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(124th General Assembly)
(Substitute House Bill Number 386)
AN ACT
To amend sections 111.15, 119.01, 121.24, and 1322.062
and to enact sections 1.63, 1349.25, 1349.26,
1349.27, 1349.29, 1349.30, 1349.31, 1349.32,
1349.33,
1349.34, 1349.35, 1349.36, and 1349.37 of
the Revised Code
and to amend Section 32 of Am.
Sub. H.B. 94 of the
124th General Assembly to
conform Ohio law with
the federal Home Ownership
and Equity Protection
Act of 1994 with respect to
specified consumer
loans, to prohibit other
practices relative to those loans, to create the
Office of Consumer Affairs within the Division of
Financial Institutions, to state the
intent of the
General Assembly
on the relationship
of state and
local laws
regarding the regulation of
loans and
other forms
of credit, to establish
the Predatory
Lending
Study Committee to report to
the General
Assembly
about predatory lending
practices in
mortgage
lending or origination, and to make an
appropriation.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 111.15, 119.01, 121.24, and 1322.062
be amended and sections 1.63, 1349.25, 1349.26, 1349.27, 1349.29,
1349.30, 1349.31, 1349.32, 1349.33, 1349.34, 1349.35, 1349.36, and
1349.37 of the
Revised Code be enacted
to read as follows:
Sec. 1.63. (A) The state solely shall regulate the business
of originating, granting, servicing, and collecting loans and
other forms of credit in the state and the manner in which any
such business is conducted, and this regulation shall be in lieu
of all other regulation of such activities by any municipal
corporation or other political subdivision.
(B) Any ordinance, resolution, regulation, or other action
by a municipal corporation or other political subdivision to
regulate, directly or indirectly, the origination, granting,
servicing, or collection of loans or other forms of credit
constitutes a conflict with the Revised Code, including, but not
limited to, Titles XI, XIII, XVII, and XLVII, and with the uniform
operation throughout the state of lending and other credit
provisions, and is preempted.
(C) Any ordinance, resolution, regulation, or other action
by a municipal corporation or other political subdivision
constitutes a conflict with the Revised Code, including, but not
limited to, Titles XI, XIII, XVII, and XLVII, and is pre-empted,
if
the ordinance, resolution, regulation, or other action does
either
of the following:
(1) Disqualifies a person, or its subsidiaries or
affiliates, from doing business with such municipal corporation or
other political subdivision based upon the acts or practices of
such person, or its subsidiaries or affiliates, as an originator,
grantor, servicer, or collector of loans or other forms of credit;
(2) Imposes reporting requirements or other obligations upon
a person, or its subsidiaries or affiliates, based upon such
person's, or its subsidiaries' or affiliates', acts or practices
as an originator, grantor, servicer, or collector of loans or
other forms of credit.
(D) If any provision of this section, or any application of
any provision of this section, is for any reason held to be
illegal or invalid, the illegality or invalidity shall not affect
any legal and valid provision or application of this section, and
the provisions and applications of this section shall be
severable.
(E) Nothing in this section shall be construed to invalidate
or prohibit any ordinance, resolution, regulation, or other action
by a municipal corporation or other political subdivision to
establish and administer voluntary neighborhood reinvestment
programs in furtherance of the goals and purposes of the
"Community Reinvestment Act of 1977," 91 Stat. 1147, 12 U.S.C.A.
2901, as amended.
(F) Nothing in this section shall be construed to
invalidate any ordinance, resolution, regulation, or other action
by a municipal corporation or other political subdivision that is
required to meet the criteria for adequacy of law established by
the United States department of housing and urban development in
order to obtain certification as a fair housing assistance
program.
Sec. 111.15. (A) As used in this section: (1) "Rule" includes any rule, regulation, bylaw, or
standard
having a general and uniform operation adopted by an
agency under
the authority of the laws governing the agency; any
appendix to a
rule; and any internal management rule. "Rule"
does not include
any guideline adopted pursuant to section
3301.0714 of the Revised
Code, any order respecting the duties of
employees, any finding,
any determination of a question of law or
fact in a matter
presented to an agency, or any rule promulgated
pursuant to
Chapter 119., section 4141.14, division (C)(1) or (2)
of section
5117.02, or section 5703.14 of the Revised Code.
"Rule" includes
any amendment or rescission of a rule. (2) "Agency" means any governmental entity of the state
and
includes, but is not limited to, any board, department,
division,
commission, bureau, society, council, institution,
state college
or university, community college district,
technical college
district, or state community college. "Agency"
does not include
the general assembly, the controlling board,
the adjutant
general's department, or
any court. (3) "Internal management rule" means any rule, regulation,
bylaw, or standard governing the day-to-day staff procedures and
operations within an agency. (4) "Substantive revision" has the same meaning as in
division (J) of section 119.01 of the Revised Code. (B)(1) Any rule, other than a rule of an emergency nature,
adopted by any agency pursuant to this section shall be effective
on the tenth day after the day on which the rule in final form
and
in compliance with division (B)(3) of this section is filed
as
follows: (a) The rule shall be filed in electronic form with
both the
secretary of state and the director of the legislative
service
commission; (b) The rule shall be filed in electronic form with
the
joint committee on agency rule review. Division (B)(1)(b) of
this
section does not apply to any rule to which division (D) of
this
section does not apply. An agency that adopts or amends a rule that is subject to
division
(D) of this section shall assign a review
date to the
rule that is not later than five years after its effective date.
If no review date is assigned to a rule, or if a review date
assigned to a
rule exceeds the five-year maximum, the review date
for the rule is
five years after its effective date. A rule with
a review date is
subject to review under section 119.032 of the
Revised Code. This paragraph does not apply to a rule of a
state
college or university, community college district, technical
college
district, or state community college. If all filings are not completed on the same day, the rule
shall
be effective on the tenth day after the day on which the
latest
filing is completed. If an agency in adopting a rule
designates an
effective date that is later than the effective date
provided for
by division (B)(1) of this section, the rule if filed
as required
by such division shall become effective on the later
date
designated by the agency. Any rule that is required to be filed under division (B)(1)
of this section is also subject to division (D) of this section
if
not exempted by division (D)(1), (2), (3), (4), (5), (6),
(7), or
(8) of this section. (2) A rule of an emergency nature necessary for the
immediate preservation of the public peace, health, or safety
shall state the reasons for the necessity. The
emergency rule, in
final form and in compliance with division
(B)(3) of this section,
shall be filed in electronic
form
with the
secretary of state, the
director of the legislative service
commission, and
the joint
committee on agency rule review. The
emergency rule is effective
immediately upon completion of the latest filing,
except that if
the agency in adopting the emergency rule
designates an effective
date, or date and time of day, that is
later than the effective
date and time provided for by division
(B)(2) of this section, the
emergency rule if filed as required
by such division shall become
effective at the later date, or
later date and time of day,
designated by the agency. An emergency rule becomes invalid at the end of the
ninetieth
day it is in effect. Prior to that date, the agency
may file the
emergency rule as a nonemergency rule in compliance
with division
(B)(1) of this section. The agency may not refile
the emergency
rule in compliance with division (B)(2) of this
section so that,
upon the emergency rule becoming invalid under
such division, the
emergency rule will continue in effect without
interruption for
another ninety-day period. (3) An agency shall file a rule under division (B)(1) or
(2)
of this section in compliance with the following standards
and
procedures: (a) The rule shall be numbered in accordance with the
numbering system devised by the director for the Ohio
administrative code. (b) The rule shall be prepared and submitted in compliance
with the rules of the legislative service commission. (c) The rule shall clearly state the date on which it is
to
be effective and the date on which it will expire, if known. (d) Each rule that amends or rescinds another rule shall
clearly refer to the rule that is amended or rescinded. Each
amendment shall fully restate the rule as amended. If the director of the legislative service commission or
the
director's designee gives an agency notice
pursuant to section
103.05 of the Revised Code that a rule filed by the agency is not
in compliance with the rules of the legislative service
commission, the agency shall within thirty days after receipt of
the notice conform the rule to the rules of the commission as
directed in the notice. (C) All rules filed pursuant to divisions (B)(1)(a) and
(2)
of this section shall be recorded by the secretary of state
and
the director under the title of the agency adopting the rule
and
shall be numbered according to the numbering system devised
by the
director. The secretary of state and the director shall
preserve
the rules in an accessible manner. Each such rule shall
be a
public record open to public inspection and may be transmitted to
any law publishing company that wishes to reproduce it. (D) At least sixty-five days before a board, commission,
department, division, or bureau of the government of the state
files a rule under division (B)(1) of this section, it shall file
the full text of the proposed rule in electronic form
with the
joint
committee on agency rule review, and the proposed rule
is
subject to legislative review and invalidation under division (I)
of section 119.03 of the Revised Code. If a state board,
commission, department, division, or bureau makes a substantive
revision in a proposed rule after it is filed with the joint
committee, the state board, commission, department,
division, or
bureau shall promptly file the full text of
the
proposed rule in
its revised form in electronic form
with the joint committee. The
latest version of a proposed rule as filed with the joint
committee supersedes each earlier version of the text
of the same
proposed rule. Except as provided in division (F) of this
section, a state board, commission, department, division, or
bureau shall also file the rule summary and fiscal
analysis
prepared under section 121.24 or 127.18 of the Revised
Code, or
both, in electronic form along with a proposed
rule, and
along
with a proposed rule in revised form, that is filed under this
division. As used in this division, "commission" includes the public
utilities
commission when adopting rules under a federal or state
statute. This division does not apply to any of the following: (1) A proposed rule of an emergency nature; (2) A rule proposed under section 1121.05, 1121.06, 1155.18,
1349.33, 1733.412,
4123.29, 4123.34, 4123.341, 4123.342, 4123.40,
4123.411, 4123.44,
or
4123.442 of the Revised Code; (3) A rule proposed by an agency other than a board,
commission, department, division, or bureau of the government of
the state; (4) A proposed internal management rule of a board,
commission, department, division, or bureau of the government of
the state; (5) Any proposed rule 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. (6) An initial rule proposed by the director of health to
impose safety standards, quality-of-care standards, and
quality-of-care data
reporting requirements with respect to a
health service specified in section
3702.11 of the Revised Code,
or an initial rule proposed by the director to
impose
quality
standards on a facility listed in division (A)(4) of section
3702.30 of the Revised Code, if section 3702.12 of the Revised
Code requires
that the rule be adopted under this section; (7) A rule of the state lottery commission pertaining to
instant game rules. If a rule is exempt from legislative review under division
(D)(5)
of this section, and if the federal law or rule pursuant to
which
the rule was adopted expires, is repealed or rescinded, or
otherwise terminates, the rule is thereafter subject to
legislative review under division (D) of this section. (E) Whenever a state board, commission, department,
division, or bureau files a proposed rule or a proposed rule in
revised form under division (D) of this section, it shall also
file the full text of the same proposed rule or
proposed rule in
revised form in electronic form with
the secretary of state and
the director of the legislative service
commission. Except as
provided in division (F) of this section,
a state board,
commission, department, division, or bureau shall
file the rule
summary and fiscal analysis prepared
under section 121.24 or
127.18 of the Revised Code, or both, in electronic form
along with
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. (F) Except as otherwise provided in this division, the
auditor of state or the auditor of state's designee is not
required
to file a rule
summary and fiscal analysis along with a
proposed rule, or
proposed rule in revised form, that the auditor
of state proposes
under section
117.12, 117.19, 117.38, or 117.43
of the Revised Code and files
under division (D) or (E) of this
section. If, however, the
auditor of state or the designee
prepares a rule summary and
fiscal analysis of the original
version of such a proposed rule
for purposes of complying with
section 121.24 of the Revised
Code, the auditor of state or
designee shall file the
rule summary and fiscal
analysis in
electronic form along with the original
version of the proposed
rule filed under division (D) or (E) of this section.
Sec. 119.01. As used in sections 119.01 to 119.13 of the
Revised Code: (A)(1) "Agency" means, except as limited by this division,
any official, board, or commission having authority to promulgate
rules or make adjudications in
the civil service commission, the
division of liquor control, the department
of
taxation, the
industrial commission, the bureau of workers'
compensation, the
functions of any administrative or executive
officer, department,
division, bureau, board, or commission of
the government of the
state specifically made subject to sections
119.01 to 119.13 of
the Revised Code, and the licensing functions
of any
administrative or executive officer, department, division,
bureau,
board, or commission of the government of the state
having the
authority or responsibility of issuing, suspending,
revoking, or
canceling licenses. Except as otherwise provided in division (I) of
this section,
sections 119.01 to 119.13 of
the Revised Code do not apply to the
public utilities commission. Sections
119.01 to 119.13 of the
Revised Code do not apply to the
utility radiological safety
board; to the controlling board; to
actions of the superintendent
of financial institutions and the superintendent
of insurance in
the taking
possession of, and rehabilitation or liquidation of,
the business
and property of banks, savings and loan associations,
savings banks,
credit unions, insurance
companies, associations,
reciprocal fraternal benefit societies,
and bond investment
companies; or to any action that may be
taken by the
superintendent of financial institutions under
section 1113.03,
1121.05, 1121.06, 1121.10, 1125.09,
1125.12, 1125.18, 1155.18,
1157.01, 1157.02,
1157.10, 1163.22, 1165.01, 1165.02, 1165.10,
1349.33, 1733.35, 1733.361, 1733.37,
1733.412, or 1761.03 of the
Revised Code. Sections 119.01 to 119.13 of the
Revised Code do not apply to
actions of the industrial commission
or the bureau of workers'
compensation under sections 4123.01 to
4123.94 of the Revised Code
with respect to all matters of
adjudication, and to the actions of
the industrial commission and
bureau of workers' compensation
under division (D) of section 4121.32 and
sections 4123.29,
4123.34, 4123.341, 4123.342, 4123.40, 4123.411, 4123.44,
4123.442,
and divisions (B), (C), and (E) of section 4131.14
of the Revised
Code. (2) "Agency" also means any official or work unit having
authority to promulgate rules or make adjudications in the
department of job
and family services, but only with respect to
both of
the following: (a) The adoption, amendment, or rescission
of rules that
section 5101.09 of the Revised
Code requires be adopted in
accordance with
this chapter; (b) The issuance, suspension, revocation, or cancellation
of
licenses. (B) "License" means any license, permit, certificate,
commission, or charter issued by any agency. "License" does not
include any arrangement whereby a person, institution, or entity
furnishes medicaid services under a provider agreement with the
department of job and family services pursuant to Title
XIX of the
"Social
Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as
amended. (C) "Rule" means any rule, regulation, or standard, having
a
general and uniform operation, adopted, promulgated, and
enforced
by any agency under the authority of the laws governing
such
agency, and includes any appendix to a rule. "Rule" does
not
include any internal management rule of an agency unless the
internal management rule affects private rights and does not
include any guideline adopted pursuant to section 3301.0714 of
the
Revised Code. (D) "Adjudication" means the determination by the highest
or
ultimate authority of an agency of the rights, duties,
privileges,
benefits, or legal relationships of a specified
person, but does
not include the issuance of a license in
response to an
application with respect to which no question is
raised, nor other
acts of a ministerial nature. (E) "Hearing" means a public hearing by any agency in
compliance with procedural safeguards afforded by sections 119.01
to 119.13 of the Revised Code. (F) "Person" means a person, firm, corporation,
association,
or partnership. (G) "Party" means the person whose interests are the
subject
of an adjudication by an agency. (H) "Appeal" means the procedure by which a person,
aggrieved by a finding, decision, order, or adjudication of any
agency, invokes the jurisdiction of a court. (I) "Rule-making agency" means any board, commission,
department, division, or bureau of the government of the state
that is required to file proposed rules, amendments, or
rescissions under division (D) of section 111.15 of the Revised
Code and any agency that is required to file proposed rules,
amendments, or rescissions under divisions (B) and (H) of section
119.03 of the Revised Code. "Rule-making agency" includes the
public utilities
commission. "Rule-making agency" does not
include any state-supported college or university. (J) "Substantive revision" means any addition to,
elimination from, or other change in a rule, an amendment of a
rule, or a rescission of a rule, whether of a substantive or
procedural nature, that changes any of the following: (1) That which the rule, amendment, or rescission permits,
authorizes, regulates, requires, prohibits, penalizes, rewards,
or
otherwise affects; (2) The scope or application of the rule, amendment, or
rescission. (K) "Internal management rule" means any rule, regulation,
or standard governing the day-to-day staff procedures and
operations within an agency.
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, or 1349.33 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, 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. (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, in electronic form, the full text of the original
version of
the proposed rule and 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
comments in
electronic form 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, in
electronic form, 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 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, whether its annual
report
is in print or electronic form or both. 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, in
electonic form, 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 its
annual or separate report in
electronic form, 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 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 January 1, 1985. A rule
that is newly
adopted after
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, 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 in electronic form 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 receiving a
request from any person.
Sec. 1322.062. (A)(1) Within three business days after
taking
an
application for a loan from a buyer, a registrant shall
deliver
to the
buyer a mortgage loan origination disclosure
statement that
contains all of
the following:
(1)(a) The name, address, and telephone number of the buyer;
(2)(b) The typewritten name of the loan officer and the
number
designated on the loan officer's license;
(3)(c) The street address, telephone number, and facsimile
number of
the registrant and the number designated on the
registrant's
certificate of registration;
(4)(d)
The signature of the loan officer or
registrant;
(5)(e) A statement indicating whether the buyer is to pay
for
the services of a bona fide third party if the registrant is
unable to assist the buyer in obtaining a mortgage;
(6)(f) A statement that describes the method by which the
fee
to be paid by the buyer to the registrant will be calculated;
(7)(g) A statement that the lender may pay compensation to
the
registrant;
(8)(h) A description of all the services the registrant has
agreed to perform for the buyer;
(9)(i) A statement that the buyer has not entered into an
exclusive agreement for brokerage services.
(2) If the loan is a covered loan as defined in section
1349.25 of the Revised Code, the registrant shall also deliver a
copy of the mortgage loan origination disclosure statement to the
lender. (B) If there is any change in the information provided under
division (A)(6)(1)(f) or
(8)(h) of this section, the registrant
shall
provide the buyer with the revised mortgage loan origination
disclosure statement no later than three days after the change
occurs, or the date the loan is closed, whichever is earlier.
(C) No registrant shall fail to comply with
this section.
Sec. 1349.25. As used in sections 1349.25 to 1349.37 of the
Revised Code:
(A) "Actuarial method" means the method of allocating
payments made on a debt between the amount financed and the
finance charge pursuant to which a payment is applied first to the
accumulated finance charge and any remainder is subtracted from,
or any deficiency is added to, the unpaid balance of the amount
financed.
(B) "Consumer" means a natural person to whom credit is
offered or extended primarily for personal, family, or household
purposes.
(C) "Consummation" means the time that a consumer becomes
contractually obligated on a credit transaction.
(D) "Covered loan" means a consumer credit mortgage loan
transaction that meets both of the following criteria: (1) The loan involves property located within this state.
(2) The loan is considered a mortgage under section 152(a)
of the "Home Ownership and Equity Protection Act of 1994," 108
Stat. 2190, 15 U.S.C.A. 1602(aa), as amended, and the regulations
adopted thereunder by the federal reserve board, as amended.
(E) "Credit" means the right granted by a creditor to a
debtor to defer payment of debt or to incur debt and defer its
payment.
(F) "Creditor" has the same meaning as in section 152(c) of
the "Home Ownership and Equity Protection Act of 1994," 108 Stat.
2190, 15 U.S.C.A. 1602(f), as amended, and the regulations adopted
thereunder by the federal reserve board, as amended. (G) "Person" means a natural person, partnership,
association, trust, corporation, or any other legal entity.
Sec. 1349.26. (A) A creditor shall provide, for each covered
loan, both of the following disclosures. The disclosures shall be
in conspicuous type size and be in substantially the following
form:
(1) "You are not required to complete this agreement merely
because you have received these disclosures or have signed a loan
application." (2) "If you obtain this loan, the lender will have a
mortgage on your home. You could lose your home, and any money
you have put into it, if you do not meet your obligations under
the loan."
(B) In addition to the disclosures required under division
(A) of this section, a creditor shall disclose, for each covered
loan, either of the following:
(1) In the case of a credit transaction with a fixed rate
of interest, the annual percentage rate, the amount of the
regular
monthly payment, and the amount of any balloon payment;
(2) In the case of any other credit transaction, the annual
percentage rate of the loan, the amount of the regular monthly
payment, a statement that the interest rate and monthly payment
may increase, and the amount of the maximum monthly payment, based
on the maximum interest rate allowed pursuant to 12 U.S.C.A. 3806. (C) With respect to
any mortgage that is refinanced on or
after October 1, 2002, the creditor shall also disclose the total
amount the consumer will borrow, as reflected by the face amount
of the note. If the amount borrowed includes premiums or other
charges for optional credit insurance or debt-cancellation
coverage, that fact shall be stated, grouped together with the
disclosure of the amount borrowed. The disclosure of the amount
borrowed shall be treated as accurate if it is not more than one
hundred dollars above or below the amount required to be
disclosed. (D)(1) Subject to division (D)(2) of this section, each
creditor shall provide the disclosures required under this
section not less than three business days
prior to consummation of
the transaction. After providing those
disclosures, a creditor
shall not change the terms of the
extension of credit if such
changes make the disclosures
inaccurate, unless new disclosures
are provided in accordance with
this section. A creditor may
provide such new disclosures by
telephone, if both of the
following requirements are met:
(a) The change is initiated by the consumer.
(b) At the consummation of the loan transaction, the
creditor provides to the consumer the new disclosures in writing
and the creditor and consumer certify in writing that, not later
than three days prior to the date of consummation of the
transaction, the new disclosures were provided by telephone.
(2) A consumer may, after receiving the disclosures
required under this section, modify or waive
the three-day waiting
period between delivery of those disclosures
and consummation of
the loan transaction, if the consumer
determines that the
extension of credit is needed to meet a bona
fide personal
financial emergency. To modify or waive the right,
the consumer
shall give the creditor a dated written statement
that describes
the emergency, specifically modifies or waives the
waiting period,
and bears the signature of all of the consumers
entitled to the
waiting period. (E) Compliance with sections 226.31(c)(1) and 226.32(c) of
Title 12 of the Code of Federal Regulations, as amended, shall be
deemed compliance with this section.
Sec. 1349.27. A creditor shall not do any of the following: (A) Make a covered loan that includes any of the following: (1) Terms under which a consumer must pay a prepayment
penalty for paying all or part of the principal before the date on
which the principal is due. For purposes of division (A)(1) of
this section, any method of computing a refund of unearned
scheduled interest is a prepayment penalty if it is less favorable
to the consumer than the actuarial method. Division (A)(1) of this section does not apply to a
prepayment penalty imposed in accordance with section 129(c)(2) of
the "Home Ownership and Equity Protection Act of 1994," 108 Stat.
2190, 15 U.S.C.A. 1639(c)(2), as amended, and the regulations
adopted thereunder by the federal reserve board, as amended. (2) Terms under which the outstanding principal balance will
increase at any time over the course of the loan because the
regular periodic payments do not cover the full amount of interest
due; (3) Terms under which more than two periodic payments
required under the loan are consolidated and paid in advance from
the loan proceeds provided to the consumer; (4) Terms under which a rebate of interest arising from a
loan acceleration due to default is calculated by a method less
favorable than the actuarial method. (B) Make a covered loan that provides for an interest rate
applicable after default that is higher than the interest rate
that applies before default;
(C) Make a covered loan having a term of less than five
years that includes terms under which the aggregate amount of the
regular periodic payments would not fully amortize the outstanding
principal balance. This division does not apply to any covered
loan with a maturity of less than one year, if the purpose of the
loan is a "bridge" loan connected with the acquisition or
construction of a dwelling intended to become the consumer's
principal dwelling. (D) Engage in a pattern or practice of extending credit to
consumers under covered loans based on the consumers' collateral
without regard to the consumers' repayment ability, including the
consumers' current and expected income, current obligations, and
employment; (E) Make a payment to a contractor under a home improvement
contract from amounts extended as credit under a covered loan,
except in either of the following ways: (1) By an instrument that is payable to the consumer or
jointly to the consumer and the contractor; (2) At the election of the consumer, by a third party escrow
agent in accordance with terms established in a written agreement
signed by the consumer, the creditor, and the contractor before
the date of payment. (F) On or after October 1, 2002, make a covered loan that
includes a demand feature that permits the creditor to terminate
the loan in advance of the original maturity date and to demand
repayment of the entire outstanding balance, except in any of the
following circumstances: (1) There is fraud or material misrepresentation by the
consumer in connection with the loan. (2) The consumer fails to meet the repayment terms of the
agreement for any outstanding balance. (3) There is any action or inaction by the consumer that
adversely affects the creditor's security for the loan or any
right of the creditor in that security. (G)(1) Within one year after having made a covered loan,
refinance a covered loan to the same borrower into another covered
loan, unless the refinancing is in the consumer's interest. An
assignee holding or servicing a covered loan shall not, for the
remainder of the one-year period following the date of origination
of the covered loan, refinance any covered loan to the same
consumer into another covered loan, unless the refinancing is in
the consumer's interest. A creditor or assignee shall not engage in acts or practices
to evade division (G)(1) of this section, including a pattern or
practice of arranging for the refinancing of its own loans by
affiliated or unaffiliated creditors, or modifying a loan
agreement, whether or not the existing loan is satisfied and
replaced by the new loan, and charging a fee. (2) Division (G)(1) of this section shall apply on and after
October 1, 2002.
(H) Make a covered loan without first obtaining a copy of the
mortgage loan origination disclosure statement that was delivered
to the buyer in accordance with division (A)(1) of section
1322.062 of the Revised Code; (I) Finance, directly or indirectly, into a covered loan or
finance to the same borrower within thirty days of a covered loan
any credit life or credit disability insurance premiums sold in
connection with the covered loan, provided that any credit life or
credit disability insurance premiums calculated and paid on a
monthly or other periodic basis shall not be considered financed
by the person originating the loan. For purposes of this
division, credit life or credit disability insurance does not
include a contract issued by a government agency or private
mortgage insurance company to insure the lender against loss
caused by a mortgagor's default.
(J) Replace or consolidate a zero interest rate or other
low-rate loan made by a governmental or nonprofit lender with a
covered loan within the first ten years of the low-rate loan
unless the current holder of the loan consents in writing to the
refinancing. For purposes of this division, a "low-rate loan"
means a loan that carries a current interest rate two percentage
points or more below the current yield on United States treasury
securities with a comparable maturity. If the loan's current
interest rate is either a discounted introductory rate or a rate
that automatically steps up over time, the fully indexed rate or
the fully stepped-up rate, as applicable, shall be used, in lieu
of the current rate, to determine whether a loan is a low-rate
loan.
Sec. 1349.29. If a covered loan transaction includes any term
prohibited by section 1349.27 of the Revised Code, the consumer
shall have the right to rescind the transaction in accordance with
section 129(j) of the "Home Ownership and Equity Protection Act of
1994," 108 Stat. 2190, 15 U.S.C.A. 1639(j), as amended, and the
regulations adopted thereunder by the federal reserve board, as
amended.
Sec. 1349.30. (A) A person has no liability under section
1349.31 of the Revised Code, and shall not be
subject to any
sanction by the superintendent of financial
institutions, for any
failure to comply with section 1349.26 or
1349.27 of the Revised
Code, if within sixty days after
discovering the error, whether
pursuant to the person's own procedures or an examination or
investigation by the superintendent under division (A) or (B) of
section 1349.34 of the Revised Code, and prior to the initiation
of any action by the superintendent under divisions (C) to (F) of
section 1349.34 of the Revised Code or the receipt of written
notice
of the error from the consumer, the person notifies
the
consumer or other person concerned of the error and makes whatever
adjustments
in the appropriate account are necessary to assure
that the consumer
will not be required to pay an amount in excess
of the charge
actually disclosed, or the dollar equivalent of the
annual
percentage rate actually disclosed, whichever is lower. (B) A creditor or assignee shall not be held liable in any
action brought under section 1349.29 of the Revised Code, if the
creditor or assignee shows by a preponderance of evidence that the
compliance failure was not intentional and resulted from a bona
fide error notwithstanding the maintenance of procedures
reasonably adapted to avoid any such error. For purposes of this
division, "bona fide error" includes, but is not limited to,
clerical, calculation, computer malfunction and programming, and
printing errors. "Bona fide error" does not include an error of
legal judgment with respect to a person's obligations under
sections 1349.25 to 1349.36 of the Revised Code.
Sec. 1349.31. (A)(1) No creditor shall willfully and
knowingly fail to comply with section 1349.26 or 1349.27 of the
Revised Code. For purposes of division (A)(1) of this section,
"willfully and knowingly" has the same meaning as in section 112
of the "Truth in Lending Act," 82 Stat. 146 (1968), 15 U.S.C.A.
1611, as amended.
(2) Whoever violates division (A)(1) of this section is
guilty of a felony of the fifth degree.
(B) The superintendent of financial institutions may
initiate criminal proceedings under this section by presenting any
evidence of criminal violations to the prosecuting attorney of the
county in which the offense may be prosecuted. If the prosecuting
attorney does not prosecute the violations, or at the request of
the prosecuting attorney, the superintendent shall present any
evidence of criminal violations to the attorney general, who may
proceed in the prosecution with all the rights, privileges, and
powers conferred by law on prosecuting attorneys, including the
power to appear before grand juries and to interrogate witnesses
before such grand juries. These powers of the attorney general
shall be in addition to any other applicable powers of the
attorney general.
Sec. 1349.32. The purpose of sections 1349.25 to 1349.36 of
the Revised Code is to bring Ohio law into conformance with the
"Home Ownership and Equity Protection Act of 1994," 108 Stat.
2190, 15 U.S.C.A. 1601 note, as amended, and the regulations and
interpretations
adopted thereunder by the federal reserve board,
in order to
facilitate the uniform administration and enforcement
of state and
federal laws on the regulation of certain high cost
mortgages. In furtherance of that purpose, the regulations and
interpretations adopted by
the federal reserve board to implement
the "Home Ownership and
Equity Protection Act of 1994," which
regulations and interpretations are effective as
of the effective
date of this section, are hereby deemed
applicable to sections
1349.25 to 1349.36 of the Revised Code.
Such regulations and
interpretations include the amendment of sections 226.32 and
226.34 of Title 12 of the Code of Federal Regulations, which
amendment was approved by the federal reserve board on December
12, 2001, and takes effect October 1, 2002.
Sec. 1349.33. (A) Notwithstanding any provision of sections
1349.25 to 1349.36 of the Revised Code, or any rule adopted
thereunder, if the "Home Ownership and Equity Protection Act of
1994," 108 Stat. 2190, 15 U.S.C.A. 1601 note, as amended, or any
regulation adopted thereunder by the federal reserve board, as
amended, is amended or otherwise modified after the effective date
of this section, the superintendent of financial institutions may
by rule adopt similar provisions. If an amendment or other
modification to the "Home Ownership and Equity Protection Act of
1994" requires the adoption of implementing regulations by the
federal reserve board, the superintendent shall not adopt any rule
under the authority of this section until those regulations are
adopted. (B) The superintendent shall adopt the rules authorized by
division (A) of this section in accordance with section 111.15 of
the Revised Code. Chapter 119. of the Revised Code does not apply
to rules adopted under the authority of this section. (C) A rule adopted by the superintendent under the authority
of this section is effective on the later of the following dates: (1) The date the superintendent issues the rule; (2) The date the regulation, rule, interpretation,
procedure, or guideline the superintendent's rule is based on
becomes effective. (D) The superintendent may, upon thirty days' written
notice, revoke any rule adopted under the authority of this
section. A rule adopted under the authority of this section, and
not revoked by the superintendent, lapses and has no further force
and effect thirty months after its effective date.
Sec. 1349.34. (A) As often as the superintendent of
financial institutions considers it necessary, the superintendent
may examine a person's records regarding covered loans. The
superintendent may recover from the person any costs incurred in
connection with and reasonably related to the examination. (B) The superintendent may investigate alleged
failures to
comply with sections 1349.25 to 1349.36 of the Revised
Code, or
any rule adopted thereunder, or complaints concerning any
such
failure to comply. In conducting any
investigation under this
section, the superintendent may compel,
by subpoena, witnesses to
testify in relation to any matter over
which the superintendent
has jurisdiction and may require the
production of any book,
record, or other document pertaining to
that matter. If a person
fails to file any statement or report,
obey any subpoena, give
testimony, produce any book, record, or
other document as required
by a subpoena, or permit photocopying
of any book, record, or
other document subpoenaed, the court of
common pleas of any county
in this state, upon application made to
it by the superintendent,
shall compel obedience by attachment
proceedings for contempt, as
in the case of disobedience of the
requirements of a subpoena
issued from the court or a refusal to
testify therein. (C) Whenever it appears to the superintendent that a person
has engaged in, is engaging in, or is about to engage in, any
activity constituting a failure to comply with section 1349.26 or
1349.27 of the Revised Code, the superintendent may make
application to the court of common pleas of any county in this
state for an order enjoining any such activity. Upon a showing by
the superintendent that a person has engaged in, is engaging in,
or is about to engage in, any activity constituting a failure to
comply with section 1349.26 or 1349.27 of the Revised Code, the
court shall grant an injunction, restraining order, or other
appropriate relief. (D) Whenever it appears to the superintendent that a person
has engaged in, is engaging in, or is about to engage in, any
activity that may constitute a failure to comply with section
1349.26 or 1349.27 of the Revised Code, the superintendent, after
notice and a hearing conducted in accordance with Chapter 119. of
the Revised Code, may issue a cease and desist order. Such an
order shall be enforceable in any court of common pleas in this
state. (E) If a person that fails to comply with section 1349.26 or
1349.27 of the Revised Code is licensed, registered, or charted
by, or otherwise operates under the authority of, the
superintendent, the superintendent may, in accordance with Chapter
119. of the Revised Code, suspend, revoke, or deny the renewal of
such license, registration, charter, or other authority. (F) If a person fails to comply with section 1349.26 or
1349.27 of the Revised Code, the superintendent may, in accordance
with Chapter 119. of the Revised Code, impose a fine of not more
than two thousand five hundred dollars per compliance failure. If
the person
fails to comply two or more times, the superintendent
may, in
accordance with Chapter 119. of the Revised Code, impose a
fine of
not more than five thousand dollars per compliance
failure. If the
person injured by the failure to comply is
sixty-five years of age
or older, the superintendent may double
the amount of the fine. An order to pay a fine pursuant to this division shall be
enforceable in any court of common pleas in this state. All fines
collected under this division shall be paid to the superintendent
and shall be deposited by the superintendent into the state
treasury to the credit of the consumer finance fund created under
section 1321.21 of the Revised Code. In determining the amount of a fine to be imposed under this
division, the superintendent shall consider all of the following: (1) The seriousness of the conduct; (2) The person's good faith efforts to prevent the conduct; (3) The person's history regarding violations and compliance
with the superintendent's orders; (4) The person's financial resources; (5) Any other matter the superintendent considers
appropriate in enforcing sections 1349.26 and 1349.27 of the
Revised Code.
The superintendent shall not impose a fine under this
division if the superintendent has imposed or will impose a fine
under another provision of the Revised Code for the same conduct. (G)(1) The superintendent may take any of the actions set
forth in this section with respect to any person other than a
federally chartered financial institution or its operating
subsidiaries. Whenever it appears to the superintendent that a
federally chartered financial institution or its operating
subsidiary has engaged in, is engaging in, or is about to engage
in, any activity that may constitute a failure to comply with
section 1349.26 or 1349.27 of the Revised Code, the superintendent
may present any evidence of such activity to the institution's
appropriate federal regulatory authority, along with any
recommendations regarding the imposition of specific sanctions. (2)
Any action taken by the superintendent under this
section
shall be commenced within three years after the alleged
compliance
failure. (H) The remedies available to the superintendent under
this
section are cumulative and concurrent, and the exercise of
one
remedy by the superintendent does not preclude or require
the
exercise of any other remedy.
(I) The remedies available to the superintendent under this
section
or to the appropriate federal regulatory authority, the
right of rescission described in section 1349.29 of the Revised
Code, and the criminal penalty provided in section 1349.31 of the
Revised Code shall constitute the sole and exclusive remedies for
any
failure to comply with section 1349.26 or 1349.27 of the
Revised
Code.
Sec. 1349.35. The superintendent of financial institutions
shall include, as part of the annual report required by section
1181.09 of the Revised Code, the number of complaints received,
the number of enforcement actions taken, and any other relevant
data regarding covered loans.
Sec. 1349.36. The superintendent of financial institutions
may, in accordance with Chapter 119. of the Revised Code, adopt
reasonable rules to administer and enforce sections 1349.25 to
1349.35 of the Revised Code and to carry out the purpose of those
sections as stated in section 1349.32 of the Revised Code. Sec. 1349.37. There is hereby created in the division of
financial institutions the office of consumer affairs. The
responsibilities of the office shall, at a minimum, include all of
the following:
(A) Providing education to residents of this state
regarding borrowing and related financial topics;
(B) Providing referrals to credit counseling services;
(C) Receiving complaints regarding alleged failures to
comply with section 1349.26 or 1349.27 of the Revised Code;
(D) Contacting the persons that are the subject of such
complaints, on behalf of the consumers;
(E) Referring matters to the superintendent of financial
institutions for action under section 1349.34 of the Revised Code.
SECTION 2. That existing sections 111.15, 119.01, 121.24, and
1322.062 of the Revised Code are hereby repealed.
SECTION 3. (A) The provisions of the Revised Code, including,
but not limited to, Titles XI, XIII, XVII, and XLVII, relating to
the origination, granting, servicing, and collection of loans and
other forms of credit prescribe rules of conduct upon citizens
generally, comprise a comprehensive regulatory framework intended
to operate uniformly throughout the state under the same
circumstances and conditions, and constitute general laws within
the meaning of Section 3 of Article XVIII of the Ohio
Constitution. (B) The provisions of the Revised Code, including, but not
limited to, Titles XI, XIII, XVII, and XLVII, relating to the
origination, granting, servicing, and collection of loans and
other forms of credit have been enacted in furtherance of the
police powers of the state. (C) Silence in the Revised Code, including, but not limited
to, Titles XI, XIII, XVII, and XLVII, with respect to any act or
practice in the origination, granting, servicing, or collection of
loans or other forms of credit shall not be interpreted to mean
that the state has not completely occupied the field or has only
set minimum standards in its regulation of lending and other
credit activities. (D) It is the intent of the General Assembly to entirely
preempt municipal corporations and other political subdivisions
from the regulation and licensing of lending and other credit
activities.
SECTION 4. (A) The enactment of section 1.63 of the Revised
Code by this act is intended as a clarification of existing law
and not as a substantive change in the law. (B) The enactment of section 1.63 of the Revised Code by this
act expresses the legislative intent of the General Assembly
currently and at the time of the original enactment of the
provisions of the Revised Code, including, but not limited to,
Titles XI, XIII, XVII, and XLVII, relating to the origination,
granting, servicing, and collection of loans and other forms of
credit.
SECTION 5. (A) There is hereby created the Predatory Lending
Study Committee, which shall conduct a thorough investigation of
the impact of predatory lending practices on the citizens and
communities of Ohio. These predatory lending practices include,
but are not limited to, loan flipping, balloon payments,
origination fees, prepayment penalties, single premium credit
insurance, packing unnecessary insurance coverages, lending
without due regard to ability to pay, lending without due regard
to tangible benefits to consumers, payments to home improvement
contractors, foreclosure rates, appropriateness of subprime loans
for customer populations, collusion among occupations related to
real estate loans, and equity stripping. As part of its
investigation, the Study Committee shall identify and evaluate
current state and federal laws, rules, and regulations that
address fraud, misrepresentation, and other deceptive practices in
mortgage lending or origination. The Study Committee shall
evaluate the effectiveness of Am. Sub. S.B. 76 of the 124th
General Assembly in deterring these practices and shall make
recommendations it determines necessary to achieve that
deterrence. The Study Committee shall also review the operation
of the Office of Consumer Affairs within the Division of Financial
Institutions, including its outreach efforts to provide education
regarding predatory lending, borrowing, and related financial
topics and, based on the effectiveness of its operation, make
recommendations regarding its continued funding.
(B) The Study Committee shall consist of fifteen members as
follows:
(1) Three members of the Senate appointed by the President
of the Senate, two of whom are members of the majority party, and
one of whom is a member of the minority party;
(2) Three members of the House of Representatives appointed
by the Speaker of the House of Representatives, two of whom are
members of the majority party, and one of whom is a member of the
minority party;
(3) The Director of the Department of Commerce or the
Director's designee;
(4) The Attorney General or the Attorney General's designee;
(5) The Director of Aging or the Director's designee;
(6) Three members representing consumer advocacy
organizations, as follows:
(a) One representative from the Coalition on Homelessness
and Housing in Ohio, appointed by the President of the Senate;
(b) One representative from the Ohio chapter of AARP,
appointed by the Speaker of the House of Representatives;
(c) One representative from a nonprofit housing
organization, appointed by the President of the Senate.
(7) Three members representing the lending community, two of
whom shall be appointed by the Speaker of the House of
Representatives, and one of whom shall be appointed by the
President of the Senate.
(C)(1) The Speaker of the House of Representatives shall
designate one of
the members of the Study Committee to serve as
chairperson of the Study
Committee.
(2) Members of the Study Committee shall serve without
compensation or reimbursement.
(3) Vacancies on the Study Committee shall be filled in the
same manner as the original appointment.
(D) The Department of Commerce shall provide necessary
staff, facilities, supplies, and services to the Study Committee.
(E) The Study Committee shall meet initially within sixty
days after the appointments to the Study Committee at the call of
the chairperson and shall meet at least every ninety days
thereafter at the call of the chairperson until the Study
Committee submits the report described in division (F) of this
section. The chairperson shall consider holding some regional
public hearings to ensure that perspectives from throughout the
state are presented to the Study Committee.
(F) The Study Committee shall publish its findings in a
report and submit the report to the Governor, the Speaker and the
Minority Leader of the House of Representatives, and the President
and Minority Leader of the Senate not later than June 30,
2003.
Included in the report shall be recommendations on
legislation
related to predatory lending to be enacted by the
General
Assembly. Upon submission of the report, the Study
Committee
shall cease to exist.
SECTION 6. That Section 32 of Am. Sub. H.B. 94 of the 124th
General Assembly be amended to read as follows: "Sec. 32. COM DEPARTMENT OF COMMERCE General Revenue Fund
GRF | 800-402 | | Grants-Volunteer Fire Departments | | $ | 912,500 | | $ | 793,750 |
GRF | 800-410 | | Labor and Worker Safety | | $ | 3,898,792 | | $ | 4,042,587 |
Total GRF General Revenue Fund | | $ | 4,811,292 | | $ | 4,836,337 |
General Services Fund Group
163 | 800-620 | | Division of Administration | | $ | 5,873,604 | | $ | 6,189,578 |
5F1 | 800-635 | | Small Government Fire Departments | | $ | 250,000 | | $ | 250,000 |
TOTAL GSF General Services Fund | | | | | | |
Group | | $ | 6,123,604 | | $ | 6,439,578 |
Federal Special Revenue Fund Group
348 | 800-622 | | Underground Storage Tanks | | $ | 195,008 | | $ | 195,008 |
348 | 800-624 | | Leaking Underground Storage Tanks | | $ | 1,850,000 | | $ | 1,850,000 |
349 | 800-626 | | OSHA Enforcement | | $ | 1,346,000 | | $ | 1,386,380 |
TOTAL FED Federal Special Revenue | | | | | | |
Fund Group | | $ | 3,391,008 | | $ | 3,431,388 |
State Special Revenue Fund Group
4B2 | 800-631 | | Real Estate Appraisal Recovery | | $ | 69,870 | | $ | 71,267 |
4H9 | 800-608 | | Cemeteries | | $ | 260,083 | | $ | 273,465 |
4L5 | 800-609 | | Fireworks Training and Education | | $ | 10,526 | | $ | 10,976 |
4X2 | 800-619 | | Financial Institutions | | $ | 2,020,646 | | $ | 2,134,754 |
5B8 | 800-628 | | Auctioneers | | $ | 60,000 | | $ | 0 |
5B9 | 800-632 | | PI
& Security Guard Provider | | $ | 1,139,377 | | $ | 1,188,716 |
5K7 | 800-621 | | Penalty Enforcement | | $ | 2,000 | | $ | 2,000 |
543 | 800-602 | | Unclaimed Funds-Operating | | $ | 5,921,792 | | $ | 6,151,051 |
543 | 800-625 | | Unclaimed Funds-Claims | | $ | 24,890,602 | | $ | 25,512,867 |
544 | 800-612 | | Banks | | $ | 6,346,230 | | $ | 6,657,997 |
545 | 800-613 | | Savings Institutions | | $ | 2,790,960 | | $ | 2,894,399 |
546 | 800-610 | | Fire Marshal | | $ | 10,245,737 | | $ | 10,777,694 |
547 | 800-603 | | Real Estate Education/Research | | $ | 258,796 | | $ | 264,141 |
548 | 800-611 | | Real Estate Recovery | | $ | 150,000 | | $ | 150,000 |
549 | 800-614 | | Real Estate | | $ | 2,885,785 | | $ | 3,039,837 |
550 | 800-617 | | Securities | | $ | 4,611,800 | | $ | 4,864,800 |
552 | 800-604 | | Credit Union | | $ | 2,368,450 | | $ | 2,477,852 |
553 | 800-607 | | Consumer Finance | | $ | 2,305,339 | | $ | 2,258,822 |
| | | | | | 2,830,339 | | | 2,908,822 |
556 | 800-615 | | Industrial Compliance | | $ | 22,176,840 | | $ | 23,415,776 |
6A4 | 800-630 | | Real Estate Appraiser-Operating | | $ | 522,125 | | $ | 548,006 |
653 | 800-629 | | UST Registration/Permit Fee | | $ | 1,072,795 | | $ | 1,121,632 |
TOTAL SSR State Special Revenue | | | | | | |
Fund Group | | $ | 90,109,753 | | $ | 93,816,052 |
| | | 90,634,753 | | | 94,466,052 |
Liquor Control Fund Group
043 | 800-601 | | Merchandising | | $ | 322,741,245 | | $ | 341,222,192 |
043 | 800-627 | | Liquor Control Operating | | $ | 16,250,400 | | $ | 15,801,163 | 043 | 800-633 | | Development Assistance Debt Service | | $ | 16,134,800 | | $ | 16,141,100 | 043 | 800-636 | | Revitalization Debt Service | | $ | 1,600,000 | | $ | 6,700,000 |
TOTAL LCF Liquor Control | | | | | | |
Fund Group | | $ | 356,726,445 | | $ | 379,864,455 |
TOTAL ALL BUDGET FUND GROUPS | | $ | 461,162,102 | | $ | 488,387,810 |
| | | 461,687,102 | | | 489,037,810 |
GRANTS-VOLUNTEER FIRE DEPARTMENTS The foregoing appropriation item 800-402, Grants-Volunteer
Fire Departments, shall be used to make annual grants to volunteer
fire departments of up to $10,000, or up to $25,000 if
the
volunteer fire department provides service for an area
affected by
a natural
disaster. The grant program
shall be
administered
by
the Fire Marshal under the Department of
Commerce. The Fire
Marshal shall adopt rules necessary for the
administration and
operation of the grant program.
Notwithstanding section 3737.17 of the
Revised Code, upon the
request of the Director of Commerce, the
Director of Budget and
Management shall transfer $200,000 cash in
fiscal year 2002 and
$100,000 cash in fiscal year 2003 from the
State Fire Marshal Fund
(Fund 546) to the General Revenue Fund. Of the foregoing appropriation item 800-402, Grants-Volunteer
Fire Departments, $200,000 in fiscal year 2002 shall be granted to
the Monday Creek Fire Department.
LABOR AND WORKER SAFETY
The Department of Commerce may designate a portion of
appropriation item 800-410, Labor and Worker
Safety, to be used to
match federal funding for the OSHA on-site
consultation program.
SMALL GOVERNMENT FIRE DEPARTMENTS
Upon the request of the Director of Commerce, the Director of
Budget and
Management shall transfer $250,000 cash in each fiscal
year from the State Fire Marshal Fund (Fund 546) within the
State
Special Revenue Fund
Group to the Small Government Fire
Departments Fund (Fund 5F1) within the
General Services Fund
Group. Notwithstanding section 3737.17 of the Revised Code, the
foregoing
appropriation item 800-635, Small Government Fire
Departments, may be used
to provide loans to private fire
departments. PENALTY ENFORCEMENT The foregoing appropriation item 800-621, Penalty
Enforcement,
shall be used to enforce sections 4115.03 to 4115.16
of the
Revised Code.
On July 1, 2001, or as soon thereafter as possible, the
Director of Budget and Management shall transfer the cash balance
in the Penalty Enforcement Fund that was in the custody of the
state treasury to the Penalty Enforcement Fund (Fund 5K7) that is
created in the state treasury by section 4115.10 of the Revised
Code. The fund shall be used for deposit of moneys received from
penalties paid under section 4115.10 of the Revised Code. UNCLAIMED FUNDS PAYMENTS The foregoing appropriation item 800-625, Unclaimed
Funds-Claims, shall be used to pay claims pursuant to section
169.08 of the Revised Code. If it is determined that additional
amounts are necessary, the amounts are appropriated. PREDATORY LENDING ENFORCEMENT Of the foregoing appropriation item 800-607, Consumer
Finance, up to $125,000 in fiscal year 2002 and up to $250,000 in
fiscal year 2003 shall be used for the enforcement of sections
1349.25 to 1349.36 of the Revised Code. OFFICE OF CONSUMER AFFAIRS
Of the foregoing appropriation item 800-607, Consumer
Finance, up to $400,000 in fiscal year 2002 and up to $400,000 in
fiscal year 2003 shall be used by the Department of Commerce for
the operation of the Office of Consumer Affairs created in section
1349.37 of the Revised Code, including outreach efforts to provide
education regarding predatory lending, borrowing, and related
financial topics through seminars, local government grants, public
service announcements, and brochures. On or before August 1,
2002, the Director of Budget and Management shall determine and
certify to the Director of Commerce the total amount of
unexpended, unobligated appropriations made to the Department for
fiscal year 2002 for the purposes stated above. The amount so
determined and certified by the Director of Budget and Management
is hereby appropriated to appropriation item 800-607, Consumer
Finance, in addition to any other amounts appropriated for fiscal
year 2003, and is hereby earmarked for the purposes stated above. INCREASED APPROPRIATION AUTHORITY - MERCHANDISING The Director of Commerce may, upon concurrence by the
Director of Budget and
Management, submit to the Controlling Board
for approval a request for
increased appropriation authority for
appropriation item 800-601,
Merchandising. CASH BALANCE TRANSFER On July 1, 2001, or as soon thereafter as possible, the
Director of Budget and Management shall transfer the cash balance
in the Salvage and Exchange Fund (Fund 861) to the Liquor Control
Fund (Fund 043) created in section 4301.12 of the Revised Code.
Upon the completion of the transfer, the Salvage and Exchange
Fund, which was created by the Controlling Board during the
1973-1975 biennium, is abolished. The director shall cancel any
existing encumbrances against appropriation item 800-634, Salvage
and Exchange, and reestablish them against appropriation item
800-627, Liquor Control Operating. DEVELOPMENT ASSISTANCE DEBT SERVICE
The foregoing appropriation item 800-633, Development
Assistance Debt Service, shall be used to meet all payments at the
times they are required to be made during the period from July 1,
2001, to June 30, 2003, for bond service charges on obligations
issued under section 166.08 of the Revised Code, but limited to
the aggregate amount of $32,275,900. If it is determined that
additional appropriations are necessary for this purpose, such
amounts are hereby appropriated, provided that the appropriation
does not
exceed $25,000,000 in any fiscal year, except as may be
needed for
payments on obligations issued to meet guarantees. The
General Assembly acknowledges that an appropriation for this
purpose is not required, but is made in this form and in this act
for record purposes only. REVITALIZATION DEBT SERVICE The foregoing appropriation item 800-636, Revitalization Debt
Service, shall be used to pay debt service and related financing
costs during the period from July 1, 2001, to June 30, 2003, on
obligations to be issued for revitalization purposes under Section
2o of Article VIII, Ohio Constitution, and implementing
legislation. If it is determined that additional appropriations
are necessary for this purpose, such amounts are hereby
appropriated.
The
General Assembly acknowledges: (A) the priority
of the pledge
of a
portion of receipts from that source to
obligations issued
and to
be issued and guarantees made and to be
made under Chapter
166. of
the Revised Code; and (B) that this
appropriation is
subject to
further consideration pursuant to
implementing
legislation.
ADMINISTRATIVE ASSESSMENTS Notwithstanding any other provision of law to the contrary,
Fund 163, Administration, shall receive assessments from all
operating
funds of the department in accordance with procedures
prescribed by the
Director of Commerce and approved by the
Director of Budget and Management."
SECTION 7. That existing Section 32 of Am. Sub. H.B. 94 of
the 124th General Assembly is hereby repealed. SECTION 8. Section 121.24 of the Revised Code is presented
in this act
as a composite of the section as amended by both
Am.
Sub. H.B. 283 and Am. Sub. S.B. 11 of the 123rd General Assembly.
The General Assembly, applying the
principle stated in division
(B) of section 1.52 of the Revised
Code that amendments are to be
harmonized if reasonably capable of
simultaneous operation, finds
that the composite is the resulting
version of the section in
effect prior to the effective date of
the section as presented in
this act.
SECTION 9. The amendment to Section 32 of Am. Sub. H.B. 94
of the 124th General Assembly constitutes an item of law that is
not subject to the referendum. Therefore, under Ohio Constitution,
Article II, Section 1d and section 1.471 of the Revised Code, the
amendment to Section 32 of Am. Sub. H.B. 94 of the 124th General
Assembly goes into immediate effect when this act becomes law.
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