment Act of	9463
1998," 112 Stat. 936, 29 U.S.C. 2801, as amended, and the	9464
nondiscrimination provisions of section 188 of that Act, in	9465
addition to other applicable laws.	9466

(B) The Director of Job and Family Services may require the	9467
reporting of information relating to fiscal, performance, and	9468
other matters that the Director determines is necessary to	9469
effectively monitor the activities carried out with funds provided	9470
under Sections 15.01 to 15.07 of this act. At a minimum, grantees	9471
and subgrantees shall provide information relating to all of the	9472
following:	9473

(1) The number of individuals participating in activities	9474
with funds provided under those sections and the number of such	9475
individuals who have completed such participation;	9476

(2) The expenditures of funds provided under those sections;

9477

(3) The number of jobs created pursuant to the activities	9478
carried out under those sections;	9479

(4) The demographic characteristics of individuals	9480
participating in activities under those sections;	9481

(5) The performance outcomes of individuals participating in	9482
activities under those sections for all of the following:	9483

(a) For adults participating in activities funded under those	9484
sections, entry in unsubsidized employment, retention in	9485
unsubsidized employment, and earnings in unsubsidized employment;	9486

(b) For low-income youth participating in summer employment	9487
activities, work readiness skill attainment using an employer	9488
validated checklist, placement in or return to secondary or	9489
postsecondary education or training, or entry into unsubsidized	9490
employment;	9491

(c) For low-income youth participating in year-round	9492
employment activities, placement in or return to post-secondary	9493
education, attainment of a high school diploma or a certificate of	9494
high school equivalence, attainment of an industry-recognized	9495
credential, and entry into unsubsidized employment, retention, and	9496
earnings;	9497

(d) For unemployed, low-income adults participating in	9498
activities under Section 15.06 of this act, entry into	9499
unsubsidized employment, retention, and earnings and the	9500
attainment of industry-recognized credentials.	9501

(C) Funds provided under Sections 15.01 to 15.07 of this act	9502
shall be used only for activities that are in addition to	9503
activities that would otherwise be available in the area in the	9504
absence of such funds.	9505

(D) The Director may establish such additional requirements	9506
as the Director determines may be necessary to ensure fiscal	9507
integrity, effective monitoring, and the appropriate and prompt	9508
implementation of the activities under Sections 15.01 to 15.07 of	9509
this act.	9510

(E) The Director shall provide to the appropriate committees	9511
of the General Assembly and make available to the public the	9512
information reported pursuant to division (B) of this section.	9513

Section 16. The amendment or repeal by this act of sections	9514
122.075, 125.831, 4301.20, 5733.01, 5733.46, 5733.48, 5733.98,	9515
5739.01, 5739.02, 5739.025, 5747.28, 5747.29, 5747.70, 5747.75,	9516
5747.77, and 5751.53 and the language stricken in division (A)(10)	9517
of section 5747.01, divisions (A)(10), (20), (26), and (27) of	9518
section 5747.98, and division (A)(4) of section 5751.98 of the	9519
Revised Code defines a tax levy within the meaning of Ohio	9520
Constitution, Article II, Section 1d, and therefore takes effect	9521
immediately when this act becomes law.	9522

Section 17. The property tax exemption authorized by section	9523
5709.29 of the Revised Code as enacted by this act applies to tax	9524
years beginning on or after the effective date of this act.	9525

Section 18.  The amendment or repeal by this act of sections	9526
122.075, 125.831, 4301.20, 5733.01, 5733.46, 5733.48, 5747.01,	9527
5747.28, 5747.29, 5747.70, 5747.75, 5747.77, 5747.98, 5751.01,	9528
5751.53, and 5751.98 of the Revised Code applies to taxable years	9529
or tax periods beginning on or after the effective date of this	9530
act.	9531

Section 19.  The amendment by this act of sections 5739.01,	9532
5739.02, and 5739.025 of the Revised Code applies on and after the	9533
first day of the first month that begins on or after the effective	9534
date of this act.	9535

Section 20. The General Assembly, applying the principle	9536
stated in division (B) of section 1.52 of the Revised Code that	9537
amendments are to be harmonized if reasonably capable of	9538
simultaneous operation, finds that the following sections,	9539
presented in this act as composites of the sections as amended by	9540
the acts indicated, are the resulting versions of the sections in	9541
effect prior to the effective date of the sections as presented in	9542
this act:	9543

Section 4141.29 of the Revised Code as amended by both Sub.	9544
H.B. 525 and Am. Sub. S.B. 316 of the 129th General Assembly.	9545

Sections 5739.01 and 5739.02 of the Revised Code as amended	9546
by both Am. Sub. H.B. 487 and Am. Sub. H.B. 508 of the 129th	9547
General Assembly.	9548

Section 5747.01 of the Revised Code as amended by Am. H.B.	9549
167, Sub. H.B. 365, and Am. Sub. H.B. 510, all of the 129th	9550
General Assembly.	9551

Section 5747.98 of the Revised Code as amended by both Am.	9552
Sub. H.B. 386 and Am. Sub. H.B. 510 of the 129th General Assembly.	9553

Section 5751.01 of the Revised Code as amended by both Am.	9554
Sub. H.B. 472 and Am. Sub. H.B. 510 of the 129th General Assembly.	9555