130th Ohio General Assembly
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As Introduced

123rd General Assembly
Regular Session
1999-2000
H. B. No. 15

REPRESENTATIVES MOTTLEY-FORD-TIBERI-SCHULER- ALLEN-JAMES-GRENDELL-D.MILLER-OPFER- WILLAMOWSKI-LUCAS-GARDNER-TERWILLEGER- BRITTON-THOMAS-SULZER-BENDER-OLMAN-EVANS-JOLIVETTE


A BILL
To amend sections 145.294, 3307.281, and 3309.27 and to enact sections 145.2910, 145.311, 145.312, 3307.282, 3307.283, 3307.413, 3309.261, 3309.262, and 3309.352 of the Revised Code to allow a member of the Public Employees Retirement System, School Employees Retirement System, or State Teachers Retirement System to purchase by payroll deduction service credit for certain prior service covered by one of the other systems.

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


Section 1. That sections 145.294, 3307.281, and 3309.27 be amended and sections 145.2910, 145.311, 145.312, 3307.282, 3307.283, 3307.413, 3309.261, 3309.262, and 3309.352 of the Revised Code be enacted to read as follows:

Sec. 145.294. (A) The public employees retirement board may SHALL establish by rule a payroll deduction plan for payment of the cost of restoring service credit under section 145.31 of the Revised Code or purchasing any service credit members of the public employees retirement system are eligible to purchase under this chapter. In addition to any other matter considered relevant by the board, the rules shall specify all of the following:

(1) The types of service credit that may be paid for through payroll deduction, including the section of the Revised Code that authorizes the purchase of each type of service credit for which payment may be made by payroll deduction;

(2) The procedure to be followed by a member to inform his FOR INFORMING THE MEMBER'S employer and the system that he THE MEMBER wishes to purchase service credit under this chapter through payroll deduction;

(3) The procedure to be followed by the system and employers to determine for each request the amount to be deducted, the number of deductions to be made, and the interval at which deductions will be made. The rules may provide for a minimum amount for each deduction or a maximum number of deductions for the purchase of any type of credit.

(4) The procedure to be followed by employers in transmitting amounts deducted from the salaries of their employees to the system;

(5) The procedure to be followed by the system in crediting service credit to members who choose to purchase it through payroll deduction.

(B) If the THE board establishes a payroll deduction plan under this section, it shall certify to the member's employer for each member for whom deductions are to be made, the amount of each deduction and the payrolls from which deductions are to be made. The employer shall make the deductions as certified and transmit the amounts deducted in accordance with the rules established by the board under this section. AT THE ELECTION OF A MEMBER FOR WHOM DEDUCTIONS ARE TO BE MADE TO PURCHASE SERVICE CREDIT UNDER SECTION 145.2910 of the Revised Code, THE EMPLOYER SHALL MAKE THE DEDUCTIONS UNDER A PLAN THAT IS IN COMPLIANCE WITH DIVISION (h)(2) OF SECTION 414 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 414(h)(2), AS AMENDED.

(C) Rules adopted under this section shall not affect any right to purchase service credit conferred by any other section of the Revised Code, including the right of a member under any such section to purchase only part of the service credit he THE MEMBER is eligible to purchase.

(D) No payroll deduction made pursuant to this section may exceed the amount of a member's net compensation after all other deductions and withholdings required by law.

Sec. 145.2910. (A) A MEMBER OF THE PUBLIC EMPLOYEES RETIREMENT SYSTEM WHO IS A FORMER MEMBER OF THE SCHOOL EMPLOYEES RETIREMENT SYSTEM OR STATE TEACHERS RETIREMENT SYSTEM AND HAS RECEIVED A REFUND OF ACCUMULATED CONTRIBUTIONS UNDER SECTION 3307.46 OR 3309.42 OF THE REVISED CODE MAY PURCHASE SERVICE CREDIT FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE REFUND WAS MADE.

(B) A MEMBER SEEKING TO PURCHASE SERVICE CREDIT UNDER THIS SECTION SHALL NOTIFY THE PUBLIC EMPLOYEES RETIREMENT SYSTEM ON A FORM APPROVED BY THE PUBLIC EMPLOYEES RETIREMENT BOARD. NOT LATER THAN TEN DAYS AFTER RECEIVING THE NOTICE, THE PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL REQUEST THAT THE FORMER RETIREMENT SYSTEM DETERMINE UNDER SECTION 3307.282 OR 3309.261 of the Revised Code HOW MUCH IT WOULD COST THE MEMBER TO RESTORE SERVICE CREDIT UNDER SECTION 3307.28 OR 3309.26 of the Revised Code FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE MEMBER SEEKS TO PURCHASE SERVICE CREDIT UNDER THIS SECTION. THE AMOUNT THE FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING THE SERVICE CREDIT IS THE COST TO THE MEMBER OF PURCHASING SERVICE CREDIT UNDER THIS SECTION. ON RECEIVING CERTIFICATION OF THE COST FROM THE FORMER RETIREMENT SYSTEM, THE PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL NOTIFY THE MEMBER OF THE AMOUNT CERTIFIED BY THE FORMER SYSTEM.

(C) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT PURCHASED UNDER THIS SECTION, A MEMBER SHALL PAY TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM THE AMOUNT CERTIFIED BY THE FORMER RETIREMENT SYSTEM.

(D) SUBJECT TO RULES ADOPTED BY THE BOARD, A MEMBER MAY PURCHASE ALL OR PART OF THE CREDIT THE MEMBER IS ELIGIBLE TO PURCHASE UNDER THIS SECTION IN ONE OR MORE PAYMENTS.

(E) IF A MEMBER DIES OR WITHDRAWS FROM SERVICE, ANY PAYMENT MADE BY THE MEMBER UNDER THIS SECTION SHALL BE CONSIDERED AS ACCUMULATED CONTRIBUTIONS OF THE MEMBER.

(F) ON APPLICATION FOR AN ALLOWANCE UNDER SECTION 145.33, 145.331, 145.34, 145.36, 145.361, OR 145.37 OF THE REVISED CODE BY A MEMBER WHO PURCHASED SERVICE CREDIT UNDER THIS SECTION, THE PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL REQUEST FROM THE FORMER RETIREMENT SYSTEM AN AMOUNT OF EMPLOYER CONTRIBUTIONS EQUAL TO THE AMOUNT THE MEMBER PAID UNDER THIS SECTION.

(G) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION.

Sec. 145.311. NOT LATER THAN TEN DAYS AFTER RECEIVING A REQUEST FROM THE STATE TEACHERS RETIREMENT SYSTEM UNDER DIVISION (B) OF SECTION 3307.413 OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (B) OF SECTION 3309.352 OF THE REVISED CODE, THE PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL CALCULATE AND CERTIFY TO THE REQUESTING RETIREMENT SYSTEM HOW MUCH IT WOULD COST A FORMER MEMBER WHO RECEIVED A REFUND UNDER SECTION 145.40 of the Revised Code TO RESTORE SERVICE CREDIT UNDER SECTION 145.31 of the Revised Code FOR EACH YEAR OR PORTION OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO PURCHASE SERVICE CREDIT UNDER SECTION 3307.413 OR 3309.352 of the Revised Code.

Sec. 145.312. NOT LATER THAN TEN DAYS AFTER RECEIVING A REQUEST FROM THE STATE TEACHERS RETIREMENT SYSTEM UNDER DIVISION (F) OF SECTION 3307.413 OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (F) OF SECTION 3309.352 OF THE REVISED CODE, THE PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL TRANSFER TO THE REQUESTING RETIREMENT SYSTEM AN AMOUNT FROM THE EMPLOYER'S ACCUMULATION FUND EQUAL TO THE AMOUNT REQUESTED.

Sec. 3307.281. (A) The state teachers retirement board may SHALL establish by rule payroll deduction plans for payment of the following:

(1) The cost of restoring service credit under section 3307.28 of the Revised Code or purchasing any service credit members of the state teachers retirement system are eligible to purchase under this chapter;

(2) Charges for participation in programs established under section 3307.741 of the Revised Code.

(B) In addition to any other matter considered relevant by the board, the rules adopted under this section shall specify all of the following:

(1) The types of service credit that may be paid for through payroll deduction, including the section of the Revised Code that authorizes the purchase of each type of service credit for which payment may be made by payroll deduction;

(2) The procedure to be followed by a member to inform his FOR INFORMING THE MEMBER'S employer and the system that he THE MEMBER wishes to use payroll deduction to purchase service credit or pay for participation in programs established under section 3307.741 of the Revised Code;

(3) The procedure to be followed by the system and employers to determine for each request the amount to be deducted, the number of deductions to be made, and the interval at which deductions will be made. The rules may provide for a minimum amount for each deduction. They may also provide for a maximum number of deductions for the purchase of any type of service credit.

(4) The procedure to be followed by employers in transmitting amounts deducted from the compensation of their employees to the system;

(5) The procedure to be followed by the system in crediting service credit to members who choose to purchase it through payroll deduction;

(6) The time period within which employers are required to transmit amounts deducted from payrolls to the system.

(C)(1) If the THE board establishes a payroll deduction plan under this section, it shall certify to the member's employer, for each member for whom deductions are to be made, the amount of each deduction and the payrolls from which deductions are to be made. The employer shall make the deductions as certified and transmit the amounts deducted in accordance with the rules established by the board under this section. AT THE ELECTION OF A MEMBER FOR WHOM DEDUCTIONS ARE TO BE MADE TO PURCHASE SERVICE CREDIT UNDER SECTION 3307.413 of the Revised Code, THE EMPLOYER SHALL MAKE THE DEDUCTIONS UNDER A PLAN THAT IS IN COMPLIANCE WITH DIVISION (h)(2) OF SECTION 414 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 414(h)(2), AS AMENDED.

(2) If an employer does not transmit amounts deducted from the compensation of an employee to the system within the time period specified in rules adopted under division (B)(6) of this section, the employer shall pay interest on the deducted amount compounded annually at a rate to be determined by the board from the date the amount is deducted to the date it is transmitted to the system.

(D) Rules adopted under this section shall not affect any right to purchase service credit conferred by any other section of the Revised Code, including the right of a member under any such section to purchase only part of the service credit he THE MEMBER is eligible to purchase.

(E) No payroll deduction made pursuant to this section may exceed the amount of a member's net compensation after all other deductions and withholdings required by law.

(F) No payments made to the system under this section shall affect any contribution required by section 3307.51 or 3307.53 of the Revised Code.

Sec. 3307.282. NOT LATER THAN TEN DAYS AFTER RECEIVING A REQUEST FROM THE PUBLIC EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (B) OF SECTION 145.2910 OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (B) OF SECTION 3309.352 OF THE REVISED CODE, THE STATE TEACHERS RETIREMENT SYSTEM SHALL CALCULATE AND CERTIFY TO THE REQUESTING RETIREMENT SYSTEM HOW MUCH IT WOULD COST A FORMER MEMBER WHO RECEIVED A REFUND UNDER SECTION 3307.46 of the Revised Code TO RESTORE SERVICE CREDIT UNDER SECTION 3307.28 of the Revised Code FOR EACH YEAR OR PORTION OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO PURCHASE SERVICE CREDIT UNDER SECTION 145.2910 OR 3309.352 of the Revised Code.

Sec. 3307.283. NOT LATER THAN TEN DAYS AFTER RECEIVING A REQUEST FROM THE PUBLIC EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (F) OF SECTION 145.2910 OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (F) OF SECTION 3309.352 OF THE REVISED CODE, THE STATE TEACHERS RETIREMENT SYSTEM SHALL TRANSFER TO THE REQUESTING RETIREMENT SYSTEM AN AMOUNT FROM THE EMPLOYER'S TRUST FUND EQUAL TO THE AMOUNT REQUESTED.

Sec. 3307.413. (A) A MEMBER OF THE STATE TEACHERS RETIREMENT SYSTEM WHO IS A FORMER MEMBER OF THE PUBLIC EMPLOYEES RETIREMENT SYSTEM OR SCHOOL EMPLOYEES RETIREMENT SYSTEM AND HAS RECEIVED A REFUND OF ACCUMULATED CONTRIBUTIONS UNDER SECTION 145.40 OR 3309.42 OF THE REVISED CODE MAY PURCHASE SERVICE CREDIT FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE REFUND WAS MADE.

(B) A MEMBER SEEKING TO PURCHASE SERVICE CREDIT UNDER THIS SECTION SHALL NOTIFY THE STATE TEACHERS RETIREMENT SYSTEM ON A FORM APPROVED BY THE STATE TEACHERS RETIREMENT BOARD. NOT LATER THAN TEN DAYS AFTER RECEIVING THE NOTICE, THE STATE TEACHERS RETIREMENT SYSTEM SHALL REQUEST THAT THE FORMER RETIREMENT SYSTEM DETERMINE UNDER SECTION 145.311 OR 3309.261 of the Revised Code HOW MUCH IT WOULD COST THE MEMBER TO RESTORE SERVICE CREDIT UNDER SECTION 145.31 OR 3309.26 of the Revised Code FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE MEMBER SEEKS TO PURCHASE CREDIT UNDER THIS SECTION. THE AMOUNT THE FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING THE SERVICE CREDIT IS THE COST TO THE MEMBER OF PURCHASING SERVICE CREDIT UNDER THIS SECTION. ON RECEIVING CERTIFICATION OF THE COST FROM THE FORMER RETIREMENT SYSTEM, THE STATE TEACHERS RETIREMENT SYSTEM SHALL NOTIFY THE MEMBER OF THE AMOUNT CERTIFIED BY THE FORMER SYSTEM.

(C) FOR EACH YEAR OR PORTION OF A YEAR OF CREDIT PURCHASED UNDER THIS SECTION, A MEMBER SHALL PAY TO THE STATE TEACHERS RETIREMENT SYSTEM THE AMOUNT CERTIFIED BY THE FORMER RETIREMENT SYSTEM.

(D) SUBJECT TO RULES ADOPTED BY THE BOARD, A MEMBER MAY PURCHASE ALL OR PART OF THE CREDIT THE MEMBER IS ELIGIBLE TO PURCHASE UNDER THIS SECTION IN ONE OR MORE PAYMENTS.

(E) IF A MEMBER DIES OR WITHDRAWS FROM SERVICE, ANY PAYMENT MADE BY THE MEMBER UNDER THIS SECTION SHALL BE CONSIDERED AS ACCUMULATED CONTRIBUTIONS OF THE MEMBER.

(F) ON APPLICATION FOR AN ALLOWANCE UNDER SECTION 3307.38, 3307.39, 3307.41, 3307.43, OR 3307.431 OF THE REVISED CODE BY A MEMBER WHO PURCHASED SERVICE CREDIT UNDER THIS SECTION, THE STATE TEACHERS RETIREMENT SYSTEM SHALL REQUEST FROM THE FORMER RETIREMENT SYSTEM AN AMOUNT OF EMPLOYER CONTRIBUTIONS EQUAL TO THE AMOUNT THE MEMBER PAID UNDER THIS SECTION.

(G) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION.

Sec. 3309.261. NOT LATER THAN TEN DAYS AFTER RECEIVING A REQUEST FROM THE PUBLIC EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (B) OF SECTION 145.2910 OR THE STATE TEACHERS RETIREMENT SYSTEM UNDER DIVISION (B) OF SECTION 3307.413 OF THE REVISED CODE, THE SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL CALCULATE AND CERTIFY TO THE REQUESTING RETIREMENT SYSTEM HOW MUCH IT WOULD COST A FORMER MEMBER WHO RECEIVED A REFUND UNDER SECTION 3309.42 of the Revised Code TO RESTORE SERVICE CREDIT UNDER SECTION 3309.26 of the Revised Code FOR EACH YEAR OR PORTION OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO PURCHASE SERVICE CREDIT UNDER SECTION 145.2910 OR 3307.413 of the Revised Code.

Sec. 3309.262. NOT LATER THAN TEN DAYS AFTER RECEIVING A REQUEST FROM THE PUBLIC EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (F) OF SECTION 145.2910 OR THE STATE TEACHERS RETIREMENT SYSTEM UNDER DIVISION (F) OF SECTION 3307.413 OF THE REVISED CODE, THE SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL TRANSFER TO THE REQUESTING RETIREMENT SYSTEM AN AMOUNT FROM THE EMPLOYER'S TRUST FUND EQUAL TO THE AMOUNT REQUESTED.

Sec. 3309.27. (A) The school employees retirement board may SHALL establish by rule payroll deduction plans for payment of the following:

(1) The cost of restoring service credit under section 3309.26 of the Revised Code or purchasing any service credit members of the school employees retirement system are eligible to purchase under this chapter;

(2) Charges for participation in programs established under section 3309.691 of the Revised Code.

(B) In addition to any other matter considered relevant by the board, the rules adopted under this section shall specify all of the following:

(1) The types of service credit that may be paid for through payroll deduction, including the section of the Revised Code that authorizes the purchase of each type of service credit for which payment may be made by payroll deduction;

(2) The procedure to be followed by a member to inform his FOR INFORMING THE MEMBER'S employer and the system that he THE MEMBER wishes to use payroll deduction to purchase service credit or pay for participation in programs established under section 3309.691 of the Revised Code;

(3) The procedure to be followed by the system and employers to determine for each request the amount to be deducted, the number of deductions to be made, and the interval at which deductions will be made. The rules may provide for a minimum amount for each deduction or a maximum number of deductions for the purchase of any type of service credit.

(4) The procedure to be followed by employers in transmitting amounts deducted from the compensation of their employees to the system;

(5) The procedure to be followed by the system in crediting service credit to members who choose to purchase it through payroll deduction.

(C) If the THE board establishes a payroll deduction plan under this section, it shall certify to the member's employer, for each member for whom deductions are to be made, the amount of each deduction and the payrolls from which deductions are to be made. The employer shall make the deductions as certified and transmit the amounts deducted in accordance with the rules established by the board under this section. AT THE ELECTION OF A MEMBER FOR WHOM DEDUCTIONS ARE TO BE MADE TO PURCHASE SERVICE CREDIT UNDER SECTION 3309.352 of the Revised Code, THE EMPLOYER SHALL MAKE THE DEDUCTIONS UNDER A PLAN THAT IS IN COMPLIANCE WITH DIVISION (h)(2) OF SECTION 414 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 414(h)(2), AS AMENDED.

(D) Rules adopted under this section shall not affect any right to purchase service credit conferred by any other section of the Revised Code, including the right of a member under any such section to purchase only part of the service credit he THE MEMBER is eligible to purchase.

(E) No payroll deduction made pursuant to this section may exceed the amount of a member's net compensation after all other deductions and withholdings required by law.

Sec. 3309.352. (A) A MEMBER OF THE SCHOOL EMPLOYEES RETIREMENT SYSTEM WHO IS A FORMER MEMBER OF THE PUBLIC EMPLOYEES RETIREMENT SYSTEM OR STATE TEACHERS RETIREMENT SYSTEM AND HAS RECEIVED A REFUND OF ACCUMULATED CONTRIBUTIONS UNDER SECTION 145.40 OR 3307.46 OF THE REVISED CODE MAY PURCHASE SERVICE CREDIT FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE REFUND WAS MADE.

(B) A MEMBER SEEKING TO PURCHASE SERVICE CREDIT UNDER THIS SECTION SHALL NOTIFY THE SCHOOL EMPLOYEES RETIREMENT SYSTEM ON A FORM APPROVED BY THE SCHOOL EMPLOYEES RETIREMENT BOARD. NOT LATER THAN TEN DAYS AFTER RECEIVING THE NOTICE, THE SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL REQUEST THAT THE FORMER RETIREMENT SYSTEM DETERMINE UNDER SECTION 145.311 OR 3307.282 of the Revised Code HOW MUCH IT WOULD COST THE MEMBER TO RESTORE SERVICE CREDIT UNDER SECTION 145.31 OR 3307.28 of the Revised Code FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE MEMBER SEEKS TO PURCHASE CREDIT UNDER THIS SECTION. THE AMOUNT THE FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING THE SERVICE CREDIT IS THE COST TO THE MEMBER OF PURCHASING SERVICE CREDIT UNDER THIS SECTION. ON RECEIVING CERTIFICATION OF THE COST FROM THE FORMER RETIREMENT SYSTEM, THE STATE TEACHERS RETIREMENT SYSTEM SHALL NOTIFY THE MEMBER OF THE AMOUNT CERTIFIED BY THE FORMER SYSTEM.

(C) FOR EACH YEAR OR PORTION OF A YEAR OF CREDIT PURCHASED UNDER THIS SECTION, A MEMBER SHALL PAY TO THE SCHOOL EMPLOYEES RETIREMENT SYSTEM THE AMOUNT CERTIFIED BY THE FORMER RETIREMENT SYSTEM.

(D) SUBJECT TO RULES ADOPTED BY THE BOARD, A MEMBER MAY PURCHASE ALL OR PART OF THE CREDIT THE MEMBER IS ELIGIBLE TO PURCHASE UNDER THIS SECTION IN ONE OR MORE PAYMENTS.

(E) IF A MEMBER DIES OR WITHDRAWS FROM SERVICE, ANY PAYMENT MADE BY THE MEMBER UNDER THIS SECTION SHALL BE CONSIDERED AS ACCUMULATED CONTRIBUTIONS OF THE MEMBER.

(F) ON APPLICATION FOR AN ALLOWANCE UNDER SECTION 3309.35, 3309.36, 3309.38, 3309.381, 3309.40, OR 3309.401 OF THE REVISED CODE BY A MEMBER WHO PURCHASED SERVICE CREDIT UNDER THIS SECTION, THE SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL REQUEST FROM THE FORMER RETIREMENT SYSTEM AN AMOUNT OF EMPLOYER CONTRIBUTIONS EQUAL TO THE AMOUNT THE MEMBER PAID UNDER THIS SECTION.

(G) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION.


Section 2. That existing sections 145.294, 3307.281, and 3309.27 of the Revised Code are hereby repealed.
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