To amend sections 103.14, 119.03, 119.031, 121.24, and 127.18 of the Revised Code to require the Legislative Budget Office of the Legislative Service Commission to include in its fiscal analysis of a bill or resolution, and each of certain agencies to include in its fiscal analysis of a proposed rule, information explaining the economic impact of the bill, resolution, or rule on Ohio businesses.

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

Sec. 103.14. (A) If a bill OR RESOLUTION introduced in the general assembly appears to affect the revenues or expenditures of the state, OR a county, municipal corporation, township, school district, or other governmental entity of the state, the Ohio legislative budget office of the Ohio legislative service commission shall, before the bill OR RESOLUTION is recommended for passage by the house committee or the senate committee of the general assembly to which the bill OR RESOLUTION was referred and again before the bill OR RESOLUTION is taken up for final consideration by either house of the general assembly, prepare a fiscal analysis of the bill or resolution. The fiscal analysis shall include an estimate, in dollars, of the amount by which the bill OR RESOLUTION would increase or decrease revenues or expenditures and any other information the Ohio legislative budget office considers necessary to explain the fiscal effect of the bill or resolution.

(B) The Ohio legislative budget office shall distribute copies of a fiscal analysis in accordance with either of the following:

(1) For consideration by the senate or house rules committee, or the standing committee to which a bill OR RESOLUTION is referred, two copies to the chairman CHAIRPERSON together with a copy to each member of the committee;

(2) For final consideration, a copy to each member of the house that is considering the bill OR RESOLUTION.

If the member who introduced the bill or resolution is not a member of the house or rules committee considering the bill OR RESOLUTION, the Ohio legislative budget office shall send him THE MEMBER a copy.

(C) In preparing a fiscal analysis, the Ohio legislative budget office may request any department, division, institution, board, commission, authority, bureau, or other instrumentality or officer of the state, OR a county, municipal corporation, township, school district, or other governmental entity of the state, to provide any of the following information:

(1) An estimate, in dollars, of the amount by which the bill or resolution would increase or decrease the revenues or expenditures received or made by the instrumentality, officer, or entity;

(2) Any other information the Ohio legislative budget office considers necessary for it to understand or explain the fiscal effect of the bill OR RESOLUTION.

An instrumentality, officer, or entity shall comply with a request as soon as reasonably possible after it receives the request. The Ohio legislative budget office shall specify the manner of compliance in its request, and, if necessary, may specify a longer period of time than five days for compliance. The Ohio legislative budget office may consider any information provided under this division in preparing a fiscal analysis.

(D) IF A BILL OR RESOLUTION INTRODUCED IN THE GENERAL ASSEMBLY HAS A FISCAL EFFECT ON OHIO BUSINESSES, THE CHAIRPERSON OF THE STANDING COMMITTEE OR STANDING SUBCOMMITTEE IN EITHER HOUSE OF THE GENERAL ASSEMBLY TO WHICH THE BILL OR RESOLUTION IS REFERRED MAY REQUEST THAT THE FISCAL ANALYSIS PREPARED FOR THE BILL OR RESOLUTION UNDER DIVISION (A) OF THIS SECTION INCLUDE AN ECONOMIC IMPACT ANALYSIS. THAT CHAIRPERSON'S REQUEST SHALL BE SUBMITTED TO THE CHAIRPERSON OF THE STANDING COMMITTEE IN THE SAME HOUSE THAT HAS JURISDICTION OVER MATTERS OF FINANCE. THE FINANCE CHAIRPERSON THEN SHALL DETERMINE WHETHER TO APPROVE THE REQUEST, TAKING INTO CONSIDERATION BOTH OF THE FOLLOWING:

(1) THE LIKELIHOOD, IN THE FINANCE CHAIRPERSON'S OPINION, THAT THE BILL OR RESOLUTION WOULD HAVE A SIGNIFICANT ECONOMIC IMPACT ON OHIO BUSINESSES;

(2) THE WORKLOAD AND BUDGETARY LIMITATIONS OF THE OHIO LEGISLATIVE BUDGET OFFICE.

UPON APPROVING A REQUEST FOR AN ECONOMIC IMPACT ANALYSIS, THE FINANCE CHAIRPERSON SHALL DIRECT THE DIRECTOR OF THE OHIO LEGISLATIVE BUDGET OFFICE TO INCLUDE AN ECONOMIC IMPACT ANALYSIS IN THE FISCAL ANALYSIS PREPARED FOR THE BILL OR RESOLUTION.

(E) AN ECONOMIC IMPACT ANALYSIS SHALL CONSIST OF ALL OF THE FOLLOWING INFORMATION:

(1) AN ESTIMATE OF THE AMOUNT BY WHICH THE BILL OR RESOLUTION WOULD INCREASE OR DECREASE THE REVENUES OR EXPENDITURES OF OHIO BUSINESSES;

(2) THE IMPACT OF THE BILL OR RESOLUTION ON THE ABILITY OF A SMALL BUSINESS TO BECOME ESTABLISHED AND TO GROW DURING THE FIRST THREE YEARS OF ITS OPERATION;

(3) THE IMPACT OF THE BILL OR RESOLUTION ON OHIO COMPETITIVENESS AS INDICATED BY ITS EFFECT ON A BUSINESS THAT, BECAUSE OF ANY OF THE FOLLOWING FACTORS, HAS THE ABILITY TO RELOCATE TO ANOTHER STATE AT RELATIVELY LOW COST BECAUSE OF AN UNFAVORABLE CHANGE IN THE TAXATION OR BUSINESS CLIMATE IN THE STATE IN WHICH IT IS CURRENTLY LOCATED:

(a) EASE OF MOBILITY DUE TO A RELATIVELY LOW QUANTITY OF FIXED CAPITAL;

(b) THE AVAILABILITY OF A SUITABLE LABOR FORCE;

(c) ITS LOCATION RELATIVE TO ITS CUSTOMERS.

IN DETERMINING THE IMPACT OF THE BILL OR RESOLUTION ON OHIO COMPETITIVENESS, THE OHIO LEGISLATIVE BUDGET OFFICE SHALL COMPARE THE BILL OR RESOLUTION WITH SIMILAR LAWS AND REGULATIONS THAT AFFECT BUSINESSES IN OTHER STATES, IF ANY, AND DETERMINE WHETHER THE BILL OR RESOLUTION WOULD MAKE OHIO MORE LENIENT, LESS LENIENT, OR ABOUT THE SAME AS OTHER STATES WITH REGARD TO THE REGULATION OF SIMILAR BUSINESSES.

(4) ANY OTHER INFORMATION THE OHIO LEGISLATIVE BUDGET OFFICE CONSIDERS NECESSARY TO EXPLAIN THE FISCAL EFFECT OF THE BILL OR RESOLUTION ON OHIO BUSINESSES.

AS USED IN THIS DIVISION, "SMALL BUSINESS" HAS THE SAME MEANING AS IN SECTION 121.24 of the Revised Code.

(F) The failure of the Ohio legislative budget office to prepare a fiscal analysis before a bill or resolution is taken up for consideration by the house or senate committees, or by either or both houses for final consideration, shall not be construed to impair the validity of any bill OR RESOLUTION passed by either or both houses of the general assembly.

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

(A) Reasonable public notice shall be given at least thirty days prior to the date set for a hearing, in the manner and form and for the length of time as the agency determines and shall include:

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

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

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

(4) The date, time, and place of a hearing on the proposed action, which shall be not earlier than thirty nor later than fifty days after the proposed rule, amendment, or rescission is filed under division (B) of this section. In addition to public notice, the agency may give whatever other notice it considers necessary. Each agency shall adopt a rule setting forth in detail the method that the agency shall follow in giving public notice as to the adoption, amendment, or rescission of rules. The rule shall require the agency to provide the public notice required under division (A) of this section to any person who requests it and pays a reasonable fee, not to exceed the cost of copying and mailing. The methods used for notification may include, but are not limited to, mailing notices to all subscribers on a mailing list or mailing notices in addressed, stamped envelopes provided by the person requesting the notice.

(B) One copy of the full text of the proposed rule, amendment, or rule to be rescinded, accompanied by one copy of the public notice required under division (A) of this section, shall be filed with the secretary of state. Two copies of the full text of the proposed rule, amendment, or rule to be rescinded, accompanied by two copies of the public notice required under division (A) of this section, shall be filed with the director of the legislative service commission. (If in compliance with this division an agency files more than one proposed rule, amendment, or rescission at the same time, and has given a public notice under division (A) of this section that applies to more than one of the proposed rules, amendments, or rescissions, the agency shall file only one copy of the notice with the secretary of state and only two copies of the notice with the director for all of the proposed rules, amendments, or rescissions to which the notice applies.) The proposed rule, amendment, or rescission and public notice shall be filed as required by this division at least sixty days prior to the date on which the agency, in accordance with division (D) of this section, issues an order adopting the proposed rule, amendment, or rescission. The proposed rule, amendment, or rescission shall be available for at least thirty days prior to the date of the hearing at the office of the agency in printed or other legible form without charge to any person affected by the proposal. Failure to furnish such text to any person requesting it shall not invalidate any action of the agency in connection therewith. If the agency files a substantive revision in the text of the proposed rule, amendment, or rescission under division (H) of this section, it shall also promptly file one copy of the full text of the proposed rule, amendment, or rescission in its revised form with the secretary of state and two copies thereof with the director of the legislative service commission. The agency shall attach a copy of the rule summary and fiscal analysis prepared under section 121.24 or 127.18 of the Revised Code, or both, to each copy of a proposed rule or proposed rule in revised form that is filed with the secretary of state or the director of the legislative service commission.

(C) On the date and at the time and place designated in the notice, the agency shall conduct a public hearing at which any person affected by the proposed action of the agency may appear and be heard in person, by his THE PERSON'S attorney, or both, may present his THE PERSON'S position, arguments, or contentions, orally or in writing, offer and examine witnesses, and present evidence tending to show that the proposed rule, amendment, or rescission, if adopted or effectuated, will be unreasonable or unlawful.

At the hearing, the testimony, rulings on the admissibility of evidence, and proffers of evidence shall be recorded by stenographic means. Such record shall be made at the expense of the agency.

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

The agency shall pass upon the admissibility of evidence, but the person affected may at the time make objection to the ruling of the agency, and if the agency refuses to admit evidence the person offering the evidence shall make a proffer of the evidence, and the proffer shall be made a part of the record of such hearing.

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

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

(F) If the governor, upon the request of an agency, determines that an emergency requires the immediate adoption, amendment, or rescission of a rule, he THE GOVERNOR shall issue a written order, a copy of which shall be filed with the secretary of state, the director of the legislative service commission, and the joint committee on agency rule review, that the procedure prescribed by this section with respect to the adoption, amendment, or rescission of a specified rule is suspended. The agency may then adopt immediately the emergency rule, amendment, or rescission and it becomes effective on the date copies of the rule, amendment, or rescission, in final form and in compliance with division (A)(2) of section 119.04 of the Revised Code, are filed as follows: two certified copies of the emergency rule, amendment, or rescission shall be filed with both the secretary of state and the director of the legislative service commission, and one certified copy of the emergency rule, amendment, or rescission shall be filed with the joint committee on agency rule review. If all copies are not filed on the same day, the emergency rule, amendment, or rescission shall be effective on the day on which the latest filing is made. The emergency rule, amendment, or rescission shall become invalid at the end of the ninetieth day it is in effect. Prior to that date the agency may adopt the emergency rule, amendment, or rescission as a nonemergency rule, amendment, or rescission by complying with the procedure prescribed by this section for the adoption, amendment, and rescission of nonemergency rules. The agency shall not use the procedure of this division to readopt the emergency rule, amendment, or rescission so that, upon the emergency rule, amendment, or rescission becoming invalid under this division, the emergency rule, amendment, or rescission will continue in effect without interruption for another ninety-day period. This division does not apply to the adoption of any emergency rule, amendment, or rescission by the tax commissioner under division (C)(2) of section 5117.02 of the Revised Code.

(G) Rules adopted by an authority within the department of taxation or the bureau of employment services shall be effective without a hearing as provided by this section if the statutes pertaining to such agency specifically give a right of appeal to the board of tax appeals or to a higher authority within the agency or to a court, and also give the appellant a right to a hearing on such appeal. This division does not apply to the adoption of any rule, amendment, or rescission by the tax commissioner under division (C)(1) or (2) of section 5117.02 of the Revised Code, or deny the right to file an action for declaratory judgment as provided in Chapter 2721. of the Revised Code from the decision of the board of tax appeals or of the higher authority within such agency.

(H) When any agency files a proposed rule, amendment, or rescission under division (B) of this section, it shall also file with the joint committee on agency rule review two copies of the full text of the proposed rule, amendment, or rule to be rescinded in the same form and two copies of the public notice required under division (A) of this section. (If in compliance with this division an agency files more than one proposed rule, amendment, or rescission at the same time, and has given a public notice under division (A) of this section that applies to more than one of the proposed rules, amendments, or rescissions, the agency shall file only two copies of the notice with the joint committee for all of the proposed rules, amendments, or rescissions to which the notice applies.) If the agency makes a substantive revision in a proposed rule, amendment, or rescission after it is filed with the joint committee, the agency shall promptly file two copies of the full text of the proposed rule, amendment, or rescission in its revised form with the joint committee. The latest version of a proposed rule, amendment, or rescission as filed with the joint committee supersedes each earlier version of the text of the same proposed rule, amendment, or rescission. An agency shall attach one copy of the rule summary and fiscal analysis prepared under section 121.24 or 127.18 of the Revised Code, or both, to each copy of a proposed rule, amendment, or rescission, and to each copy of a proposed rule, amendment, or rescission in revised form, that is filed under this division.

This division does not apply to:

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

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

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

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

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

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

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

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

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

The house of representatives and senate may adopt a concurrent resolution invalidating a proposed rule, amendment, rescission, or part thereof. The concurrent resolution shall state which of the specific rules, amendments, rescissions, or parts thereof are invalidated. A concurrent resolution invalidating a proposed rule, amendment, or rescission shall be adopted prior to the sixtieth day after the original version of the text of the proposed rule, amendment, or rescission is filed with the joint committee, except that if more than thirty days after the original version is filed the rule-making agency either files a revised version of the text of the proposed rule, amendment, or rescission, or revises the rule summary and fiscal analysis in accordance with division (I)(4) of this section, a concurrent resolution invalidating the proposed rule, amendment, or rescission shall be adopted prior to the thirtieth day after the revised version of the proposed rule or rule summary and fiscal analysis is filed. If, after the joint committee on agency rule review recommends the adoption of a concurrent resolution invalidating a proposed rule, amendment, rescission, or part thereof, the house of representatives or senate does not, within the time remaining for adoption of the concurrent resolution, hold five floor sessions at which its journal records a roll call vote disclosing a sufficient number of members in attendance to pass a bill, the time within which that house may adopt the concurrent resolution is extended until it has held five such floor sessions.

Within five days after the adoption of a concurrent resolution invalidating a proposed rule, amendment, rescission, or part thereof, the clerk of the senate shall send the rule-making agency, the secretary of state, and the director of the legislative service commission a certified copy of the resolution together with a certification stating the date on which the resolution takes effect. The secretary of state and the director of the legislative service commission shall each note the invalidity of the proposed rule, amendment, rescission, or part thereof on his copy THEIR COPIES, and shall each remove the invalid proposed rule, amendment, rescission, or part thereof from the file of proposed rules. The rule-making agency shall not proceed to adopt in accordance with division (D) of this section, or to file in accordance with division (B)(1) of section 111.15 of the Revised Code, any version of a proposed rule, amendment, rescission, or part thereof that has been invalidated by concurrent resolution.

Unless the house of representatives and senate adopt a concurrent resolution invalidating a proposed rule, amendment, rescission, or part thereof within the time specified by this division, the rule-making agency may proceed to adopt in accordance with division (D) of this section, or to file in accordance with division (B)(1) of section 111.15 of the Revised Code, the latest version of the proposed rule, amendment, or rescission as filed with the joint committee. If by concurrent resolution certain of the rules, amendments, rescissions, or parts thereof are specifically invalidated, the rule-making agency may proceed to adopt, in accordance with division (D) of this section, or to file in accordance with division (B)(1) of section 111.15 of the Revised Code, the latest version of the proposed rules, amendments, rescissions, or parts thereof as filed with the joint committee that are not specifically invalidated. The rule-making agency may not revise or amend any proposed rule, amendment, rescission, or part thereof that has not been invalidated except as provided in this chapter or in section 111.15 of the Revised Code.

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

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

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

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

(4) In lieu of recommending a concurrent resolution to invalidate a proposed rule, amendment, rescission, or part thereof because the rule-making agency has failed to prepare a complete and accurate fiscal analysis, the joint committee on agency rule review may issue, on a one-time basis, for rules, amendments, rescissions, or parts thereof that have a fiscal effect on school districts, counties, townships, or municipal corporations, a written finding that the rule summary and fiscal analysis is incomplete or inaccurate and order the rule-making agency to revise the rule summary and fiscal analysis and refile it with the proposed rule, amendment, rescission, or part thereof. If an emergency rule is filed as a nonemergency rule before the end of the ninetieth day of the emergency rule's effectiveness, and the joint committee issues a finding and orders the rule-making agency to refile under division (I)(4) of this section, the governor may also issue a written order stating that the emergency rule shall remain in effect for an additional sixty days after the ninetieth day of the emergency rule's effectiveness. Copies of the governor's written orders shall be filed in accordance with division (F) of this section. The joint committee shall send the rule-making agency, the secretary of state, and the director of the legislative service commission a certified copy of the order to revise the rule summary and fiscal analysis, which shall take immediate effect.

(5) IN LIEU OF RECOMMENDING A CONCURRENT RESOLUTION TO INVALIDATE A PROPOSED RULE, AMENDMENT, RESCISSION, OR PART THEREOF BECAUSE THE RULE-MAKING AGENCY IS REQUIRED TO INCLUDE IN A FISCAL ANALYSIS, AND HAS FAILED TO PREPARE, A COMPLETE AND ACCURATE ECONOMIC IMPACT ANALYSIS UNDER SECTION 127.18OF THEREVISEDCODE, THE JOINT COMMITTEE ON AGENCY RULE REVIEW MAY ISSUE, ONCE FOR ANY PROPOSED RULE, AMENDMENT, RESCISSION, OR PART THEREOF, A WRITTEN FINDING THAT THE ECONOMIC IMPACT ANALYSIS IS INCOMPLETE OR INACCURATE AND ORDER THE RULE-MAKING AGENCY TO REVISE THE ECONOMIC IMPACT ANALYSIS IN THE RULE SUMMARY AND FISCAL ANALYSIS AND REFILE IT WITH THE PROPOSED RULE, AMENDMENT, RESCISSION, OR PART THEREOF. IF THE JOINT COMMITTEE HAS DETERMINED TO ISSUE A FINDING UNDER DIVISION (I)(4) OF THIS SECTION, THE COMMITTEE MAY INCLUDE ITS FINDINGS UNDER DIVISION (I)(5) OF THIS SECTION IN ITS FINDINGS AND ORDER ISSUED UNDER DIVISION (I)(4) OF THIS SECTION, BUT THE COMMITTEE MAY ISSUE ONLY ONE FINDING AND ORDER UNDER DIVISION (I)(4) OR (5) OF THIS SECTION FOR EACH PROPOSED RULE, AMENDMENT, RESCISSION, OR PART THEREOF. IF AN EMERGENCY RULE IS FILED AS A NONEMERGENCY RULE BEFORE THE END OF THE NINETIETH DAY OF THE EMERGENCY RULE'S EFFECTIVENESS, AND THE JOINT COMMITTEE ISSUES A FINDING AND ORDERS THE RULE-MAKING AGENCY TO REFILE UNDER DIVISION (I)(5) OF THIS SECTION, THE GOVERNOR MAY ALSO ISSUE A WRITTEN ORDER STATING THAT THE EMERGENCY RULE SHALL REMAIN IN EFFECT FOR AN ADDITIONAL SIXTY DAYS AFTER THE NINETIETH DAY OF THE EMERGENCY RULE'S EFFECTIVENESS. COPIES OF THE GOVERNOR'S WRITTEN ORDERS SHALL BE FILED IN ACCORDANCE WITH DIVISION (F) OF THIS SECTION. THE JOINT COMMITTEE SHALL SEND THE RULE-MAKING AGENCY, THE SECRETARY OF STATE, AND THE DIRECTOR OF THE LEGISLATIVE SERVICE COMMISSION A CERTIFIED COPY OF THE ORDER TO REVISE THE RULE SUMMARY AND FISCAL ANALYSIS, WHICH SHALL TAKE IMMEDIATE EFFECT.

(6) A written order issued under division (I)(4) OR (5) of this section shall prevent the rule-making agency from instituting or continuing proceedings to adopt any version of the proposed rule, amendment, rescission, or part thereof until the rule-making agency revises the rule summary and fiscal analysis and refiles it with the joint committee along with the proposed rule, amendment, rescission, or part thereof. If the joint committee finds the rule summary and fiscal analysis to be complete and accurate, the joint committee shall issue a new written order noting that the rule-making agency has revised and refiled a complete and accurate rule summary and fiscal analysis. The joint committee shall send the rule-making agency, the secretary of state, and the director of the legislative service commission a certified copy of this new order. The secretary of state and the director of the legislative service commission shall each attach this order to their copies of the proposed rule, amendment, rescission, or part thereof. The rule-making agency may then proceed to adopt in accordance with division (D) of this section, or to file in accordance with division (B)(1) of section 111.15 of the Revised Code, the proposed rule, amendment, rescission, or part thereof that was subject to the written finding and order under division (I)(4) OR (5) of this section. If the joint committee determines that the revised rule summary and fiscal analysis is still inaccurate or incomplete, the joint committee shall recommend the adoption of a concurrent resolution in accordance with division (I)(1) of this section.

Sec. 119.031. (A) The chairman CHAIRPERSON of the joint committee on agency rule review shall compare each rule, amendment, or rescission as filed in final form with the latest version of the same rule, amendment, or rescission as filed in proposed form.

(B) If, upon making the comparison required by division (A) of this section, the chairman CHAIRPERSON of the joint committee on agency rule review finds that the rule-making agency has made a substantive revision in the rule, amendment, or rescission between the time it filed the latest version of the rule, amendment, or rescission in proposed form and the time it filed the rule, amendment, or rescission in final form, he THE CHAIRPERSON shall promptly notify the rule-making agency, the secretary of state, and the director of the legislative service commission in writing of his THAT finding.

(C) The joint committee on agency rule review shall review any rule, amendment, or rescission as filed in final form if, under division (B) of this section, it is found to contain a substantive revision. The joint committee may REQUEST THE RULE-MAKING AGENCY TO PROVIDE THE JOINT COMMITTEE WITH AN UP-TO-DATE ECONOMIC IMPACT ANALYSIS AS DEFINED IN DIVISION (A)(4) OF SECTION 127.18OF THEREVISEDCODEAND, WHETHER OR NOT AN ECONOMIC IMPACT ANALYSIS IS REQUESTED, MAY do either or both of the following:

(1) If the joint committee makes any of the findings stated in division (I)(1)(a), (b), or (c) of section 119.03 of the Revised Code, it may suspend the rule, amendment, rescission, or any part thereof. The suspension shall remain in effect until the time for legislative review and invalidation has expired under division (D) of this section, or until the general assembly adopts a concurrent resolution invalidating the rule, amendment, rescission, or any part thereof, whichever occurs first. The chairman CHAIRPERSON of the joint committee shall promptly notify the rule-making agency, the secretary of state, and the director of the legislative service commission in writing of the suspension.

(2) The joint committee may recommend the adoption of a concurrent resolution invalidating the rule, amendment, rescission, or any part thereof if it makes any of the findings stated in division (I)(1)(a), (b), or (c) of section 119.03 of the Revised Code.

(D) A rule, amendment, or rescission that, under division (B) of this section, is found to contain a substantive revision shall nevertheless become effective pursuant to division (B)(1) of section 111.15, division (A)(1) of section 119.04, division (B)(1) of section 4141.14, or division (A) of section 5703.14 of the Revised Code and remain in effect as filed in final form unless:

(1) Under division (C)(1) of this section, the joint committee suspends the rule, amendment, rescission, or any part thereof; or

(2) Prior to the sixtieth day after the rule, amendment, or rescission was filed in final form, the house of representatives and senate adopt a concurrent resolution invalidating the rule, amendment, rescission, or any part thereof. If, after the joint committee on agency rule review recommends the adoption of a concurrent resolution invalidating the rule, amendment, rescission, or part thereof, the house of representatives or senate does not, within the time remaining for adoption of the concurrent resolution, hold five floor sessions at which its journal records a roll call vote disclosing a sufficient number of members in attendance to pass a bill, the time within which that house may adopt the concurrent resolution is extended until it has held five such floor sessions.

Upon the adoption of such a concurrent resolution, the clerk of the senate shall, within five days thereafter, send the rule-making agency, the secretary of state, and the director of the legislative service commission a certified copy of the resolution together with a certification stating the date on which the resolution takes effect. The secretary of state and the director shall each note the invalidity of the rule, amendment, rescission, or part thereof on his copy THEIR COPIES, and shall remove the invalid rule, amendment, rescission, or part thereof from the file of current rules. The director shall also indicate in the Ohio administrative code that the rule, amendment, rescission, or part thereof is invalid and the date of invalidation. The rule-making agency shall make appropriate adjustments to reflect the invalidity of the rule, amendment, rescission, or part thereof.

(E) Invalidation of a rule, amendment, rescission, or part thereof under this section shall prevent the rule-making agency from instituting proceedings to readopt any version of the same rule, amendment, rescission, or part thereof for the duration of the general assembly that invalidated the rule, amendment, rescission, or part thereof unless the same general assembly adopts a concurrent resolution permitting the rule-making agency to institute such proceedings.

(F) The failure of the general assembly to invalidate a rule, amendment, rescission, or part thereof under this section shall not be construed as a ratification of the lawfulness or reasonableness of the rule, amendment, rescission, or any part thereof or of the validity of the procedure by which the rule, amendment, rescission, or any part thereof was adopted.

(G) As used in this section, a rule, amendment, or rescission is filed:

(1) "In proposed form" when it is filed in such form with the joint committee under division (D) of section 111.15 or division (H) of section 119.03 of the Revised Code;

(2) "In final form" when it is filed in such form with the joint committee under division (B)(1)(b) of section 111.15, division (A)(1)(b) of section 119.04, division (B)(1)(b) of section 4141.14, or division (A)(2) of section 5703.14 of the Revised Code.

Sec. 121.24. (A) As used in this section:

(1) "Agency" means any agency as defined in division (A)(2) of section 111.15 or division (A) of section 119.01 of the Revised Code.

(2) "Employee" means a person who is employed by a small business or small organization for at least one thousand eight hundred hours per year.

(3) A rule is "filed in final form" when it is filed with the secretary of state, the director of the legislative service commission, and the joint committee on agency rule review under division (B)(1) of section 111.15, division (A)(1) of section 119.04, division (B)(1) of section 4141.14, or division (A) of section 5703.14 of the Revised Code.

(4) "History trail" means the supplementary information required to be provided on each copy of a proposed rule, which information is not part of the text of the rule, and sets forth the statute prescribing the procedure in accordance with which the proposed rule is required to be adopted, the statute that authorizes the agency to adopt the proposed rule, the statute that the agency intends to amplify or implement by adopting the proposed rule, the effective dates of any previous versions of the rule that is the subject of the proposal, and other similar information as prescribed in rules of the legislative service commission.

(5) "Individual" means any individual who is affected by a rule in the individual's capacity as an officer or employee of a small business or small organization.

(6) "Rule summary and fiscal analysis" means a rule summary and fiscal analysis of a proposed rule that provides the information required by division (B) of section 127.18 of the Revised Code, and that has been prepared in the form prescribed by the joint committee on agency rule review under division (E) of that section.

(7) "Rate" means any rate, classification, fare, toll, rental, or charge of a public utility.

(8) "Rule" means any rule, regulation, or standard having a general and uniform operation, including any appendix thereto, that is adopted, promulgated, and enforced by an agency under the authority of the laws governing the agency. "Rule" includes the adoption of a new rule or the amendment or rescission of an existing rule. "Rule" does not include any of the following:

(a) A rule proposed under section 1121.05, 1121.06, 1155.18, or 1163.22 of the Revised Code;

(b) A rule governing the internal management of an agency that does not affect private rights;

(c) A rule authorized by law to be issued as a temporary written order;

(d) Except as otherwise provided in division (A)(8)(d) of this section, a rule or order, whether of a quasi-legislative or quasi-judicial nature, proposed by the public utilities commission. Any rule or order, whether of a quasi-legislative or quasi-judicial nature, proposed by the public utilities commission that determines a rate of a public utility to be just and reasonable is a "rule" for purposes of this section, unless the rule or order contains findings that the public utility, in applying for approval of the rate under section 4909.18 of the Revised Code, stated facts and grounds sufficient for the commission to determine that the proposed rate was just and reasonable.

(e) A proposed rule, the adoption of which is mandated by a federal law or rule, and which must be adopted substantially as prescribed by federal law or rule, to become effective within one hundred twenty days of adoption, so long as the history trail of the proposed rule contains a statement that it is proposed for the purpose of complying with a federal law or rule and a citation to the federal law or rule that mandates substantial compliance;

(9) "Small business" means an independently owned and operated business having fewer than four hundred employees.

(10) "Small organization" means an unincorporated association, sheltered workshop, or nonprofit enterprise having fewer than four hundred employees. This definition is not limited to the types of small organizations expressly mentioned, and includes all other types of small organizations, so long as such organizations have fewer than four hundred employees.

(B) If an agency intends to adopt a rule, and reasonably believes that the proposed rule, if adopted, will be likely to affect individuals, small businesses, or small organizations, the agency shall comply with the following procedure in adopting the rule, in addition to any other procedure required by section 111.15, 117.16, 119.03, 119.032, 119.04, 127.18, 4141.14, or 5117.02 of the Revised Code or any other statute of this state:

(1) The agency shall prepare a complete and accurate rule summary and fiscal analysis of the original version of the proposed rule. THE FISCAL ANALYSIS SHALL INCLUDE AN ANALYSIS OF THE IMPACT OF THE PROPOSED RULE ON THE ABILITY OF A SMALL BUSINESS TO BECOME ESTABLISHED AND GROW DURING THE FIRST THREE YEARS OF ITS OPERATION.

(2) After complying with division (B)(1) of this section, and at least sixty days before the agency files the proposed rule in final form, the agency shall file with the office of small business, one copy of the full text of the original version of the proposed rule and one copy of the rule summary and fiscal analysis of such proposed rule.

(3) During a period commencing on the date the original version of the proposed rule is filed pursuant to division (B)(2) of this section and ending forty days thereafter:

(a) The chairperson of the standing committee of the senate or house of representatives having jurisdiction over individuals, small businesses, or small organizations, or any other person having an interest in the proposed rule, may submit written comments to the agency, to the joint committee on agency rule review, or to both, concerning the expected effect of the proposed rule, if adopted, upon individuals, small businesses, and small organizations. The agency and joint committee shall accept all such timely submitted written comments.

(b) The chairperson of the standing committee of the senate or house of representatives having jurisdiction over individuals, small businesses, or small organizations may request the agency to appear before the committee and testify, answer questions asked by members of the committee, and produce information in the possession of the agency as requested by the committee, concerning the expected effect of the proposed rule, if adopted, upon individuals, small businesses, or small organizations. Upon receipt of a request from the chairperson of the appropriate standing committee of the senate or house of representatives under division (B)(3)(b) of this section, the agency shall designate an officer or employee of the agency to appear before the committee, and shall otherwise comply with the request, in the manner directed by the request.

(4) The agency shall not proceed to file the proposed rule in final form until it has considered any written comments timely submitted to it under division (B)(3)(a) of this section, has identified the issues raised by the comments, has assessed the proposed rule in light of the issues raised by the comments, and has made such revisions in the proposed rule as it considers advisable in light of its assessment.

An agency is not required to put any revised version of a proposed rule through the procedure of divisions (B)(1) to (4) of this section.

(C) Any original version of a proposed rule, rule summary and fiscal analysis, or written comment filed or submitted under division (B) of this section shall be preserved by the agency with which it is filed or to which it is submitted, and is a public record open to public inspection.

(D) Each agency shall prepare a plan that provides for the periodic review, at least once every five years, of each rule of the agency that is not otherwise subject to review under section 119.032 of the Revised Code and that affects individuals, small businesses, or small organizations. The purpose of each periodic review shall be to determine whether the rule that is being reviewed should be continued without change or amended or rescinded, consistent with the purpose, scope, and intent of the applicable statute authorizing adoption of the rule, so as to minimize the economic impact of the rule upon individuals, small businesses, or small organizations. Accordingly, in making each periodic review of a rule, the agency shall consider the continued need for the rule, the nature of any written complaints or comments that the agency has received with regard to the rule, the extent to which the rule duplicates, overlaps, or conflicts with other currently effective rules, and the degree to which technology, economic conditions, and other relevant factors have changed in the area affected by the rule.

Each agency shall annually report to the governor and general assembly, with regard to each of its rules that have been reviewed under this division during the preceding calendar year, the title and administrative code rule number of the rule, a brief summary of the content and operation of the rule, and a brief summary of the results of the review. If the agency is otherwise required to make an annual report to the governor and general assembly, the agency shall report this information in an appropriately designated section of its annual report. If, however, the agency is not otherwise required to make an annual report to the governor and general assembly, the agency, on or before the first day of February, shall report this information in a separate report to the governor and general assembly. In addition to the submissions required by section 101.68 of the Revised Code, and in addition to any requirement of that section to submit notice of the availability of a report instead of copies of the report, the agency shall submit copies of its annual or separate report, which provides the information required by this division, to the chairpersons of the standing committees of the senate and house of representatives having jurisdiction over individuals, small businesses, and small organizations.

Each agency having rules in effect on the effective date of this section JANUARY 1, 1985, that affect individuals, small businesses, or small organizations shall divide those rules into groups, so that at least one-fifth of those rules are reviewed during each year of a five-year period commencing on the effective date of this section JANUARY 1, 1985. A rule that is newly adopted after the effective date of this section JANUARY 1, 1985, shall be reviewed five years after its effective date. When a rule has once been reviewed, it shall thereafter be reviewed again at five-year intervals.

(E) Each agency shall designate an individual or office within the agency to be responsible for complying with this division. Each individual or office that has been so designated shall, DO ONE OF THE FOLLOWING within ten days after receiving a request therefor from any person:

(1) Provide the person with copies of any rule proposed by the agency that would affect individuals, small businesses, or small organizations;

(2) Provide the person with copies of the rule summary and fiscal analysis of any rule proposed by the agency that would affect individuals, small businesses, or small organizations; or

(3) Find, collate, and make available to the person any information in the possession of the agency regarding a rule proposed by the agency, which information would be of interest to individuals, small businesses, or small organizations.

The agency shall inform the office of small business in writing of the name, address, and telephone number of each individual or office designated under this division. The agency shall promptly inform the office of small business in writing of any change in the information thus provided.

(F) Division (B) of this section does not apply to any emergency rule adopted under division (B)(2) of section 111.15 or division (F) of section 119.03 of the Revised Code, except that the emergency rule becomes subject to such division when it is adopted pursuant to the procedure of section 111.15 or 119.03 of the Revised Code for the adoption of rules not of an emergency nature.

(G) The department of taxation shall provide a copy of the full text of any rule proposed by the department that may affect any business to the office of small business, and the department shall designate an office within the agency responsible for providing a copy of any such rule within ten days of AFTER receiving a request from any person.

Sec. 127.18. (A) As used in this section:

(1) "Rule-making agency" has the same meaning as in division (I) of section 119.01 of the Revised Code.

(2) "Rule" includes the adoption, amendment, or rescission of a rule.

(3) "Proposed rule" means the original version of a proposed rule, and each revised version of the same proposed rule, that is filed with the joint committee on agency rule review under division (D) of section 111.15 or division (H) of section 119.03 of the Revised Code.

(4) "ECONOMIC IMPACT ANALYSIS" MEANS AN ANALYSIS TO DETERMINE THE FISCAL EFFECT OF A PROPOSED RULE ON OHIO BUSINESS, THAT SHALL CONSIST OF ALL OF THE FOLLOWING:

(a) AN ESTIMATE OF THE AMOUNT BY WHICH THE PROPOSED RULE WOULD INCREASE OR DECREASE THE REVENUES OR EXPENDITURES OF OHIO BUSINESSES;

(b) THE IMPACT OF THE PROPOSED RULE ON OHIO COMPETITIVENESS AS INDICATED BY ITS EFFECT ON A BUSINESS THAT, BECAUSE OF ANY OF THE FOLLOWING FACTORS, HAS THE ABILITY TO RELOCATE TO ANOTHER STATE AT RELATIVELY LOW COST BECAUSE OF AN UNFAVORABLE CHANGE IN THE TAXATION OR BUSINESS CLIMATE IN THE STATE IN WHICH IT IS CURRENTLY LOCATED:

(i) EASE OF MOBILITY DUE TO A RELATIVELY LOW QUANTITY OF FIXED CAPITAL;

(ii) THE AVAILABILITY OF A SUITABLE LABOR FORCE;

(iii) ITS LOCATION RELATIVE TO ITS CUSTOMERS.

IN DETERMINING THE IMPACT OF THE PROPOSED RULE ON OHIO COMPETITIVENESS, THE AGENCY SHALL COMPARE THE PROPOSED RULE WITH SIMILAR LAWS AND REGULATIONS THAT AFFECT BUSINESSES IN OTHER STATES, IF ANY, AND DETERMINE WHETHER THE PROPOSED RULE WOULD MAKE OHIO MORE LENIENT, LESS LENIENT, OR ABOUT THE SAME AS OTHER STATES WITH REGARD TO THE REGULATION OF SIMILAR BUSINESSES.

(c) ANY OTHER INFORMATION THE AGENCY CONSIDERS NECESSARY TO EXPLAIN THE FISCAL EFFECT OF THE PROPOSED RULE ON OHIO BUSINESSES.

(B) A rule-making agency shall prepare, in the form prescribed by the joint committee on agency rule review under division (E) of this section, a complete and accurate rule summary and fiscal analysis of each proposed rule that it files under division (D) of section 111.15 or division (H) of section 119.03 of the Revised Code. The rule summary and fiscal analysis shall include all of the following information:

(1) The name, address, and telephone number of the rule-making agency, and the name and telephone number of an individual or office within the agency designated by that agency to be responsible for coordinating and making available information in the possession of the agency regarding the proposed rule;

(2) The Ohio administrative code rule number of the proposed rule;

(3) A brief summary of, and the legal basis for, the proposed rule, including citations identifying the statute that prescribes the procedure in accordance with which the rule-making agency is required to adopt the proposed rule, the statute that authorizes the agency to adopt the proposed rule, and the statute that the agency intends to amplify or implement by adopting the proposed rule;

(4) An estimate, in dollars, of the amount by which the proposed rule would increase or decrease revenues or expenditures during the current biennium;

(5) A citation identifying the appropriation that authorizes each expenditure that would be necessitated by the proposed rule;

(6) A summary of the estimated cost of compliance with the rule to all directly affected persons;

(7) The reasons why the rule is being proposed;

(8) If the rule has a fiscal effect on school districts, counties, townships, or municipal corporations, an estimate in dollars of the cost of compliance with the rule, or, if dollar amounts cannot be determined, a written explanation of why it was not possible to ascertain dollar amounts;

(9) If the rule has a fiscal effect on school districts, counties, townships, or municipal corporations and is the result of a federal requirement, a clear explanation that the proposed state rule does not exceed the scope and intent of the requirement, or, if the state rule does exceed the minimum necessary federal requirement, a justification of the excess cost, and an estimate of the costs, including those costs for local governments, exceeding the federal requirement;

(10) If the rule has a fiscal effect on school districts, counties, townships, or municipal corporations, a comprehensive cost estimate that includes the procedure and method of calculating the costs of compliance and identifies major cost categories including personnel costs, new equipment or other capital costs, operating costs, and indirect central service costs related to the rule. The fiscal analysis shall also include a written explanation of the agency's and the affected local government's ability to pay for the new requirements and a statement of any impact the rule will have on economic development.

(11) IF THE DIRECTOR OF THE RULE-MAKING AGENCY OR THE GOVERNOR DETERMINES THAT A PROPOSED RULE MAY HAVE A SIGNIFICANT ECONOMIC IMPACT ON OHIO BUSINESSES, AN ECONOMIC IMPACT ANALYSIS;

(12) Any other information the joint committee on agency rule review considers necessary to make the proposed rule or the fiscal effect of the proposed rule fully understandable. THE JOINT COMMITTEE ON AGENCY RULE REVIEW MAY REQUIRE THAT AN ECONOMIC IMPACT ANALYSIS BE PREPARED AS PART OF THE RULE SUMMARY AND FISCAL ANALYSIS FOR EACH PROPOSED RULE, OR THE JOINT COMMITTEE MAY INFORM A RULE-MAKING AGENCY THAT IT REQUIRES AN ECONOMIC IMPACT ANALYSIS AS PART OF THE RULE SUMMARY AND FISCAL ANALYSIS FOR ANY PARTICULAR PROPOSED RULE.

(C) The rule-making agency shall attach one copy of the rule summary and fiscal analysis to each copy of the proposed rule that it files under divisions (D) and (E) of section 111.15 or divisions (B) and (H) of section 119.03 of the Revised Code. The joint committee on agency rule review shall not accept any proposed rule for filing unless a copy of the rule summary and fiscal analysis of the proposed rule, completely and accurately prepared, has been attached to each copy of the proposed rule.

(D) The joint committee on agency rule review shall review the fiscal effect of each proposed rule that is filed under division (D) of section 111.15 or division (H) of section 119.03 of the Revised Code.

(E) The joint committee on agency rule review shall prescribe the form in which each rule-making agency shall prepare its rule summary and fiscal analysis of a proposed rule.

(F) This section does not require the auditor of state or his THE AUDITOR OF STATE'S designee to prepare or attach a rule summary and fiscal analysis to any copy of a rule proposed under section 117.12, 117.19, 117.38, or 117.43 of the Revised Code.