Bill Analysis
Legislative Service Commission
Am.
Sub. H.B. 66*
126th General Assembly
(As Passed by the General Assembly)
Reps. Calvert, Flowers, Martin, McGregor, Peterson, Schlichter, Webster, Aslanides, Blasdel, Coley, Collier, Combs, DeWine, Dolan, C. Evans, D. Evans, Hagan, Kearns, Kilbane, Law, T. Patton, Seaver, Setzer, Wagoner, White, Widowfield, Husted
Sens. Amstutz, Goodman, Clancy, Carey, Jacobson, Harris
Effective date: June 30, 2005; certain provisions effective September 29, 2005; certain provisions effective on other dates; certain items vetoed
This final analysis is arranged by state agency, beginning with the Adjutant General and continuing in alphabetical order. Items that do not directly involve an agency are located under the agency that has regulatory authority over the item or that otherwise deals with the subject matter of the item. The analysis includes a Local Government category and a Retirement Systems category. It concludes with a Miscellaneous category.
Within each category, a summary of the items appears first (in the form of dot points), followed by a discussion of their content and operation.
ADJUTANT GENERAL
Reimbursement of federal life insurance premiums for active duty
members of the Ohio National Guard
Death benefit for active duty members of the Ohio National Guard
Ohio Military Reserve
Background
New annual report
New study commission
DEPARTMENT OF ADMINISTRATIVE SERVICES
Layoffs due to abolishment of a position by an appointing authority
Overview of former and
continuing law
Definition of and bases
for abolishment
Layoff due to abolishment
of a position for reasons of economy
Appeals from a State Personnel Board of Review decision pertaining
to a layoff
Encouraging Diversity, Growth, and Equity (EDGE) Program
Procurement goals and
guidelines for contracting with EDGE
business enterprises
Standard industrial code
Point system to evaluate
bid proposals for EDGE participants
Exemption from Public
Records Law for EDGE applicants
Debarment of vendors and contractors
Overview
Vendors
Contractors
Office of Information Technology
Changes to the Fleet Management Law
Overview of continuing
law
Changes in definitions
Acquisitions under DAS'
master leasing program
Limit on reimbursement
for state employees who use their
personal vehicles
Requirements for state
institutions of higher education
Disposition of proceeds
derived from sale of motor vehicles
Additional motor vehicles
included in the fleet reporting system
Purchases of supplies and services of persons with disabilities
State Use
Committee--background
Transfer of State Use
Committee functions to DAS
Office of Procurement
from Community Rehabilitation Programs
Temporary work levels and personnel assignments for employees exempt
from the Collective Bargaining Law
Department of Administrative Services' recommendations for a state
government reorganization plan
DEPARTMENT OF AGING
Penalty for late payment of annual long-term care facility bed fee
Penalty for denial of ombudsperson access to long-term care facilities or
community-based long-term care sites
Certification for provision of community-based long-term care services
Evaluation considerations
Disciplinary action and
enforcement
Rules governing contracts
and payments
Long-term care consultation program
Background
Overview
Duty to perform
assessments
Information to be
provided; assessment of individual's functional
capabilities
Individuals to be
provided consultations; exemptions
Time frame for completion
of consultations
Who may perform
assessments
Authority to fine nursing
facilities
Rulemaking
Plan for providing home
and community-based services. 61
Level-of-care assessments to receive Medicaid nursing facility services
Individuals to be
assessed
Who may perform
assessments
Level of care
determinations
Appeals
Rulemaking
Plan for providing home
and community-based services. 63
Nursing home and residential care facility survey
Long-Term Care Consumer Guide
Background
The act
Transfer of PACE administrative duties
Transferring individuals from nursing facilities to PASSPORT
PASSPORT Evaluation Panel
Aging and disability resource centers
Ambulette service providers solely serving ODA
DEPARTMENT OF AGRICULTURE
Family Farm Loan Program
Animal Health and Food Safety Fund
Creation of Laboratory and Administrative Support Fund
Permits for concentrated animal feeding facilities
Introduction
Background information
requirements
Fertilizer license, registration, and tonnage report schedule
Fertilizer inspection fee
Annual fertilizer sales statement
Merger of funds
Prohibition against regulation of fertilizer and seed by political subdivisions
Pesticide registration and inspection fee
Commercial feed inspection fee
Commercial feed report 80
Agricultural Commodity Handlers Law definitions
Plant pests program fee. 82
Metrology and Scale Certification Fund
Cannery license fee
Soft drink manufacturing or bottling and sale of syrup or extract fees
Cold-storage warehouse operation license fee
Food locker establishment operation license fee
Certificates of health and freesale
Wine tax diversion to Ohio Grape Industries Fund
Amusement rides
Permit fee
Funding report by
Advisory Council on Amusement Ride Safety
Requirements for
electrical connections
STATE BOARD OF EXAMINERS OF ARCHITECTS
Imposition of fines against certificate holders
OHIO ATHLETIC COMMISSION
Authority to issue, deny, suspend, or revoke boxing or wrestling match or
exhibition permits
Alternative sites and substitute contestants for boxing or wrestling
matches
or exhibitions
ATTORNEY GENERAL
Investigation of election-related criminal activity by the Bureau of
Criminal Identification and Investigation
Removal of Chief Justice from the Crime Victims Assistance Advisory
Committee
Debts owed to the state. 90
Time at which debts must
be certified to the Attorney General
for collection
Sale of final overdue
claims to any person
Sale of claims due the
state: confidentiality of information
in claim
Review of state agencies'
debt collection procedures
Funding the Ohio Peace Officer Training Academy
OHIO STATE BARBER BOARD
Annual review of Barber Board's rules
OFFICE OF BUDGET AND MANAGEMENT
User charges for OBM budgeting services
Authority to transfer interest to GRF
CAPITOL SQUARE REVIEW AND ADVISORY BOARD
Financial disclosure statement filings
DEPARTMENT OF COMMERCE
Plumbing inspectors
Certifying and
recertifying
Reciprocal registration,
licensure, or certification
Fees
Engaging in the plumbing
business
Technical changes in the
Plumbing Law
Fire Marshal's Fireworks Training and Education Fund
Fireworks Law
Distance requirements
between buildings used for fireworks and
other buildings and roadways. 100
Expansion or contraction
of licensed premises
Variances to requirements
of Fireworks Law and license moratorium
Residential Building Code
Minimum price discount for spirituous liquor wholesale purchases
Issuance of Sunday sales liquor permit without local option election
approval to D liquor permit premises located at ski areas
OFFICE OF CONSUMERS' COUNSEL
Call center for consumer complaints against public utilities
Changes to assessments collected from public utilities for maintaining
the Consumers' Counsel
CONTROLLING BOARD
Approval of state collective bargaining agreements and funds necessary to
implement agreement
OHIO STATE BOARD OF COSMETOLOGY
State Board of Cosmetology office location
OFFICE OF CRIMINAL JUSTICE SERVICES
Abolition of the Office of Criminal Justice Services and creation of the
Division of Criminal Justice Services in the Department of Public Safety
Creation of Federal Justice Programs Fund
OHIO CULTURAL FACILITIES COMMISSION
Composition
Cultural Facilities Commission bond premium
Refunding Ohio Cultural Facilities Commission obligations
DEPARTMENT OF DEVELOPMENT
Alternative Fuel Transportation Grant Program
Shovel Ready Sites Program
Agreements to assist in retaining jobs at military facilities scheduled
to close
Development Financing Advisory Council quorum
Increased state contributions under the Capital Access Loan Program
Minority business development loan and bond guarantee programs
Loan Guarantees for Small Businesses Program
Industrial Site Improvement Fund
Restrictions on Third Frontier Commission funding embryonic
stem cell research
DEPARTMENT OF EDUCATION
I. School
Funding
Background to school funding formula changes
Base-cost and categorical
funding
Equalization
Base-cost formula
State share percentage
How the base-cost
"formula amount" was established under prior law
New "building blocks" methodology
FY 2006 and FY 2007 base-cost formula amount
Base funding supplements
Cost-of-doing-business factor
Add-backs to the 23-mill charge-off
Because of incentive
district property tax exemptions
Because of enterprise
zone and similar property tax exemptions
Reporting requirements
for school district treasurers
Revised base-cost formula
Base-cost formula for joint vocational school districts
Base-cost funding guarantee
Building blocks spreadsheet
Spending requirements associated with the building blocks model
In general
Academic watch and
academic emergency districts. 149
Transitional aid
Permanent state aid guarantee eliminated
Application of funding formula changes to county MR/DD boards,
community schools, open enrollment, and Post-Secondary Enrollment
Options Program
Twice-annual reporting of formula ADM
Recommended plan for
second annual ADM certification
Random audits of school district ADM reports
Parity aid
Background
Changes in the parity aid
calculation
Full funding of parity
aid
Poverty-based assistance--background
Poverty-based assistance payments
Poverty index
Guaranteed minimum
payment
All-day kindergarten
payment
Academic intervention
payment
K to 3 class-size
reduction payment
Payment for services to
limited-English proficient students
Professional development
payment
Dropout prevention payment
Community outreach
payment
Spending prescriptions
Report on spending
prescriptions
Transportation subsidy. 164
Background
Payments for fiscal years
2006 and 2007
Recommendations for
formula changes
Special education weighted funding
Background
Continued phase-in of
special education weights
Threshold catastrophic amount
Speech-language services subsidy
Special education transportation subsidy
Special education funding report
Payment of special education excess costs to JVSDs
Payment of excess costs for children in residential "homes"
Switch to weighted special education funding for state institutions
Date for counting of students in handicapped preschool units
Unit funding for preschool special education related services
Report on the number of handicapped preschool children served
GRADS personnel allowance
Repeal of equity aid statute
Recalculating school district valuations
Changes in charge-off supplement ("gap aid")
Background
Revenue considerations
Phase-down of supplement
for districts passing taxes
Bus purchase subsidies. 173
Reimbursement of school district share of Medicaid expenses
Annual reporting by state institutions operating vocational
education programs
Cap on reimbursement of nonpublic school administrative expenses
II. Scholarship
Programs
Educational Choice Scholarship Pilot Program
Eligible students
Scholarship amount
Financing of scholarships
Number of scholarships
Scholarship payments
Excess tuition charges
Transportation of
scholarship students
Start-up; State Board of
Education rulemaking authority
Purpose statement
Comparison with the
Cleveland program
Changes to the Cleveland scholarship pilot program
Eligibility for
scholarships
Scholarship amount
Tutorial assistance grant
amount
Pilot Project Special Education Scholarship Program
III. Community
Schools
Background
Caps on community schools
Lottery to select
additional schools allowed under caps
Opening schools in excess of the caps
Moratorium on new e-schools
Prohibition on operating school from a residential facility
Criteria for approval of sponsors
Limit on number of schools an entity may sponsor
Deadline for adoption of contract
Nullification of contract
Enrollment of community school students
Opening date for schools
Changes regarding e-schools
Limit on daily hours
logged by e-school students
E-school teachers
Administration of state
assessments to e-school students
Plan for special
education services
Provision of computers to certain community school students
Sanctions for poorly performing community schools
Additional reading and
math assessments
Sanctions for
insufficient student progress. 193
Optional use of progress
measure by other community schools
Procedures for closing a community school
District report card data for conversion schools serving at-risk students
Annual report of expenditures for special education services
Community school to serve autistic students and non-disabled students
State payments to community schools
E-school expenditures for
instruction
Elimination of special
education funding guarantee
Payments for a child
enrolled in a community school but also living in a residential facility
Poverty-based assistance
for limited-English proficient students
Temporary subsidy for
community schools that enroll a high number
of severe behavior handicapped students
Repeal of outdated law regarding pilot project community schools
IV. Other
Education Programs
Later administration of spring achievement tests
Deadlines for submission
of tests and return of scores to districts
Use of student data verification codes
Public release of achievement tests
Elimination of certain diagnostic assessments
Early childhood education programs
Elimination of Title IV-A
Head Start and Head Start Plus programs
Qualifications of staff
for preschool and early learning programs
TANF-funded Early
Learning Initiative
State-funded early
childhood education programs. 210
Montessori programs
Reading improvement grants
Background
Elimination of OhioReads
Office and community grant program
Reading improvement
grants
Post-Secondary Enrollment Options Program
Background
Ohio residency
Purpose statement
Reimbursement requirement
High school credit for
Option A
Reduction of the number of school district employees for financial
reasons
Application to future
collective bargaining agreements
Teachers
Suspension of teachers'
contracts
Restoration of teachers
Reduction of the number
of nonteaching employees
Suspension of contracts
for nonteaching employees
Restoration of
nonteaching employees
Termination of school district transportation staff
Recourse if school
district board does not comply with conditions
Academic distress commissions
Academic distress
commissions and collective bargaining
Legislative approval of new school districts
School district internal auditors
Eye exams for disabled students
Collective bargaining agreements and use of school volunteers
School district sale of real property
Prohibition on lowered school district and building performance ratings
Background
Ohio Center for Autism and Low Incidence
Stipend for National Board certified teachers
Model student acceleration policy
School district latchkey programs
Elimination of school districts' annual spending plan and submission
of certificate of estimated resources
Elimination of requirement to file statistical reports
Transportation of pupils attending vocational education programs
Updated five-year projections for fiscal watch and fiscal emergency
school districts
Suspension of set-asides for school districts in certain circumstances
Background
School districts in
fiscal emergency
School districts in
fiscal watch or fiscal caution
Other school districts
Prohibition against school district operation without a charter
Map required in chartering new school districts
Legislative committee to study school district consolidation
School Physical Fitness and Wellness Advisory Council
BOARD OF EMBALMERS AND FUNERAL DIRECTORS
Funeral director apprenticeships
STATE EMPLOYMENT RELATIONS BOARD
SERB Training, Publications, and Grants Fund
ENVIRONMENTAL PROTECTION AGENCY
Motor vehicle inspection and maintenance program
Solid waste disposal fees
Introduction
New solid waste disposal
fee
Revisions concerning
continuing solid waste disposal fees
Procedures for collecting
and remitting state solid waste disposal fees
Technical changes
Definition of "solid wastes"
Construction and demolition debris facilities
Moratorium
Construction and
Demolition Debris Facility Study Committee
Exclusion from construction and demolition debris disposal fee
New construction and demolition debris disposal fees to fund projects
of soil and water conservation districts and recycling and litter
prevention program
Hazardous waste cleanups
Use of Environmental
Protection Remediation Fund for cleanups
Environmental clean-up
agreements
Contract bidding
requirements
Exemption from Department
of Administrative Services contracting requirements
Exemption from fees for
certain clean-up activities
Repayment of clean-up costs
to Hazardous Waste Clean-up Fund
Scrap Tire Management Program
Fee on tire sales
Funding for Department of
Taxation's administration of fee on tire sales
Cost recovery for scrap
tire cleanups
Fees for air pollution control permits to install based on process weight
rates
Extension of various fee-related provisions
Synthetic minor facility
emissions fees
Water pollution control
fees and safe drinking water fees
Certification of
operators of water supply systems or wastewater systems
Application fees under
Water Pollution Control Law and Safe
Drinking Water Law
Distribution of federal funding for NPDES program administration
Section 401 water quality certifications
Background
Application procedures and
requirements
Use of standards and
procedures to evaluate mitigation proposals
Mitigation requirements
Fees
Certification of professionals under Voluntary Action Program Law
Clean Diesel School Bus Fund
eTECH OHIO COMMISSION
Elimination of the Ohio SchoolNet Commission and the Ohio
Educational Telecommunications Network Commission and creation
of the eTech Ohio Commission. 265
Ohio SchoolNet Commission
Ohio Educational
Telecommunications Network Commission
Merging of functions
under the new eTech Ohio Commission
Changes in duties of the
former commissions when transferred to
the eTech Ohio Commission
GENERAL ASSEMBLY
Submission of legislative reports via electronic means
DEPARTMENT OF HEALTH
Critical access hospitals
Funding for county tuberculosis control programs and detention costs
County tuberculosis
programs
Detention of persons with
tuberculosis
Administration and implementation of the "Choose Life" Fund
Certificate of Need moratorium on long-term care beds
Continued review of CON
applications during the moratorium
Religious order infirmary
beds
Physician Loan Repayment Program
J-1 Visa Waiver Program.. 276
Fee increase for birth certificates, death certificates, and divorce and
dissolution of marriage decrees
Hospice care facility inspection fee
Nursing home and residential care facility licensing fees
Revocation of nursing home and residential care facility licenses
Grounds
Prohibition on transfer of
right to operate
Rejection of license application
Religious nonmedical health care institutions: nurse aide training exemption
Elimination of Nursing Facility Regulatory Reform Task Force
Adult care facility inspection fees
Radiation control program fees for health care and radioactive
waste facilities
Program for Medically Handicapped Children
Removal of exemption for
religious beliefs
BCMH eligibility
Legislative Committee on
the Future Funding of BCMH
Reimbursement of medical liability insurance premiums paid by free
clinics
OHIO HISTORICAL SOCIETY
Disbursement of funds by Ohio Historical Society
DEPARTMENT OF INSURANCE
School Employees Health Care Board
Medicaid health insuring corporations to post performance bond
Certificate of authority to establish or operate a health insuring
corporation
Prompt payment requirements for health insuring corporations
covering Medicaid recipients. 292
Additional moneys for the Department of Insurance Operating Fund and fee
increases
Exemption for "employer insureds" from the unauthorized foreign
insurance tax
Exemption for professional or medical liability insurance from the
unauthorized foreign insurance tax
Insurer's notification to Superintendent of Insurance concerning
out-of-state discipline
Certificates of compliance for authorized foreign insurers
Captive insurers exemption--tax on the unauthorized conduct of the
business of insurance
DEPARTMENT OF JOB AND FAMILY SERVICES
I. General
Support Services Federal Operating Fund
Support Services State Operating Fund
Consolidated funding allocations
Increase in county share of public assistance
Recovery of excess payments made to county family services agencies
Eligibility for certain ODJFS-administered programs
Study on disability determinations
Statistics on frequently dispensed drugs under the Ohio's Best Rx Program
Temporary civil service authority of the Director of Job and Family
Services
Overview
Changes made by the act
II. Workforce
Development
Compliance with workforce development agreements
III. Child Care
Publicly funded child care reimbursement ceilings and market rate survey
IV. Child
Support Enforcement
Lump sum payments sent to the Office of Child Support
Electronic disbursement of child support
Child support operating fund
Retention of federal incentives for child support enforcement programs
V. Child
Welfare and Adoption
Summary of minor adoption proceedings
VI. Title
IV-A Temporary Assistance for Needy Families
New TANF programs
Employment Retention
Incentive Program
Title IV-A Demonstration
Program
Kinship Permanency
Incentive Program
Rulemaking
Reports
Ohio Works First
Gross income eligibility
requirement
LEAP Program
VII. Medicaid
Medicaid eligibility reduction
Aged, Blind, and Disabled Medicaid eligibility--the home as a
countable resource
Medicaid look-back period
Medicaid eligibility fraud
Criminal offense
Civil action
Medicaid Estate Recovery Program
Overview
Generally
Exceptions
Waiver
Definition of
"estate"
Medicaid estate recovery
liens
Administration of the
Medicaid Estate Recovery Program
Notice to the Medicaid
Estate Recovery Program Administrator
Administrator of Medicaid
Estate Recovery Program
State Medicaid plan
amendment
Medicaid co-payment program
Medicaid coverage of dental services
Medicaid coverage of vision services
Prohibition on reimbursement for erectile dysfunction drugs
Supplemental Drug Rebate Program
Multiple-state drug purchasing program
State Maximum Allowable Cost Program for Medicaid drug reimbursement
Medicaid e-prescribing system
Community mental health services
Medicaid coverage of alcohol, drug addiction, and mental health services
Medicaid reimbursement of long-term care services
Introduction
Fiscal year 2006
reimbursement system for nursing facilities
Fiscal year 2007
reimbursement system for nursing facilities
Nursing facilities rates
subject to franchise permit fee changes
Fiscal years 2006 and
2007 reimbursement system for ICFs/MR
Reimbursement formula
revised
Refund of excess
depreciation
Medicaid cost report's
due date after change of provider
Medicaid provider
agreements
Nursing home franchise
permit fee
ICF/MR franchise permit
fee
Nursing Facility
Reimbursement Study Council abolished
Ohio Veteran's Home Agency nursing facility beds
Change of operator, closure, and voluntary termination and withdrawal
Change of operator
Facility closure
Voluntary termination and
withdrawal of participation
Notice of facility closure
or voluntary termination or withdrawal
Notice of change of
operator
Determination of
potential Medicaid debt
Withholdings
Final cost report
Determination of actual
Medicaid debt
Release of withholdings
Provider agreement with
entering operator
Rate adjustment following
change of operator
Compliance with federal
law on voluntary withdrawal
Medicaid care management
Background
Care management annual
report
Care management working
group
Care management
reimbursement rates for noncontracting hospitals
Mandatory managed care
for covered families and children
Mandatory managed care
for the aged, blind, and disabled
Behavioral health
services
Care management pilot
program for chronically ill children
Prompt payment
requirements for health insuring corporations covering Medicaid recipients
Managed care grievance
process
Independent medical
reviews
Performance-based
financial incentives in managed care contracts
Mandated coverage of
respiratory virus drugs
Medicaid managed care
franchise permit fee
Medicaid payments for graduate medical education costs
Approval of Medicaid plan
Supplemental Medicaid payment program for children's hospitals
General requirements for home and community-based services waivers
ODJFS-administered Medicaid waivers
Medicaid waivers for individuals with autism or developmental delays or
disabilities
ICF/MR Conversion Pilot Program
ODJFS to seek federal
waiver and amendment state plan
Administration of pilot
program
Implementation of pilot
program
Individuals participating
in pilot program
Evaluation
Restriction on statewide
implementation
Reconversion of ICFs/MR
ODMR/DD responsibility
for certain ICF/MR costs
Rules
ICF/MR Conversion
Advisory Council
Assisted living Medicaid waiver
Eligibility
Facility staffing
requirements
Evaluation of Assisted
Living program
Appropriations related to
the Assisted Living Medicaid waiver
Medicaid voucher pilot program
Ohio Access Success Project
Medicaid Administrative Study Council
Performance audit of Medicaid program
Reviews of the Medicaid program
Medicaid data system
Rules governing services
Termination of unused Medicaid provider agreements
Recovery of Medicaid overpayments
Recovery of Medicaid overpayments by other state agencies
Attorney fees
Effect on other ODJFS
actions
Final Medicaid orders when no hearing is requested
Pharmacy and Therapeutics Committee
ODJFS' duties under the Medicare Prescription Drug, Modernization and
Improvement Act of 2003
VIII. Hospital
Care Assurance Program
IX. Disability Medical Assistance
Disability Medical Assistance Program
Disability Medical Assistance Council
X. Title
XX Social Services
Audits of state agency Title XX expenditures
Audits of Title XX social services providers
Rules governing the Title XX program
Use of TANF funds for Title XX social services
Audits of TANF/Title XX
social service providers
Rules governing
TANF/Title XX social services. 412
XI. Food
Stamp Program
Food Stamp Program work requirements
JUDICIARY/SUPREME COURT
Vehicle allowance for Supreme Court justices
Medina municipal court clerk
Election
Compensation
Removal of the right to counsel for indigents in certain civil juvenile
proceedings
Criminal justice regional information system
LEGISLATIVE
SERVICE COMMISSION
Ohio school district revenue and expenditure database
Legislative Office of Education Oversight
Legislative Budget Office
LOCAL GOVERNMENT
Health care benefits for agencies of political subdivisions
Procedure changes to family and children first county councils
Purpose of county family
and children first councils
Membership of county
family and children first councils
County council executive
committee
Procedures for the county
service coordination mechanism
Changes to the county
council comprehensive joint service plan
Changes to the service
coordination process for children alleged
to be unruly
Dispute resolution
processes
Use of money in the indigent drivers alcohol treatment funds
Bids and bid guaranties for county purchases
Law libraries
Overview; addition of
materials and equipment to free of charge use
Setting of compensation
for law librarians
Provision of space and
utilities
Payment of compensation
and costs
Task Force on Law Library
Associations
Spending authority of county boards of elections
Insurance law changes
Mandamus actions
Incurring obligations and
fund transfers
County Electronic Voting Machine Maintenance Fund
Direct recording electronic voting machine acquisition requirements
Treatment of political subdivision insurance and self-insurance costs
and deductibles
Local Government and Library Revenue Distribution Task Force
Boards of trustees for certain regional transit authorities
Metropolitan housing authorities
Continuing law
Changes made by the act
Local funding options for construction of convention center
Local funding options for support of arts organizations
Governing board for certain regional arts and cultural districts
Report on county and large city cost savings
Annual Local Government Inventory and Road Report
OHIO LOTTERY COMMISSION
Creation of the Charitable Gaming Oversight Fund
DEPARTMENT OF MENTAL HEALTH
Transfer of Ohio Family and Children First Cabinet Council
administrative duties
Family and Children First Administration Fund
Billing methodology for Department of Mental Health hospital inpatients
Billing methodology for state-operated community mental health
services clients
Consolidated prescription drug purchasing program
DEPARTMENT OF MENTAL RETARDATION AND DEVELOPMENTAL
DISABILITIES
Community alternative funding system terminated
Medicaid case management services
Medicaid home and community-based services
Rules governing service contracts
Fee increase for county MR/DD boards
Priority waiting lists for home and community-based services
Home and community-based services under the Department of MR/DD
DEPARTMENT OF NATURAL RESOURCES
Fees for oil and gas well permits
Old Woman Creek National Estuarine Research Reserve
Privatization of inspection of certain dams
Division of Wildlife's sources of funding for payments to school
districts
Youth hunting licenses and permits; fur taker permits
Resident hunting and fishing licenses for certain military personnel
State park fees
Prohibition against rules
establishing state park admission
and parking fees
Discount program for
Golden Buckeye Card holders
Elimination of Parks and Recreation Depreciation Reserve Fund
Watercraft Revolving Loan Fund and related program
Nonresident operation of all-purpose and other special vehicles
Distribution of money from severance tax on coal
OHIO BOARD OF NURSING
Medication Aide Pilot Program
Medication Aide Advisory
Council
Council duties
Program operation
Evaluation and report
Use of medication aides
after pilot program terminates
Medication aides
Disciplinary action
Reporting alleged
misconduct
Medication aide training
programs
Participating facilities
Immunity from liability
and disciplinary actions
Rules
OHIO OCCUPATIONAL THERAPY, PHYSICAL THERAPY, AND
ATHLETIC TRAINERS BOARD
Occupational Therapy, Physical Therapy, and Athletic Trainers
Board membership
Practice of physical therapy without prescription or referral
OHIO PUBLIC DEFENDER COMMISSION
Background information. 482
Operation of the act
Application fee for
indigent defendants and parties in juvenile court
Billing practices of the
State Public Defender
DEPARTMENT OF PUBLIC SAFETY
Creation of the Division of Criminal Justice Services in the Department
of Public Safety and abolition of the Office of Criminal Justice Services
Proceeds from the criminal forfeiture of property to Department of
Public Safety agencies under federal law
Deletion by the Bureau of Motor Vehicles of a record of conviction
Display of certain special license plates on recreational vehicles
Commercial driver's license exemption
Commercial driver's licenses
Utility vehicles and the motor vehicle dealer licensing law
Repeal of dealer registration provisions of the special vehicle law
Homeland security funds. 491
PUBLIC UTILITIES COMMISSION OF OHIO
Assessments collected from railroads and public utilities for maintaining
the Public Utilities Commission
Forfeitures assessed by the Commission
General forfeitures
against a public utility or railroad
Forfeitures for gas pipe-line
safety violations
Utility Radiological Safety Board Assessments
OHIO BOARD OF REGENTS
Cap on undergraduate tuition increases at state institutions of
higher education
Phasing out of the Ohio Instructional Grant Program
Creation of the Ohio College Opportunity Grant Program
Eligibility
Priority for low-income
students based on elementary and secondary achievement
Amount of grant awards
per academic year
Ineligibility for a grant
Institutions must refund
grants to the state if student no longer eligible
State Need-Based Financial Aid Reconciliation Fund
Financial aid audits
Fees for certificates of authorization and annual reports
Transfer of career-technical education coursework to state institutions
of higher education
Local administration competency certification program
Background
The act
Award of state college and university printing contracts
Prior law
Changes by the act
National Guard Scholarship Reserve Fund
Kent State University's Columbus Program in Intergovernmental Issues
Insurance for treasurer of Shawnee State University
Warren County-Montgomery County community college district
Board of trustees
membership
Community college taxes
and bonds in each county
Trustees' voting powers
Tuition for Warren County
residents
Bonds
University enrollment caps
Nurse Education Assistance Program loans
The Ohio State University Board of Trustees membership
DEPARTMENT OF REHABILITATION AND CORRECTION
Payment for necessary medical care of persons confined in a county jail
or a state correctional institution at the Medicaid reimbursement rate
Assessment of library fees
Correctional Faith-Based Initiatives Task Force
GPS monitoring of sexually violent predators
RETIREMENT SYSTEMS
Elimination of appropriation to Ohio Police and Fire Pension Fund
Municipal pubic safety directors included in PERS-LE
Retaining independent legal counsel
STATE BOARD OF SANITARIAN REGISTRATION
Notification of sanitarian continuing education courses
Sanitarian fees
OHIO STATE SCHOOL FOR THE BLIND/
SCHOOL FOR THE DEAF
Administration of donations and federal funds
Custodial funds for students
State School for the Deaf Educational Program Expenses Fund
State School for the Blind Student Activity and Work-Study Fund
SCHOOL FACILITIES COMMISSION
Background
Equalization of maintenance levies
Career-technical school building assistance loan program
Investment earnings of Education Facilities Trust Fund
Background
Project plan submission to ODOT
SECRETARY OF STATE
Notary public name or address change and resignation
Commissions for special police officers
Prohibitions on duplicate candidacy
Nomination or election to
a federal office and a state or county office
Disqualification from the
ballot before the primary election
Disqualification from the
ballot before the general election
BOARD OF SPEECH-LANGUAGE PATHOLOGY
AND AUDIOLOGY
Licensure of audiologists
Licensure requirements
Licensure for individuals
previously licensed in another state
Removal of license
renewal provision
DEPARTMENT OF TAXATION
I. Commercial
Activity Tax
New business privilege tax
Persons subject to tax
Persons not subject to
the tax
Computation of tax
Revenue limitation and
future rate adjustments
"Taxable gross
receipts"
Use of revenue
Tax credits
Registration and fee
Consolidation of related
taxpayers
Combined taxpayers
Tax periods
General administration
Criminal penalties
Challenging legality of
tax's application
II. Corporation
Franchise Tax
Phase-out of corporation franchise tax
Credit for unused net operating
loss deductions, other deferred tax assets
Some noncorporations treated as corporations
Recycling and Litter Prevention Fund
Purchase and installation of new manufacturing machinery and equipment
Tax credits not available
for purchases made after June 30, 2005
Tax credits converted to
grants administered by the Department
of Development
Telephone company tax credit for providing telephone service programs
to aid the communicatively impaired
III. Personal
Income Tax
Tax rates reduced uniformly by 21%
Inflation adjustments delayed
Deduction for qualified tuition and fees eliminated
Credit for low-income taxpayers created
Injured military personnel income tax refund contribution system
Overview
Reporting requirement
Rulemaking required
Administrative costs
Taxation of trust income made permanent
Trust residency rules
"Qualifying investment pass-through entity"
Trust election to be subject to the commercial activity tax
Credit for a resident's out-of-state income tax liability disallowed if
the out-of-state income tax liability is deducted in computing the
resident's tax base
Meaning of "indirect" ownership
Treatment of income from nonresident's sale of a pass-through entity
IV. Property
Taxes and Transfer Fees
Elimination of the 10% rollback in real property taxes for real property
used in business
Phase-out of tax on business and telecommunications personal property
Exemption of new business
machinery and equipment
Phase-out of tax on all
other business tangible personal property
Phase-out of tax on
telecommunications property
Reimbursement of local
taxing units
Reimbursement for county
administrative fee losses
Clarification of
definition of "manufacturing equipment"
Joint Legislative Tax Reform Impact Study Committee
Reduction in assessment rate on public utility property
Tax treatment of nonutility electricity providers
Railroad property assessment
Property leased to public utilities
Taxation of oil and gas recovery equipment
School district property tax to offset funding formula charge-off
increases
Accelerate phase-out of state reimbursement for $10,000 business
property exemption
Equalization of real property assessments
School district property tax replacement payments when district
mergers occur
Computation used to determine amounts deposited each year in the
Property Tax Administration Fund changed
State payment of estimated taxes for acquired property
Interest rate reduced on personal property tax late payments and
overpayments
Incentive districts
Overview
Conditions for creating
incentive districts
Notice requirements and
reimbursement of municipalities, counties, or townships in which incentive
districts are located
Grandfathering incentive
districts
Treatment of special tax
levies levied on property exempted in incentive districts
Tax increment financing changes
Real property tax exemption for certain buildings and lands used by a
state university
Performing arts center tax exemption
V. Sales
and Use Taxes
Rate change
Temporarily maintain the 0.9% discount for vendors and sellers
Overview of the Streamlined Sales and Use Tax Agreement and changes
made to conform to it
Sourcing multiple points
of use sales; sales of direct mail
Administering exempt
sales under the Agreement
Change to the statute of
limitations for assessing sales or use taxes
Medical equipment
definitions and exemptions
Revisions to the
definition of "price"; tax treatment of
"bundled transactions"
Telecommunications
definitions and sourcing requirements
Timing of the adoption of
resolutions for county
permissive sales tax levies
County license fee
reimbursement
Transmission to the Treasurer of State of sales and use taxes collected
by court clerks upon issuing certificates of title
Sales of investment metal bullion and coins subject to sales and use taxes
VI.
Kilowatt-hour and Natural Gas Consumption Taxes
The kilowatt-hour (kWh) tax
Elimination of the
trigger for reducing revenues credited to GRF
The natural gas consumption tax
Elimination of the
threshold for transferring GRF moneys to other funds
VII. Cigarette
Taxes
Sale, distribution, and taxation of cigarettes
Cigarette tax
"Floor tax" on
cigarette inventories
Unstamped cigarettes
prohibitions: quantity basis rather
than value basis
Persons subject to Ohio
laws governing sale, distribution, and taxation
of cigarettes
Tax stamps
Records pertaining to
cigarette sales and purchases. 613
Manufacturer and importer
reports
Seizure and forfeiture of
cigarettes
Tax Commissioner's and
peace officers' inspection powers
Licenses to traffic in
cigarettes
Authorized sales
"Authorized
recipients of tobacco products"
Consent for consumer
shipment
Use tax exemption for cigarettes
Cigarette excise use tax exemption for cigarettes
Transportation of untaxed cigarettes
VIII. Other
Taxation Provisions
Local Government Funds. 618
Permanent law
Act's treatment of LGF, LGRAF, and LLGSF
LGF and LGRAF
LLGSF
Job retention tax credit
Authority to enter into agreements
for job retention tax credits extended
Job retention tax
credit: capital investment projects
Job creation tax credit 624
Overview of the job
creation tax credit
Extension of the job
creation tax credit to insurance companies
Estate taxes
Overview of the
additional estate tax, generation-skipping tax, and
the family-owned business deduction
Federal changes that have
affected the state estate tax law
Constructive elimination
of the additional estate tax and generation-
skipping tax; repeal of the deduction for family-owned businesses
Temporary tax credit
Estate tax penalty for
late payments and filings; change to rate applied to overpayments and
underpayments of the estate tax
Interest
Penalties
Waiving penalties
Additional amendments
made to incorporate federal tax law changes
Technical correction
Real estate assessment funds
Phase-out of the grain handling tax
Tax credits under the Ohio Venture Capital Program
Credit extended to
dealers in intangibles and public utilities
Credit amounts
Claiming of credit by
equity investors
Motor fuel taxes
The motor fuel use tax
Motor fuel excise
tax: prompt payment discount and
shrinkage allowance
Motor fuel tax refund
application
Pass-through entity tax law:
technical and conforming changes
Tax Commissioner authorized to require identifying information from
persons filing tax documents with the Department of Taxation
Overview
Confidentiality of social
security numbers
Commissioner may impose
penalties for failure to provide or update
identifying information
Criminal penalties
School district income tax on earnings
Background
Alternative school
district income tax base
Reauthorization of municipal income tax sharing with school districts
Convention facilities authority lodging tax
Convention center tax authorizations
Food and beverage tax for
convention centers
Lodging taxes for
convention centers
Temporary tax amnesty program
Program description
Distribution of taxes
collected under the program
State reimbursement for
$10,000 business property exemption
Dealers in intangibles tax:
penalty review procedures established
Definition of "dealer in intangibles"
Tax Commissioner reports on tourism-related tax revenue
DEPARTMENT OF TRANSPORTATION
Transportation improvement district projects
Transportation improvement district bond refunding through the State
Infrastructure Bank
General aviation license tax
Maintenance of state park roads
OHIO TUITION TRUST AUTHORITY
Background
Guaranteed College
Savings Program
Variable College Savings
Program
Index Operating Fund
Change in terminology
Account termination and refunds under the Guaranteed Program
Prior law
The act
Account termination and refunds under the Variable Program
Refunds to scholarship programs
Elimination of refunds for beneficiaries receiving scholarships
Refund of tuition in case of withdrawal from school
OHIO VETERANS' HOME AGENCY
Ohio Veterans' Homes Rental, Service, and Medicare Reimbursement Fund
OHIO WATER DEVELOPMENT AUTHORITY
Competitive bidding requirements
BUREAU OF WORKERS' COMPENSATION
Bureau of Workers' Compensation investments
Fiduciary review
conducted by the Inspector General
Requirements and
restrictions for investing
Changes to the Oversight
Commission
Chief Investment Officer
Bureau of Workers'
Compensation chief investment officer license
Audits
Fiduciary requirements
and conflict of interest
Criminal records checks
Campaign contributions
Ethics disclosures
DEPARTMENT OF YOUTH SERVICES
Payment of maintenance and other expenses of a district detention
facility
Referral of children by the Department of Youth Services to community
corrections facilities
MISCELLANEOUS
Financial accountability of persons that contract with the state or a
political subdivision
Overview
Contracts for the
provision of services benefiting individuals or the public
Contracts for the
provision of goods, construction, and all other services
Application
Legal Aid Fund
Ohio Legal Assistance
Foundation (OLAF)
Filing fees
Ohio Community Service Council Gifts and Donations Fund
Consolidation of certain regulatory boards and commissions
Department of Health
Department of Commerce
Department of Public
Safety
Transition team and
recommendations
Implementing legislation
Satisfaction of judgments and settlements against the state
Conveyance of real estate in Athens County
Safekeeping of securities pledged by trust companies
Ohio CASA/GAL Study Committee
Applicability of Ohio's Miscellaneous Bond Proceedings Law
· Requires the Adjutant General to reimburse premiums of defined "active duty members" of the Ohio National Guard who choose to purchase life insurance under a specified federal program.
· Requires the Adjutant General to pay a $100,000 death benefit to a designated beneficiary or beneficiaries if defined "active duty members" of the Ohio National Guard die while performing active duty.
· Requires the Commander of the Ohio Military Reserve (OHMR) to annually report to the General Assembly all OHMR expenditures and the use of all OHMR funds.
· Creates the Ohio Military Reserve Homeland Security Study Commission to evaluate the OHMR's role and effectiveness and to report its findings to the General Assembly before January 1, 2006.
Reimbursement of federal life insurance premiums for active duty members of the Ohio National Guard
(R.C. 5919.31)
The act requires the Adjutant General to reimburse an active duty member (see below) of the Ohio National Guard in an amount equal to the monthly life insurance premium paid for each month or part of a month by the member while being an active duty member--if the member chooses to purchase life insurance from the federal Servicemembers' Group Life Insurance program. "Active duty member" generally is defined as a member of the Ohio National Guard on active duty pursuant to an executive order of the President of the United States, the federal Homeland Defense Activity Law, another act of Congress, or a proclamation of the Governor, but does not include a member performing full-time Ohio National Guard duty or performing special work active duty under specified federal law.[1]
If the Adjutant General does not have sufficient available unencumbered funds to so reimburse active duty Ohio National Guard members, the Adjutant General may request additional money from the Controlling Board. The act also gives the Adjutant General power to prescribe and enforce regulations to implement these life insurance premium provisions, which regulations need not be adopted as rules in accordance with R.C. 111.15 or the Administrative Procedure Act.
Death benefit for active duty members of the Ohio National Guard
(R.C. 5919.33)
Under former law, the Adjutant General had to pay a $20,000 death benefit from appropriations for operating expenses to an Ohio National Guard member's designated beneficiary or beneficiaries if the member died while performing state active duty under orders issued by the Adjutant General on behalf of the Governor. Under the act, the Adjutant General instead must pay a $100,000 death benefit from the appropriations made for this purpose to the designated beneficiary or beneficiaries of any "active duty member" of the Ohio National Guard who dies while performing active duty. The act defines "active duty member" in the same manner as described under the preceding topic.
Ohio Military Reserve
(R.C. 5920.01; Section 560.03)
Background
The Ohio Military Reserve (OHMR) is organized as a reserve military force to defend the state when the Ohio National Guard is employed so as to leave the state without adequate defense. The Governor is its commander-in-chief and is responsible for prescribing rules under which the OHMR operates. The OHMR cannot be called into the military service of the United States, but it may become a component of the Ohio National Guard and subject to the Secretary of Defense's regulations thereby. Enlistment in the OHMR does not exempt a person from military service under any law of the United States.
New annual report
The act requires the OHMR's commander to annually prepare, and deliver to the General Assembly within three months of the end of the state fiscal year, a written report of all OHMR expenditures and of the use of all OHMR funds (R.C. 5920.01(B)).
New study commission
The act creates the Ohio Military Reserve Homeland Security Study Commission to evaluate the OHMR's role and effectiveness. The Commission consists of seven members: the Chair of the House Commerce and Labor Committee, who will serve as the study commission's chairperson, two members of the House of Representatives appointed by the House Speaker, two members of the Senate appointed by the Senate President, the Adjutant General or the Adjutant General's designee, and the Director of Public Safety or the Director's designee. The act directs the study commission to report its findings to the General Assembly before January 1, 2006. (Section 560.03.)
· Defines for appointing authorities when "reasons of economy" exist that may result in the abolishment of a position and the layoff of the employee holding the position.
· Redefines for appointing authorities the term "abolishment" as the deletion of a position from the organization or structure of an appointing authority.
· Permits an appointing authority to appeal a State Personnel Board of Review decision pertaining to a classified employee's layoff, to the appropriate court of common pleas under the Administrative Procedure Act.
· Requires the Director of Administrative Services to establish guidelines rather than agency procurement goals for state universities and the Ohio School Facilities Commission for awarding contracts to EDGE business enterprises, thus allowing them to establish their own procurement goals.
· Allows the Director to use an equivalent code classification instead of standard industrial code when establishing agency procurement goals and to establish a system comparable to a point system to evaluate bid proposals to encourage EDGE business enterprises to participate in the procurement of certain services.
· Exempts EDGE Program applicants' financial information and trade secrets from the Public Records Law unless certain circumstances apply.
· Authorizes the Director of Administrative Services to debar vendors and contractors from consideration for contract awards based on separate, specified factors and establishes procedures governing the debarments, including notice and hearing requirements.
· Establishes the Office of Information Technology in the Department of Administrative Services to advise the Governor regarding the superintendence and implementation of statewide information technology policy and to lead, oversee, and direct activities regarding the development and use of information technology by specified state agencies.
· Changes the definitions of "state agency" and "law enforcement officer" as used in the Fleet Management Law to include or exclude various individuals or entities from those terms.
· Includes cargo vans within the types of motor vehicles subject to the Fleet Management Law.
· Generally requires state agencies subject to the Fleet Management Law to acquire motor vehicles through the master leasing program established by the Department of Administrative Services.
· Prohibits reimbursement to state employees who use their own personal vehicles for any mileage incurred above an amount the Department of Administrative Services determines annually unless the Department approves reimbursement for the excess mileage in accordance with specified standards.
· Requires a state institution of higher education to use the Department of Administrative Services' fleet management tracking system, fuel card program (to pay for fuel and vehicle maintenance), and bulk fuel purchases contract (to make bulk fuel purchases) if the Department certifies pursuant to an annual specified reporting procedure that the institution will save funds by doing so.
· Authorizes proceeds from the disposition under the Fleet Management Law of motor vehicles that were purchased with General Revenue Fund money to be deposited, in the discretion of the Director of Administrative Services, to the credit of either the Fleet Management Fund or the Investment Recovery Fund, rather than just into the Fleet Management Fund.
· Requires state agencies to submit data and other information to the Department of Administrative Services about motor vehicles that otherwise are not subject to the Fleet Management Law.
· Transfers, as of July 1, 2005, or the earliest date thereafter permitted by law, the functions of the State Committee for the Purchase of Products and Services Provided by Persons with Severe Disabilities ("State Use Committee"), formerly housed in the Department of Mental Retardation and Developmental Disabilities, to the Department of Administrative Services.
· Requires the Department of Administrative Services to replace, by July 1, 2007, the State Use Committee with a new Office of Procurement from Community Rehabilitation Programs (OPCRP).
· Requires the OPCRP to establish a new program that generally requires state agencies and entities, as well as county, township, and village governments, to purchase supplies and services (1) provided by persons with work-limiting disabilities who are employed by community rehabilitation programs and (2) from an associated procurement list established by the OPCRP.
· Generally requires the OPCRP to establish fair market prices for items on the procurement list, and provides that purchases from the list are not subject to any competitive selection process.
· Establishes that a fee must be paid to DAS by all agencies and entities making purchases under the OPCRP purchase program to cover DAS' costs in administering the program.
· Permits an appointing authority to assign duties of a higher classification to an exempt employee for not more than two years with that employee's consent in non-vacancy circumstances.
· Permits, if necessary, employees who are exempt from the Collective Bargaining Law and who are assigned to duties within their agency to maintain operations during the Ohio Administrative Knowledge System implementation, to agree to a temporary assignment for more than two years.
· Would have required the Department of Administrative Services to recommend by January 1, 2007, to the leaders of the General Assembly a state government reorganization plan focused on increased efficiencies in the operation of state government and a reduced number of state agencies (VETOED).
Layoffs due to abolishment of a position by an appointing authority
(R.C. 124.321(D))
Overview of former and continuing law
Under the Civil Service Law, one of the
continuing reasons for which an appointing authority may lay off an employee is
as a result of the abolishment of the employee's
position (see grounds in next paragraph).
Formerly, the abolishment had to be due to the lack of continued need
for that position--the abolishment was a permanent deletion of the
position from the appointing authority's organization or structure. The appointing authority had to indicate in
its determination to abolish the position this "lack of continued
need" for it.
Under
continuing law, an abolishment of a position and, therefore, a consequent lay
off of the employee holding the position may be (1) as the result of a
reorganization for the efficient operation of the appointing authority, (2) for
reasons of economy, or (3) for lack of work.
Definition of and bases for abolishment
The act redefines the term
"abolishment" as the deletion of a position (as contrasted
with former law's "permanent" deletion of a position) from the
organization or structure of an appointing authority. The act also removes from the definition the condition that the
abolishment "be due to the lack of continued need" for the position
and repeals the corresponding requirement that the appointing authority's
determination to abolish the position indicate this lack of continued
need. However, the act still provides
that an abolishment may be for any one or any combination of the
following: as the result of a
reorganization for the efficient operation of the appointing authority, for reasons of economy (see below), or for
lack of work.
Layoff due to abolishment of a position for reasons of economy
The act essentially defines for appointing
authorities the second basis--"reasons of economy"--that may result
in the abolishment of a position and the lay off of the employee holding
it. Specifically, the act provides that
"reasons of economy" must be determined at the time the appointing
authority proposes to abolish the position.
Additionally, "reasons of economy" generally
must be based on the appointing authority's estimated amount of savings with
respect to salary, benefits, and other matters associated with the abolishment
of the position. However, the act
allows "reasons of economy" to be based on savings with respect to
salary and benefits only if both of the following apply:
· Either the appointing authority's operating appropriation has been reduced by an executive or legislative action, or the appointing authority has a current or projected deficiency in funding to maintain current or projected levels of staffing and operations.
· It files a notice of the position's abolishment with the Director of Administrative Services within one year of the appointing authority's operating appropriation being reduced by an executive or legislative action or the appointing authority having a current or projected deficiency in funding as described above.
If an appointing authority is authorized to abolish a position and lay off an employee based on the appointing authority's estimated amount of savings with respect to salary and benefits only, as outlined above, each of the following applies:
· The position's abolishment must be done in good faith and not as a subterfuge for discipline.
· If a circumstance affects a specific program only, the appointing authority only may abolish a position within that program.
· If a circumstance does not affect a specific program only, the appointing authority may identify a position that it considers appropriate for abolishment based on the reasons of economy.
Appeals from a State Personnel Board of Review decision pertaining to a layoff
(R.C. 124.328)
Continuing law allows a classified employee to appeal the employee's layoff by an appointing authority to the State Personnel Board of Review (SPBR). And, under former law, only the employee could appeal the SPBR's decision to the appropriate court of common pleas under the Administrative Procedure Act.
The act also allows an appointing authority to so appeal a SPBR decision.
Encouraging Diversity, Growth, and Equity (EDGE) Program
Procurement goals and guidelines for contracting with EDGE business enterprises
(R.C. 123.152(B)(2) and (14))
Under continuing law, state agencies are encouraged to contract with "EDGE business enterprises," which are businesses certified by the Director of Administrative Services as participants in the Encouraging Diversity, Growth, and Equity (EDGE) Program. The Director must establish procurement goals for state agencies, including state universities and the Ohio School Facilities Commission, to contract with EDGE business enterprises generally for services, goods, and public improvements.[2] The act requires the Director to establish guidelines, rather than procurement goals, for state universities and the Ohio School Facilities Commission to allow the universities and Commission to establish their own procurement goals for contracting with EGE business enterprises.
Standard industrial code
(R.C. 123.152(B)(2))
Under continuing law, the Director is required to establish agency procurement goals for contracting with EDGE business enterprises based on the availability of eligible program participants by region or geographic area. Formerly, the procurement goals also had to be established by standard industrial code, but the act allows the Director to use "equivalent code classification" as an alternative to using standard industrial code.
Point system to evaluate bid proposals for EDGE participants
(R.C. 123.152(B)(6))
Under former law, the Director was required to establish a point system to evaluate bid proposals to encourage EDGE business enterprises to participate in the procurement of professional design and information technology services. The act allows the Director to establish a "comparable system" as an alternative to a point system.
Exemption from Public Records Law for EDGE applicants
(R.C. 123.152(C))
The act exempts from the Public Records Law business and personal financial information and trade secrets submitted by EDGE Program applicants to the Director unless the Director presents the financial information or trade secrets at a public hearing or public proceeding concerning the applicant's eligibility to participate in the Program.
Debarment of vendors and contractors
(R.C. 125.25 and 153.02)
Overview
The act authorizes the Director of Administrative Services to debar vendors and contractors from consideration for contract awards based on specified factors. It also establishes procedures governing the debarment, including notice and hearing requirements. As described below, the specified factors differ between the vendors and contractors.
Vendors
Under the act, the Director of Administrative Services may debar a vendor from consideration for contract awards (apparently for supplies or services) upon a finding, based upon a reasonable belief, that the vendor has done any of the following:
(1) Abused the selection process by repeatedly withdrawing bids or proposals before purchase orders or contracts are issued or failing to accept orders based upon firm bids;
(2) Failed to substantially perform a contract (according to its terms, conditions, and specifications) within specified time limits;
(3) Failed to cooperate in monitoring contract performance by refusing to provide information or documents required in a contract, failed to respond to complaints to the vendor, or accumulated repeated justified complaints regarding performance of a contract;
(4) Attempted to influence a public employee to breach ethical conduct standards or to influence a contract award;
(5) Colluded to restrain competition by any means;
(6) Been convicted of a criminal offense related to the application for or performance of any public or private contract, including embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense that directly reflects on the vendor's business integrity;
(7) Been convicted under state or federal antitrust laws;
(8) Deliberately or willfully submitted false or misleading information in connection with the application for or performance of a public contract;
(9) Violated any other responsible business practice or performed in an unsatisfactory manner as determined by the Director;
(10) Through the default of a contract or through other means had a determination of unresolved finding for recovery by the Auditor of State;
(11) Acted in such a manner as to be debarred from participating in a contract with any governmental agency.
When the Director reasonably believes that grounds for debarment exist, the Director must send the vendor a notice of proposed debarment indicating the grounds for the proposed debarment and the procedure for requesting a hearing. The hearing must be conducted in accordance with the Administrative Procedure Act. If the vendor does not request a hearing in the specified manner, the Director must issue the debarment decision without a hearing and must notify the vendor of the decision by certified mail, return receipt requested.
The Director must determine the length of a debarment period and may rescind a debarment at any time upon notification to the vendor. During a debarment period, a vendor is not eligible to participate in any state contract, but after the debarment period expires, the vendor is eligible to be awarded a state contract (apparently for supplies or services).
Through the Office of Information Technology (see the next portion of this analysis) and the Office of Procurement Services, the Director is required to maintain a list of all vendors currently debarred from participating in state contracts (apparently for supplies or services).
Contractors
The Director also may debar under the act a contractor from contract awards for certain public improvements upon proof that the contractor has done any of the following:
(1) Defaulted on a contract requiring the execution of a takeover agreement;
(2) Knowingly failed during the course of a contract to maintain the coverage required by the Bureau of Workers' Compensation;
(3) Knowingly failed during the course of a contract to maintain the contractor's drug-free workplace program as required by the contract;
(4) Knowingly failed during the course of a contract to maintain insurance required by the contract or otherwise by law, resulting in a substantial loss to the owner;
(5) Misrepresented the firm's qualifications in the selection process set forth in the Professional Design Services Law;
(6) Been convicted of a criminal offense related to the application for or performance of any public or private contract, including embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense that directly reflects on the contractor's business integrity;
(7) Been convicted of a criminal offense under state or federal antitrust laws;
(8) Deliberately or willfully submitted false or misleading information in connection with the application for or performance of a public contract;
(9) Been debarred from bidding on or participating in a contract with any state or federal agency.
When the Director reasonably believes that grounds for debarment exist, the Director must send the contractor a notice of proposed debarment indicating the grounds for the proposed debarment and the procedure for requesting a hearing. The hearing must be conducted in accordance with the Administrative Procedure Act. If the contractor does not request a hearing in the specified manner, the Director must issue the debarment decision without a hearing and must notify the contractor of the decision by certified mail, return receipt requested.
The Director must determine the length of a debarment period and may rescind a debarment at any time upon notification to the contractor. During a debarment period, a contractor is not eligible to bid for or participate in any contract for a public improvement, but after the debarment period expires, the contractor is eligible to bid for and participate in contracts for public improvements.
Through the Office of the State Architect, the Director is required to maintain a list of all contractors currently debarred under these provisions. Any governmental entity awarding a contract for construction of a public improvement may use a contractor's presence on the debarment list to determine whether a contractor is responsible or best as may be required in the award of a contract.
Office of Information Technology
(R.C. 125.041 and 125.18)
The act establishes the Office of Information Technology that is to be housed within the Department of Administrative Services (DAS). The Office is to be under the supervision of a chief information officer (CIO) who must serve as the director of the Office. The CIO must be appointed by the Governor and is subject to removal at the pleasure of the Governor.
The CIO is required to advise the Governor regarding the superintendence and implementation of statewide information technology policy. The CIO also must lead, oversee, and direct state agency activities related to information technology development and use.[3] In that regard, the CIO must do all of the following:
· Coordinate and superintend statewide efforts to promote common use and development of technology by state agencies. The Office must establish policies and standards that govern and direct state agency participation in statewide programs and initiatives.
· Establish policies and standards for the acquisition and use of information technology by state agencies, including, but not limited to, hardware, software, technology services, and security, with which state agencies must comply.
· Establish criteria and review processes to identify state agency information technology projects that require alignment or oversight. As appropriate, the Office must provide the Governor and the Director of Budget and Management with notice and advice regarding the appropriate allocation of resources for those projects. The CIO may require state agencies to provide, and may prescribe the form and manner by which they must provide, information to fulfill the CIO's alignment and oversight role.
The Office is permitted to make contracts for, operate, and superintend technology supplies and services for state agencies, and the act confers on the Office the same authority DAS has, under specified purchasing of supplies and services statutes, for the purchase of information technology supplies and services for state agencies. The Office also may establish cooperative agreements with federal and local government agencies and state agencies that are not under the authority of the Governor for the provision of technology services and the development of technology projects.
Changes to the Fleet Management Law
(R.C. 125.831 and 125.832)
Overview of continuing law
Continuing law requires the Director of Administrative Services to establish and operate a fleet management program for purposes including, but not limited to, cost-effective acquisition, maintenance, management, analysis, and disposal of all motor vehicles owned or leased by the state. It also grants the Department of Administrative Services (DAS) exclusive authority over the acquisition and management of all motor vehicles used by state agencies.
Changes in definitions
Formerly, a "motor vehicle" for purposes of the Fleet Management Law generally was defined as any automobile, car minivan, passenger van, sport utility vehicle, or pickup truck with a gross vehicle weight under 12,000 pounds. The act continues to so define a "motor vehicle" but also includes a cargo van within the definition for purposes of the Fleet Management Law.
Continuing law excludes from that definition of "motor vehicle" any vehicle mentioned above that is used by a law enforcement officer and law enforcement agency. Former law relatedly defined "law enforcement officer" as an officer, agent, or employee of a state agency upon whom, by statute, a duty to conserve the peace or to enforce all or certain laws is imposed and the authority to arrest violators is conferred, within the limits of that statutory duty and authority. The act modifies the definition of "law enforcement officer" by specifying that it does not include an officer, agent, or employee as described above if the officer's, agent's, or employee's duty and authority is location specific. Thus, a vehicle used by such an officer, agent, or employee is no longer excluded from the definition of a "motor vehicle" covered by the Fleet Management Law because it is not a vehicle used by a "law enforcement officer" and law enforcement agency.
The Fleet Management Law formerly defined "state agency" to mean every organized body, office, or agency established by the laws of Ohio for the exercise of any function of state government, other than (1) a state-supported institution of higher education, (2) the offices of the Governor, Lieutenant Governor, Auditor of State, Treasurer of State, Secretary of State, or Attorney General, (3) the General Assembly or any legislative agency, or (4) the courts or any judicial agency. The act modifies this definition to mean every organized body, office, board, authority, commission, or agency established by the laws of Ohio for the exercise of any governmental or quasi-governmental function of state government regardless of the funding source for that entity, other than continuing law's four categories of exempt entities mentioned above and, as added by the act, any state retirement system or retirement program established by or referenced in the Revised Code. Thus, this definitional change at the same time adds to, and removes from, the state agencies subject to the Fleet Management Law. The term "state-supported institution of higher education" also becomes "state institution of higher education" under the act (see more detail below).
Acquisitions under DAS' master leasing program
Under continuing law, DAS' exclusive authority over the acquisition and management of all motor vehicles used by state agencies includes approving the purchase or lease of each motor vehicle for use by a state agency and determining whether a motor vehicle will be leased or purchased for that use. The act generally requires that, on and after July 1, 2005, each state agency acquire all passenger motor vehicles under DAS' master leasing program. If DAS determines, however, that acquisition under this program is not the most economical method and if DAS and the state agency can provide economic justification for doing so, DAS may approve the purchase, rather than the lease, of a passenger motor vehicle for the acquiring state agency.
Limit on reimbursement for state employees who use their personal vehicles
The act requires the Director to adopt rules that prohibit the reimbursement of state employees who use their own motor vehicles for any mileage they incur above an amount that DAS must determine annually, unless reimbursement for the excess mileage is approved by DAS in accordance with standards for that approval the Director must establish in those rules.
Requirements for state institutions of higher education
Under the act, not later than each September 15, each state institution of higher education must report to DAS on all of the following topics relating to motor vehicles that it acquires and manages: (1) the methods it uses to track the motor vehicles, (2) whether or not it uses a fuel card program to purchase fuel for, or to pay for the maintenance of, the motor vehicles, and (3) whether or not it makes bulk purchases of fuel for the motor vehicles. Assuming that it does not use the fleet management tracking, fuel card program, and bulk fuel purchases tools and services that DAS provides, the report also must include (a) an analysis of the amount the institution would save, if any, if it were to use the fleet management tracking, fuel card program, and bulk fuel purchases tools and services that DAS provides instead of the fleet management system the institution regularly uses and (b) a rationale for either continuing with the fleet management system that the institution regularly uses or changing to the use of those tools and services that DAS provides.
Within 90 days after receipt of all annual reports from state institutions of higher education, DAS must prepare and certify a list of those institutions that it determines would save amounts if they were to use the fleet management tracking, fuel card program, and bulk fuel purchases tools and services that DAS provides. The institutions so certified then must use those tools and services until DAS next certifies state institutions of higher education as required by the act.
The act defines "state institution of higher education" for purposes of the Fleet Management Law to mean each of the four-year state universities, the Northeastern Ohio Universities College of Medicine, the Medical University of Ohio at Toledo, and each community college, state community college, university branch, or technical college.
Disposition of proceeds derived from sale of motor vehicles
Former law required that the proceeds derived from the disposition of any motor vehicles under the Fleet Management Law be paid (1) to the fund that originally provided money for the purchase or lease of the motor vehicles or (2) if the motor vehicles were originally purchased with money derived from the General Revenue Fund (GRF), to the credit of the Fleet Management Fund created under continuing law. The act maintains requirement (1) above but instead requires that, if motor vehicles were originally purchased with money derived from the GRF, the proceeds be deposited, in the discretion of the Director, to the credit of either the Fleet Management Fund or the Investment Recovery Fund created by continuing law. The Investment Recovery Fund receives proceeds from the transfer, sale, or lease of excess and surplus supplies no longer needed by state agencies (R.C. 125.14(A)--not in the act).
Additional motor vehicles included in the fleet reporting system
Continuing law requires the Director to establish and maintain a fleet reporting system and correspondingly to require state agencies (see definition above) to submit to DAS information relative to state motor vehicles, to be used in operating the fleet management program. The act requires state agencies to submit information not only with respect to state "motor vehicles" covered by the Fleet Management Law (see definition above) but also relative to state motor vehicles excluded from the definition of those covered "motor vehicles," namely (1) motor vehicles used by law enforcement officers and law enforcement agencies and (2) motor vehicles that are equipped with specialized equipment that is not normally found in a vehicle and that is used to carry out a state agency's specific and specialized duties and responsibilities.
Purchases of supplies and services of persons with disabilities
State Use Committee--background
(R.C. 4115.31 to 4115.35)
Temporarily continuing law (see below "transfer" and "termination" discussion) provides for the creation of a state committee for the purchase of products and services provided by persons with severe disabilities (commonly referred to as the "State Use Committee"). The State Use Committee must adopt rules under the Administrative Procedure Act that require the Committee to take various actions that have the goal of promoting the purchase by specified governmental entities of products and services of persons with severe disabilities.[4] Among those actions are determining products and services that are suitable for procurement by specified governmental entities, putting those products and services on a procurement list the Committee must establish, maintain, and publish, and verifying the fair market price for the products and services.
Temporarily continuing law generally requires any state agency, instrumentality of the state, or political subdivision that intends to purchase any product or service to examine the procurement list and, if the product or service it intends to purchase is on the list and available, to procure it from an agency for persons with severe disabilities. Purchases made in this manner are not subject to competitive bidding requirements.
Former law provided that a subordinate named by the Director of Mental Retardation and Developmental Disabilities (MRDD) was to be the Committee's executive director and that the Director of MRDD had to furnish other staff and clerical assistance, office space, and supplies required by the Committee.
Transfer of State Use Committee functions to DAS
(R.C. 4115.32 and Sections 203.12, 203.12.01, and 209.09.06)
In general. The act provides that, effective July 1, 2005, or the earliest date after that date permitted by law, the State Use Committee becomes part of the Department of Administrative Services (DAS). The Committee's functions, assets, and liabilities, including its records, are to be transferred to DAS, and then (1) DAS is to become the successor to, assume the obligations of, and otherwise constitute the continuation of the Committee and (2) the duties of the Committee's executive director are transferred to DAS. The DAS Director must designate a subordinate to act as the Committee's executive director.
On-going business, rights, and rules. The act provides that any business commenced but not completed by the Committee on June 30, 2005, must be completed by DAS in the same manner and with the same effect as if completed by the Committee. No validation, cure, right, privilege, remedy, obligation, or liability is lost or impaired by reason of the transfer.
All of the Committee's rules, orders, and determinations will continue in effect as rules, orders, and determinations of DAS, until modified or rescinded by DAS. If necessary to ensure the integrity of the Ohio Administrative Code, the Director of the Legislative Service Commission must renumber the Committee's rules to reflect the transfer.
Employees. Department of Mental Retardation and Developmental Disabilities employees designated as staff for the Committee will be transferred to DAS. The transferred employees will retain their positions and all benefits, subject to the statutory law governing layoffs and provisions of union contracts between the state and all bargaining units affected.
Pending proceedings and actions. The transfer does not affect judicial or administrative actions or proceedings pending on July 1, 2005, to which the Committee is a party. Those actions or proceedings instead must be prosecuted or defended in the DAS Director's name. On application to the court or other tribunal, the DAS Director must be substituted as a party for the Director of MRDD.
Office of Procurement from Community Rehabilitation Programs
(R.C. 125.11, 125.60 to 125.6012, 127.16, 307.86, 731.14, 731.141, 4115.32, 4115.34, and 4115.36)
Overview. After the transfer to DAS of the functions of the State Use Committee--in particular, its program for the purchase of products and services of persons with severe disabilities, the act provides for the termination of the Committee and that program and their replacement with the Office of Procurement from Community Rehabilitation Programs and a program to promote the procurement of supplies and services of persons with work-limited disabilities.
Creation of the Office; termination of the State Use Committee. The act provides that, not later than July 1, 2007, the DAS Director must establish the Office of Procurement from Community Rehabilitation Programs (OPCRP) within DAS. The Director also must designate a DAS employee as administrator of the OPCRP.
The act correspondingly provides that not later than July 1, 2007, the Director must abolish the State Use Committee and its program for the purchase of products and services of persons with severe disabilities. Abolition of the Committee will make all the laws governing the Committee no longer effective.
Key definitions. The OPCRP purchase program provides for the purchase by government ordering offices of supplies or services provided by persons with a work-limiting disability who are employed by a community rehabilitation program. The act defines a "government ordering office" as any of the following: (1) any state agency, including the General Assembly, the Ohio Supreme Court, and the office of a state elected official, or any state authority, board, bureau, commission, institution, or instrumentality that is funded in total or in part by state money, or (2) a county, township, or village. "Person with a work-limiting disability" is defined by the act as an individual who has a disability as described in the federal Americans with Disabilities Act and who (1) because of that disability is substantially limited in the type or quantity of work the individual can perform or is prevented from working regularly, and (2) meets the criteria established by OPCRP.[5] Finally, the act defines a "community rehabilitation program" as an agency that (1) is organized under federal or Ohio law such that no part of its net income inures to the benefit of any shareholder or other individual, (2) is certified as a sheltered workshop, if applicable, by the Wage and Hour Division of the U.S. Department of Labor, (3) is registered and in good standing with the Ohio Secretary of State as a domestic nonprofit corporation, (4) complies with applicable occupational health and safety standards required by federal or Ohio law, (5) operates in the interest of persons with work-limiting disabilities, provides vocational or other employment-related training to persons with work-limiting disabilities, and employs persons with work-limiting disabilities in the manufacture of products or the provision of services, and (6) is a nonprofit corporation for federal tax purposes.
Purchases from the procurement list. The act requires the OPCRP to establish, maintain, and periodically update a procurement list of approved supplies and services available from qualified nonprofit agencies or their agents (see below). Government ordering offices, before purchasing any supply or service, must determine whether the supply or service is on the procurement list. And, if the supply or service is on the list at a fair market price established by the OPCRP (see below), the government ordering office must purchase it from the qualified nonprofit agency or an approved agent offering it for sale at that price. If the supply or service is on the procurement list but a fair market price has not been established, the government ordering office must attempt to negotiate an agreement with one or more of the listed qualified nonprofit agencies or approved agents.
Fair market price. The act provides that, prior to purchases by government ordering offices under its provisions, the OPCRP must attempt to establish for each item (i.e., supply or service) on the procurement list a fair market price that is representative of the range of prices that a government ordering office would expect to pay to purchase the item in the marketplace. When establishing a fair market price for an item, the OPCRP must consider the cost of doing business with respect to that item, including sales, marketing, and research and development costs and agent fees. If the OPCRP cannot establish a fair market price as described above, it must put the item on the list and let a government ordering office and qualified nonprofit agency negotiate the price. If the negotiations produce an agreement, the OPCRP may accept the agreed upon price as the fair market price. If an agreement is not successfully negotiated in such a case, the OPCRP may establish a fair market price or release the government ordering office from the act's requirements (see further "release" discussion below).
Qualified nonprofit agencies and approved agents. The act permits a community rehabilitation program to apply to the OPCRP to be certified as qualified to provide its supplies and services for procurement by government ordering offices. The OPCRP must prescribe the form of the application, and, if it is satisfied that an applicant program is qualified, it must certify the program as a qualified nonprofit agency for the purposes of the purchasing program outlined in the act. The act also gives DAS the authority to structure or regulate competition among qualified nonprofit agencies for the overall benefit of the OPCRP purchase program.
Under the act, the OPCRP may certify any entity to serve as an approved agent of a qualified nonprofit agency for purposes of the OPCRP purchase program. The OPCRP must prescribe procedures under which an entity can apply and be considered for that certification. An approved agent can do any of the following: (1) contract with the OPCRP to provide centralized business facilitation or other assistance to qualified nonprofit agencies (however, the OPCRP must consult with qualified nonprofit agencies before agreeing to such a contract), (2) act as a distributor of supplies and services registered on the procurement list, and (3) provide marketing, administrative, and other services related to sales.
DAS fee for purchases. The act provides that all government ordering offices purchasing supplies and services from qualified nonprofit agencies or their approved agents must reimburse DAS a reasonable sum to cover its costs in administering the OPCRP purchase program. DAS is permitted to bill administrative costs to government ordering offices directly, or allow qualified nonprofit agencies or their approved agents to collect and remit the fees. Any fee collected and remitted by qualified nonprofit agencies or their approved agents will be considered allowable expenses in addition to the fair market price. All fees collected under these provisions must be deposited in the state treasury to the credit of DAS' General Services Fund.
Release from compliance with OPCRP purchase program. The act provides that when a government ordering office and a qualified nonprofit agency or approved agent are negotiating a price and they cannot come to an agreement, instead of setting a fair market price, the OPCRP may release the government ordering office from compliance with the OPCRP purchase program.
It also provides that the OPCRP, on its own or pursuant to a request from a government ordering office, may release a government ordering office from compliance with the OPCRP purchase program. If the OPCRP determines that compliance is not possible or not advantageous, or if conditions prescribed in rules adopted by the OPCRP for granting a release are met, it may grant such a release. That release must be written, specify the supplies or services to which it applies, state how long it will be effective, and state the reason for which it is granted.
Nonapplicability of OPCRP purchase program. The act provides that the OPCRP purchase program does not apply to the purchase of a product or service available from a state agency, state instrumentality, or political subdivision under any law in effect on July 1, 2005. It also specifies that the program does not prohibit the purchase of a supply or service from a qualified nonprofit agency by a political subdivision that is not a government ordering office.
Competitive selection nonapplicability. The act makes it clear that purchases under the OPCRP purchase program by a government ordering office are not subject to any competitive selection requirements. It also specifies that purchases made by any of the following political subdivisions that are not government ordering offices from a qualified nonprofit agency or its approved agent are exempt from any competitive selection procedures otherwise required by law: municipal corporations, school districts, conservancy districts, township park districts, metropolitan park districts, regional transit authorities, regional airport authorities, regional water and sewer districts, port authorities, and any other political subdivision approved by DAS to participate in DAS "pooled" supply or service purchase contracts. Finally, a political subdivision of the type listed in the previous sentence is prohibited from purchasing supplies or services from another party or political subdivision instead of through the OPCRP purchase program if the supplies or services are on the procurement list, even if it can get the supplies or services at a lower price.
Other OPCRP duties and powers. The act provides that the OPCRP, in addition to its previously described functions, must or may do all of the following:
· Must monitor the procurement practices of government ordering offices to ensure compliance with the OPCRP purchase program;
· Must develop and recommend to the DAS Director, in cooperation with qualified nonprofit agencies, government ordering offices, the Department of MRDD, the Department of Mental Health, the Department of Job and Family Services, and the Rehabilitation Services Commission, rules the Director must adopt in accordance with the Administrative Procedure Act for the effective and efficient administration of the OPCRP purchase program;
· Must prepare a report of its activities by the last day of December of each year and post it on the OPCRP web site;
· May enter into contractual agreements and establish pilot programs to further the objectives of the OPCRP purchase program.
Provision of information to OPCRP. The act requires a government ordering office and qualified nonprofit agency to provide the necessary information and documentation requested by the OPCRP to enable it to effectively administer the purchase program.
Cooperation with other governmental agencies. The act provides that the Department of MRDD, Department of Mental Health, Department of Job and Family Services, Rehabilitation Services Commission, and any other state or governmental agency or community rehabilitation program responsible for the provision of rehabilitation and vocational educational services to persons with work-limiting disabilities may cooperate, through written agreement, in providing resources to DAS for the operation of the OPCRP. The resources may include leadership and assistance in dealing with the societal aspects of meeting the needs of persons with work-limiting disabilities.
The act also permits the OPCRP and all governmental entities that administer socioeconomic programs to enter into contractual agreements, cooperative working relationships, or other arrangements that are necessary for the effective coordination and realization of the objectives of these entities.
Temporary work levels and personnel assignments for employees exempt from the Collective Bargaining Law
(Section 569.03)
Under continuing codified law, whenever an employee is assigned to work in a higher-level position for a continuous period of more than two weeks but not more than two years because of a vacancy, the employee may be paid at a rate approximately 4% higher than the employee's current base pay rate. The Director of Administrative Services must approve the temporary position change. (R.C. 124.181(J)--not in the act.)
Under the act, notwithstanding that codified law, in cases where a vacancy does not exist, an appointing authority, with the written consent of an exempt employee (see below), may assign duties of a higher classification for not more than two years to the exempt employee. The exempt employee must receive compensation commensurate with the duties of the higher classification. The act utilizes continuing law's definitions of (1) "appointing authority"--an officer, commission, board, or body having the power of appointment to, or removal from, positions in any office, department, commission, board, or institution, and (2) "exempt employee"--a permanent full-time or permanent part-time employee paid directly by warrant of the Auditor of State whose position is included in the job classification plan of the Department of Administrative Services but who is not considered a public employee for the purposes of the Collective Bargaining Law.
The act also permits employees who are exempt from the Collective Bargaining Law and who are assigned to duties within their agency to maintain operations during the Ohio Administrative Knowledge System implementation, to agree to a temporary assignment for more than two years if necessary--notwithstanding the codified law referred to above.
Department of Administrative Services' recommendations for a state government reorganization plan
(Section 315.04)
The act would have required the Department of Administrative Services to do both of the following: (1) begin, within 30 days after the provisions' effective date, developing recommendations for a state government reorganization plan focused on increased efficiencies in the operation of state government and a reduced number of state agencies and (2) present its recommendations to the House Speaker, Senate President, and House and Senate Minority Leaders by not later than January 1, 2007. (VETOED.)
· Subject to certain exceptions, requires that the Ohio Department of Aging (ODA) assess a penalty equal to a long-term care facility's total annual bed fee for failure to pay a bed fee on or before a deadline established by ODA's rules.
· Permits ODA to assess a penalty, not to exceed $500 for each violation, against a long-term care provider, other entity, or employee of a provider or entity that denies a representative of the state long-term care ombudsperson access to a long-term care facility or community-based long-term care site.
· Provides that a provider of community-based long-term care services under a program administered by ODA cannot receive payment unless the provider obtains certification from ODA.
· Requires that ODA develop a long-term care consultation program under which residents and potential residents of nursing facilities are provided with information about options available to meet long-term care needs and about factors to consider in making long-term care decisions.
· Eliminates provisions authorizing the Ohio Department of Job and Family Services (ODJFS) to administer a similar program for potential residents of nursing facilities who are not Medicaid applicants or recipients.
· Modifies the procedures ODJFS must follow when conducting assessments of Medicaid applicants or recipients who apply for admission to or reside in a nursing facility to determine whether they need the level of care provided by a nursing facility.
· Permits ODJFS' level of care assessments to be performed concurrently with consultations performed under the long-term care consultation program to be developed by ODA.
· Authorizes ODA to conduct an annual survey of nursing homes and residential care facilities and establishes a fine for failure to complete the survey.
· Requires that ODA publish the Ohio Long-Term Care Consumer Guide, which may be developed as a continuation or modification of the guide ODA currently publishes pursuant to its general rule-making authority.
· Requires that the Guide include information on both nursing homes and residential care facilities, including information obtained from customer satisfaction surveys conducted or provided for by ODA.
· Permits ODA to charge fees for the customer satisfaction surveys in an amount not exceeding $400 annually for nursing homes and $300 annually for residential care facilities.
· Requires that ODA carry out the day-to-day administration of the Medicaid program component known as the Program for All-Inclusive Care for the Elderly (PACE).
· Permits ODA to adopt rules for the PACE program if the rules: (1) are authorized by rules adopted by ODJFS and (2) address only those issues that are not addressed in ODJFS rules for the PACE program.
· Repeals the uncodified law under which the transfer of PACE administrative duties from ODJFS to ODA originally occurred.
· Provides for an individual admitted to a nursing facility while on a waiting list for the PASSPORT Program to be placed in the PASSPORT Program if it is determined that the PASSPORT Program is appropriate for the individual and the individual would rather be placed in the PASSPORT Program than continue to reside in a nursing facility.
· Creates the PASSPORT Evaluation Panel to select an independent contractor to conduct an evaluation of the PASSPORT Program (VETOED).
· Requires the PASSPORT Evaluation Panel to approve a final report by not later than June 30, 2007 (VETOED).
· Permits ODA to apply for the 2005 Aging and Disability Resource Center Grant Initiative of the Administration on Aging and the Centers for Medicare and Medicaid and to create an Aging and Disability Resource Center if the application is accepted.
· Exempts from the Medical Transportation Law an ambulette service provider who operates under ODA rules during the period of time on any day that the provider is solely serving ODA or ODA's designee and creates new requirements for this type of provider.
Penalty for late payment of annual long-term care facility bed fee
(R.C. 173.26)
Continuing law, unaltered by the act, requires a nursing home, residential care facility, adult care facility, adult foster home, or other specified long-term care facility to annually pay to the Ohio Department of Aging (ODA) a fee of $6 for each bed the facility maintained for use by a resident during any part of the previous year. The funds are used to pay the costs of operating regional long-term care ombudsperson programs. The act requires ODA to assess a penalty on long-term care facilities that fail to pay the bed fee not later than 90 days after the deadline established by ODA rules. The penalty is an amount equal to a facility's total annual bed fee.
Penalty for denial of ombudsperson access to long-term care facilities or community-based long-term care sites
(R.C. 173.99(C); R.C. 173.19 (not in the act))
The Office of the State Long-Term Care Ombudsperson Program, through the State Long-Term Care Ombudsperson and the Regional Long-Term Care Ombudsperson Programs, must receive, investigate, and attempt to resolve complaints made by long-term care facility residents, recipients, sponsors, providers of long-term care, or any person acting on behalf of a resident or recipient relating to health, safety, civil rights, or residents' rights issues. Each complaint is assigned to a representative of the Office who is responsible for investigating and working with the parties to resolve the complaint. To carry out these responsibilities, a representative has the right to access long-term care facilities and community-based long-term care sites unescorted as reasonably necessary to investigate a complaint. The act permits ODA to assess a penalty, not to exceed $500 for each violation, against a long-term care provider, other entity, or person employed by the provider or entity that denies a representative of the Program access to a long-term care facility or community-based long-term care site.
Certification for provision of community-based long-term care services
(R.C. 173.39 to 173.393)
The act requires ODA to certify providers of community-based long-term care services[6] under programs ODA administers and, subject to certain exceptions, prohibits ODA from paying a person or government entity for providing community-based long-term care services under such a program unless the provider is certified to provide the services and provides the services. ODA may, however, pay a non-certified person or government entity for providing community-based long-term care services if the provider meets the terms of a contract that includes conditions of participation and service standards and the contract is not for Medicaid-funded services, other than services provided under the Program of All-Inclusive Care for the Elderly (PACE).[7]
ODA is required to adopt rules in accordance with Ohio's Administrative Procedure Act (R.C. Chapter 119.) establishing certification requirements. The rules must establish procedures for ensuring that PASSPORT agencies comply with criminal background check requirements under the law governing the PASSPORT Program and evaluating the services provided by persons and government entities seeking or holding a certificate to ensure they are provided in a quality manner advantageous to the individual receiving the services.
Evaluation considerations
The act requires that ODA consider the following during the evaluation of a provider:
(1) Provider's experience and financial responsibility;
(2) Provider's ability to comply with standards of the community-based long-term care services program;
(3) Provider's ability to meet the needs of individuals served;
(4) Any other factor ODA considers relevant.
The act provides that, in general, records of an evaluation are public records and must be made available on the request of any person. The act, however, prohibits the release of a part of a record of an evaluation as a public record if the release of the part would violate federal or state law.
Disciplinary action and enforcement
The act authorizes ODA to take disciplinary action against a provider. ODA must adopt rules setting standards for determining which type of disciplinary action to take. The act requires the rules to specify the reasons for taking disciplinary action, including disciplinary actions based on good cause, and for misfeasance, malfeasance, nonfeasance, confirmed abuse or neglect, financial irresponsibility, or other conduct of the provider ODA determines is injurious to the health or safety of individuals being served.
ODA is authorized to take the following types of disciplinary actions:
(1) Issue a written warning;
(2) Require submission of a plan of correction;
(3) Suspend referrals;
(4) Remove clients;
(5) Impose a fiscal sanction, such as a civil monetary penalty or an order that unearned funds be repaid;
(6) Revoke the provider's certificate;
(7) Impose another sanction.
The act requires ODA to hold hearings when there is a dispute between ODA or its designee and a provider concerning actions ODA or its designee takes or does not take regarding certification or disciplinary proceedings. This does not apply, however, if the disciplinary action is issuing a written warning or requiring the submission of a plan of correction.
Rules governing contracts and payments
ODA is required by the act to adopt rules concerning contracts between ODA, or ODA's designee, and persons and government entities regarding community-based long-term care services provided under a program ODA administers. ODA must also adopt rules concerning ODA's payments for such services.
Long-term care consultation program
Background
The Revised Code provides for several different types of assessments of persons applying or intending to apply for admission to a nursing facility.[8] The Ohio Department of Job and Family Services (ODJFS), or an agency designated by ODJFS, is authorized to assess any person who is not an applicant for or recipient of Medicaid who applies or intends to apply to a nursing facility to determine whether the person is in need of nursing facility services and whether an alternative source of long-term care is more appropriate for the person in meeting the person's physical, mental, and psychosocial needs than admission to the facility to which the person has applied (R.C. 5101.75 and 5101.751). In addition, ODJFS may require an applicant for or recipient of Medicaid who applies or intends to apply for admission to a nursing facility to undergo an assessment to determine whether the person needs the level of care provided by a nursing facility (R.C. 5101.754, 5111.204, and 5111.205).
Overview
In general, the act transfers from ODJFS to ODA, the authority to provide assessments of non-Medicaid recipients, modifies the nature of those assessments by including a "long-term care consultation,"[9] and expands the population that must be given the assessments (R.C. 173.42 and 173.43 and repeal of R.C. 5101.751 and 5101.753). It also revises the law governing assessments of Medicaid recipients by ODJFS (R.C. 5111.204 and repeal of R.C. 5101.754 and 5111.205).
Duty to perform assessments
(R.C. 173.42(B) and (C) and 5101.75(B))
Under prior law, ODJFS was permitted to assess a person applying or intending to apply for admission to a nursing facility who was not an applicant for or recipient of Medicaid to determine whether the person was in need of nursing facility services and whether an alternative source of long-term care was more appropriate for the person in meeting the person's physical, mental, and psychosocial needs than admission to the facility to which the person has applied. Each assessment was to be performed by ODJFS or an agency designated by ODJFS.
The act requires ODA to develop a long-term care consultation program whereby individuals or their representatives are provided with information through professional consultations about options available to meet long-term care needs and about factors to consider in making long-term care decisions. ODA may enter into a contract with an area agency on aging or other entity under which the long-term care consultation program for a particular area is administered by the area agency on aging or other entity pursuant to the contract; otherwise, the program is to be administered by ODA.
Information to be provided; assessment of individual's functional capabilities
(R.C. 173.42(E), (F), and (J))
Under the act, the information provided through a long-term care consultation must be appropriate to the individual's needs and situation. The information must address the following:
(1) The availability of any long-term care options open to the individual;
(2) Sources and methods of both public and private payment for long-term care services;
(3) Factors to consider when choosing among the available programs, services, and benefits;
(4) Opportunities and methods for maximizing independence and self-reliance, including support services provided by the individual's family, friends, and community.
An individual's long-term care consultation may include an assessment of the individual's functional capabilities. It also may incorporate portions of determinations required to be made by the Department of Mental Health or the Department of Mental Retardation and Developmental Disabilities[10] and may be provided concurrently with the assessment required to be made by ODJFS (see "Level-of-care assessments to receive Medicaid nursing facility services," below).
At the conclusion of a consultation, ODA or the program administrator under contract with ODA must provide the individual or the individual's representative with a written summary of options and resources available to meet the individual's needs. And even though the summary may specify that a source of long-term care other than care in a nursing facility is appropriate and available, the individual is not required to seek an alternative source and may be admitted to or continue to reside in a nursing facility.
Individuals to be provided consultations; exemptions
(R.C. 173.42(G) and (I))
Under the act a long-term care consultation may be provided for nursing facility residents who have not applied and have not indicated an intention to apply for Medicaid. The purpose of these consultations is to determine continued need for nursing facility services, to provide information on alternative services, and to make referrals to alternative services.
But, the act requires long-term care consultations to be provided to the following:
(1) Individuals who apply or indicate an intention to apply for admission to a nursing facility, regardless of the source of payment to be used for such care;
(2) Residents of nursing facilities who apply or indicate an intention to apply for Medicaid;
(3) Residents who are likely to "spend down" their resources within six months after admission to a level that qualifies them financially for Medicaid;
(4) Any individual who requests a long-term care consultation.
The act exempts certain individuals from the long-term care consultation requirement. The exemptions largely parallel exemptions in prior law, but differ in the following ways:
(1) The act exempts an individual from the requirement if the individual or the individual's representative chooses to forego participation in the consultation pursuant to criteria specified in rules adopted under the act.
(2) The act eliminates the exemption regarding a person placed in the nursing facility in order to provide temporary relief to the person's primary caregiver.[11]
(3) The act additionally exempts an individual who is seeking admission to a facility that is not a nursing facility with a provider agreement under the Medicaid Law.
(4) The act exempts any individual who is to be transferred from another nursing facility.
(5) The act exempts any individual who is to be readmitted to a nursing facility following a period of hospitalization.
(6) The act eliminates the exemption based on the failure of a timely assessment.
Time frame for completion of consultations
(R.C. 173.42(H))
When a long-term care consultation is required, the act requires it to be provided as follows:
(1) If the individual for whom the consultation is being provided has applied for Medicaid and the consultation is being provided concurrently with the assessment required to be made by ODJFS (see "Level-of-care assessments to receive Medicaid nursing facility services," below), the consultation must be completed in accordance with the applicable time frames specified in the Medicaid law for providing a level of care determination based on the assessment.
(2) In all other cases, the consultation must be provided not later than five calendar days after ODA, or the program administrator under contract with ODA, receives notice that (a) the individual has applied or has indicated an intention to apply for admission to a nursing facility or (b) if the individual is a resident of a nursing facility, the individual has applied or has indicated an intention to apply for Medicaid.
An individual or the individual's representative may request that a long-term care consultation be provided on a date that is later than that required under (1) or (2), above. Also, if a consultation cannot be completed within the required time frames, ODA or the program administrator may (a) exempt the individual from the consultation pursuant to rules adopted under the act, (b) in the case of an applicant for admission to a nursing facility, provide the consultation after the individual is admitted to the facility, or (c) in the case of a resident of a nursing facility, provide the consultation as soon as practicable.
Who may perform assessments
(R.C. 173.42(D), 173.43, 5101.75(B), and 5101.752 and 5101.751 (repealed))
The act requires the long-term care consultations to be provided by individuals certified by ODA. The Director of ODA is required to adopt rules in accordance with the Administrative Procedure Act (R.C. Chapter 119.) governing the certification process and requirements. The rules must specify the education, experience, or training in long-term care a person is to have to qualify for certification. The act repeals the authority of ODJFS to designate another agency to provide the assessments, and ODA is given no analogous designation authority.
Authority to fine nursing facilities
(R.C. 173.42(K) and (M) and 5111.62)
The act, in a manner similar to prior law, prohibits any nursing facility for which an operator has a provider agreement under the Medicaid law from admitting or retaining any individual as a resident, unless the nursing facility has received evidence that a long-term care consultation has been completed for the individual or that the individual is exempt from the long-term care consultation requirement. The act transfers from the Director of ODJFS to the Director of ODA the authority to fine a nursing facility an amount determined by rule if the facility violates this prohibition. All fines collected are to be deposited into the state treasury to the credit of the Residents Protection Fund.
Rulemaking
(R.C. 173.42(L))
Under the act, the Director of ODA is authorized to adopt any rules the Director considers necessary for the implementation and administration of the act's long-term care consultation provisions. The rules must be adopted in accordance with the Administrative Procedure Act and may specify all of the following:
(1) Procedures for performing long-term care consultations;
(2) Information to be provided through long-term care consultations regarding long-term care services that are available;
(3) Criteria for identifying nursing facility residents who would benefit from the provision of a long-term care consultation;
(4) Criteria under which an individual or the individual's representative may choose to forego participation in a long-term care consultation;
(5) Criteria for exempting individuals from the long-term care consultation requirement;
(6) Circumstances under which it may be appropriate to provide an individual's consultation after the individual's admission to a nursing facility.
Plan for providing home and community-based services
(R.C. 5101.573 (repealed))
The act repeals a provision under which ODJFS or an agency designated by ODJFS could develop a plan for provision of home and community-based services to a person if the recommendation resulting from the assessment is that home and community-based services are appropriate for the person.
Level-of-care assessments to receive Medicaid nursing facility services
Individuals to be assessed
(R.C. 5111.204(B))
Continuing law authorizes ODJFS to require an applicant for or recipient of Medicaid who applies or intends to apply for admission to a nursing facility to undergo an assessment to determine whether the applicant or recipient needs the level of care provided by a nursing facility.
The act expands this provision to also apply to an applicant for or recipient of Medicaid who resides in a nursing facility. In addition, the act specifies that the assessment may be performed concurrently with a long-term care consultation performed by ODA.
Who may perform assessments
(R.C. 5101.754 and 5111.204(B) and (G))
Prior law permitted ODJFS to designate another agency to conduct assessments. Under the act, ODJFS may instead enter into contracts in the form of interagency agreements with one or more other state agencies to perform the assessments. The interagency agreements must be in accordance with Medicaid law provisions governing interagency agreements to administer one or more components of the Medicaid program. The interagency agreements must specify the responsibilities of each agency in the performance of the assessments.
Level of care determinations
(R.C. 5111.204 (C) and (D))
The act adds an additional category of assessment: a level of care determination. Under the act, ODJFS or the contracting agency must provide a level of care determination based on the assessment as follows:
(1) In the case of a person applying or intending to apply for admission to a nursing facility while hospitalized, not later than (a) one working day after the person or the person's representative submits the application or notifies ODJFS of the person's intention to apply and submits all information required for providing the level of care determination or (b) a later date requested by the person or the person's representative.
(2) In the case of a person applying or intending to apply for admission to a nursing facility who is not hospitalized, not later than (a) five calendar days after the person submits an application for Medicaid or notifies ODJFS of the person's intention to apply and submits all information required for providing the level of care determination or (b) a later date requested by the person or the person's representative.
(3) In the case of a person who resides in a nursing facility, not later than (a) five calendar days after the person or the person's representative submits an application for medical assistance and submits all information required for providing the level of care determination, or (b) a later date requested by the person or the person's representative.
(4) In the case of an emergency, within the number of days specified by ODJFS rules.
The act also removes a provision that provided for partial assessments to be conducted (existing R.C. 5111.204(C), (D), (E), and (H)).
Appeals
(R.C. 5111.204(D))
The act retains a law that permits a person assessed or the person's representative to appeal the conclusions reached by ODJFS or the contracting agency on the basis of the assessment, but rephrases the provision to refer to requesting "a state hearing to dispute the conclusions" rather than referring to an "appeal." The act requires that the state be represented in any requested state hearing by ODJFS or the contracting agency, whichever performed the assessment.
Rulemaking
(R.C. 5111.204(F))
The act revises law authorizing the Director of ODJFS to adopt rules to implement and administer the assessment provision as follows:
(1) It eliminates partial assessments.
(2) It requires that the rules set forth circumstances that constitute an "emergency" and the number of days within which a level of care determination must be provided in the case of an emergency.
(3) It eliminates specific criteria that must be included in rules establishing criteria and procedures to be used in determining whether admission to a nursing facility or continued stay in a nursing facility is appropriate for the person being assessed.
(4) It makes conforming changes to reflect the other changes in the act.
Plan for providing home and community-based services
(R.C. 5111.205 (repealed))
The act repeals a provision under which ODJFS or the designated agency, whichever performed the assessment, could develop a plan for provision of home and community-based services to that person if the recommendation resulting from the assessment was that home and community-based services were appropriate for the person assessed.
Nursing home and residential care facility survey
(R.C. 173.44 and 173.99(D))
The act authorizes ODA to conduct an annual survey of nursing homes and residential care facilities.[12] The survey is to include questions about capacity, occupancy, and private pay charges related to the facilities. ODA may work with an outside entity to conduct the survey and analyze the results. The results and analysis of the survey are to be made available to the General Assembly, other state agencies, nursing home and residential care facility providers, and the public.
A nursing home or residential care facility that recklessly fails to complete the survey is subject to a $100 fine.
Long-Term Care Consumer Guide
Background
(former R.C. 173.45 to 173.59 and R.C. 173.02; O.A.C. Chapter 173-45)
Am. Sub. H.B. 95 of the 125th General Assembly, the biennial operating budget for fiscal years 2004 and 2005, repealed provisions that required ODA to publish the Ohio Long-Term Care Consumer Guide, a guide to Ohio nursing homes. Prior law required the Guide to be made available on the Internet and updated periodically. Every two years, ODA was required to publish an Executive Summary of the Guide, which had to be available in electronic and printed media. In addition, prior law specified that, to the extent possible, annual customer satisfaction surveys had to be conducted for use in the Guide. ODA was permitted to charge the nursing home a fee of up to $400 for each annual survey. The Guide has continued to be published pursuant to ODA rules, but the statutory provisions were eliminated.
The act
(R.C. 173.45 to 173.49)
The act enacts new statutory provisions governing publication of an Ohio Long-Term Care Consumer Guide, conduct of customer satisfaction surveys, and the fee relating to the surveys.
Authorization to publish and content of Guide. The act requires ODA to develop and publish a guide to long-term care facilities for use by individuals considering long-term care facility admission and their families, friends, and advisors.[13] This Ohio Long-Term Care Consumer Guide may be published in printed form or in electronic form for distribution over the Internet. The Guide may be developed as a continuation or modification of the rule-authorized Guide currently published by ODA.
The Guide must include information on each long-term care facility in Ohio. For each facility, the Guide must include the following information, as applicable to the facility:
(1) Information regarding the facility's compliance with Ohio statutes and rules and federal statutes and regulations;
(2) Information generated by the United States Department of Health and Human Services Centers for Medicare and Medicaid Services from the quality measures developed as part of its nursing home quality initiative;
(3) Results of customer satisfaction surveys;
(4) Any other information ODA specifies by rule.
Customer satisfaction surveys. For purposes of publishing the Guide, ODA must conduct or provide for the conduct of an annual customer satisfaction survey of each long-term care facility. The act specifies that each long-term care facility must cooperate in the conduct of the survey (but does not specify a penalty for non-compliance). The results of the surveys may include information obtained from long-term care facility residents, their families, or both.
Fees and the Long-Term Care Consumer Guide Fund. ODA may charge fees for the conduct of annual customer satisfaction surveys. ODA may contract with any person or government entity to collect the fees on its behalf. The fees may not exceed the following amounts:
(1) $400 for the customer satisfaction survey of a long-term care facility that is a nursing home;
(2) $300 for the customer satisfaction survey pertaining to a long-term care facility that is a residential care facility.
Fees paid by a long-term care facility that is a "nursing facility" must be reimbursed through the Medicaid Program.[14]
The act creates in the state treasury the Long-Term Care Consumer Guide Fund. Money collected from the fees charged for the conduct of customer satisfaction surveys must be deposited in the state treasury and credited to the Fund. ODA must use money in the Fund for costs associated with publishing the Guide, including, but not limited to, costs incurred in conducting or providing for the conduct of customer satisfaction surveys.
Rules. The act authorizes ODA to adopt rules under the Administrative Procedure Act (R.C. Chapter 119.) to implement and administer the provisions relating to the annual surveys and the publication of the Long-Term Care Consumer Guide.
Transfer of PACE administrative duties
(R.C. 173.50; Section 490.03)
The Program of All-Inclusive Care for the Elderly (PACE) is a Medicaid component based on a managed care model through which certain sites provide frail, older adults with all of their needed health care and ancillary services in acute, subacute, institutional, and community settings. Enrollment is voluntary, and once enrolled, PACE becomes the sole source of all Medicare and Medicaid covered services and other items or medical, social, or rehabilitation services the PACE interdisciplinary team determines an enrollee needs. If a participant requires placement in a nursing home, PACE is responsible and accountable for the care and services provided and must regularly evaluate the participant’s condition.[15]