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Sub. S. B. No. 133As Reported by the Senate Health, Human Services and Aging CommitteeAs Reported by the Senate Health, Human Services and Aging Committee
125th General Assembly | Regular Session | 2003-2004 |
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SENATORS Wachtmann, Schuring, Austria, Amstutz, Stivers, Harris, Dann, Spada, Coughlin, Armbruster, Jordan, Randy Gardner, Jacobson
A BILL
To amend sections 102.02, 102.03, 102.06, 117.10, 145.04, 145.05, 145.051, 145.06, 145.09, 145.27, 171.01, 171.02, 171.03, 171.04, 742.03, 742.04, 742.05, 742.10, 742.38, 742.41, 1707.01, 1707.03, 1707.17, 1707.19, 1707.20, 1707.22, 1707.23, 1707.25, 1707.261, 1707.39, 1707.431, 1707.44, 1707.46, 3307.03, 3307.05, 3307.06, 3307.07, 3307.11, 3307.20, 3309.03, 3309.05, 3309.06, 3309.07, 3309.09, 3309.14, 3309.22, 5505.04, and 5505.07; to amend, for the purpose of adopting new section numbers as indicated in parentheses, sections 145.051 (145.052) and 3309.061 (3309.071); to enact new sections 145.051 and 3309.061; and sections 109.98, 111.30, 145.041, 145.042, 145.053, 145.054, 145.055, 145.057, 145.092, 145.093, 145.094, 145.99, 171.06, 171.50, 742.031, 742.032, 742.042, 742.043, 742.044, 742.046, 742.102, 742.103, 742.104, 742.99, 1707.162, 1707.163, 3307.041, 3307.042, 3307.043, 3307.051, 3307.052, 3307.061, 3307.072, 3307.073, 3307.074, 3307.99, 3309.041, 3309.042, 3309.043, 3309.051, 3309.052, 3309.072, 3309.073, 3309.074, 3309.99, 5505.041, 5505.042, 5505.043, 5505.044, 5505.045, 5505.046, 5505.048, 5505.049, 5505.062, 5505.063, 5505.064, 5505.065, 5505.122, and 5505.99 of the Revised Code regarding governance of Ohio's five public retirement systems.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 102.02, 102.03, 102.06, 117.10, 145.04, 145.05, 145.051, 145.06, 145.09, 145.27, 171.01, 171.02, 171.03, 171.04, 742.03, 742.04, 742.05, 742.10, 742.38, 742.41, 1707.01, 1707.03, 1707.17, 1707.19, 1707.20, 1707.22, 1707.23, 1707.25, 1707.261, 1707.39, 1707.431, 1707.44, 1707.46, 3307.03, 3307.05, 3307.06, 3307.07, 3307.11, 3307.20, 3309.03, 3309.05, 3309.06, 3309.07, 3309.09, 3309.14, 3309.22, 5505.04, and 5505.07 be amended; sections 145.051 (145.052) and 3309.061 (3309.071) be amended for the purpose of adopting new section numbers as indicated in parentheses; and new sections 145.051 and 3309.061 and sections 109.98, 111.30, 145.041, 145.042, 145.053, 145.054, 145.055, 145.057, 145.092, 145.093, 145.094, 145.99, 171.06, 171.50, 742.031, 742.032, 742.042, 742.043, 742.044, 742.046, 742.102, 742.103, 742.104, 742.99, 1707.162, 1707.163, 3307.041, 3307.042, 3307.043, 3307.051, 3307.052, 3307.061, 3307.072, 3307.073, 3307.074, 3307.99, 3309.041, 3309.042, 3309.043, 3309.051, 3309.052, 3309.072, 3309.073, 3309.074, 3309.99, 5505.041, 5505.042, 5505.043, 5505.044, 5505.045, 5505.046, 5505.048, 5505.049, 5505.062, 5505.063, 5505.064, 5505.065, 5505.122, and 5505.99 of the Revised Code be enacted to read as follows:
Sec. 102.02. (A) Except as otherwise provided in division
(H) of this section, all of the following shall file with the appropriate ethics commission the disclosure statement described in this division on a form prescribed by the appropriate commission: every person who is elected to or is a
candidate for a state, county, or city office, or the office of
member of the United States congress, and every person who is
appointed to fill a vacancy for an unexpired term in such an
elective office; all members of the state board of education;
the
director, assistant directors, deputy
directors, division chiefs,
or persons of equivalent rank of any
administrative department of
the state; the president or other
chief administrative officer of
every state institution of higher
education as defined in section
3345.011 of the Revised Code; the
chief executive officer and the members of the board of each
state retirement system; each employee of a state retirement board who is a state retirement system investment officer licensed pursuant to section 1707.163 of the Revised Code; the members of the Ohio retirement study council appointed pursuant to division (C) or (D) of section 171.01 of the Revised Code; employees of the Ohio retirement study council, other than employees who perform purely administrative or clerical functions; all
members of the board of commissioners
on grievances and
discipline of the supreme court and the ethics
commission created
under section 102.05 of the Revised Code; every
business manager,
treasurer, or superintendent of a city, local,
exempted village,
joint vocational, or cooperative education
school
district or an educational service center; every person who
is elected
to or is a candidate for
the office of member of a
board of education of a city, local,
exempted village, joint
vocational, or cooperative
education school district or of a
governing board of an educational service
center that has a total
student count of twelve thousand or more as most
recently
determined by the department of education pursuant to section
3317.03
of
the Revised Code; every person who is appointed to the
board of education
of a municipal school district pursuant to
division (B) or
(F) of section 3311.71 of the Revised Code; all
members of the board of
directors of a sanitary district
established under Chapter 6115.
of the Revised Code and organized
wholly for the purpose of providing a water
supply for
domestic,
municipal, and public use that includes two municipal corporations
in two counties; every public official or
employee who is paid a
salary or wage in accordance with schedule C of section 124.15 or
schedule E-2 of section 124.152 of the Revised Code; members of
the board
of trustees and the executive director of the tobacco
use prevention and
control foundation; members of the board of
trustees and the executive
director of the southern Ohio
agricultural and community development
foundation;
and every
other public official or employee
who is designated by the
appropriate ethics commission pursuant to
division (B) of this
section shall file with the appropriate
ethics commission on a
form prescribed by the commission, a
statement disclosing all of the
following:. The disclosure statement shall include all of the following: (1) The name of the person filing the statement and each
member of the person's immediate family and all names under
which
the
person or members of the person's immediate family do
business; (2)(a) Subject to divisions (A)(2)(b) and (c) of this
section and except as otherwise provided in section 102.022 of
the
Revised Code, identification of every source of income, other
than
income from a legislative agent identified in division
(A)(2)(b)
of this section, received during the preceding calendar
year, in
the person's own name or by any other person for
the person's use
or
benefit, by the person filing the statement, and a brief
description of the nature of the services for which the income
was
received. If the person filing the statement is a member of
the
general assembly, the statement shall identify the amount of
every
source of income received in accordance with the following
ranges
of amounts: zero or more, but less than one thousand
dollars; one
thousand dollars or more, but less than ten thousand
dollars; ten
thousand dollars or more, but less than twenty-five
thousand
dollars; twenty-five thousand dollars or more, but less
than fifty
thousand dollars; fifty thousand dollars or more, but
less than
one hundred thousand dollars; and one hundred thousand
dollars or
more. Division (A)(2)(a) of this section shall not be
construed
to require a person filing the statement who derives
income from a
business or profession to disclose the individual
items of income
that constitute the gross income of that business
or profession,
except for those individual items of income that
are attributable
to the person's or, if the income is shared with
the person, the
partner's, solicitation of services or goods or
performance,
arrangement, or facilitation of services or
provision of goods on
behalf of the business or profession of
clients, including
corporate clients, who are legislative agents
as defined in
section 101.70 of the Revised Code. A person who
files the
statement under this section shall disclose the
identity of and
the amount of income received from a person
who
the public
official or employee knows or has reason to know is
doing or
seeking to do business of any kind with the public
official's or
employee's agency. (b) If the person filing the statement is a member of the
general assembly, the statement shall identify every source of
income and the amount of that income that was received from a
legislative agent, as defined in section 101.70 of the Revised
Code, during the preceding calendar year, in the person's
own name
or by
any other person for the person's use or benefit, by the
person filing the
statement, and a brief description of the nature
of the services
for which the income was received. Division
(A)(2)(b) of this
section requires the disclosure of clients of
attorneys or
persons licensed under section 4732.12 of the Revised
Code, or
patients of persons certified under section 4731.14 of
the
Revised Code, if those clients or patients are legislative
agents.
Division (A)(2)(b) of this section requires a person
filing the
statement who derives income from a business or
profession to
disclose those individual items of income that
constitute the
gross income of that business or profession that
are received
from legislative agents. (c) Except as otherwise provided in division (A)(2)(c) of
this section, division (A)(2)(a) of this section applies to
attorneys, physicians, and other persons who engage in the
practice of a profession and who, pursuant to a section of the
Revised Code, the common law of this state, a code of ethics
applicable to the profession, or otherwise, generally are
required
not to reveal, disclose, or use confidences of clients,
patients,
or other recipients of professional services except
under
specified circumstances or generally are required to
maintain
those types of confidences as privileged communications
except
under specified circumstances. Division (A)(2)(a) of this
section
does not require an attorney, physician, or other
professional
subject to a confidentiality requirement as
described in division
(A)(2)(c) of this section to disclose the
name, other identity, or
address of a client, patient, or other
recipient of professional
services if the disclosure would
threaten the client, patient, or
other recipient of professional
services, would reveal details of
the subject matter for which
legal, medical, or professional
advice or other services were
sought, or would reveal an otherwise
privileged communication
involving the client, patient, or other
recipient of professional
services. Division (A)(2)(a) of this
section does not require an
attorney, physician, or other
professional subject to a
confidentiality requirement as described
in division (A)(2)(c) of
this section to disclose in the brief
description of the nature
of services required by division
(A)(2)(a) of this section any
information pertaining to specific
professional services rendered
for a client, patient, or other
recipient of professional
services that would reveal details of
the subject matter for
which legal, medical, or professional
advice was sought or would
reveal an otherwise privileged
communication involving the
client, patient, or other recipient of
professional services. (3) The name of every corporation on file with the
secretary
of state that is incorporated in this state or
holds a
certificate
of compliance authorizing it to do business in this
state, trust,
business trust, partnership, or association that
transacts
business in this state in which the person filing
the statement or
any other person for the person's use and
benefit had during
the
preceding calendar year an investment of over one thousand
dollars
at fair market value as of the thirty-first day of
December of the
preceding calendar year, or the date of
disposition, whichever is
earlier, or in which the person holds
any office or has a
fiduciary relationship, and a description of
the nature of the
investment, office, or relationship. Division
(A)(3) of this
section does not require
disclosure of the name of any bank,
savings and loan association, credit union, or building and loan
association with which the person filing the statement has a
deposit or a withdrawable share account. (4) All fee simple and leasehold interests to which the
person filing the statement holds legal title to or a beneficial
interest in real property located within the state, excluding the
person's residence and property used primarily for personal
recreation; (5) The names of all persons residing or transacting
business in the state to whom the person filing the statement
owes, in the person's own name or in the name of any other
person,
more
than one thousand dollars. Division (A)(5)
of this section
shall not be construed
to require the disclosure of debts owed by
the person resulting
from the ordinary conduct of a business or
profession or debts on
the person's residence or real property
used primarily for
personal recreation, except that the
superintendent of financial
institutions shall disclose the
names
of all
state-chartered savings and loan associations and of
all
service
corporations subject to regulation under division (E)(2)
of
section 1151.34 of the Revised Code to whom the superintendent
in
the superintendent's own name or in the name of any other
person owes any money,
and that the superintendent and any deputy
superintendent of banks shall disclose the names of all
state-chartered
banks and all bank subsidiary corporations subject
to regulation
under section 1109.44 of the Revised Code to whom
the superintendent or deputy superintendent owes any money. (6) The names of all persons residing or transacting
business in the state, other than a depository excluded under
division (A)(3) of this section, who owe more than one
thousand
dollars to the person filing the statement, either in the
person's
own
name or to any person for the person's use or benefit.
Division
(A)(6) of this section
shall not be construed to require
the disclosure of clients of
attorneys or persons licensed under
section 4732.12 or 4732.15 of
the Revised Code, or patients of
persons certified under section
4731.14 of the Revised Code, nor
the disclosure of debts owed to
the person resulting from the
ordinary conduct of a business or
profession. (7) Except as otherwise provided in section 102.022 of the
Revised Code, the source of each gift of over seventy-five
dollars, or of each gift of over twenty-five dollars received by
a
member of the general assembly from a legislative agent,
received
by the person in the person's own name or by any
other person for
the person's use or benefit during the preceding calendar
year,
except
gifts received by will or by virtue of section 2105.06 of
the
Revised Code, or received from spouses, parents, grandparents,
children, grandchildren, siblings, nephews, nieces, uncles,
aunts,
brothers-in-law, sisters-in-law, sons-in-law,
daughters-in-law,
fathers-in-law, mothers-in-law, or any person
to whom the person
filing the statement stands in loco parentis,
or received by way
of distribution from any inter vivos or
testamentary trust
established by a spouse or by an ancestor; (8) Except as otherwise provided in section 102.022 of the
Revised Code, identification of the source and amount of every
payment of expenses incurred for travel to destinations inside or
outside this state that is received by the person in the
person's
own name
or by any other person for the person's use or benefit
and
that is
incurred in connection with the person's official
duties, except
for expenses for travel to meetings or conventions
of a national
or state organization to which
any state agency,
including, but not limited to, any legislative agency or state
institution of
higher
education as defined in section
3345.011 of
the Revised
Code,
pays
membership dues, or any political
subdivision or any
office or
agency of a political subdivision
pays membership dues; (9) Except as otherwise provided in section 102.022 of the
Revised Code, identification of the source of payment of expenses
for meals and other food and beverages, other than for meals and
other food and beverages provided at a meeting at which the
person
participated in a panel, seminar, or speaking engagement
or at a
meeting or convention of a national or state organization
to which
any state agency, including, but not limited to, any legislative
agency or
state institution of higher education as
defined in
section
3345.011 of the Revised Code,
pays membership dues, or
any
political subdivision or any
office or agency of a political
subdivision pays membership dues,
that are incurred in connection
with the person's official duties
and that exceed one hundred
dollars aggregated per calendar year; (10) If the financial disclosure statement is filed by a
public official or employee described in division (B)(2) of
section 101.73 of the Revised Code or division (B)(2) of section
121.63 of the Revised Code who receives a statement from a
legislative agent, executive agency lobbyist, or employer that
contains the information described in division (F)(2) of section
101.73 of the Revised Code or division (G)(2) of section 121.63
of
the Revised Code, all of the nondisputed information contained
in
the statement delivered to that public official or employee by
the
legislative agent, executive agency lobbyist, or employer
under
division (F)(2) of section 101.73 or (G)(2) of section
121.63 of
the Revised Code. As used in division (A)(10) of this
section,
"legislative agent,"
"executive agency
lobbyist," and
"employer"
have the same meanings as in sections 101.70 and
121.60 of the
Revised Code. A person may file a statement required by this section in
person or by mail. A person who is a candidate for elective
office shall file the statement no later than the thirtieth
day
before the primary, special, or general election at which
the
candidacy is to be voted on, whichever election occurs
soonest,
except that a person who is a write-in candidate shall file the
statement no later than the twentieth day before the earliest
election at which the person's candidacy is to be voted on.
A
person who
holds elective office shall file the statement on or
before
the
fifteenth day of April of each year unless the person
is a
candidate for
office. A person who is appointed to fill a
vacancy for an
unexpired term in an elective office shall file the
statement
within fifteen days after the person qualifies for
office.
Other persons
shall file an annual statement on or before
the fifteenth day of
April or, if appointed or employed after that
date, within ninety
days after appointment or employment. No
person shall be
required to file with the appropriate ethics
commission more than
one statement or pay more than one filing fee
for any one
calendar year. The appropriate ethics commission, for good cause, may
extend
for a reasonable time the deadline for filing a
statement under
this section. A statement filed under this section is subject to public
inspection at locations designated by the appropriate ethics
commission except as otherwise provided in this section. (B) The Ohio ethics commission, the joint legislative
ethics
committee, and the board of commissioners on grievances
and
discipline of the supreme court, using the rule-making
procedures
of Chapter 119. of the Revised Code, may require any
class of
public officials or employees under its jurisdiction and
not
specifically excluded by this section whose positions involve
a
substantial and material exercise of administrative discretion
in
the formulation of public policy, expenditure of public funds,
enforcement of laws and rules of the state or a county or city,
or
the execution of other public trusts, to file an annual
statement
on or before the fifteenth day of April under division
(A) of this
section. The appropriate ethics commission shall
send the public
officials or employees written notice of the
requirement by the
fifteenth day of February of each year the
filing is required
unless the public official or employee is
appointed after that
date, in which case the notice shall be sent
within thirty days
after appointment, and the filing shall be
made not later than
ninety days after appointment. Except for disclosure
statements filed by members of the
board of trustees and the executive
director of the tobacco use
prevention and control foundation
and members of the
board of
trustees and the executive director of the southern Ohio
agricultural and community development foundation, disclosure
statements filed under this
division with the
Ohio ethics commission by members of boards,
commissions, or
bureaus of the state for which no compensation is
received other
than reasonable and necessary expenses shall be
kept confidential. Disclosure
statements filed
with the Ohio
ethics commission under division (A) of this
section by business
managers, treasurers, and superintendents of
city, local, exempted
village, joint vocational, or
cooperative education school
districts or educational service centers shall be
kept
confidential, except that any person conducting an audit of any
such school district
or educational service center pursuant to
section 115.56 or Chapter 117.
of the Revised Code may examine the
disclosure statement of any
business manager, treasurer, or
superintendent of that school
district or educational service
center. The Ohio ethics commission shall
examine each disclosure
statement required to be kept confidential to
determine whether a
potential conflict of interest exists for the
person who filed the
disclosure statement. A potential conflict
of interest exists if
the private interests of the person, as
indicated by the person's
disclosure statement, might
interfere with the
public interests
the person is required to serve in the
exercise of the person's
authority and duties in
the person's office or position of
employment. If
the commission determines that a potential
conflict of interest
exists, it shall notify the person who filed
the disclosure
statement and shall make the portions of the
disclosure statement
that indicate a potential conflict of
interest subject to public
inspection in the same manner as is
provided for other disclosure
statements. Any portion of the
disclosure statement that the
commission determines does not
indicate a potential conflict of
interest shall be kept
confidential by the commission and shall
not be made subject to
public inspection, except as is necessary
for the enforcement of
Chapters 102. and 2921. of the Revised
Code and except as
otherwise provided in this
division. (C) No person shall knowingly fail to file, on or before
the
applicable filing deadline established under this section, a
statement that is required by this section. (D) No person shall knowingly file a false statement that
is
required to be filed under this section. (E)(1) Except as provided in divisions (E)(2) and (3) of
this section,
the statement required
by division
(A) or (B) of
this section shall be accompanied by a
filing fee of
forty dollars. (2) The statement required by division (A) of this section
shall be accompanied by the following filing fee to be paid by the person who
is elected or appointed to, or is a candidate for, any of the
following offices:
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For state office, except member of the |
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state board of education |
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$65 |
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For office of member of United States |
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congress or member of general assembly |
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$40 |
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For county office |
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$40 |
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For city office |
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$25 |
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For office of member of the state board |
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of education |
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$25 |
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For office of member of a city, local, |
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exempted village, or cooperative |
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education board of |
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education or educational service |
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center governing board |
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$20 |
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For position of business manager, |
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treasurer, or superintendent of a |
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city, local, exempted village, joint |
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vocational, or cooperative education |
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school district or |
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educational service center |
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$20 |
(3) No judge of a court of record or candidate for judge
of
a court
of record, and no referee or magistrate serving a
court of
record, shall be required to pay the fee required under
division
(E)(1) or (2) or (F) of this section. (4) For any public official who is appointed to a
nonelective office of the state and for any employee who holds a
nonelective position in a public agency of the state, the state
agency that is the primary employer of the state official or
employee shall pay the fee required under division (E)(1) or (F)
of this section. (F) If a statement required to be filed under this section
is not filed by the date on which it is required to be filed, the
appropriate ethics commission shall assess the person required to
file the statement a late filing fee of ten dollars for each day the statement is not filed,
except that the total amount of the late filing fee shall not
exceed two hundred fifty dollars. (G)(1) The appropriate ethics commission other than the
Ohio
ethics commission shall deposit all fees it receives under
divisions (E) and (F) of this section into the general revenue
fund of the state. (2) The Ohio ethics commission shall deposit all receipts,
including, but
not limited to, fees it
receives under divisions
(E) and (F) of this section and all
moneys it receives from
settlements under division (G) of section
102.06 of the Revised
Code, into the Ohio ethics commission fund,
which is hereby
created in the state treasury. All moneys
credited to the fund
shall be used solely for expenses related to
the operation and
statutory functions of the commission. (H) Division (A) of this section does not apply to a
person
elected or appointed to the office of precinct, ward, or
district
committee member under Chapter 3517. of the Revised
Code; a
presidential elector; a delegate to a national
convention; village
or township officials and employees; any
physician or psychiatrist
who is paid a salary or wage in
accordance with schedule C of
section 124.15 or schedule E-2 of
section 124.152 of the Revised
Code and whose primary duties do
not require the exercise of
administrative discretion; or any
member of a board, commission,
or bureau of any county or city
who receives less than one
thousand dollars per year for serving
in that position.
Sec. 102.03. (A)(1) No present or former public official
or
employee shall, during public employment or service or for
twelve
months thereafter, represent a client or act in a
representative
capacity for any person on any matter in which the
public
official
or employee personally participated as a public
official or
employee
through decision, approval, disapproval,
recommendation,
the rendering of
advice, investigation, or other
substantial
exercise of administrative
discretion. (2) For twenty-four months after the conclusion of
service,
no former commissioner or attorney examiner of the
public
utilities commission shall represent a public utility, as
defined
in section 4905.02 of the Revised Code, or act in a
representative
capacity on behalf of such a utility before any
state board,
commission, or agency. (3) For twenty-four months after the conclusion of
employment or service, no former public official or employee who
personally participated as a public official or employee through
decision, approval, disapproval, recommendation, the rendering of
advice, the development or adoption of solid waste management
plans, investigation, inspection, or other substantial exercise
of
administrative discretion under Chapter 343. or 3734. of the
Revised Code shall represent a person who is the owner or
operator
of a facility, as defined in section 3734.01 of the
Revised Code,
or who is an applicant for a permit or license for
a facility
under that chapter, on any matter in which the public official or
employee personally participated as a public official or employee. (4) For a period of one year after the conclusion of
employment or service as a member or employee of the general
assembly, no former member or employee of the general assembly
shall represent, or act in a representative capacity for, any
person on any matter before the general assembly, any committee
of
the general assembly, or the controlling board. Division
(A)(4)
of this section does not apply to or affect a person who
separates
from service with the general assembly on or before
December 31,
1995. As used in division (A)(4) of this section
"person" does
not include any state agency or political
subdivision of the
state. (5) As used in divisions (A)(1), (2), and (3) of this
section, "matter" includes any case, proceeding, application,
determination, issue, or question, but does not include the
proposal, consideration, or enactment of statutes, rules,
ordinances, resolutions, or charter or constitutional amendments.
As used in division (A)(4) of this section, "matter" includes the
proposal, consideration, or enactment of statutes, resolutions,
or
constitutional amendments. As used in division (A) of this
section, "represent" includes any formal or informal appearance
before, or any written or oral communication with, any public
agency on behalf of any person. (6) Nothing contained in division (A) of this section
shall
prohibit, during such period, a former public official or
employee
from being retained or employed to represent, assist, or
act in a
representative capacity for the public agency by which
the public
official or employee was employed or on which
the public official
or employee served. (7) Division (A) of this section shall not be construed to
prohibit the performance of ministerial functions, including, but
not limited to, the filing or amendment of tax returns,
applications for permits and licenses, incorporation papers, and
other similar documents. (B) No present or former public official or employee shall
disclose or use, without appropriate authorization, any
information acquired by the public official or employee in the
course of the public official's or employee's official duties
that
is confidential because of statutory provisions, or that
has been
clearly designated to the public official or employee as
confidential when that
confidential designation is warranted
because of the status of
the proceedings or the circumstances
under which the information
was received and preserving its
confidentiality is necessary to
the proper conduct of government
business. (C) No public official or employee shall participate
within
the scope of duties as a public official or employee,
except
through ministerial functions as defined in division (A)
of this
section, in any license or rate-making proceeding that
directly
affects the license or rates of any person, partnership,
trust,
business trust, corporation, or association in which the
public
official or employee or immediate family owns or
controls more
than five per cent. No public official or employee
shall
participate within the scope of duties as a public
official or
employee, except through ministerial functions as
defined in
division (A) of this section, in any license or
rate-making
proceeding that directly affects the license or rates
of any
person to whom the public official or employee or
immediate
family, or a partnership, trust, business trust,
corporation, or
association of which the public official or employee
or the public
official's or employee's immediate family
owns or controls more
than five per cent, has sold goods or
services totaling more than
one thousand dollars during the
preceding year, unless the public
official or employee has filed
a written statement acknowledging
that sale with the clerk or
secretary of the public agency and the
statement is entered in
any public record of the agency's
proceedings. This division
shall not be construed to require the
disclosure of clients of
attorneys or persons licensed under
section 4732.12 or 4732.15 of
the Revised Code, or patients of
persons certified under section
4731.14 of the Revised Code. (D) No public official or employee shall use or authorize
the use of the authority or influence of office or employment
to
secure anything of value or the promise or offer of anything
of
value that is of such a character as to manifest a substantial
and
improper influence upon the public official or employee with
respect to that person's duties. (E) No public official or employee shall solicit or accept
anything of value that is of such a character as to manifest a
substantial and improper influence upon the public official or
employee with
respect to that person's duties. (F) No person shall promise or give to a public official
or
employee anything of value that is of such a character as to
manifest a substantial and improper influence upon the public
official or
employee with
respect to that person's duties. (G) In the absence of bribery or another offense under the
Revised Code or a purpose to defraud, contributions made to a
campaign
committee, political party, legislative campaign
fund,
political action committee, or political
contributing entity on
behalf of an elected public officer or other public official or
employee who seeks elective office shall be considered to accrue
ordinarily to the public official or employee for the purposes of
divisions (D), (E), and (F) of this section. As used in this division, "contributions," "campaign
committee," "political party," "legislative campaign fund,"
"political action committee," and "political contributing
entity"
have the same meanings as in section
3517.01 of the Revised Code. (H)(1) No public official or employee, except for the
president
or other chief administrative officer of or a member of
a board of
trustees of a state institution of higher education as
defined in
section 3345.011 of the Revised Code, who
is required
to file a
financial disclosure statement under section 102.02 of
the Revised
Code shall solicit or accept, and no person shall
give to that
public official or employee, an honorarium. This
Except as provided in division (H)(2) of this section, this division and
divisions (D), (E), and (F) of this section do not
prohibit a
public official or employee who is required to file a
financial
disclosure statement under section 102.02 of the
Revised Code from
accepting and do not prohibit a person from
giving to that public
official or employee the payment of actual
travel expenses,
including any expenses incurred in connection
with the travel for
lodging, and meals, food, and beverages
provided to the public
official or employee at a meeting at which
the public official or
employee participates in a panel, seminar,
or speaking engagement
or provided to the public official or
employee at a meeting or
convention of a national organization to
which
any
state
agency,
including, but not limited to, any state legislative
agency
or
state institution of higher education as defined in
section
3345.011 of the Revised Code, pays membership dues. This Except as provided in division (H)(2) of this section, this
division
and divisions (D), (E), and (F) of this section do not
prohibit a
public official or employee who is not required to
file
a
financial disclosure statement under section 102.02 of the
Revised
Code from accepting and do not prohibit a person from
promising or
giving to that public official or employee an
honorarium or the
payment of travel, meal, and lodging expenses
if
the honorarium,
expenses, or both were paid in
recognition of
demonstrable
business, professional, or esthetic
interests of the
public
official or employee that exist apart
from public office or
employment, including, but not limited
to, such a demonstrable
interest in public speaking and were not
paid by any person or
other entity, or by any representative or
association of those
persons or entities, that is regulated by,
doing business with, or
seeking to do business with the
department, division, institution,
board, commission, authority,
bureau, or other instrumentality of
the governmental entity with
which the public official or employee
serves. (2) No person who is a member of the board of a state retirement system, a state retirement system investment officer, or an employee of a state retirement system whose position involves substantial and material exercise of discretion in the investment of retirement system funds shall solicit or accept, and no person shall give to that board member, officer, or employee, payment of actual travel expenses, including expenses incurred with the travel for lodging, meals, food, and beverages. (I) A public official or employee may accept travel,
meals,
and lodging or expenses or reimbursement of expenses for
travel,
meals, and lodging in connection with conferences,
seminars, and
similar events related to official duties if
the travel, meals,
and lodging, expenses, or reimbursement is not
of such a character
as to manifest a substantial and improper
influence upon the
public official or employee with respect to
that person's duties.
The house of
representatives and senate, in their code of ethics,
and the Ohio
ethics commission, under section 111.15 of the
Revised Code, may
adopt rules setting standards and conditions for
the furnishing
and acceptance of such travel, meals, and lodging,
expenses, or
reimbursement. A person who acts in compliance with this division and any
applicable rules adopted under it, or any applicable, similar
rules adopted by the supreme court governing judicial officers
and
employees, does not violate division (D), (E), or (F) of this
section. This division does not preclude any person from seeking
an advisory opinion from the appropriate ethics commission under
section 102.08 of the Revised Code. (J) For purposes of divisions (D), (E), and (F) of this
section, the membership of a public official or employee in an
organization shall not be considered, in and of itself, to be of
such a character as to manifest a substantial and improper
influence on the public official or employee with respect to
that
person's duties. As used in this
division, "organization" means a
church or a religious,
benevolent, fraternal, or professional
organization that is tax
exempt under subsection 501(a) and
described in subsection
501(c)(3), (4), (8), (10), or (19) of the
"Internal Revenue Code
of 1986." This division does not apply to
a public official or
employee who is an employee of an
organization, serves as a
trustee, director, or officer of an
organization, or otherwise
holds a fiduciary relationship with an
organization. This
division does not allow a public official or
employee who is a
member of an organization to participate,
formally or informally,
in deliberations, discussions, or voting
on a matter or to use
his official position with regard to the
interests of the
organization on the matter if the public official
or employee has
assumed a particular
responsibility in the
organization with respect to the matter or
if the matter would
affect that person's personal, pecuniary
interests. (K) It is not a violation of this section for a
prosecuting
attorney to appoint assistants and employees in
accordance with
division (B) of section 309.06 and section 2921.421 of the
Revised
Code, for a chief legal officer of a municipal corporation or
an
official designated as prosecutor in a municipal corporation
to
appoint assistants and employees in accordance with sections
733.621 and 2921.421 of the Revised Code, for a township law
director appointed under section 504.15 of the Revised Code to
appoint
assistants and
employees in accordance with sections
504.151 and 2921.421 of the Revised
Code, or for a coroner to
appoint assistants and employees in
accordance with division (B)
of section 313.05 of the Revised Code. As used in this division, "chief legal officer" has the
same
meaning as in section 733.621 of the Revised Code.
Sec. 102.06. (A) The appropriate ethics commission shall
receive and may initiate complaints against persons subject to
Chapter 102. of the Revised Code concerning conduct alleged to be
in violation of this chapter or section 2921.42 or 2921.43 of the
Revised Code. All complaints except those by the commission
shall
be by affidavit made on personal knowledge, subject to the
penalties of perjury. Complaints by the commission shall be by
affidavit, based upon reasonable cause to believe that a
violation
has occurred. (B) The commission shall investigate complaints, may
investigate charges presented to it, and may request further
information, including the specific amount of income from a
source, from any person filing with the commission a statement
required by section 102.02 of the Revised Code, if the
information
sought is directly relevant to a complaint or charges
received by
the commission pursuant to this section. This
information is
confidential, except that the commission, at its discretion, may
share information gathered in the course of any investigation
with, or disclose the information to, the inspector general, any
appropriate prosecuting
authority, any law enforcement agency, or
any other appropriate
ethics commission. The person so requested
shall
furnish the
information to the commission, unless within
fifteen
days from the
date of the request the person files an
action for
declaratory
judgment challenging the legitimacy of the
request in
the court of
common pleas of the county of
the
person's
residence,
the
person's
place of employment, or
Franklin
county. The requested
information need not be furnished
to the
commission during the
pendency of the judicial proceedings.
Proceedings of the
commission in connection with the declaratory
judgment action
shall be kept confidential except as otherwise
provided by this
section. Before the commission proceeds to take
any formal
action
against a person who is the subject of an
investigation
based on
charges presented to the commission, a
complaint shall
be filed
against the person. If the commission
finds that a
complaint is
not frivolous, and there is reasonable
cause to
believe that the
facts alleged in a complaint constitute
a
violation of section
102.02, 102.03, 102.04, 102.07, 2921.42, or
2921.43 of the Revised
Code, it shall hold a hearing. If the
commission does not so
find, it shall dismiss the complaint and
notify the accused person
in writing of the dismissal of the
complaint. The commission
shall not make a report of its finding
unless the accused person
requests a report. Upon the request of
the accused person, the
commission shall make a public report of
its finding. The person
against whom the complaint is directed
shall be given reasonable
notice by certified mail of the date,
time, and place of the
hearing and a statement of the charges and
the law directly
involved and shall be given the opportunity to
be
represented by
counsel, to have counsel appointed for
the
person
if
the
person is unable to afford counsel without undue
hardship,
to
examine
the evidence against
the person, to
produce evidence
and to
call and
subpoena witnesses in
the
person's defense, to
confront
the person's accusers, and
to
cross-examine
witnesses.
The commission shall have a
stenographic
record made
of the
hearing. The hearing shall be
closed to the
public. (C)(1)(a) If upon the basis of the hearing, the commission
finds by a preponderance of the evidence that the facts alleged
in
the complaint are true and constitute a violation of section
102.02, 102.03, 102.04, 102.07, 2921.42, or 2921.43 of the
Revised
Code, it shall report its findings to the appropriate
prosecuting
authority for proceedings in prosecution of the
violation and to
the appointing or employing authority of the
accused. If the accused person is a member of the public employees retirement board, state teachers retirement board, school employees retirement board, board of trustees of the Ohio police and fire pension fund, or state highway patrol retirement board, the commission also shall report its findings to the Ohio retirement study council. (b) If the Ohio ethics commission reports its findings to
the appropriate prosecuting authority under division (C)(1)(a) of
this section and the prosecuting authority has not initiated any
official action on those findings within ninety days after
receiving the commission's report of them, then the commission
may
publicly comment that no official action has been taken on
its
findings, except that the commission shall make no comment in
violation of the Rules of Criminal Procedure or about any
indictment that has been sealed pursuant to any law or those
rules. The commission shall make no comment regarding the merits
of its findings. As used in division (C)(1)(b) of this section,
"official action" means prosecution, closure after investigation,
or grand jury action resulting in a true bill of indictment or no
true bill of indictment. (2) If the appropriate ethics commission does not find by
a
preponderance of the evidence that the facts alleged in the
complaint are true and constitute a violation of section 102.02,
102.03, 102.04, 102.07, 2921.42, or 2921.43 of the Revised Code
or
if the commission has not scheduled a hearing within ninety
days
after the complaint is filed or has not finally disposed of
the
complaint within six months after it has been heard, it shall
dismiss the complaint and notify the accused person in writing of
the dismissal of the complaint. The commission shall not make a
report of its finding unless the accused person requests a
report.
Upon the request of the accused person, the commission
shall make
a public report of the finding, but in this case all
evidence and
the record of the hearing shall remain confidential
unless the
accused person also requests that the evidence and
record be made
public. Upon request by the accused person, the
commission shall
make the evidence and the record available for
public inspection. (D) The commission, or a member of the commission, may
administer oaths, and the commission may issue subpoenas to any
person in the state compelling the attendance of witnesses and
the
production of relevant papers, books, accounts, and records.
The
commission shall issue subpoenas to compel the attendance of
witnesses and the production of documents upon the request of an
accused person. Section 101.42 of the Revised Code shall govern
the issuance of these subpoenas insofar as applicable. Upon the
refusal of any person to obey a subpoena or to be sworn or to
answer as a witness, the commission may apply to the court of
common pleas of Franklin county under section 2705.03 of the
Revised Code. The court shall hold proceedings in accordance
with
Chapter 2705. of the Revised Code. The commission or the
accused
person may take the depositions of witnesses residing
within or
without the state in the same manner as prescribed by
law for the
taking of depositions in civil actions in the court
of common
pleas. (E) At least once each year, the Ohio ethics commission
shall report on its activities of the immediately preceding year
to the majority and minority leaders of the senate and house of
representatives of the general assembly. The report shall
indicate the total number of complaints received, initiated, and
investigated by the commission, the total number of complaints
for
which formal hearings were held, and the total number of
complaints for which formal prosecution was recommended or
requested by the commission. The report also shall indicate the
nature of the inappropriate conduct alleged in each complaint and
the governmental entity with which any employee or official that
is the subject of a complaint was employed at the time of the
alleged inappropriate conduct. (F) All papers, records, affidavits, and documents upon
any
complaint, inquiry, or investigation relating to the
proceedings
of the appropriate commission shall be sealed and are
private and
confidential, except as otherwise provided in this
section and
section 102.07 of the Revised Code. (G)(1) When a complaint or charge is before it, the Ohio
ethics commission or the appropriate prosecuting authority, in
consultation with the person filing the complaint or charge, the
accused, and any other person the commission or prosecuting
authority considers necessary, may compromise or settle the
complaint or charge with the agreement of the accused. The
compromise or settlement may include mediation, restitution,
rescission of affected contracts, forfeiture of any benefits
resulting from a violation or potential violation of law,
resignation of a public official or employee, or any other relief
that is agreed upon between the commission or prosecuting
authority and the accused. (2) Any settlement agreement entered into under division
(G)(1) of this section shall be in writing and be accompanied by
a
statement of the findings of the commission or prosecuting
authority and the reasons for entering into the agreement. The
commission or prosecuting authority shall retain the agreement
and
statement in
the commission's or
prosecuting
attorney's
authority's office
and, in
the
commission's or
prosecuting
authority's
discretion,
may make the agreement, the statement, and
any
supporting
information public, unless the agreement provides
otherwise. (3) If a settlement agreement is breached by the accused,
the commission or prosecuting authority, in
the commission's
or
prosecuting authority's
discretion, may rescind the
agreement and
reinstitute any
investigation, hearing, or
prosecution of the
accused. No
information obtained from the
accused in reaching the
settlement
that is not otherwise
discoverable from the accused
shall be used
in any proceeding
before the commission or by the
appropriate
prosecuting authority
in prosecuting the violation.
Notwithstanding any other section of
the Revised Code, if a
settlement agreement is breached, any
statute of limitations for
a
violation of this chapter or section
2921.42 or 2921.43 of the
Revised Code is tolled from the date the
complaint or charge is
filed until the date the settlement
agreement is breached.
Sec. 109.98. As used in this section, "state retirement board" means the public employees retirement board, board of trustees of the Ohio police and fire pension fund, school employees retirement board, state teachers retirement board, and state highway patrol retirement board. If a member of a state retirement board breaches the member's fiduciary duty to the retirement system, the attorney general may maintain a civil action against the board member for harm resulting from that breach. The attorney general may recover damages or be granted injunctive relief, which shall include the enjoinment of specified activities and the removal of the member from the board. Any damages awarded shall be paid to the retirement system. The authority to maintain a civil action created by this section is in addition to any authority the attorney general possesses under any other provision of the Revised Code. Sec. 111.30. (A) As used in this section, "state retirement board" means the public employees retirement board, board of trustees of the Ohio police and fire pension fund, school employees retirement board, state teachers retirement board, and state highway patrol retirement board. (B) The secretary of state shall do all of the following:
(1) Adopt rules in accordance with Chapter 119. of the Revised Code governing the election of state retirement board members under sections 145.05, 742.04, 3307.07, 3309.07, and 5505.041 of the Revised Code, including special elections provided for by section 145.051 of the Revised Code. The rules shall include rules governing nominating petitions for the elections.
(2) Oversee the administration of board member elections by state retirement boards;
(3) Certify the validity of nominating petitions for the elections;
(4) Certify the results of the elections;
(5) Prescribe forms for campaign finance disclosure statements and independent expenditure statements for the purpose of sections 145.053, 742.042, 3307.072, 3309.072, and 5505.044 of the Revised Code and accept the forms from candidates and persons making independent expenditures filing them with the secretary pursuant to those sections;
(6) Oversee elections held under sections 145.06, 742.05, 3307.06, 3309.06, and 5505.042 of the Revised Code to fill vacancies in the boards;
(7) Certify the results of the elections to fill vacancies in the boards.
Sec. 117.10. The auditor of state shall audit all public offices as provided
in this chapter. The auditor of state also may audit the
accounts of private institutions,
associations, boards, and corporations
receiving public money for their use
and may require of them annual reports in such form as the
auditor of state prescribes.
If the auditor of state performs or contracts for the performance of an audit, including a special audit, of the public employees retirement system, school employees retirement system, state teachers retirement system, state highway patrol retirement system, or Ohio police and fire pension fund, the auditor of state shall make a timely report of the results of the audit to the Ohio retirement study council. The auditor of state may audit the accounts of any provider as defined in
section 5111.06 of the Revised Code, if requested by the
department of
job and family services. If a public office has been audited by an agency of the United States
government, the auditor of state may, if satisfied that the
federal
audit has been conducted according to principles and procedures not contrary
to those of the auditor of state, use and adopt the federal audit and report
in lieu of an audit by the auditor of state's own office. Within thirty days after the creation or dissolution or the winding up of
the affairs of any public office, that public office shall notify the auditor
of state in writing that this action has occurred.
Sec. 145.04. The general administration and management of
the public employees retirement system and the making effective
of
Chapter 145. of
the Revised Code, are hereby
vested in a board to
be known as the "public employees retirement
board," which shall
consist of nine the following members as follows: (A) The attorney general treasurer of state; (B) The auditor of state; (C) The director of administrative services; (D) Five Six members, known as employee members, one of whom
shall be a state employee member of the system, who shall be
elected by ballot by the state employee members of the system
from
among their number; another of whom shall be a county
employee
member of the system, who shall be elected by ballot by
the county
employee members of the system from among their
number; another of whom shall be a member of the system who is a county commissioner, prosecutor, auditor, sheriff, treasurer, recorder, engineer, or coroner, who shall be appointed by the governor for a term of four years; another of
whom shall be a municipal employee member of
the system, who shall
be elected by ballot by the municipal
employee members of the
system from among their number; another
of whom shall be a
university or college employee member of the
system, who shall be
elected by ballot by the university and
college employee members
of the system from among their number;
and another of whom shall
be a park district, conservancy
district, sanitary district,
health district, public library,
township, metropolitan housing
authority, union cemetery, joint
hospital, township, or institutional
commissary employee member of the
system, who shall be elected by
ballot by the park district,
conservancy district, sanitary
district, health district,
metropolitan housing authority,
township, public library, union
cemetery, joint hospital, township, and
institutional commissary employee
members of the system from among
their number, in a manner to be
approved by the board. Members of
the system who are receiving a
disability benefit under this
chapter are ineligible for
membership on the board as employee
members. (E) One member, known as the retirant member, who shall be
a
former member of the public employees retirement system who is a
resident
of this state and a recipient of age and service
retirement, a disability
benefit, or benefits paid under
a
PERS
defined contribution plan. The retirant member
shall be
elected
by
ballot
by
former members of the system who are receiving age
and
service
retirement, a disability benefit,
or benefits paid
under
a
PERS
defined contribution plan; (F)(1) One member, known as the investment expert member, who shall be appointed by the governor and who shall have the following qualifications:
(a) The member is a resident of this state.
(b) Within the three years immediately preceding the appointment, the member has not been employed by the public employees retirement system, police and fire pension fund, state teachers retirement system, school employees retirement system, or state highway patrol retirement system or by any person, partnership, or corporation that has provided to one of those retirement systems services of a financial or investment nature, including the management, analysis, supervision, or investment of assets.
(c) The member has direct experience in the management, analysis, supervision, or investment of assets.
(2) The investment expert member's term shall be four years. The initial investment expert member shall be appointed and take office not less than ninety days after the effective date of this amendment. Any investment expert member appointed to fill a vacancy occurring prior to the expiration of the term for which the member's predecessor was appointed shall hold office until the end of such term. The member shall continue in office subsequent to the expiration date of the member's term until the member's successor takes office, or until a period of sixty days has elapsed, whichever occurs first.
Sec. 145.041. Each newly elected member of the public employees retirement board and each individual appointed to fill a vacancy on the board, shall, not later than ninety days after commencing service as a board member, complete the orientation program component of the retirement board member education program established under section 171.50 of the Revised Code. Each member of the board who has served a year or longer as a board member shall, not less than twice each year, attend one or more programs that are part of the continuing education component of the retirement board member education program established under section 171.50 of the Revised Code.
Sec. 145.042. A person who served as an elected or appointed member of the public employees retirement board for one or more entire fiscal years in fiscal years 2000, 2001, or 2002 is ineligible for re-election or reappointment to the board if the person has accepted reimbursements for travel and travel-related expenses from the board that have an annual average of more than ten thousand dollars for those fiscal years.
Sec. 145.05. (A) The terms of office of employee members
of
the public employees retirement board shall be for four years
each
beginning on the first day of January following election.
The
election of the county employee member of the board and the
employee member of the board representing public library, health
district, park district, conservancy district, sanitary district,
township, metropolitan housing authority, union cemetery, joint
hospital, and institutional commissary employees shall be held on
the first Monday in October, 1945, and on the first Monday in
October in each fourth year thereafter. The election of the
state
employee member of the board and the municipal employee
member of
the board shall be held on the first Monday in October,
1946, and
on the first Monday in October in each fourth year
thereafter.
The
election of the initial university-college
employee member of
the
board shall be held on the first Monday in
October, 1978, and
elections for subsequent university-college
employee members of
the board shall be held on the first Monday
in October in each
fourth year thereafter. (B) The term of office of the retirant member of the
public
employees retirement board shall be for four years
beginning on
the first day of January following the election.
The election of
the initial retirant member of the board shall be
held on the
first Monday in October, 1978, and elections for
subsequent
retirant members of the board shall be held on the
first Monday in
October in each fourth year thereafter. (C) All elections for employee members of the public
employees retirement board shall be held under the direction of
the board in accordance with rules adopted under section 111.30 of the Revised Code. Any member of the public employees retirement system,
except a member who is receiving a disability benefit under this
chapter, is eligible for election as an employee member of the
board to represent the employee group that includes
the member,
provided that the member has been nominated by a petition that is
signed
by at
least five hundred members of the employee group to be
represented and further provided that there shall be, including not less
than
twenty such signers from each of at least ten counties of
the
state, and certified under section 111.30 of the Revised Code. The name of any member so nominated shall be placed
upon
the ballot by the board as a regular candidate. Names of
other
eligible candidates may, at any election, be substituted
for the
regular candidates by writing such names upon the
ballots. The
candidate who receives the highest number of votes
for a
particular employee member position on the board shall be
elected
to that office on certification of the election results under section 111.30 of the Revised Code. (D) All elections for the retirant member of the public
employees retirement board shall be held under the direction of
the board in accordance with rules adopted under section 111.30 of the Revised Code. Any former member of the public employees retirement
system who is described in division
(E) of section 145.04 of the
Revised Code is
eligible for election as
the retirant member of
the board to represent recipients of age
and service
retirement, a
disability benefit, or benefits paid under
a
PERS defined
contribution plan,
provided that such person has been nominated by
a petition that is
signed
by any combination of at least two hundred fifty eligible, former members of
the system
who
are recipients and certified under section 111.30 of the Revised Code. To be eligible to sign the petition, a former member of the system must be a recipient of age and service retirement, a
disability
benefit, or benefits paid
under
a
PERS defined
contribution
plan, or any
combination of such recipients that
totals two hundred fifty.
The
petition shall contain the
signatures of at least ten such
recipients from each of at least
five counties
wherein recipients
of benefits from
the system
reside. The name of any person nominated in this manner shall be
placed upon the ballot by the board as a regular candidate.
Names
of other eligible candidates may, at any election for the
retirant
member of the board, be substituted for the regular
candidates by
writing the names of such persons upon the ballot.
The candidate
who receives the highest number of votes for any
term as the
retirant member of the board shall be elected to
office on certification of the election results under section 111.30 of the Revised Code.
Sec. 145.051. If a person elected to serve on the public employees retirement board is unable to assume office at the January meeting of the board following the person's election, a special election shall be held in accordance with the provisions of section 145.05 of the Revised Code within three months of the January meeting. On certification of the elections results under section 111.30 of the Revised Code, the newly elected person shall assume office at the meeting of the board immediately following the special election.
Sec. 145.051 145.052. Notwithstanding sections 145.04 and 145.05 of
the
Revised
Code, the public employees retirement board is not
required to
hold an election, including a special election under
section 145.06 145.051 of
the Revised Code, for a position
on the board as
an employee
member or retirant member
if only one candidate has
been nominated for the position by petition in
accordance with
section 145.05 of the Revised Code. The
candidate shall take
office as if elected. The
term of office shall be four years
beginning on
the first day of January following the date the
candidate
was nominated.
Sec. 145.053. (A) As used in this section:
(1) "Campaign committee" means a candidate or a combination of two or more persons authorized by a candidate to receive contributions and in-kind contributions and make expenditures on behalf of the candidate.
(2) "Candidate" means an individual who has been nominated pursuant to division (C) or (D) of section 145.05 of the Revised Code for election to the public employees retirement board or who is seeking to be elected to fill a vacancy on the board pursuant to section 145.06 of the Revised Code.
(3) "Contribution" means a loan, gift, deposit, forgiveness of indebtedness, donation, advance, payment, transfer of funds or transfer of anything of value including a transfer of funds from an inter vivos or testamentary trust or decedent's estate, and the payment by any person other than the person to whom the services are rendered for the personal services of another person, which contribution is made, received, or used for the purpose of influencing the results of an election to the public employees retirement board under section 145.05 of the Revised Code, including a special election provided for by section 145.051 of the Revised Code, or the results of an election to fill a vacancy on the board pursuant to section 145.06 of the Revised Code. "Contribution" does not include:
(a) Services provided without compensation by individuals volunteering a portion or all of their time on behalf of a person;
(b) Ordinary home hospitality;
(c) The personal expenses of a volunteer paid for by that volunteer campaign worker.
(4) "Election day" means the following, as appropriate to the situation:
(a) The first Monday in October of a year for which section 145.05 of the Revised Code specifies that an election for a member of the public employees retirement board be held;
(b) If, pursuant to section 145.052 of the Revised Code, no election is held, the first Monday in October of a year that the election would have been held if not for section 145.052 of the Revised Code;
(c) If the election is a special election provided for by section 145.051 of the Revised Code, a day that the board shall specify that is consistent with requirements for a special election established by section 145.051 of the Revised Code.
(5) "Expenditure" means the disbursement or use of a contribution for the purpose of influencing the results of an election to the public employees retirement board under section 145.05 of the Revised Code, including a special election provided for by section 145.051 of the Revised Code, or the results of an election to fill a vacancy on the board pursuant to section 145.06 of the Revised Code.
(6) "Independent expenditure" means an expenditure by an individual, partnership, or other entity advocating the election or defeat of an identified candidate or candidates, that is not made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of any candidate or candidates or of the campaign committee or agent of the candidate or candidates. An independent expenditure shall not be construed as being a contribution. As used in division (A)(6) of this section: (a) "Advocating" means any communication containing a message advocating election or defeat.
(b) "Identified candidate" means that the name of the candidate appears, a photograph or drawing of the candidate appears, or the identity of the candidate is otherwise apparent by unambiguous reference.
(c) "Made in coordination, cooperation, or consultation with, or at the request or suggestion of, any candidate or the campaign committee or agent of the candidate" means made pursuant to any arrangement, coordination, or direction by the candidate, the candidate's campaign committee, or the candidate's agent prior to the publication, distribution, display, or broadcast of the communication. An expenditure is presumed to be so made when it is any of the following:
(i) Based on information about the candidate's plans, projects, or needs provided to the person making the expenditure by the candidate, or by the candidate's campaign committee or agent, with a view toward having an expenditure made;
(ii) Made by or through any person who is, or has been, authorized to raise or expend funds, who is, or has been, an officer of the candidate's campaign committee, or who is, or has been, receiving any form of compensation or reimbursement from the candidate or the candidate's campaign committee or agent;
(iii) Made by a political party in support of a candidate, unless the expenditure is made by a political party to conduct voter registration or voter education efforts.
(d) "Agent" means any person who has actual oral or written authority, either express or implied, to make or to authorize the making of expenditures on behalf of a candidate, or means any person who has been placed in a position with the candidate's campaign committee or organization such that it would reasonably appear that in the ordinary course of campaign-related activities the person may authorize expenditures.
(7) "In-kind contribution" means anything of value other than money that is used to influence the results of an election to the public employees retirement board under section 145.05 of the Revised Code, including a special election provided for by section 145.051 of the Revised Code, or the results of an election to fill a vacancy on the board pursuant to section 145.06 of the Revised Code, or is transferred to or used in support of or in opposition to a candidate and that is made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of the benefited candidate. The financing of the dissemination, distribution, or republication, in whole or part, of any broadcast or of any written, graphic, or other form of campaign materials prepared by the candidate, the candidate's campaign committee, or their authorized agents is an in-kind contribution to the candidate and an expenditure by the candidate.
(8) "Personal expenses" includes ordinary expenses for accommodations, clothing, food, personal motor vehicle or airplane, and home telephone.
(B) Except as otherwise provided in division (D) of this section, each candidate who, or whose campaign committee, receives a contribution or in-kind contribution or makes an expenditure in connection with the candidate's efforts to be elected to the public employees retirement board shall file with the secretary of state two complete, accurate, and itemized statements setting forth in detail the contributions, in-kind contributions, and expenditures. The statements shall be filed regardless of whether the election is a regular election or, pursuant to section 145.051 of the Revised Code, a special election. The statements shall also be filed regardless of whether, pursuant to section 145.052 of the Revised Code, no election is held. The statements shall be made on a form prescribed under section 111.30 of the Revised Code. Every expenditure shall be vouched for by a receipted bill, stating the purpose of the expenditures, that shall be filed with the statement; a canceled check with a notation of the purpose of the expenditure is a receipted bill for purposes of this division. The first statement shall be filed not later than four p.m. on the day that is twelve days before election day. The second statement shall be filed not sooner than the day that is eight days after election day and not later than thirty-eight days after election day. The first statement shall reflect contributions and in-kind contributions received and expenditures made to the close of business on the twentieth day before election day. The second statement shall reflect contributions and in-kind contributions received and expenditures made during the period beginning on the nineteenth day before election day and ending on the close of business on the seventh day after election day. (C) Each individual, partnership, or other entity that makes an independent expenditure in connection with the candidate's efforts to be elected to the public employees retirement board shall file with the secretary of state two complete, accurate, and itemized statements setting forth in detail the independent expenditures. The statements shall be filed regardless of whether the election is a regular election or, pursuant to section 145.051 of the Revised Code, a special election. The statements also shall be filed regardless of whether, pursuant to section 145.052 of the Revised Code, no election is held. The statements shall be made on a form prescribed under section 111.30 of the Revised Code.
The first statement shall be filed not later than four p.m. on the day that is twelve days before election day. The second statement shall be filed not sooner than the day that is eight days after election day and not later than thirty-eight days after election day. The first statement shall reflect independent expenditures made to the close of business on the twentieth day before election day. The second statement shall reflect independent expenditures made during the period beginning on the nineteenth day before election day and ending on the close of business on the seventh day after election day. (D) Each candidate who, or whose campaign committee, receives a contribution or in-kind contribution or makes an expenditure in connection with the candidate's efforts to be elected to fill a vacancy in the public employees retirement board pursuant to section 145.06 of the Revised Code shall file with the secretary of state a complete, accurate, and itemized statement setting forth in detail the contributions, in-kind contributions, and expenditures. The statement shall be made on a form prescribed under section 111.30 of the Revised Code. Every expenditure shall be vouched for by a receipted bill, stating the purpose of the expenditures, that shall be filed with the statement; a canceled check with a notation of the purpose of the expenditure is a receipted bill for purposes of this division.
The statement shall be filed within thirty-eight days after the day the candidate takes office. The statement shall reflect contributions and in-kind contributions received and expenditures made to the close of business on the seventh day after the day the candidate takes office.
Sec. 145.054. (A) No person shall knowingly fail to file a complete and accurate campaign finance statement or independent expenditure statement in accordance with section 145.053 of the Revised Code. (B) No person, during the course of a person seeking nomination for, or during any campaign for, election to the public employees retirement board, shall knowingly and with intent to affect the nomination or the outcome of the campaign do any of the following by means of campaign materials, an advertisement on radio or television or in a newspaper or periodical, a public speech, press release, or otherwise:
(1) With regard to a candidate, identify the candidate in a manner that implies that the candidate is a member of the board or use the term "re-elect" when the candidate is not currently a member of the board;
(2) Make a false statement concerning the formal schooling or training completed or attempted by a candidate; a degree, diploma, certificate, scholarship, grant, award, prize, or honor received, earned, or held by a candidate; or the period of time during which a candidate attended any school, college, community technical school, or institution;
(3) Make a false statement concerning the professional, occupational, or vocational licenses held by a candidate, or concerning any position the candidate held for which the candidate received a salary or wages;
(4) Make a false statement that a candidate or public official has been indicted or convicted of a theft offense, extortion, or other crime involving financial corruption or moral turpitude;
(5) Make a statement that a candidate has been indicted for any crime or has been the subject of a finding by the Ohio elections commission without disclosing the outcome of any legal proceedings resulting from the indictment or finding;
(6) Make a false statement that a candidate or official has a record of treatment or confinement for mental disorder;
(7) Make a false statement that a candidate or official has been subjected to military discipline for criminal misconduct or dishonorably discharged from the armed services;
(8) Falsely identify the source of a statement, issue statements under the name of another person without authorization, or falsely state the endorsement of or opposition to a candidate by a person or publication;
(9) Make a false statement concerning the voting record of a candidate or public official;
(10) Post, publish, circulate, distribute, or otherwise disseminate a false statement concerning a candidate, either knowing the same to be false or with reckless disregard of whether it was false or not, if the statement is designed to promote the election, nomination, or defeat of the candidate.
Sec. 145.055. The secretary of state, or any person acting on personal knowledge and subject to the penalties of perjury, may file a complaint with the Ohio elections commission alleging a violation of section 145.054 of the Revised Code. The complaint shall be made on a form prescribed and provided by the commission.
On receipt of a complaint under this section, the commission shall hold a hearing open to the public to determine whether the violation alleged in the complaint has occurred. The commission may administer oaths and issue subpoenas to any person in the state compelling the attendance of witnesses and the production of relevant papers, books, accounts, and reports. On the refusal of any person to obey a subpoena or to be sworn or to answer as a witness, the commission may apply to the court of common pleas of Franklin county under section 2705.03 of the Revised Code. The court shall hold contempt proceedings in accordance with Chapter 2705. of the Revised Code.
The commission shall provide the person accused of the violation at least seven days prior notice of the time, date, and place of the hearing. The accused may be represented by an attorney and shall have an opportunity to present evidence, call witnesses, and cross-examine witnesses.
At the hearing, the commission shall determine whether the violation alleged in the complaint has occurred. If the commission determines that a violation of division (A) of section 145.054 of the Revised Code has occurred, the commission shall either impose a fine under section 145.99 of the Revised Code or enter a finding that good cause has been shown not to impose the fine. If the commission determines that a violation of division (B) of section 145.054 of the Revised Code has occurred, the commission shall impose the fine described in section 145.99 of the Revised Code, refer the matter to the appropriate prosecutor, or enter a finding that good cause has been shown not to impose a fine or refer the matter to a prosecutor.
Sec. 145.057. An employee member or retirant member of the public employees retirement board who is charged with committing a felony, a theft offense as defined in section 2913.01 of the Revised Code, or a violation of section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be suspended from participation on the board for the period during which the charges are pending. If the charges are dismissed, the member is found not guilty, or the charges are otherwise resolved in a manner not resulting in the member being convicted of or pleading guilty to an offense of that nature, the suspension shall end, and the member may participate on the board. If the member pleads guilty to or is convicted of the offense, the position of the member on the board shall be deemed vacant. A person who has pleaded guilty to or been convicted of an offense of that nature is ineligible for election to the office of employee member or retirant member of the public employees retirement board.
Sec. 145.06. (A) If a vacancy occurs in the term of any
employee member of the public employees retirement board, the
remaining members of the board shall elect an a successor employee member
from the employee group lacking representation because of the
vacancy for the unexpired term. On certification of the election results under section 111.30 of the Revised Code, the successor employee member shall hold office until the next board election that occurs not less than ninety days after the successor employee member's election. Any employee member of the board who fails to attend the
meetings of the board for three months or longer, without valid
excuse, shall be considered as having resigned, and the board
shall declare the employee member's office vacated as of the
date of the adoption
of a proper resolution. (B) If a vacancy occurs during the term of office of the
retirant member of the board, the remaining members of the board
shall elect a successor retirant member who shall hold office for
the remainder of the predecessor retirant member's term. The
successor retirant member shall be a former member of the public
employees retirement system who is eligible for election under section 145.04
of the
Revised Code as the retirant member of the board. On certification of the election results under section 111.30 of the Revised Code, the successor retirant member shall hold office until the next board election that occurs not less than ninety days after the successor retirant member's election. If a retirant member of the board fails to attend the
meetings of the board for three months or longer, without valid
excuse, the retirant member shall be considered as having
resigned, and the board
shall declare the member's office vacated as of the date of
the adoption
of a proper resolution. If as a result of changed circumstances the retirant member
would no longer qualify for membership on the board as the
retirant member, the retirant member's office shall be
considered vacant, and a
successor retirant member shall be chosen in the manner specified
in this division. (C) If a person elected to serve on the board is unable to
assume office at the January meeting of the board following the person's
election, a special election shall be held in
accordance
with the provisions of section 145.05 of the Revised Code within
three months of the January meeting and the newly elected person
shall assume office at the meeting of the board immediately
following the special election Elections under this section to fill a vacancy on the board shall be conducted under the supervision of the secretary of state pursuant to section 111.30 of the Revised Code.
Sec. 145.09. The public employees retirement board shall
elect from its membership a chairperson, and shall
appoint an
executive director who shall serve as secretary to the board, an
actuary, and other employees as necessary for the transaction of
the business of the public employees retirement system. The
compensation of all persons so appointed shall be fixed by the
board. Every Effective ninety days after the effective date of this amendment, the board may not employ a state retirement system investment officer, as defined in section 1707.01 of the Revised Code, who does not hold a valid state retirement system investment officer license issued by the division of securities in the department of commerce. Every expense voucher of an employee, officer, or board
member of the public employees retirement system shall itemize
all purchases and expenditures. The board shall perform other functions as required for the
proper execution of this chapter, and may adopt rules in accordance
with
section 111.15 of the Revised Code for the proper
administration and
management of this
chapter. The board may take all
appropriate action to avoid payment by the system or its members of federal or
state income taxes on contributions to the system or amounts earned on such
contributions. Notice of proposed rules shall be
given to interested parties and rules adopted by the board shall be
published and otherwise made available.
When it files a rule with the joint committee on
agency rule review pursuant to section 111.15 of the
Revised Code, the board shall submit to
the Ohio retirement study
council a copy of the full text of the rule, and if applicable,
a copy of the rule summary and
fiscal analysis required by division
(B) of section 127.18 of the
Revised
Code. The board may sue and be sued, plead and be impleaded,
contract and be contracted with. All of its business shall be
transacted, all of its funds invested, all warrants for money
drawn and payments made, and all of its cash and securities and
other property shall be held in the name of the board, or in the
name of its nominee, provided that nominees are authorized by
retirement board resolution for the purpose of facilitating the
ownership and transfer of investments.
If the Ohio retirement study council establishes a uniform format for any report the board is required to submit to the council, the board shall submit the report in that format.
Sec. 145.092. The public employees retirement board shall do all of the following: (A) In consultation with the Ohio ethics commission, review any existing policy regarding the travel and payment of travel expenses of members and employees of the public employees retirement board and adopt rules in accordance with section 145.09 of the Revised Code establishing a new or revised policy regarding travel and payment of travel expenses; (B) If the board intends to award a bonus to any employee of the board, adopt rules in accordance with section 145.09 of the Revised Code establishing a policy regarding employee bonuses; (C) Provide copies of the rules adopted under divisions (A) and (B) of this section to each member of the Ohio retirement study council; (D) Submit to the Ohio retirement study council a proposed operating budget, including an administrative budget for the board, for the next immediate fiscal year and adopt that budget not earlier than sixty days after it is submitted to the council; (E) Submit to the council a plan describing how the board will improve the dissemination of public information pertaining to the board.
Sec. 145.093. The public employees retirement board shall, in consultation with the Ohio ethics commission, develop an ethics policy. The board shall submit this policy to the Ohio retirement study council for approval. The council shall review the policy and, if the council determines, upon the advice of the Ohio ethics commission, that the policy is adequate, approve the policy. If the council determines that the policy is inadequate, it shall specify the revisions to be made and the board shall submit a revised policy. If the council approves the revised policy, the board shall adopt it. If not, the board shall make any further revisions required by the council and adopt the policy. The board periodically shall provide ethics training to members and employees of the board. The training shall include training regarding the requirements and prohibitions of Chapter 102. of the Revised Code and sections 2921.42 and 2921.43 of the Revised Code and any other training the board considers appropriate.
The board shall establish a procedure to ensure that each employee of the board is informed of the procedure for filing a complaint alleging violation of Chapter 102. of the Revised Code or section 2921.42 or 2921.43 of the Revised Code with the Ohio ethics commission or the appropriate prosecuting attorney. Sec. 145.094. (A) The public employees retirement board shall designate a person who is a licensed state retirement system investment officer to be the chief investment officer for the public employees retirement system. The board shall notify the division of securities of the department of commerce in writing of its designation and of any change in its designation within ten calendar days of the designation or change.
(B) The chief investment officer shall reasonably supervise the licensed state retirement system investment officers and other persons employed by the public employees retirement system with a view toward preventing violations of Chapter 1707. of the Revised Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. and following, and the "Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a, and following, and the rules and regulations promulgated under those statutes. This duty of reasonable supervision shall include the adoption, implementation, and enforcement of written policies and procedures reasonably designed to prevent persons employed by the public employees retirement system from misusing material, nonpublic information in violation of those laws, rules, and regulations.
For purposes of this division, no chief investment officer shall be considered to have failed to satisfy the officer's duty of reasonable supervision if the officer has done all of the following:
(1) Adopted and implemented written procedures, and a system for applying the procedures, that would reasonably be expected to prevent and detect, insofar as practicable, any violation by its licensed investment officers and other persons employed by the public employees retirement system;
(2) Reasonably discharged the duties and obligations incumbent on the chief investment officer by reason of the established procedures and the system for applying the procedures when the officer had no reasonable cause to believe that there was a failure to comply with the procedures and systems;
(3) Reviewed, at least annually, the adequacy of the policies and procedures established pursuant to this section and the effectiveness of their implementation.
(C) The chief investment officer shall ensure that securities transactions are executed in such a manner that the state retirement system's total costs or proceeds in each transaction are the most favorable under the circumstances.
For purposes of this division, no chief investment officer shall be considered to have failed to satisfy the officer's duty of best execution if the officer has done both of the following:
(1) Adopted and implemented a written policy that outlines the criteria used to select broker-dealers that execute securities transactions on behalf of the public employees retirement system, which criteria shall include all of the following:
(a) Commissions charged by the broker-dealer, both in the aggregate and on a per share basis;
(b) The execution speed and trade settlement capabilities of the broker-dealer;
(c) The responsiveness, reliability and integrity of the broker-dealer;
(d) The nature and value of research provided by the broker-dealer;
(e) Any special capabilities of the broker-dealer.
(2) Reviewed, at least annually, the performance of broker-dealers that execute securities transactions on behalf of the public employees retirement system.
Sec. 145.27. (A)(1) As used in this division, "personal
history record"
means information maintained by the public
employees retirement board
on an individual who is a member,
former
member, contributor, former contributor, retirant, or
beneficiary
that includes the address, telephone number, social
security
number, record of contributions, correspondence with the
public employees
retirement system,
or other information the board
determines to be confidential. (2) The records of the board shall be open to public
inspection, except
that the following shall be
excluded,
except
with the written authorization of the individual
concerned: (a) The individual's statement of previous service and
other
information as provided for in section 145.16 of the
Revised Code; (b) The amount of a monthly allowance or benefit paid to
the
individual; (c) The individual's personal history record. (B) All medical reports and recommendations required by
this
chapter are
privileged,
except that copies of such medical reports
or recommendations
shall be made available to the personal
physician, attorney, or
authorized agent of the individual
concerned upon written release
from the individual or the
individual's
agent, or when necessary for the proper
administration of the fund, to the board assigned physician. (C) Any person who is a member or contributor of the
system
shall be furnished with a statement of the amount to the
credit of
the individual's account upon
written request. The
board is not
required to answer more than one such request of a
person in any
one year. The board may issue annual statements of
accounts to
members and contributors. (D) Notwithstanding the exceptions to public inspection in
division (A)(2) of this section, the board may furnish the
following information: (1) If a member, former member, contributor, former
contributor, or retirant is subject to an order issued under
section 2907.15
of the Revised Code or is convicted of or pleads
guilty to a
violation of section 2921.41 of the Revised Code, on
written
request of a prosecutor as defined in section 2935.01 of
the
Revised Code, the board shall furnish to the prosecutor the
information requested from the individual's personal history
record. (2) Pursuant to a court or administrative order issued
pursuant to Chapter 3119., 3121., 3123., or 3125. of the Revised
Code, the board
shall furnish to a court or child support
enforcement agency the
information required under that section. (3) At the written request of any person, the board shall
provide to the person a list of the names and addresses of
members, former members, contributors, former contributors,
retirants, or beneficiaries. The costs of compiling, copying,
and
mailing the list shall be paid by such person. (4) Within fourteen days after receiving from the director
of job and family services a list of the names and social
security
numbers
of recipients of public assistance pursuant to section
5101.181
of the Revised Code, the board shall inform the auditor
of state
of the name, current or most recent employer address, and
social
security number of each member whose name and social
security
number are the same as that of a person whose name or
social
security number was submitted by the director. The board
and its
employees shall, except for purposes of furnishing the
auditor of
state with information required by this section,
preserve the
confidentiality of recipients of public assistance in
compliance
with division (A) of section 5101.181 of the Revised
Code.
(5) The system shall comply with orders issued under section
3105.87 of the Revised Code.
On the written request of an alternate payee, as defined in
section 3105.80 of the Revised Code, the system shall furnish to
the alternate payee information on the amount and status of any
amounts payable to the alternate payee under an order issued under
section 3105.171 or 3105.65 of the Revised Code. (6) At the request of any person, the board shall make available to the person copies of all documents, including resumes, in the board's possession regarding filling a vacancy of an employee member or retirant member of the board. The person who made the request shall pay the cost of compiling, copying, and mailing the documents. The information described in this division is a public record. (7) The board shall furnish those personal history records kept by the board to the secretary of state necessary for the purposes of certifying an election pursuant to section 111.30 of the Revised Code. The records provided pursuant to this division shall remain confidential while in the possession of the secretary of state. (E) A statement that contains information obtained from
the
system's records that is signed by the executive director or an
officer of
the system and to which the system's official seal is
affixed, or copies of the system's records to which the signature
and seal are attached, shall be received as true copies of the
system's records in any court or before any officer of this
state.
Sec. 145.99. (A) Whoever violates division (A) of section 145.054 of the Revised Code shall be fined not more than one hundred dollars for each day of the violation. (B) Whoever violates division (B) of section 145.054 of the Revised Code shall be imprisoned for not more than six months or fined not more than five thousand dollars, or both. (C) Fines imposed by the Ohio elections commission under this section shall be paid into the Ohio elections commission fund created under section 3513.10 of the Revised Code.
Sec. 171.01. There As used in this chapter, "state retirement systems" means the public employees retirement system, Ohio police and fire pension fund, state teachers retirement system, school employees retirement system, and state highway patrol retirement system. There is hereby created the Ohio retirement
study council, consisting of fourteen members to. Members of the council shall be
appointed as follows: (A) Three members of the senate, appointed by the
president of the senate, not more than two of whom may be members
of the same political party; (B) Three members of the house of representatives,
appointed by the speaker of the house of representatives, not
more than two of whom may be members of the same political party; (C) Two members, each of whom shall be a former member of the general assembly who, while a member of the general assembly, served at least one term as a member of the council or served as a member of a standing committee or subcommittee of the senate or house of representatives with primary responsibility for health or retirement legislation. One member shall be jointly appointed by the speaker of the house of representatives and the leader in the senate of the political party of which the speaker is a member. The other member shall be jointly appointed by the legislative leaders in the two houses of the major political party of which the speaker is not a member. The members shall not be members of the same political party. The members shall be appointed at the same time as the members appointed under division (B) of this section and shall serve until the thirty-first day of December of the following year. (D) Three members appointed by the governor, with the
advice and consent of the senate, not more than two of whom shall
be members of the same political party, one of whom shall
represent the state and its employees; one of whom shall
represent nonstate governments and their employees; and one of whom
shall represent educational employers and their employees. Of these three members, at least one shall be a person with investment expertise. Terms
of the existing members appointed by the governor shall not be
affected. Terms of office of members appointed by the governor
shall be for three years, commencing on the first day of July and
ending on the thirtieth day of June. Each member appointed by
the governor shall hold office from the date of appointment
until the end of the term for which the appointment was
made. Any member
appointed by the governor to fill a vacancy occurring prior to
the expiration of the term for which the member's
predecessor was
appointed shall hold office for the remainder of such term. Any Each
member appointed by the governor shall continue in office subsequent to the expiration date
of the member's term until the member's
successor takes office, or until a period
of sixty days has elapsed, whichever occurs first until the member's successor is appointed and qualified, notwithstanding the expiration of the member's term of office. (D)(E) Five ex officio members as follows: the executive
director of the public employees retirement system, the executive
director of the state teachers retirement system, the executive
director of the school employees retirement system, the executive
secretary of the Ohio police and fire pension
fund, and the secretary of the state highway patrol retirement
board, who shall be nonvoting members.
A vacancy on the council shall be filled by the
person
qualified to make the original appointment for the unexpired
term, in the same manner as the original appointment. The members of the council who are appointed from the
membership of the senate and the house of representatives shall
serve during their terms as members of the general assembly and
until their successors are appointed and qualified,
notwithstanding the adjournment of the general assembly of which
they are members or the expiration of their terms as members of
such general assembly. The members of the council who are former members of the general assembly shall serve until their successors are appointed and qualified, notwithstanding the adjournment of the general assembly during which they were appointed or the expiration of their terms as members of the council.
Sec. 171.02. Meetings of the Ohio retirement study
council shall be called in such manner and at such
times as
prescribed by rules adopted by the council. A
majority of the
council constitutes a quorum and no action shall be
taken by
the council unless approved by at least five six voting
members.
The council shall organize by selecting a
chairperson,
vice-chairperson, and such other officers as it
deems necessary.
The council shall adopt rules for the conduct of its
business
and the election of its officers, and shall establish an office
in Columbus. Each member of the council, before
entering upon
the member's official duties shall take and subscribe to an
oath of
office, to uphold the constitution and laws of the
United States and
this state and to perform the duties of the office
honestly, faithfully, and impartially. Members of the
council
shall serve without compensation but shall be reimbursed for
actual and necessary expenses incurred in the performance of
their duties.
Sec. 171.03. The Ohio retirement study council may: (A) Appoint a director to manage and direct the duties of
the staff of the council. The director shall be a
person who
has had training and experience in areas related to the duties of
the council. (B) Appoint such professional, technical, and clerical
employees as are necessary, and employ or hire on a consulting
basis such actuarial, legal, investment, or other technical
services required for the performance of its duties; (C) Fix the compensation of the director and all other
employees of the council. The employees of the
council
shall be members of the public employees retirement system. (D) Require the public employees retirement board, the
state teachers retirement board, the school employees retirement
board, the state highway patrol retirement system, the Ohio
police and
fire pension fund, and any agency or
official
of this state or its political subdivisions to provide it with
any information necessary to carry out its duties; (E) Administer oaths and hold public hearings at such
times and places within the state as may be necessary to
accomplish the purposes and intent of Chapter 171. of the Revised
Code;
(F) Establish a uniform format for any report that the boards of the state retirement systems are required to submit to the council and regular reporting requirements; (G) Request that the auditor of state perform or contract for the performance of a financial or special audit of a state retirement system.
Sec. 171.04. The Ohio retirement study council
shall: (A) Make an impartial review from time to time of all laws
governing the administration and financing of the pension and
retirement funds under Chapters 145., 146., 742., 3307., 3309.,
and 5505. of the Revised Code and recommend to the general
assembly any changes it may find desirable with respect to the
allowances and benefits, sound financing of the cost of benefits,
the prudent investment of funds, and the improvement of the
language, structure, and organization of the laws; (B) Make an annual report to the governor and to the
general assembly covering its evaluation and recommendations with
respect to the operations of the state retirement systems and
their funds; (C) Study all changes in the retirement laws proposed to
the general assembly and report to the general assembly on their
probable costs, actuarial implications, and desirability as a
matter of public policy; (D) Review semiannually the policies, objectives, and criteria
adopted under sections 145.11, 742.11, 3307.15, 3309.15, and 5505.06 of
the Revised Code for the operation of the investment
programs of the state retirement systems, including a review of asset
allocation targets and ranges, risk factors, asset
class benchmarks, time horizons, total return objectives, relative volatility, and performance evaluation guidelines. The
council shall, not later than thirty days after completing a
review, submit to the governor and the general assembly a report
summarizing its findings. (E) Have prepared by an independent actuary, at least once every
ten years, an actuarial review of the annual actuarial valuations
and quinquennial actuarial investigations prepared under
sections 145.22, 742.14, 3307.20, 3309.21, and 5505.12 of the
Revised Code, including a review
of the actuarial assumptions and methods, the data underlying the valuations
and investigations, and
the adequacy of each system's employee and employer contribution rates to
amortize its unfunded
actuarial pension liability, if any, and to support the payment of
benefits authorized by Chapter 145., 742., 3307.,
3309., or 5505. of the Revised Code. The council shall
submit to
the governor and the general assembly a report summarizing the
review. (F) Have conducted by an independent auditor at least once every five years a fiduciary performance audit of each of the state retirement systems. All costs associated with an audit conducted pursuant to division (F) of this section shall be paid by the retirement system audited. (G) Review all proposed rules submitted to the council pursuant to sections 145.09, 742.10, 3307.04, 3309.04, and 5505.04 of the Revised Code and submit any recommendations to the joint committee on agency rule review.
Sec. 171.06. The attorney general is the legal adviser to the Ohio retirement study council.
Sec. 171.50. The boards of the state retirement systems shall jointly develop a retirement board member education program and submit the program to the Ohio retirement study council.
The boards shall jointly pay all costs associated with establishing and conducting the retirement board member education program.
The retirement board member education program shall consist
of an orientation component for newly elected and appointed members and a continuing education component for board members who have served for at least one year. The program shall incorporate into its curriculum each of the following topics: board member duties and responsibilities, retirement system member benefits and health care management, ethics, governance processes and procedures, actuarial soundness, investments, and any other subject matter the boards believe is reasonably related to the duties of a board member. All program sessions, classes, and other events shall be held in Ohio.
Sec. 742.03. (A) As used in this section and in sections
742.04 and 742.05 of the Revised Code: (1) "Police officer" means a member of the fund who is or
has been an
employee of a police department and is not a police
retirant. (2) "Firefighter" means a member of the fund who is or has
been an
employee of a fire department and is not a firefighter
retirant. (3) "Firefighter retirant" means a member of the fund who
is
receiving an age and service or disability benefit as a result
of
service in a fire department or a surviving spouse of a
deceased
member who is receiving a benefit as a result of the
deceased
member's service in a fire department.
"Firefighter retirant" does
not include a member of the fund who is participating in the
deferred retirement option plan established under section 742.43
of the Revised Code. (4) "Police retirant" means a member of the fund who is
receiving an age and service or disability benefit as a result of
service in a police department or a surviving spouse of a
deceased
member who is receiving a benefit as a result of the
deceased
member's service in a police department.
"Police retirant" does
not include a member of the fund who is participating in the
deferred retirement option plan established under section 742.43
of the Revised Code. (B) The administration, control, and management of the
Ohio
police and fire
pension fund, created under
section 742.02 of the
Revised Code, is vested in a board of
trustees of the Ohio police
and fire pension fund,
which shall consist of nine the following members as
follows: (1) The attorney general treasurer of state; (2) The auditor of state; (3) The fiscal officer of a municipal corporation who
shall
be appointed by the governor. This member's term shall be
for
three years, commencing on the fourth day of June and ending
on
the third day of June. The fiscal officer member shall hold
office from the date of appointment until the end of the term
for
which appointed. Any fiscal officer member appointed
to fill a
vacancy occurring prior to the expiration of the term
for which
the fiscal officer member's predecessor was appointed
shall hold
office for the
remainder of such term. Any fiscal officer member
shall continue
in office subsequent to the expiration date of the
fiscal
officer member's term until such member's
successor takes
office, or until a period of sixty days has
elapsed, whichever
occurs first.
(4) Two members, known as the investment expert members, who shall be appointed by the governor for four-year terms and who shall have the following qualifications:
(a) Each member shall be a resident of this state.
(b) Within the three years immediately preceding the appointment, each member shall not have been employed by the public employees retirement system, police and fire pension fund, state teachers retirement system, school employees retirement system, or state highway patrol retirement system or by any person, partnership, or corporation that has provided to one of those retirement systems services of a financial or investment nature, including the management, analysis, supervision, or investment of assets.
(c) Each member shall have direct experience in the management, analysis, supervision, or investment of assets.
(5) Four members known as employee members. Two employee members shall be police officers elected by
police officers. Two employee members shall be firefighters
elected by firefighters. Employee members of the board shall be
elected for
terms of four years as provided by section 742.04 of
the Revised Code. (5)(6) One member known as the firefighter retirant member, who
shall be a
resident of this state elected by the firefighter
retirants. The firefighter
retirant member shall be elected for a
term of four years as provided by
section 742.04 of the Revised
Code.
(6)(7) One member known as the police retirant member, who
shall be a resident
of this state elected by the police retirants.
The police retirant member
shall be elected for a term of four
years as provided by section 742.04 of the
Revised Code.
(C) No employee member of the board who retires while a
member of the board shall be eligible to become a retirant member
for three years after the date of the member's retirement. (D) The initial investment expert members shall be appointed and take office not less than ninety days after the effective date of this amendment. Any investment expert member appointed to fill a vacancy occurring prior to the expiration of the term for which the member's predecessor was appointed holds office until the end of such term. The member continues in office subsequent to the expiration date of the member's term until the member's successor takes office, or until a period of sixty days has elapsed, whichever occurs first.
Sec. 742.031. Each newly elected member of the board of trustees of the Ohio police and fire pension fund and each individual appointed to fill a vacancy on the board, shall, not later than ninety days after commencing service as a board member, complete the orientation program component of the retirement board member education program established under section 171.50 of the Revised Code. Each member of the board who has served a year or longer as a board member shall, not less than twice each year, attend one or more programs that are part of the continuing education component of the retirement board member education program established under section 171.50 of the Revised Code.
Sec. 742.032. A person who served as an elected or appointed member of the board of trustees of the Ohio police and fire pension fund for one or more entire fiscal years in fiscal years 2000, 2001, or 2002 is ineligible for re-election or reappointment to the board if the person has accepted reimbursements for travel and travel-related expenses from the board that have an annual average of more than ten thousand dollars for those fiscal years.
Sec. 742.04. As used in this section, "county" means the
county of residence of an individual who signs a nominating petition. Election of the employee members,
firefighter retirant member, and police retirant member
of the board of trustees of the Ohio police and fire
pension fund shall be under the supervision and
direction of the board in accordance with rules adopted under section 111.30 of the Revised Code. Nominating petitions for candidates for an employee member
of the board elected by police officers shall be signed by at
least one hundred police officers,
with at least twenty signers from each of at least five counties of the
state, and certified under section 111.30 of the Revised Code. Nominating petitions for candidates for an employee member
of the board elected by firefighters shall be signed by at least
one hundred firefighters, with at
least twenty signers from each of at least five counties of the state, and certified under section 111.30 of the Revised Code. Nominating petitions for candidates for an employee member
of the board shall be filed in the office of the board not later
than four p.m. on the first Monday in April preceding the date of
the expiration of the term of the employee member of the board
whose successor is to be elected. The board shall determine the sufficiency of the nominating
petitions filed with it and the board's decision shall be final.
The board shall cause ballots to be prepared for the
election of employee members of the board which shall contain the
names of all candidates for whom proper certified nominating petitions have
been filed with the board. A police officer or firefighter is eligible to vote in an election if
the police officer or firefighter is a member of the fund on the first
Monday in
March preceding the date of the
expiration of the term of the employee member of the board whose
successor is to be elected. The board shall determine whether a
member of the fund is eligible to vote at an election and
its decision shall be final. On or before the first Monday in May preceding the date of
the expiration of the term of the employee member of the board
whose successor is to be elected, the board shall cause ballots
to be sent to each member of the fund who is eligible to vote at
such election to the address of such member as shown on the
records of the board. Ballots shall be returned to the board not later than the
third Tuesday in May following the date that the ballots were
mailed to the members of the fund eligible to vote at such
election. The board shall cause the ballots to be counted and shall
declare On certification of the election results under section 111.30 of the Revised Code, the person receiving the highest number of votes shall be elected
as an employee member of the board for a term of four years
beginning on the first Monday in June following such election.
Nominating petitions for candidates for the police retirant
member of the board shall be signed by at
least fifty police retirants, with at least ten signers from at
least five counties of the state, and certified under section 111.30 of the Revised Code. Nominating petitions for candidates for the firefighter
retirant member of the board shall be signed by
at least fifty firefighter retirants, with at least ten signers
from at least five counties of the state, and certified under section 111.30 of the Revised Code. Nominating petitions for candidates for the retirant members of the
board shall be filed in the office of the board not later
than four p.m. on the first Monday in April preceding the date of
the expiration of the term of the retirant member of the board
whose successor is to be elected. The board shall determine the sufficiency of the nominating
petitions filed with it, and the board's decision shall be final.
The board shall cause ballots to be prepared for the
election of these board members which shall contain the
names of all candidates for whom proper certified nominating petitions have
been filed with the board. A retirant is eligible to vote in an election if the
retirant is a police retirant or firefighter retirant on the
first Monday in
April preceding the date of the
expiration of the term of the retirant member of the board whose
successor is to be elected. The board shall determine whether a
police retirant or firefighter retirant is eligible to vote
at an election and its decision shall be final. On or before the first Monday in May preceding the date of
the expiration of the term of a retirant member of the board
whose successor is to be elected, the board shall cause ballots
to be sent to each person who is eligible to vote in the election
to the address of the person as shown on the records of the
board. Ballots shall be returned to the board not later than the
third Tuesday in May following the date that the ballots were
mailed to the persons eligible to vote in the election. The board shall cause the ballots to be counted and shall
declare On certification of the election results under section 111.30 of the Revised Code, the person receiving the highest number of votes shall be elected
as the police retirant member or the
firefighter retirant member of the board for a term of four years
beginning on the first Monday in June following the election.
Sec. 742.042. (A) As used in this section:
(1) "Campaign committee" means a candidate or a combination of two or more persons authorized by a candidate to receive contributions and in-kind contributions and make expenditures on behalf of the candidate.
(2) "Candidate" means an individual who has been nominated pursuant to section 742.04 of the Revised Code for election to the board of trustees of the Ohio police and fire pension fund or who is seeking to be elected to fill a vacancy on the board pursuant to section 742.05 of the Revised Code. (3) "Contribution" means a loan, gift, deposit, forgiveness of indebtedness, donation, advance, payment, transfer of funds or transfer of anything of value including a transfer of funds from an inter vivos or testamentary trust or decedent's estate, and the payment by any person other than the person to whom the services are rendered for the personal services of another person, which contribution is made, received, or used for the purpose of influencing the results of an election to the board of trustees of the Ohio police and fire pension fund under section 742.04 of the Revised Code or the results of an election to fill a vacancy on the board pursuant to section 742.05 of the Revised Code. "Contribution" does not include: (a) Services provided without compensation by individuals volunteering a portion or all of their time on behalf of a person;
(b) Ordinary home hospitality;
(c) The personal expenses of a volunteer paid for by that volunteer campaign worker. (4) "Election day" means the following, as appropriate to the situation:
(a) The third Tuesday in May of a year for which section 742.04 of the Revised Code specifies that an election for a member of the board of trustees of the Ohio police and fire pension fund be held;
(b) If, pursuant to section 742.041 of the Revised Code, no election is held, the third Tuesday in May of a year that the election would have been held if not for section 742.041 of the Revised Code. (5) "Expenditure" means the disbursement or use of a contribution for the purpose of influencing the results of an election to the board of trustees of the Ohio police and fire pension fund under section 742.04 of the Revised Code or the results of an election to fill a vacancy on the board pursuant to section 742.05 of the Revised Code.
(6) "Independent expenditure" means an expenditure by an individual, partnership, or other entity advocating the election or defeat of an identified candidate or candidates, that is not made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of any candidate or candidates or of the campaign committee or agent of the candidate or candidates. An independent expenditure shall not be construed as being a contribution. As used in division (A)(6) of this section: (a) "Advocating" means any communication containing a message advocating election or defeat.
(b) "Identified candidate" means that the name of the candidate appears, a photograph or drawing of the candidate appears, or the identity of the candidate is otherwise apparent by unambiguous reference.
(c) "Made in coordination, cooperation, or consultation with, or at the request or suggestion of, any candidate or the campaign committee or agent of the candidate" means made pursuant to any arrangement, coordination, or direction by the candidate, the candidate's campaign committee, or the candidate's agent prior to the publication, distribution, display, or broadcast of the communication. An expenditure is presumed to be so made when it is any of the following:
(i) Based on information about the candidate's plans, projects, or needs provided to the person making the expenditure by the candidate, or by the candidate's campaign committee or agent, with a view toward having an expenditure made;
(ii) Made by or through any person who is, or has been, authorized to raise or expend funds, who is, or has been, an officer of the candidate's campaign committee, or who is, or has been, receiving any form of compensation or reimbursement from the candidate or the candidate's campaign committee or agent;
(iii) Made by a political party in support of a candidate, unless the expenditure is made by a political party to conduct voter registration or voter education efforts.
(d) "Agent" means any person who has actual oral or written authority, either express or implied, to make or to authorize the making of expenditures on behalf of a candidate, or means any person who has been placed in a position with the candidate's campaign committee or organization such that it would reasonably appear that in the ordinary course of campaign-related activities the person may authorize expenditures.
(7) "In-kind contribution" means anything of value other than money that is used to influence the results of an election to the board of trustees of the Ohio police and fire pension fund under section 742.04 of the Revised Code or the results of an election to fill a vacancy on the board pursuant to section 742.05 of the Revised Code or is transferred to or used in support of or in opposition to a candidate and that is made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of the benefited candidate. The financing of the dissemination, distribution, or republication, in whole or part, of any broadcast or of any written, graphic, or other form of campaign materials prepared by the candidate, the candidate's campaign committee, or their authorized agents is an in-kind contribution to the candidate and an expenditure by the candidate.
(8) "Personal expenses" includes ordinary expenses for accommodations, clothing, food, personal motor vehicle or airplane, and home telephone.
(B) Except as otherwise provided in division (D) of this section, each candidate who, or whose campaign committee, receives a contribution or in-kind contribution or makes an expenditure in connection with the candidate's efforts to be elected to the board of trustees of the Ohio police and fire pension fund shall file with the secretary of state two complete, accurate, and itemized statements setting forth in detail the contributions, in-kind contributions, and expenditures. The statements shall be filed regardless of whether, pursuant to section 742.041 of the Revised Code, no election is held. The statements shall be made on a form prescribed under section 111.30 of the Revised Code. Every expenditure shall be vouched for by a receipted bill, stating the purpose of the expenditures, that shall be filed with the statement; a canceled check with a notation of the purpose of the expenditure is a receipted bill for purposes of this division. The first statement shall be filed not later than four p.m. on the day that is twelve days before election day. The second statement shall be filed not sooner than the day that is eight days after election day and not later than thirty-eight days after election day. The first statement shall reflect contributions and in-kind contributions received and expenditures made to the close of business on the twentieth day before election day. The second statement shall reflect contributions and in-kind contributions received and expenditures made during the period beginning on the nineteenth day before election day and ending on the close of business on the seventh day after election day. (C) Each individual, partnership, or other entity who makes an independent expenditure in connection with the candidate's efforts to be elected to the board of trustees of the police and fire pension fund shall file with the secretary of state two complete, accurate, and itemized statements setting forth in detail the independent expenditures. The statements shall be filed regardless of whether, pursuant to section 742.041 of the Revised Code, no election is held. The statements shall be made on a form prescribed under section 111.30 of the Revised Code.
The first statement shall be filed not later than four p.m. on the day that is twelve days before election day. The second statement shall be filed not sooner than the day that is eight days after election day and not later than thirty-eight days after election day. The first statement shall reflect independent expenditures made to the close of business on the twentieth day before election day. The second statement shall reflect independent expenditures made during the period beginning on the nineteenth day before election day and ending on the close of business on the seventh day after election day. (D) Each candidate who, or whose campaign committee, receives a contribution or in-kind contribution or makes an expenditure in connection with the candidate's efforts to be elected to fill a vacancy in the board of trustees of the police and fire pension fund pursuant to section 742.05 of the Revised Code shall file with the secretary of state a complete, accurate, and itemized statement setting forth in detail the contributions, in-kind contributions, and expenditures. The statement shall be made on a form prescribed under section 111.30 of the Revised Code. Every expenditure shall be vouched for by a receipted bill, stating the purpose of the expenditures, that shall be filed with the statement; a canceled check with a notation of the purpose of the expenditure is a receipted bill for purposes of this division.
The statement shall be filed within thirty-eight days after the day the candidate takes office. The statement shall reflect contributions and in-kind contributions received and expenditures made to the close of business on the seventh day after the day the candidate takes office.
Sec.
742.043. (A) No person shall knowingly fail to file a complete and accurate campaign finance statement or independent expenditure statement in accordance with section 742.042 of the Revised Code. (B) No person, during the course of a person seeking nomination for, and during any campaign for, election to the board of trustees of the police and fire pension fund, shall knowingly and with intent to affect the nomination or the outcome of the campaign do any of the following by means of campaign materials, an advertisement on radio or television or in a newspaper or periodical, a public speech, press release, or otherwise:
(1) With regard to a candidate, identify the candidate in a manner that implies that the candidate is a member of the board or use the term "re-elect" when the candidate is not currently a member of the board;
(2) Make a false statement concerning the formal schooling or training completed or attempted by a candidate; a degree, diploma, certificate, scholarship, grant, award, prize, or honor received, earned, or held by a candidate; or the period of time during which a candidate attended any school, college, community technical school, or institution;
(3) Make a false statement concerning the professional, occupational, or vocational licenses held by a candidate, or concerning any position the candidate held for which the candidate received a salary or wages;
(4) Make a false statement that a candidate or public official has been indicted or convicted of a theft offense, extortion, or other crime involving financial corruption or moral turpitude;
(5) Make a statement that a candidate has been indicted for any crime or has been the subject of a finding by the Ohio elections commission without disclosing the outcome of any legal proceedings resulting from the indictment or finding;
(6) Make a false statement that a candidate or official has a record of treatment or confinement for mental disorder;
(7) Make a false statement that a candidate or official has been subjected to military discipline for criminal misconduct or dishonorably discharged from the armed services;
(8) Falsely identify the source of a statement, issue statements under the name of another person without authorization, or falsely state the endorsement of or opposition to a candidate by a person or publication;
(9) Make a false statement concerning the voting record of a candidate or public official;
(10) Post, publish, circulate, distribute, or otherwise disseminate a false statement concerning a candidate, either knowing the same to be false or with reckless disregard of whether it was false or not, if the statement is designed to promote the election, nomination, or defeat of the candidate.
Sec. 742.044. The secretary of state, or any person acting on personal knowledge and subject to the penalties of perjury, may file a complaint with the Ohio elections commission alleging a violation of section 742.043 of the Revised Code. The complaint shall be made on a form prescribed and provided by the commission.
On receipt of a complaint under this section, the commission shall hold a hearing open to the public to determine whether the violation alleged in the complaint has occurred. The commission may administer oaths and issue subpoenas to any person in the state compelling the attendance of witnesses and the production of relevant papers, books, accounts, and reports. On the refusal of any person to obey a subpoena or to be sworn or to answer as a witness, the commission may apply to the court of common pleas of Franklin county under section 2705.03 of the Revised Code. The court shall hold contempt proceedings in accordance with Chapter 2705. of the Revised Code. The commission shall provide the person accused of the violation at least seven days prior notice of the time, date, and place of the hearing. The accused may be represented by an attorney and shall have an opportunity to present evidence, call witnesses, and cross-examine witnesses.
At the hearing, the commission shall determine whether the violation alleged in the complaint has occurred. If the commission determines that a violation of division (A) of section 742.043 of the Revised Code has occurred, the commission shall either impose a fine under section 742.99 of the Revised Code or enter a finding that good cause has been shown not to impose the fine. If the commission determines that a violation of division (B) of section 742.043 of the Revised Code has occurred, the commission shall impose the fine described in section 742.99 of the Revised Code, refer the matter to the appropriate prosecutor, or enter a finding that good cause has been shown not to impose a fine or refer the matter to a prosecutor.
Sec. 742.046. An employee member, firefighter retirant member, or police retirant member of the board of trustees of the police and fire pension fund who is charged with committing a felony, a theft offense as defined in section 2913.01 of the Revised Code, or a violation of section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be suspended from participation on the board for the period during which the charges are pending. If the charges are dismissed, the member is found not guilty, or the charges are otherwise resolved in a manner not resulting in the member being convicted of or pleading guilty to an offense of that nature, the suspension shall end, and the member may participate on the board. If the member pleads guilty to or is convicted of the offense, the position of the member on the board shall be deemed vacant. A person who has pleaded guilty to or been convicted of an offense of that nature is ineligible for election to the office of employee member, firefighter retirant member, or police retirant member of the board of trustees of the police and fire pension fund.
Sec. 742.05. Any vacancy occurring in the term of a member
of the board of trustees of the Ohio police and fire
pension fund who is the fiscal
officer of a municipal corporation shall be filled by appointment by the
governor for the unexpired term of such member. Any If a vacancy occurring occurs in the term of an employee or retirant member of
the board shall be filled by, all the remaining employee members and
the retirant members of the board for the unexpired term
of such shall elect a successor employee or retirant member. On certification of the election results under section 111.30 of the Revised Code, the successor member shall hold office until the next board election that occurs not less than ninety days after the successor member's election.
Any vacancy occurring in the term of a retirant member of
the board shall be filled by the employee members and the remaining
retirant member of the board for the unexpired term.
Elections under this section to fill a vacancy on the board shall be conducted under the supervision of the secretary of state pursuant to section 111.30 of the Revised Code. If a member of the board who is the fiscal officer of a
municipal corporation ceases to be a fiscal officer of a
municipal corporation, a vacancy shall exist.
If an employee member of the board ceases to be a member of the fund, a
vacancy
shall exist. If as a result of changed circumstances a retirant member
no longer qualifies for membership on the board as a
retirant member, a vacancy shall exist. Any employee or retirant elected or appointed member of the board or member of
the board who is the fiscal officer of a municipal corporation
who fails to attend three consecutive meetings of the board,
without valid excuse, shall be considered as having resigned from
the board and the board shall declare the member's office
vacated and as of the date of the adoption of a proper resolution a vacancy
shall exist.
Sec. 742.10. The board of trustees of the Ohio police and
fire
pension fund may sue and be sued, plead and be impleaded, contract and be
contracted with, employ and fix the compensation of employees, and adopt rules
for the proper administration and management of the fund.
Effective ninety days after the effective date of this amendment, the board of trustees may not employ a state retirement system investment officer, as defined in section 1707.01 of the Revised Code, who does not hold a valid state retirement system investment officer license issued by the division of securities in the department of commerce. If the Ohio retirement study council establishes a uniform format for any report the board is required to submit to the council, the board shall submit the report in that format. The attorney
general shall prescribe procedures for the adoption of rules authorized under
this chapter, consistent with the provisions of section 111.15 of the Revised
Code under which all rules shall be filed in order to be effective. Such
procedures shall establish methods by which notice of proposed rules is given
to interested parties and rules adopted by the board published and otherwise
made available. When it files a rule with the joint committee on agency
rule review pursuant to section 111.15 of the
Revised Code, the board shall submit to
the Ohio retirement study
council a copy of the full text of the rule, and if applicable,
a copy of the rule summary and fiscal analysis required by division
(B) of section 127.18 of the Revised Code. All rules adopted pursuant to this chapter, prior to August 20, 1976, shall be
published and made available to interested parties by January 1, 1977.
Sec. 742.102. The board of trustees of the police and fire pension fund shall do all of the following:
(A) In consultation with the Ohio ethics commission, review any existing policy regarding the travel and payment of travel expenses of members of the board of trustees and employees of the fund and adopt rules in accordance with section 742.10 of the Revised Code establishing a new or revised policy regarding travel and payment of travel expenses;
(B) If the board intends to award a bonus to any employee of the board, adopt rules in accordance with section 742.10 of the Revised Code establishing a policy regarding employee bonuses;
(C) Provide copies of the rules adopted under divisions (A) and (B) of this section to each member of the Ohio retirement study council;
(D) Submit to the Ohio retirement study council a proposed operating budget, including an administrative budget for the board, for the next immediate fiscal year and adopt that budget not earlier than sixty days after it is submitted to the council; (E) Submit to the council a plan describing how the board will improve the dissemination of public information pertaining to the board.
Sec. 742.103. The board of trustees of the police and fire pension fund shall, in consultation with the Ohio ethics commission, develop an ethics policy. The board shall submit this policy to the Ohio retirement study council for approval. The council shall review the policy and, if the council determines, upon the advice of the Ohio ethics commission, that the policy is adequate, approve the policy. If the council determines that the policy is inadequate, it shall specify the revisions to be made and the board shall submit a revised policy. If the council approves the revised policy, the board shall adopt it. If not, the board shall make any further revisions required by the council and adopt the policy. The board periodically shall provide ethics training to members and employees of the board. The training shall include training regarding the requirements and prohibitions of Chapter 102. of the Revised Code and sections 2921.42 and 2921.43 of the Revised Code and any other training the board considers appropriate.
The board shall establish a procedure to ensure that each employee of the board is informed of the procedure for filing a complaint alleging violation of Chapter 102. of the Revised Code or section 2921.42 or 2921.43 of the Revised Code with the Ohio ethics commission or the appropriate prosecuting attorney.
Sec. 742.104. (A) The board of trustees of the police and fire pension fund shall designate a person who is a licensed state retirement system investment officer to be the chief investment officer for the police and fire pension fund. The board shall notify the division of securities of the department of commerce in writing of its designation and of any change in its designation within ten calendar days of the designation or change.
(B) The chief investment officer shall reasonably supervise the licensed state retirement system investment officers and other persons employed by the police and fire pension fund with a view toward preventing violations of Chapter 1707. of the Revised Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. and following, and the "Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a, and following, and the rules and regulations promulgated under those statutes. This duty of reasonable supervision shall include the adoption, implementation, and enforcement of written policies and procedures reasonably designed to prevent persons employed by the police and fire pension fund from misusing material, nonpublic information in violation of those laws, rules, and regulations.
For purposes of this division, no chief investment officer shall be considered to have failed to satisfy the officer's duty of reasonable supervision if the officer has done all of the following:
(1) Adopted and implemented written procedures, and a system for applying the procedures, that would reasonably be expected to prevent and detect, insofar as practicable, any violation by its licensed investment officers and other persons employed by the police and fire pension fund;
(2) Reasonably discharged the duties and obligations incumbent on the chief investment officer by reason of the established procedures and the system for applying the procedures when the officer had no reasonable cause to believe that there was a failure to comply with the procedures and systems;
(3) Reviewed, at least annually, the adequacy of the policies and procedures established pursuant to this section and the effectiveness of their implementation.
(C) The chief investment officer shall ensure that securities transactions are executed in such a manner that the fund's total costs or proceeds in each transaction are the most favorable under the circumstances.
For purposes of this division, no chief investment officer shall be considered to have failed to satisfy the officer's duty of best execution if the officer has done both of the following:
(1) Adopted and implemented a written policy that outlines the criteria used to select broker-dealers that execute securities transactions on behalf of the police and fire pension fund, which criteria shall include all of the following:
(a) Commissions charged by the broker-dealer, both in the aggregate and on a per share basis;
(b) The execution speed and trade settlement capabilities of the broker-dealer;
(c) The responsiveness, reliability, and integrity of the broker-dealer;
(d) The nature and value of research provided by the broker-dealer;
(e) Any special capabilities of the broker-dealer.
(2) Reviewed, at least annually, the performance of broker-dealers that execute securities transactions on behalf of the police and fire pension fund.
Sec. 742.38. (A)(1) The
board of trustees of the Ohio
police and fire
pension fund shall adopt rules establishing
minimum medical testing and
diagnostic
standards or procedures to
be incorporated into physical examinations
administered by
physicians
to prospective
members of the fund. The standards or
procedures shall include diagnosis and
evaluation of the existence
of any heart disease,
cardiovascular disease, or respiratory
disease. The
rules shall specify the form of the physician's
report and the
information to be included in it. The board shall notify all employers of the establishment of
the minimum
standards or procedures and shall include with the
notice a copy of the
standards or procedures. The
board shall
notify all employers of any changes made to the standards or
procedures. Once
the standards or procedures take effect,
employers shall cause each prospective member of the fund to
submit to a
physical examination that incorporates the standards
or procedures. (2) Division (A)(2) of
this section applies to an employee
who becomes a member of the
fund on or after the date the minimum
standards or procedures
described in division (A)(1) of
this
section take effect.
For
each employee
described in division
(A)(2) of this section, the employer shall
forward to the board a
copy of the physician's report of a
physical examination that
incorporates the standards or
procedures described in division
(A)(1) of this section. If an
employer fails to forward the
report
in the form required by the board on or before the date
that is sixty days after the employee
becomes a member of the
fund, the board shall assess
against the
employer a
penalty
determined
under
section 742.353 of the Revised Code. (B) Application for a disability benefit may be made by a
member of the fund or, if the member is incapacitated as defined
in rules
adopted by the board, by a person acting on the member's
behalf. Not later
than fourteen days after receiving
an
application for a disability benefit from a member or a person
acting on behalf of a member, the board shall notify the
member's
employer and the chief of police of the police department employing the member or the chief of the fire department employing the member, as applicable, that an application has been filed. The
notice shall
state the name of the member who filed the application or on whose behalf the application was filed and the member's position or rank. The notice and the fact that the application has been filed shall be confidential. Not
later than twenty-eight
days after receiving the notice or
filing an application on behalf
of a member, the employer shall
forward to the board a statement
certifying the member's job
description and any other information
required by the board to
process the application. If the member applying for a
disability benefit becomes a
member of the fund prior to the date
the minimum standards or
procedures described in division
(A)(1) of this section take
effect, the board may request from the member's employer a copy
of
the physician's report of the member's physical examination
taken
on entry into the police or fire department or, if the
employer
does not have a copy of the report, a written statement
certifying
that the employer does not have a copy of the report.
If an
employer fails to forward the report or statement
in the form
required by the board on or before the
date that is twenty-eight
days after the date of the request, the
board shall assess against
the employer a
penalty determined under section 742.353 of
the
Revised Code. The
board shall
maintain the information
submitted
under this division
and division
(A)(2) of this section
in the
member's
file. (C) For purposes of
determining under division (D) of this
section whether a member of
the fund is disabled,
the board shall
adopt rules establishing objective criteria
under which the board
shall make the determination. The
rules shall include standards
that provide for all of the
following: (1) Evaluating a member's illness or injury on
which an
application for disability benefits is based; (2) Defining the occupational duties of a police officer
or
firefighter; (3) Providing for the board
to assign competent and
disinterested physicians and
vocational evaluators to conduct
examinations of a
member; (4) Requiring a written
report for each disability
application that
includes a summary of findings, medical opinions,
including an opinion on whether the illness or injury upon which
the member's application for disability benefits is based was
caused or induced by the actual performance of the member's
official duties, and any recommendations or comments based on
the
medical opinions; (5) Providing for the board to consider the member's
potential for retraining or reemployment. (D) This division does
not apply to members of the fund who
have elected to receive
benefits and pensions in accordance with
division (A) or
(B) of section 742.37 of the Revised Code or from
a police relief
and pension fund or a firemen's relief and pension
fund in
accordance with the rules of that fund in force on
April
1, 1947. (1) As used in division (D)(1) of this section: (a) "Totally disabled" means a member
of the fund is unable
to perform the duties of any gainful
occupation for which the
member is reasonably fitted by
training, experience, and
accomplishments. Absolute
helplessness is not a prerequisite of
being totally
disabled. (b) "Permanently disabled" means a
condition of disability
from which there is no present
indication of recovery. A member of the fund who is permanently and totally
disabled
as the result of the performance of the member's
official duties
as a member of a police or fire department shall
be paid annual
disability benefits in accordance with division
(A) of section
742.39 of the Revised Code. In determining whether a
member of
the fund is permanently and totally disabled, the board shall
consider standards adopted under division (C) of this section
applicable to the determination. (2) A member of the fund who is partially disabled as the
result of the performance of the member's official duties as a
member of a police or fire department shall, if the disability
prevents the
member from performing those duties and impairs the
member's earning capacity,
receive annual
disability benefits in
accordance with division
(B) of section 742.39 of the Revised
Code. In determining whether a member of the
fund is
partially
disabled, the board shall consider standards adopted under
division
(C) of this section applicable to the determination. (3) A member of the fund who is disabled as a result of
heart disease or
any
cardiovascular or respiratory disease of a
chronic nature, which disease or any evidence of which disease
was
not revealed by the physical examination passed by the
member on
entry into the department, is presumed to have
incurred the
disease while performing the member's official
duties, unless the
contrary is shown by competent
evidence. (4) A member of the fund who has completed five or more
years of active service in a police or fire department and has
incurred a disability not caused or induced by the actual
performance of the member's official duties as a member of the
department, or by the member's own negligence, shall if the
disability
prevents the member from performing those duties and
impairs the member's
earning capacity, receive
annual disability
benefits in accordance with division
(C) of section 742.39 of the
Revised Code. In determining whether a member of
the
fund is
disabled,
the board shall consider standards adopted under
division
(C) of this section applicable
to the determination. (5) The board shall notify a member of its final action
awarding a disability benefit to the member within thirty days
of
the final action. The notice shall be sent by certified
mail,
return receipt requested. Not later than ninety days
after
receipt of notice from the board, the member shall elect,
on a
form provided by the board, either to accept or waive the
disability benefit award. If the member elects to waive the
disability benefit award or fails to make an election within the
time period, the award is rescinded. A member who later seeks a
disability benefit award shall be required to make a new
application, which shall be dealt with in accordance with the
procedures used for original disability benefit
applications. A person is not eligible to apply for or receive
disability
benefits under this division, section 742.39 of the Revised Code,
or division
(C)(2), (3), (4), or (5) of
former section 742.37 of
the Revised Code unless the person is a
member of the fund on the
date on which the application for
disability benefits is submitted
to the fund. With the exception of persons who may make application for
increased
benefits as provided in
division (D)(2) or (4) of this
section or division (C)(3) or (5) of
former section 742.37 of the
Revised Code on or after
July 24, 1986, or persons who may
make
application for benefits as provided in section 742.26 of
the
Revised Code, no person receiving a pension or
benefit under this
section or division (C) of former
section 742.37 of the Revised
Code
may apply for
any new, changed, or different benefit.
Sec. 742.41. (A) As used in this section: (1) "Other system retirant" has the same meaning as in
section 742.26 of the Revised Code. (2) "Personal history record" includes a member's, former
member's, or other system retirant's name, address,
telephone
number,
social security number, record of contributions,
correspondence
with the Ohio police and
fire pension fund, status
of any application for benefits, and any other information deemed
confidential by the trustees of the fund. (B) The treasurer of state shall furnish annually to the
board of trustees of the fund a sworn statement of the amount of
the funds in the treasurer of state's custody belonging
to
the
Ohio police and
fire
pension fund. The records of the fund shall
be
open for public inspection except for the following, which
shall
be excluded, except with the written authorization of the
individual concerned: (1) The individual's personal history record; (2) Any information identifying, by name and address, the
amount of a monthly allowance or benefit paid to the individual. (C) All medical reports and recommendations required are
privileged, except that copies of such medical reports or
recommendations shall be made available to the personal
physician,
attorney, or authorized agent of the individual
concerned upon
written release received from the individual
or the individual's
agent or,
when necessary for the proper administration of the
fund, to the
board-assigned physician. (D) Any person who is a member of the fund or an other
system retirant shall be furnished with a statement of the amount
to the credit of the person's individual account upon
the person's
written request. The fund need not answer
more than one such
request of a person
in any one year. (E) Notwithstanding the exceptions to public inspection in
division (B) of this section, the fund may furnish the
following
information: (1) If a member, former member, or other system retirant is
subject to an
order issued under section 2907.15 of the Revised
Code or
is convicted of or pleads guilty to a violation of section
2921.41 of the Revised Code, on written request of a prosecutor
as
defined in section 2935.01 of the Revised Code, the
fund
shall
furnish to the prosecutor the information requested from
the
individual's personal history record. (2) Pursuant to a court order issued pursuant to Chapter
3119., 3121., 3123., or 3125.
of the Revised Code, the fund shall
furnish to a court or
child
support enforcement agency the
information required under that
section. (3) At the request of any organization or association of
members of the fund, the fund shall
provide a list of the names
and addresses of members of the fund
and other system retirants.
The fund shall comply with
the
request of such organization or
association at least once a year
and may impose a reasonable
charge for the list. (4) Within fourteen days after receiving from the director
of job and family services a list of the names and social
security
numbers
of recipients of public assistance pursuant to section
5101.181
of the Revised Code, the fund shall inform the auditor
of
state
of the name, current or most recent employer address, and
social
security number of each member or other system retirant
whose
name and social security number are the same as that of a
person
whose name or social security number was submitted by the
director. The fund and its employees shall, except for
purposes
of furnishing the auditor of state with information required by
this section, preserve the confidentiality of recipients of
public
assistance in compliance with division (A) of section
5101.181 of
the Revised Code. (5) The
fund shall comply with orders issued under section
3105.87 of the Revised Code. On the written request of an alternate payee, as defined in
section 3105.80 of the Revised
Code, the fund shall furnish to
the
alternate payee information on the amount and status of any
amounts
payable to the alternate payee under an order issued under
section 3105.171 or
3105.65 of the Revised Code. (6) At the request of any person, the fund shall make available to the person copies of all documents, including resumes, in the fund's possession regarding filling a vacancy of a police officer employee member, firefighter employee member, police retirant member, or firefighter retirant member of the board of trustees. The person who made the request shall pay the cost of compiling, copying, and mailing the documents. The information described in this division is a public record. (7) The fund shall furnish those personal history records kept by the fund to the secretary of state necessary for the purposes of certifying an election pursuant to section 111.30 of the Revised Code. The records provided pursuant to this division shall remain confidential while in the possession of the secretary of state. (F) A statement that contains information obtained from
the
fund's records that is signed by the secretary of
the board
of
trustees of the Ohio police and fire pension
fund and to which the
board's official seal is affixed, or copies
of the fund's records
to which the signature and seal
are
attached, shall be received as
true copies of the fund's
records
in any court or before any
officer of this state.
Sec. 742.99. (A) Whoever violates section 742.043 of the Revised Code shall be fined not more than one hundred dollars for each day of the violation. (B) Whoever violates division (B) of section 742.043 of the Revised Code shall be imprisoned for not more than six months or fined not more than five thousand dollars, or both.
(C) Fines imposed by the Ohio elections commission under this section shall be paid into the Ohio elections commission fund created under section 3513.10 of the Revised Code. Sec. 1707.01. As used in this chapter: (A) Whenever the context requires it, "division" or
"division of securities" may be read as "director of commerce" or
as "commissioner of securities." (B) "Security" means any certificate or instrument, or any oral, written, or electronic agreement, understanding, or opportunity, that
represents title to or interest in, or is secured by any lien or
charge upon, the capital, assets, profits, property, or credit of
any person or of any public or governmental body, subdivision, or
agency. It includes shares of stock, certificates for shares of
stock, an uncertificated security, membership interests in limited liability companies,
voting-trust certificates, warrants and options to purchase
securities, subscription rights, interim receipts, interim
certificates, promissory notes, all forms of commercial paper,
evidences of indebtedness, bonds, debentures, land trust
certificates, fee certificates, leasehold certificates, syndicate
certificates, endowment certificates, interests in or under profit-sharing or participation
agreements, interests in or under oil, gas, or mining leases, preorganization or reorganization
subscriptions,
preorganization certificates, reorganization
certificates,
interests in any trust or
pretended
trust, any investment contract, any life settlement
interest, any
instrument evidencing a promise or an agreement to
pay money,
warehouse receipts for intoxicating liquor, and the currency of
any
government other than those of the United States and Canada,
but
sections 1707.01 to 1707.45 of the Revised Code do not apply
to
the sale of real estate. (C)(1) "Sale" has the full meaning of "sale" as applied by
or accepted in courts of law or equity, and includes every
disposition, or attempt to dispose, of a security or of an
interest in a security. "Sale" also includes a contract to sell,
an exchange, an attempt to sell, an option of sale, a
solicitation
of a sale, a solicitation of an offer to buy, a
subscription, or
an offer to sell, directly or indirectly, by
agent, circular,
pamphlet, advertisement, or otherwise. (2) "Sell" means any act by which a sale is made. (3) The use of advertisements, circulars, or pamphlets in
connection with the sale of securities in this state exclusively
to the purchasers specified in division (D) of section 1707.03 of
the Revised Code is not a sale when the advertisements,
circulars,
and pamphlets describing and offering those securities
bear a
readily legible legend in substance as follows: "This
offer is
made on behalf of dealers licensed under sections
1707.01 to
1707.45 of the Revised Code, and is confined in this
state
exclusively to institutional investors and licensed
dealers." (4) The offering of securities by any person in
conjunction
with a licensed dealer by use of advertisement,
circular, or
pamphlet is not a sale if that person does not
otherwise attempt
to sell securities in this state. (5) Any security given with, or as a bonus on account of,
any purchase of securities is conclusively presumed to constitute
a part of the subject of that purchase and has been "sold." (6) "Sale" by an owner, pledgee, or mortgagee, or by a
person acting in a representative capacity, includes sale on
behalf of such party by an agent, including a licensed dealer or
salesperson. (D) "Person," except as otherwise provided in this
chapter,
means a natural person, firm, partnership,
limited partnership,
partnership association, syndicate,
joint-stock company,
unincorporated association, trust or trustee
except where the
trust was created or the trustee designated by
law or judicial
authority or by a will, and a corporation or
limited liability
company organized under the laws of any state,
any foreign
government, or any political subdivision of a state
or foreign
government. (E)(1) "Dealer," except as otherwise provided in this
chapter, means every person, other than a salesperson,
who engages
or professes to engage, in this state, for either all or part of
the person's time, directly or indirectly, either in the business
of the sale of securities for the person's own account, or in the
business
of the purchase or sale of securities for the account of
others in the
reasonable expectation of receiving a commission,
fee, or other
remuneration as a result of engaging in the purchase
and sale of
securities. "Dealer" does not mean any of the
following: (a) Any issuer, including any officer, director, employee,
or trustee of, or member or manager of, or partner in, or any
general partner of, any
issuer, that sells, offers for sale, or
does any act in
furtherance of the sale of a security that
represents an economic
interest in that issuer, provided no
commission, fee, or other
similar remuneration is paid to or
received by the issuer for the
sale; (b) Any licensed attorney, public accountant, or firm of
such attorneys or accountants, whose activities are incidental to
the practice of the attorney's, accountant's, or firm's
profession; (c) Any person that, for the account of others, engages in
the purchase or sale of securities that are issued and
outstanding
before such purchase and sale, if a majority or more
of the equity
interest of an issuer is sold in that transaction,
and if, in the
case of a corporation, the securities sold in that
transaction
represent a majority or more of the voting power of
the
corporation in the election of directors; (d) Any person that brings an issuer together with a
potential investor and whose compensation is not directly or
indirectly based on the sale of any securities by the issuer to
the investor; (f) Any person that the division of securities by rule
exempts from the definition of "dealer" under division (E)(1) of
this section. (2) "Licensed dealer" means a dealer licensed under
this
chapter. (F)(1) "Salesman" or "salesperson" means every natural
person,
other than a dealer, who is employed, authorized, or
appointed by a dealer to
sell securities within this state. (2) The general partners of a partnership, and the
executive
officers of a corporation or unincorporated
association, licensed
as a dealer are not salespersons
within the meaning of this
definition, nor are such clerical or other
employees of an issuer
or dealer as are employed for work to
which the sale of securities
is secondary and incidental; but the
division of securities may
require a license from any such
partner, executive officer, or
employee if it determines that
protection of the public
necessitates the licensing. (3) "Licensed salesperson" means a
salesperson licensed
under this chapter. (G) "Issuer" means every person who has issued, proposes
to
issue, or issues any security. (H) "Director" means each director or trustee of a
corporation, each trustee of a trust, each general partner of a
partnership, except a partnership association, each manager of a
partnership association, and any person vested with managerial or
directory power over an issuer not having a board of directors or
trustees. (I) "Incorporator" means any incorporator of a corporation
and any organizer of, or any person participating, other than in
a
representative or professional capacity, in the organization of
an
unincorporated issuer. (J) "Fraud," "fraudulent," "fraudulent acts," "fraudulent
practices," or
"fraudulent transactions" means anything recognized
on or after
July 22, 1929, as such in courts of law or equity; any
device,
scheme, or artifice to defraud or to obtain money or
property by
means of any false pretense, representation, or
promise; any
fictitious or pretended purchase or sale of
securities; and any
act, practice, transaction, or course of
business relating to the
purchase or sale of securities that is
fraudulent or that has operated
or
would operate as a fraud upon
the seller or purchaser. (K) Except as otherwise specifically provided, whenever
any
classification or computation is based upon "par value," as
applied to securities without par value, the average of the
aggregate consideration received or to be received by the issuer
for each class of those securities shall be used as the basis for
that classification or computation. (L)(1) "Intangible property" means patents, copyrights,
secret processes, formulas, services, good will, promotion and
organization fees and expenses, trademarks, trade brands, trade
names, licenses, franchises, any other assets treated as
intangible according to generally accepted accounting principles,
and securities, accounts receivable, or contract rights having no
readily determinable value. (2) "Tangible property" means all property other than
intangible property and includes securities, accounts receivable,
and contract rights, when the securities, accounts receivable, or
contract rights have a readily determinable value. (M) "Public utilities" means those utilities defined in
sections 4905.02, 4905.03, 4907.02, and 4907.03 of the Revised
Code; in the case of a foreign corporation, it means those
utilities defined as public utilities by the laws of its
domicile;
and in the case of any other foreign issuer, it means
those
utilities defined as public utilities by the laws of the
situs of
its principal place of business. The term always
includes
railroads whether or not they are so defined as public
utilities. (N) "State" means any state of the United States, any
territory or possession of the United States, the District of
Columbia, and any province of Canada. (O) "Bank" means any bank, trust company, savings and loan
association, savings bank, or credit union that is
incorporated or
organized
under the laws of the United States, any state of the
United
States, Canada, or any province of Canada and that is
subject to
regulation or supervision by that country, state, or
province. (P) "Include," when used in a definition, does not exclude
other things or persons otherwise within the meaning of the term
defined. (Q)(1) "Registration by description" means that the
requirements of section 1707.08 of the Revised Code have been
complied with. (2) "Registration by qualification" means that the
requirements of sections 1707.09 and 1707.11 of the Revised Code
have been complied with. (3) "Registration by coordination" means that there has
been
compliance with section 1707.091 of the Revised Code.
Reference in
this chapter to registration by qualification also
shall be deemed
to include registration by coordination unless
the context
otherwise indicates. (R) "Intoxicating liquor" includes all liquids and
compounds
that contain more than three and two-tenths per cent of
alcohol by
weight and are fit for use for beverage purposes. (S) "Institutional investor" means any corporation, bank,
insurance company, pension fund or pension fund trust, employees'
profit-sharing fund or employees' profit-sharing trust, any
association engaged, as a substantial part of its business or
operations, in purchasing or holding securities, or any trust in
respect of which a bank is trustee or cotrustee. "Institutional
investor" does not include any business entity formed for the
primary purpose of evading sections 1707.01 to 1707.45 of the
Revised Code. (T) "Securities Act of 1933," 48 Stat. 74, 15 U.S.C.
77a,
"Securities Exchange Act of 1934," 48 Stat. 881,
15 U.S.C. 78a,
"Internal Revenue Code of
1986," 100 Stat. 2085, 26 U.S.C. 1,
"Investment Advisers
Act of 1940," 54 Stat. 847, 15 U.S.C. 80b,
and
"Investment Company Act of 1940," 54 Stat.
789, 15 U.S.C. 80a
mean the federal
statutes of those names as amended before or
after March 18, 1999. (U) "Securities and exchange commission" means the
securities and exchange commission established by the Securities
Exchange Act of 1934. (V)(1) "Control bid" means the purchase of or offer to
purchase any equity security of a subject company from a resident
of this state if either of the following applies: (a) After the purchase of that security, the offeror would
be directly or indirectly the beneficial owner of more than ten
per cent of any class of the issued and outstanding equity
securities of the issuer. (b) The offeror is the subject company, there is a pending
control bid by a person other than the issuer, and the number of
the issued and outstanding shares of the subject company would be
reduced by more than ten per cent. (2) For purposes of division (V)(1) of this section,
"control bid" does not include any of the following: (a) A bid made by a dealer for the dealer's own account in
the
ordinary course of business of buying and selling securities; (b) An offer to acquire any equity security solely in
exchange for any other security, or the acquisition of any equity
security pursuant to an offer, for the sole account of the
offeror, in good faith and not for the purpose of avoiding the
provisions of this chapter, and not involving any public offering
of the other security within the meaning of Section 4 of Title I
of the "Securities Act of 1933," 48 Stat. 77, 15 U.S.C.A. 77d(2),
as amended; (c) Any other offer to acquire any equity security, or the
acquisition of any equity security pursuant to an offer, for the
sole account of the offeror, from not more than fifty persons, in
good faith and not for the purpose of avoiding the provisions of
this chapter. (W) "Offeror" means a person who makes, or in any way
participates or aids in making, a control bid and includes
persons
acting jointly or in concert, or who intend to exercise
jointly or
in concert any voting rights attached to the
securities for which
the control bid is made and also includes
any subject company
making a control bid for its own securities. (X)(1) "Investment adviser" means any person
who, for
compensation, engages in the business of advising
others, either
directly or through publications or writings, as
to the value of
securities or as to the advisability of investing
in, purchasing,
or selling securities, or who, for compensation
and as a part of
regular business, issues or promulgates analyses
or reports
concerning securities.
(2) "Investment adviser" does not mean any of the following: (a) Any attorney, accountant, engineer, or teacher, whose
performance of
investment advisory services described in division
(X)(1) of this
section is solely incidental to the practice of the
attorney's,
accountant's, engineer's, or teacher's profession; (b) A publisher of any bona fide
newspaper, news magazine,
or business or financial publication of
general and regular
circulation; (c) A person who acts solely as an investment adviser
representative; (d) A bank holding company, as defined in the "Bank
Holding
Company Act of 1956," 70 Stat.
133, 12 U.S.C. 1841, that is not an
investment
company; (e) A bank, or any receiver, conservator, or other
liquidating
agent of a bank; (f) Any licensed dealer or licensed salesperson whose
performance
of investment advisory services described in division
(X)(1) of this
section is solely incidental to the conduct of the
dealer's or salesperson's
business as a licensed dealer or
licensed salesperson and who receives no
special compensation for
the services; (g) Any person, the advice, analyses, or reports of which do
not
relate to securities other than securities that are direct
obligations of, or
obligations guaranteed as to principal or
interest by, the United
States, or securities issued or guaranteed
by corporations in which
the United States has a direct or
indirect interest, and
that have been designated by the secretary
of the treasury as exempt
securities as defined in the "Securities
Exchange
Act of 1934," 48 Stat. 881, 15 U.S.C. 78c; (h) Any person that is excluded from the definition of
investment adviser pursuant to section
202(a)(11)(A) to (E) of the
"Investment Advisers Act of 1940," 15 U.S.C.
80b-2(a)(11), or that
has received an
order from the securities and exchange commission
under section
202(a)(11)(F) of the "Investment Advisers Act of
1940," 15 U.S.C.
80b-2(a)(11)(F), declaring that the person is not
within the intent of section
202(a)(11) of the Investment Advisers
Act of 1940. (i) A person who acts solely as a state retirement system investment officer; (j) Any other person that the division designates by rule,
if the
division finds that the designation is necessary or
appropriate in the public
interest or for the protection of
investors or clients and consistent with the
purposes fairly
intended by the policy and provisions of this chapter. (Y)(1) "Subject company" means an issuer that satisfies
both
of the following: (a) Its principal place of business or its principal
executive office is located in this state, or it owns or controls
assets located within this state that have a fair market value of
at least one million dollars. (b) More than ten per cent of its beneficial or record
equity security holders are resident in this state, more than ten
per cent of its equity securities are owned beneficially or of
record by residents in this state, or more than one thousand of
its beneficial or record equity security holders are resident in
this state. (2) The division of securities may adopt rules to
establish
more specific application of the provisions set forth
in division
(Y)(1) of this section. Notwithstanding the
provisions set forth
in division (Y)(1) of this section and any
rules adopted under
this division, the division, by rule or in an
adjudicatory
proceeding, may make a determination that an issuer
does not
constitute a "subject company" under division (Y)(1) of
this
section if appropriate review of control bids involving the
issuer
is to be made by any regulatory authority of another
jurisdiction. (Z) "Beneficial owner" includes any person who directly or
indirectly through any contract, arrangement, understanding, or
relationship has or shares, or otherwise has or shares, the power
to vote or direct the voting of a security or the power to
dispose
of, or direct the disposition of, the security.
"Beneficial
ownership" includes the right, exercisable within
sixty days, to
acquire any security through the exercise of any
option, warrant,
or right, the conversion of any convertible
security, or
otherwise. Any security subject to any such option,
warrant,
right, or conversion privilege held by any person shall
be deemed
to be outstanding for the purpose of computing the
percentage of
outstanding securities of the class owned by that
person, but
shall not be deemed to be outstanding for the purpose
of computing
the percentage of the class owned by any other
person. A person
shall be deemed the beneficial owner of any
security beneficially
owned by any relative or spouse or relative
of the spouse residing
in the home of that person, any trust or
estate in which that
person owns ten per cent or more of the
total beneficial interest
or serves as trustee or executor, any
corporation or entity in
which that person owns ten per cent or
more of the equity, and any
affiliate or associate of that
person. (AA) "Offeree" means the beneficial or record owner of any
security that an offeror acquires or offers to acquire in
connection with a control bid. (BB) "Equity security" means any share or similar
security,
or any security convertible into any such security, or
carrying
any warrant or right to subscribe to or purchase any
such
security, or any such warrant or right, or any other
security
that, for the protection of security holders, is treated
as an
equity security pursuant to rules of the division of
securities. (CC)(1) "Investment adviser representative" means a
supervised
person of an investment adviser, provided that
the
supervised
person has more than five clients who are
natural
persons other
than excepted persons defined in division
(EE)
of
this section,
and that more than ten per cent of the
supervised
person's clients
are natural persons other than excepted persons
defined in
division
(EE) of this section. "Investment adviser
representative" does not mean any of the following:
(a) A supervised person that does not on a regular basis
solicit,
meet with, or otherwise communicate with clients of the
investment adviser; (b) A supervised person that provides only investment
advisory
services described in division (X)(1) of this section by
means of
written materials or oral statements that do not purport
to meet the
objectives or needs of specific individuals or
accounts; (c) Any other person that the division designates
by rule,
if the division finds that the designation is necessary
or
appropriate in the public interest or for the protection of
investors or clients and is consistent with the provisions
fairly
intended by the policy and provisions of this
chapter. (2) For the purpose of the calculation of clients in
division
(CC)(1) of this section, a
natural person and the
following persons are deemed a single
client: Any minor child of
the natural person; any relative,
spouse, or relative of the
spouse of the natural person who has
the same principal residence
as the natural person; all accounts
of which the natural person or
the persons referred to in
division
(CC)(2) of this
section
are
the only primary beneficiaries; and all trusts of
which the
natural person or persons referred to in division
(CC)(2) of
this
section are the
only primary beneficiaries. Persons who are
not
residents of the
United States
need not be included in the
calculation of clients
under division
(CC)(1) of this section. (3) If subsequent to March 18, 1999, amendments are enacted
or adopted defining "investment adviser representative" for
purposes of the
Investment
Advisers Act of 1940 or additional
rules
or regulations are promulgated by the securities and
exchange
commission regarding the definition of "investment
adviser
representative" for purposes of the
Investment Advisers
Act of 1940, the division of
securities shall, by rule, adopt the
substance of the
amendments, rules, or regulations, unless the
division finds
that the amendments, rules, or regulations are not
necessary for
the protection of investors or in the public
interest.
(DD) "Supervised person" means a natural person who is
any
of the
following: (1) A partner, officer, or director of an investment
adviser, or other
person occupying a similar status or performing
similar functions with respect
to an investment adviser; (2) An employee of an investment adviser; (3) A person who provides investment advisory services
described in
division (X)(1) of this section on behalf of the
investment adviser
and is subject to the supervision and control
of the investment adviser. (EE) "Excepted person" means a natural person to whom
any of
the following applies: (1) Immediately after entering into the investment advisory
contract with
the investment adviser, the person has at least
seven hundred fifty thousand
dollars
under the management of the
investment adviser. (2) The investment adviser reasonably believes either of the
following at
the time the investment advisory contract is entered
into with the person: (a) The person has a net
worth, together with assets held
jointly with a spouse, of more than one
million five hundred
thousand dollars. (b) The person is a qualified purchaser as
defined in
division (FF)
of this section. (3) Immediately prior to entering into an investment
advisory contract with the investment adviser, the person is
either of the following: (a) An executive officer, director,
trustee, general
partner, or person serving in a similar
capacity, of the
investment adviser; (b) An employee of the investment
adviser, other than an
employee performing solely clerical,
secretarial, or
administrative functions or duties for the
investment adviser,
which employee, in connection with the
employee's regular
functions or duties, participates in the
investment activities of
the investment adviser, provided that,
for at least twelve months,
the employee has been performing
such nonclerical, nonsecretarial,
or nonadministrative functions
or duties for or on behalf of the
investment adviser or
performing substantially similar functions
or duties for or on
behalf of another company. If subsequent to March 18, 1999,
amendments are enacted or
adopted defining "excepted person" for
purposes of the Investment
Advisers Act of 1940 or additional rules
or regulations are
promulgated by the securities and exchange
commission regarding
the definition of "excepted person" for
purposes of the Investment
Advisers
Act of 1940, the division of
securities shall, by rule,
adopt the substance of the
amendments, rules, or regulations,
unless the division finds
that the amendments, rules, or
regulations are not necessary for
the protection of investors or
in the public interest.
(FF)(1) "Qualified purchaser" means either of the
following: (a) A natural person who owns
not less than five million
dollars in investments as defined by
rule by the division of
securities; (b) A natural person, acting for
the person's own account or
accounts of other qualified
purchasers, who in the aggregate owns
and invests on a
discretionary basis, not less than twenty-five
million dollars
in investments as defined by rule by the division
of
securities. (2) If subsequent to March 18, 1999, amendments are
enacted
or adopted defining "qualified purchaser" for purposes of the
Investment Advisers Act of 1940 or additional rules
or regulations
are promulgated by the securities and exchange
commission
regarding the definition of "qualified purchaser" for
purposes of
the Investment Advisers Act of 1940, the division of
securities
shall, by rule, adopt the amendments, rules, or
regulations,
unless the division finds that the amendments,
rules, or
regulations are not necessary for the protection of
investors or
in the public interest.
(GG)(1) "Purchase" has the full meaning of "purchase" as
applied
by or accepted in courts of law or equity and includes
every acquisition of,
or attempt to acquire, a security or an
interest in a security. "Purchase"
also includes a contract to
purchase, an exchange, an attempt to purchase, an
option to
purchase, a solicitation of a purchase, a
solicitation of an offer
to sell, a subscription, or an offer to purchase,
directly or
indirectly, by agent, circular, pamphlet, advertisement, or
otherwise. (2) "Purchase" means any act by which a purchase is made. (3) Any security given with, or as a bonus on account of,
any purchase of
securities is conclusively presumed to constitute
a part of the subject of
that purchase. (HH) "Life settlement interest" means the entire
interest or
any fractional interest in an insurance policy or
certificate of
insurance, or in an insurance benefit under such a
policy or
certificate,
that is the subject of a life settlement
contract. For purposes of this division, "life settlement contract"
means an
agreement for the purchase, sale, assignment, transfer,
devise, or
bequest of any portion of the death benefit or
ownership of any life
insurance policy or contract, in return for
consideration or any other
thing of value that is less than the
expected death benefit of the
life insurance policy or contract.
"Life settlement contract"
includes a viatical settlement contract
as defined in section
3916.01 of the Revised Code, but does not
include any of the
following: (1) A loan by an insurer under the terms of a life insurance
policy, including, but not limited to, a loan secured by the cash
value of
the policy; (2) An agreement with a bank that takes an assignment of a
life
insurance policy as collateral for a loan; (3) The provision of accelerated benefits as defined in
section
3915.21 of the Revised Code; (4) Any agreement between an insurer and a reinsurer; (5) An agreement by an individual to purchase an existing
life
insurance policy or contract from the original owner of the
policy
or contract, if the individual does not enter into more
than one
life settlement contract per calendar year;
(6) The initial purchase of an insurance policy or
certificate of
insurance from its owner by a viatical settlement
provider, as defined
in section 3916.01 of the Revised Code, that
is
licensed under
Chapter 3916. of the Revised
Code. (II) "State retirement system" means the public employees retirement system, Ohio police and fire pension fund, state teachers retirement system, school employees retirement system, and state highway patrol retirement system.
(JJ) "State retirement system investment officer" means an individual employed by a state retirement system as a chief investment officer, assistant investment officer, or the person in charge of a class of assets or in a position that is substantially equivalent to chief investment officer, assistant investment officer, or person in charge of a class of assets.
Sec. 1707.03. (A) As used in this section,
"exempt" means
that, except in the case of securities the right to buy, sell, or
deal in which has been suspended or revoked under an existing
order of the division of securities under section 1707.13 of the
Revised Code or under a cease and desist order under division (H)(G)
of section 1707.23 of the Revised Code, transactions in
securities
may be carried on and completed without compliance
with sections
1707.08 to 1707.11 of the Revised Code. (B) A sale of securities made by or on behalf of a bona
fide
owner, neither the issuer nor a dealer, is exempt if the
sale is
made in good faith and not for the purpose of avoiding
this
chapter and is not made in the course of repeated and
successive
transactions of a similar character. Any sale of
securities over
a stock exchange that is lawfully conducted in
this state and
regularly open for public patronage and that has
been established
and operated for a period of at least five years
prior to the sale
at a commission not exceeding the commission
regularly charged in
such transactions also is exempt. (C) The sale of securities by executors, administrators,
receivers, trustees, or anyone acting in a fiduciary capacity is
exempt, where such relationship was created by law, by a will, or
by judicial authority, and where such sales are subject to
approval by, or are made in pursuance to authority granted by,
any
court of competent jurisdiction or are otherwise authorized
and
lawfully made by such fiduciary. (D) A sale to the issuer, to a dealer, or to an
institutional investor is exempt. (E) A sale in good faith, and not for the purpose of
avoiding this chapter, by a pledgee of a security pledged for a
bona fide debt is exempt. (F) The sale at public auction by a corporation of shares
of
its stock because of delinquency in payment for the shares is
exempt. (G)(1) The giving of any conversion right with, or on
account of the purchase of, any security that is exempt, is the
subject matter of an exempt transaction, has been registered by
description, by coordination, or by qualification, or is the
subject matter of a transaction that has been registered by
description is exempt. (2) The giving of any subscription right, warrant, or
option
to purchase a security or right to receive a security upon
exchange, which security is exempt at the time the right,
warrant,
or option to purchase or right to receive is given, is
the subject
matter of an exempt transaction, is registered by
description, by
coordination, or by qualification, or is the
subject matter of a
transaction that has been registered by
description is exempt. (3) The giving of any subscription right or any warrant or
option to purchase a security, which right, warrant, or option
expressly provides that it shall not be exercisable except for a
security that at the time of the exercise is exempt, is the
subject matter of an exempt transaction, is registered by
description, by coordination, or by qualification, or at such
time
is the subject matter of a transaction that has been
registered by
description is exempt. (H) The sale of notes, bonds, or other evidences of
indebtedness that are secured by a mortgage lien upon real
estate,
leasehold estate other than oil, gas, or mining
leasehold, or
tangible personal property, or which evidence of
indebtedness is
due under or based upon a conditional-sale
contract, if all such
notes, bonds, or other evidences of
indebtedness are sold to a
single purchaser at a single sale, is
exempt. (I) The delivery of securities by the issuer on the
exercise
of conversion rights, the sale of securities by the
issuer on
exercise of subscription rights or of warrants or
options to
purchase securities, the delivery of voting-trust
certificates for
securities deposited under a voting-trust
agreement, the delivery
of deposited securities on surrender of
voting-trust certificates,
and the delivery of final certificates
on surrender of interim
certificates are exempt; but the sale of
securities on exercise of
subscription rights, warrants, or
options is not an exempt
transaction unless those rights,
warrants, or options when granted
were the subject matter of an
exempt transaction under division
(G) of this section or were
registered by description, by
coordination, or by qualification. (J) The sale of securities by a bank, savings and loan
association, savings bank, or credit union organized under the
laws of the United States or of this state is exempt if at a
profit to that seller of not more than two per cent of the total
sale price of the securities. (K)(1) The distribution by a corporation of its securities
to its security holders as a share dividend or other distribution
out of earnings or surplus is exempt. (2) The exchange or distribution by the issuer of any of
its
securities or of the securities of any of the issuer's wholly
owned subsidiaries exclusively with or to its existing security
holders, if no commission or other remuneration is given directly
or indirectly for soliciting the exchange, is exempt. (3) The sale of preorganization subscriptions for shares
of
stock of a corporation prior to the incorporation of the
corporation is
exempt, when the sale is evidenced by a written
agreement, no
remuneration is given, or promised, directly or
indirectly, for
or in connection with the sale of those
securities, and no
consideration is received, directly or
indirectly, by any person
from the purchasers of those securities
until registration by
qualification, by coordination, or by
description of those
securities is made under this chapter. (L) The issuance of securities in exchange for one or more
bona fide outstanding securities, claims, or property interests,
not including securities sold for a consideration payable in
whole
or in part in cash, under a plan of reorganization,
recapitalization, or refinancing approved by a court pursuant to
the Bankruptcy Act of the United States or to any other federal
act giving any federal court jurisdiction over such plan of
reorganization, or under a plan of reorganization approved by a
court of competent jurisdiction of any state of the United States
is exempt. As used in this division,
"reorganization,"
"recapitalization," and
"refinancing" have the same meanings as
in
section 1707.04 of the Revised Code. (M) A sale by a licensed dealer, acting either as
principal
or as agent, of securities issued and outstanding
before the sale
is exempt, unless the sale is of one or more of
the following: (1) Securities constituting the whole or a part of an
unsold
allotment to or subscription by a dealer as an underwriter
or
other participant in the distribution of those securities by
the
issuer, whether that distribution is direct or through an
underwriter, provided that, if the issuer is such by reason of
owning one-fourth or more of those securities, the dealer has
knowledge of this fact or reasonable cause to believe
this fact; (2) Any class of shares issued by a corporation when the
number of beneficial owners of that class is less than
twenty-five, with the record owner of securities being deemed the
beneficial owner for this purpose, in the absence of actual
knowledge to the contrary; (3) Securities that within one year were purchased outside
this state or within one year were transported into this state,
if
the dealer has knowledge or reasonable cause to believe,
before
the sale of those securities, that within one year they
were
purchased outside this state or within one year were
transported
into this state; but such a sale of those securities
is exempt if
any of the following occurs: (a) A recognized securities manual contains the names of
the
issuer's officers and directors, a balance sheet of the
issuer as
of a date within eighteen months, and a profit and loss
statement
for either the fiscal year preceding that date or the
most recent
year of operations; (b) Those securities, or securities of the same class,
within one year were
registered or
qualified
under section 1707.09
or 1707.091 of the Revised Code,
and that
registration or
qualification is in full force and
effect; (c) The sale is made by a licensed dealer on behalf of the
bona fide owner of those securities in accordance with division
(B) of this section; (d) Those securities were transported into Ohio in a
transaction of the type described in division (L), (K), or (I) of
this section, or in a transaction registered under division (A)
of
section 1707.06 of the Revised Code. (N) For the purpose of this division and division (M) of
this section,
"underwriter" means any person who has purchased
from an issuer with a view to, or sells for an issuer in
connection with, the distribution of any security, or who
participates directly or indirectly in any such undertaking or in
the underwriting thereof, but
"underwriter" does not include a
person whose interest is limited to a discount, commission, or
profit from the underwriter or from a dealer that is not in
excess
of the customary distributors' or sellers' discount,
commission,
or profit; and
"issuer" includes any person or any
group of
persons acting in concert in the sale of such
securities, owning
beneficially one-fourth or more of the
outstanding securities of
the class involved in the transactions
in question, with the
record owner of securities being deemed the
beneficial owner for
this purpose, in the absence of actual
knowledge to the contrary. (O)(1) The sale of any equity security is exempt if all
the
following conditions are satisfied: (a) The sale is by the issuer of the security. (b) The total number of purchasers in this state of all
securities issued or sold by the issuer in reliance upon this
exemption during the period of one year ending with the date of
the sale does not exceed ten. A sale of securities registered
under this chapter or sold pursuant to an exemption under this
chapter other than this exemption shall not be integrated with a
sale pursuant to this exemption in computing the number of
purchasers under this exemption. (c) No advertisement, article, notice, or other
communication published in any newspaper, magazine, or similar
medium or broadcast over television or radio is used in
connection
with the sale, but the use of an offering circular or
other
communication delivered by the issuer to selected
individuals does
not destroy this exemption. (d) The issuer reasonably believes after reasonable
investigation that the purchaser is purchasing for investment. (e) The aggregate commission, discount, and other
remuneration, excluding legal, accounting, and printing fees,
paid
or given directly or indirectly does not exceed ten per cent
of
the initial offering price. (f) Any such commission, discount, or other remuneration
for
sales in this state is paid or given only to dealers or
salespersons registered pursuant to this chapter. (2) For the purposes of division (O)(1) of this section,
each of the following is deemed to be a single purchaser of a
security: husband and wife, a child and its parent or guardian
when the parent or guardian holds the security for the benefit of
the child, a corporation, a limited liability company, a
partnership, an association or other unincorporated entity, a
joint-stock company, or a trust, but only if the corporation,
limited liability company, partnership, association, entity,
joint-stock company, or trust was not formed for the purpose of
purchasing the security. (3) As used in division (O)(1) of this section,
"equity
security" means any stock or similar security of a corporation or
any membership interest in a limited liability company; or any
security convertible, with or without consideration, into such a
security, or carrying any warrant or right to subscribe to or
purchase such a security; or any such warrant or right; or any
other security that the division considers necessary or
appropriate, by such rules as it may prescribe in the public
interest or for the protection of investors, to treat as an
equity
security. (P) The sale of securities representing interests in or
under profit-sharing or participation agreements relating to oil
or gas wells located in this state, or representing interests in
or under oil or gas leases of real estate situated in this state,
is exempt if the securities are issued by an individual,
partnership, limited partnership, partnership association,
syndicate, pool, trust or trust fund, or other unincorporated
association and if each of the following conditions is complied
with: (1) The beneficial owners of the securities do not, and
will
not after the sale, exceed five natural persons; (2) The securities constitute or represent interests in
not
more than one oil or gas well; (3) A certificate or other instrument in writing is
furnished to each purchaser of the securities at or before the
consummation of the sale, disclosing the maximum commission,
compensation for services, cost of lease, and expenses with
respect to the sale of such interests and with respect to the
promotion, development, and management of the oil or gas well,
and
the total of that commission, compensation, costs, and
expenses
does not exceed twenty-five per cent of the aggregate
interests in
the oil or gas well, exclusive of any landowner's
rental or
royalty; (4) The sale is made in good faith and not for the purpose
of avoiding this chapter. (Q) The sale of any security is exempt if all of the
following conditions are satisfied: (1) The provisions of section 5 of the Securities Act of
1933 do not apply to the sale by reason of an exemption under
section 4 (2) of that act. (2) The aggregate commission, discount, and other
remuneration, excluding legal, accounting, and printing fees,
paid
or given directly or indirectly does not exceed ten per cent
of
the initial offering price. (3) Any such commission, discount, or other remuneration
for
sales in this state is paid or given only to dealers or
salespersons registered under this chapter. (4) The issuer or dealer files with the division of
securities, not later than sixty days after the sale, a report
setting forth the name and address of the issuer, the total
amount
of the securities sold under this division, the number of
persons
to whom the securities were sold, the price at which the
securities were sold, and the commissions or discounts paid or
given. (5) The issuer pays a filing fee of one hundred dollars
for
the first filing and fifty dollars for every subsequent
filing
during each calendar year. (R) A sale of a money order, travelers' check, or other
instrument for the transmission of money by a person qualified to
engage in such business under section 1109.60 or
Chapter 1315. of
the Revised Code is exempt. (S) A sale by a licensed dealer of securities that are in
the process of registration under the Securities Act of 1933,
unless exempt
under that
act, and that are in the process of
registration, if registration
is required under this chapter, is
exempt, provided that no sale
of that nature shall be consummated
prior to the registration by
description or qualification of the
securities. (T) The execution by a licensed dealer of orders for the
purchase of any security is exempt, provided that the dealer acts
only as agent for the purchaser, has made no solicitation of the
order to purchase the security, has no interest in the
distribution of the security, and delivers to the purchaser
written confirmation of the transaction that clearly itemizes
the
dealer's commission.
"Solicitation," as used in this division,
means
solicitation of the order for the specific security
purchased and
does not include general solicitations or
advertisements of any
kind. (U) The sale insofar as the security holders of a person
are
concerned, where, pursuant to statutory provisions of the
jurisdiction under which that person is organized or pursuant to
provisions contained in its articles of incorporation,
certificate
of incorporation, partnership agreement, declaration
of trust,
trust indenture, or similar controlling instrument,
there is
submitted to the security holders, for their vote or
consent, (1)
a plan or agreement for a reclassification of
securities of that
person that involves the substitution of a
security of that person
for another security of that person, (2)
a plan or agreement of
merger or consolidation or a similar plan
or agreement of
acquisition in which the securities of that
person held by the
security holders will become or be exchanged
for securities of any
other person, or (3) a plan or agreement
for a combination as
defined in division (Q) of section 1701.01
of the Revised Code or
a similar plan or agreement for the
transfer of assets of that
person to another person in
consideration of the issuance of
securities of any person, is
exempt if, with respect to any of the
foregoing transactions,
either of the following conditions is
satisfied: (a) The securities to be issued to the security holders
are
effectively registered under sections 6 to 8 of the
Securities Act
of 1933 and offered and sold in compliance with
section 5 of that
act; (b) At least twenty days prior to the date on which a
meeting of the security holders is held or the earliest date on
which corporate action may be taken when no meeting is held,
there
is submitted to the security holders, by that person, or by
the
person whose securities are to be issued in the transaction,
information substantially equivalent to the information that
would
be required to be included in a proxy statement or
information
statement prepared by or on behalf of the management
of an issuer
subject to section 14(a) or 14(c) of the
Securities Exchange Act
of 1934. (V) The sale of any security is exempt if the division by
rule finds that registration is not necessary or appropriate in
the public interest or for the protection of investors. (W) Any offer or sale of securities made in reliance on
the
exemptions provided by Rule 505 of Regulation D made pursuant
to
the Securities Act of 1933 and the conditions and definitions
provided by Rules 501 to 503 thereunder is exempt if the offer or
sale satisfies all of the following conditions: (1) No commission or other remuneration is given, directly
or indirectly, to any person for soliciting or selling to any
person in this state in reliance on the exemption under this
division, except to dealers licensed in this state. (2)(a) Unless the cause for disqualification is waived
under
division (W)(2)(b) of this section, no exemption under this
section is available for the securities of an issuer unless the
issuer did not know and in the exercise of reasonable care could
not have known that any of the following applies to any of the
persons described in Rule 262(a) to
(c) of Regulation A under the
Securities Act of 1933: (i) The person has filed an application for registration
or
qualification that is the subject of an effective order
entered
against the issuer, its officers, directors, general
partners,
controlling persons or affiliates thereof, pursuant to
the law of
any state within five years before the filing of a
notice required
under division (W)(3) of this section denying
effectiveness to, or
suspending or revoking the effectiveness of,
the registration
statement. (ii) The person has been convicted of any offense in
connection with the offer, sale, or purchase of any security or
franchise, or any felony involving fraud or deceit, including,
but
not limited to, forgery, embezzlement, fraud, theft, or
conspiracy
to defraud. (iii) The person is subject to an effective administrative
order or judgment that was entered by a state securities
administrator within five years before the filing of a notice
required under division (W)(3) of this section and that
prohibits,
denies, or revokes the use of any exemption from
securities
registration, prohibits the transaction of business by
the person
as a dealer, or is based on fraud, deceit, an untrue
statement of
a material fact, or an omission to state a material
fact. (iv) The person is subject to any order, judgment, or
decree
of any court entered within five years before the filing
of a
notice required under division (W)(3) of this section,
temporarily, preliminarily, or permanently restraining or
enjoining the person from engaging in or continuing any conduct
or
practice in connection with the offer, sale, or purchase of
any
security, or the making of any false filing with any state. (b)(i) Any disqualification under this division involving
a
dealer may be waived if the dealer is or continues to be
licensed
in this state as a dealer after notifying the
commissioner of the
act or event causing disqualification. (ii) The commissioner may waive any disqualification under
this paragraph upon a showing of good cause that it is not
necessary under the circumstances that use of the exemption be
denied. (3) Not later than five business days before the earlier
of
the date on which the first use of an offering document or the
first sale is made in this state in reliance on the exemption
under this division, there is filed with the commissioner a
notice
comprised of offering material in compliance with the
requirements
of Rule 502 of Regulation D under the Securities Act
of 1933 and a
fee of one hundred dollars. Material amendments to
the offering
document shall be filed with the commissioner not
later than the
date of their first use in this state. (4) The aggregate commission, discount, and other
remuneration paid or given, directly or indirectly, does not
exceed twelve per cent of the initial offering price, excluding
legal, accounting, and printing fees. (X) Any offer or sale of securities made in
reliance on the
exemption provided in
Rule 506 of
Regulation D under the
Securities Act of 1933, and in accordance
with Rules 501 to 503 of
Regulation D under the Securities Act of 1933, is exempt provided
that all of the following apply: (1) The issuer makes a notice filing with the division on
form D of the securities and
exchange commission within fifteen
days of the first sale in
this state; (2) Any commission, discount, or other remuneration for
sales of securities in this state is paid or given only to
dealers
or salespersons licensed under this chapter; (3) The issuer pays a filing fee of one hundred dollars to
the division; however, no filing fee shall be required to file
amendments to the form D of the
securities and exchange
commission. (Y) The offer or sale of securities by an issuer is exempt
provided that all of the following apply: (1) The sale of securities is made only to persons who
are,
or who the issuer reasonably believes are, accredited
investors as
defined in Rule 501 of Regulation D under the Securities Act of
1933. (2) The issuer reasonably believes that all purchasers are
purchasing for investment and not with a view to or for sale in
connection with a distribution of the security. Any resale of a
security sold in reliance on this exemption within twelve months
of sale shall be presumed to be with a view to distribution and
not for investment, except a resale to which any of the
following
applies: (a) The resale is pursuant to a
registration statement
effective under section 1707.09 or
1707.091 of the Revised
Code. (b) The resale is to an accredited
investor, as defined in
Rule 501 of Regulation
D under the Securities Act of 1933. (c) The resale is to an institutional
investor pursuant to
the exemptions under division
(B) or
(D) of this section. (3) The exemption under this division is not available to
an
issuer that is in the development stage and that either has
no
specific business plan or purpose or has indicated that its
business plan is to engage in a merger or acquisition with an
unidentified company or companies, or other entities or
persons. (4) The exemption under this division is not available to
an
issuer, if the issuer, any of the issuer's predecessors, any
affiliated issuer, any of the issuer's directors, officers,
general partners, or beneficial owners of ten per cent or more
of
any class of its equity securities, any of the issuer's
promoters
presently connected with the issuer in any capacity,
any
underwriter of the securities to be offered, or any partner,
director, or officer of such underwriter: (a) Within the past five years, has
filed a registration
statement that is the subject of a
currently effective
registration stop order entered by any state
securities
administrator or the securities and exchange
commission; (b) Within the past five years, has
been convicted of any
criminal offense in connection with the
offer, purchase, or sale
of any security, or involving fraud or
deceit; (c) Is currently subject to any state
or federal
administrative enforcement order or judgment, entered
within the
past five years, finding fraud or deceit in
connection with the
purchase or sale of any security; (d) Is currently subject to any order,
judgment, or decree
of any court of competent jurisdiction,
entered within the past
five years, that temporarily,
preliminarily, or permanently
restrains or enjoins the party
from engaging in or continuing to
engage in any conduct or
practice involving fraud or deceit in
connection with the
purchase or sale of any security. (5) Division (Y)(4) of
this section is inapplicable if any
of the following
applies: (a) The party subject to the
disqualification is licensed or
registered to conduct securities
business in the state in which
the order, judgment, or decree
creating the disqualification was
entered against the party
described in division (Y)(4) of this
section. (b) Before the first offer is made
under this exemption, the
state securities administrator,
or the court or regulatory
authority that entered the order,
judgment, or decree, waives the
disqualification. (c) The issuer did not know and, in
the exercise of
reasonable care based on reasonable
investigation, could not have
known that a disqualification from
the exemption existed under
division
(Y)(4) of this section. (6) A general announcement of the proposed offering may be
made by any means; however, the general announcement shall
include
only the following information, unless additional
information is
specifically permitted by the division by
rule: (a) The name, address, and telephone
number of the issuer of
the securities; (b) The name, a brief description, and
price of any security
to be issued; (c) A brief description of the
business of the issuer; (d) The type, number, and aggregate
amount of securities
being offered; (e) The name, address, and telephone
number of the person to
contact for additional information; and
(f) A statement indicating all of the
following: (i) Sales will only be made to accredited investors as
defined in
Rule 501 of Regulation D under the Securities Act of
1933; (ii) No money or other consideration
is being solicited or
will be accepted by way of this general
announcement; (iii) The securities have not been
registered with or
approved by any state securities
administrator or the securities
and exchange commission and are
being offered and sold pursuant to
an exemption from
registration. (7) The issuer, in connection with an offer, may provide
information in addition to the general announcement described in
division (Y)(6) of this
section, provided that either of the
following applies: (a) The information is delivered
through an electronic
database that is restricted to persons
that are accredited
investors as defined in Rule 501 of Regulation D under the
Securities Act of 1933. (b) The information is delivered after
the issuer reasonably
believes that the prospective purchaser is
an accredited investor
as defined in
Rule 501 of Regulation D under the Securities Act of
1933. (8) No telephone solicitation shall be done, unless prior
to
placing the telephone call, the issuer reasonably believes
that
the prospective purchaser to be solicited is an accredited
investor as defined in Rule 501 of Regulation
D under the
Securities Act of 1933. (9) Dissemination of the general announcement described in
division (Y)(6) of this section
to persons that are not accredited
investors, as defined in
Rule 501 of Regulation D under the
Securities Act of 1933, does not
disqualify the issuer from
claiming an exemption under this
division. (10) The issuer shall file with the division notice of the
offering of securities within fifteen days after notice of the
offering is made or a general announcement is made
in this state.
The filing shall be on forms
adopted by the division and shall
include a copy of the general
announcement, if one is made
regarding the proposed offering,
and copies of any offering
materials, circulars, or
prospectuses. A filing fee of one
hundred dollars also shall be
included.
Sec. 1707.162. (A) No person shall act as a state retirement system investment officer unless the person is licensed as a state retirement system investment officer by the division of securities. (B) No state retirement system investment officer shall act as a dealer, salesperson, investment advisor, or investment advisor representative. Sec. 1707.163. (A) Application for a state retirement system investment officer's license shall be made in accordance with this section by filing with the division of securities the information, materials, and forms specified in rules adopted by the division.
(B)(1) The division may investigate any applicant for a license and may require any additional information as it considers necessary to determine the applicant's business repute and qualifications to act as an investment officer.
(2) If the application for a state retirement system investment officer's license involves investigation outside of this state, the applicant may be required by the division to advance sufficient funds to pay any of the actual expenses of the investigation. The division shall furnish the applicant with an itemized statement of the expenses the applicant is required to pay.
(C) The division shall by rule require an applicant for a state retirement system investment officer's license to pass an examination designated by the division or achieve a specified professional designation unless the applicant meets both of the following requirements:
(1) Acts as a state retirement system investment officer on the effective date of this section;
(2) Has experience or equivalent education acceptable to the division.
(D) If the division finds that the applicant is of good business repute, appears to be qualified to act as a state retirement system investment officer, and has complied with this chapter and rules adopted under this chapter by the division, the division, on payment of the fees prescribed by division (B) of section 1707.17 of the Revised Code, shall issue to the applicant a license authorizing the applicant to act as a state retirement system investment officer. Sec. 1707.17. (A)(1) The license of every dealer in and
salesperson of securities shall expire on the thirty-first day of
December of each year, and may be renewed upon the filing with the
division
of securities of an application for renewal, and the
payment of
the fee prescribed in this section. The
division
shall
give notice, without unreasonable delay, of its
action on
any
application for renewal of a dealer's or
salesperson's license. (2) The license of every investment adviser and
investment
adviser representative licensed under section
1707.141 or 1707.161
of the Revised Code shall
expire on the thirty-first day of
December of each year.
The licenses may be renewed upon the
filing with the division of
an application for renewal, and the
payment of the
fee prescribed in division (B) of this section.
The
division shall give notice, without unreasonable delay, of its
action on any application for renewal. (3) An investment adviser required to make a notice filing
under division (B) of section 1707.141 of the
Revised Code
annually shall file with the division
the notice filing and the
fee prescribed in division (B)
of this section, no later than the
thirty-first day of
December of each year.
(4) The license of every state retirement system investment officer licensed under section 1707.163 of the Revised Code shall expire on the thirtieth day of June of each year. The licenses may be renewed on the filing with the division of an application for renewal, and the payment of the fee prescribed in division (B) of this section. The division shall give notice, without unreasonable delay, of its action on any application for renewal. (B)(1) The fee for each dealer's license, and for each
annual
renewal thereof, shall be
one
hundred
dollars.
The fee
for the
examination of
applicant
dealers, when
administered by the
division, shall be
seventy-five dollars. (2) The fee for each salesperson's license,
and for each
annual
renewal thereof, shall be fifty dollars. The fee for the
examination of an applicant salesperson, when
administered by the
division, shall be fifty dollars. (3) The fee for each investment adviser's license, and
for
each annual renewal thereof, shall be
fifty dollars. (4) The fee for each investment adviser notice filing
required
by division (B) of section 1707.141 of the Revised
Code
shall be
fifty dollars. (5) The fee for each investment adviser representative's
license, and for each annual renewal thereof, shall
be
thirty-five
dollars.
(6) The fee for each state retirement system investment officer's license, and for each annual renewal thereof, shall be fifty dollars. (C) A dealer's, salesperson's, investment adviser's, or
investment
adviser representative's, or state retirement system investment officer's license may be issued at any
time for
the remainder of the calendar year. In that event, the
annual
fee shall not be reduced.
Sec. 1707.19. (A) An original license, or a renewal
thereof,
applied for by a dealer or salesperson of securities,
or
by an investment adviser or an, investment adviser
representative, or state retirement system investment officer,
may be
refused, and any such license granted may be suspended and,
after
notice and hearing in accordance with Chapter 119. of
the
Revised Code, may
be revoked, by the division
of securities, if
the division determines that the
applicant or
the licensed dealer,
salesperson, investment adviser, or investment adviser
representative, or state retirement system investment officer: (1) Is not of good business repute; (2) Is conducting an illegitimate or fraudulent business; (3) Is, in the case of a dealer or investment
adviser,
insolvent; (4) Has
knowingly violated any provision of
sections
1707.01 to 1707.45 of the Revised Code, or any
regulation
or order
made thereunder; (5) Has knowingly
made a false statement
of a material fact
or an omission of a material fact in an
application for a license,
in a
description or application that
has been filed, or in any
statement made to the division under
such sections; (6) Has refused to comply with any lawful order or
requirement of the division under section 1707.23 of the Revised
Code; (7) Has been guilty of any fraudulent act in connection
with
the sale of any securities or in connection with acting as an
investment adviser or, investment adviser representative, or state retirement system investment officer; (8) Conducts business in purchasing or selling securities
at
such variations from the existing market as in the light of
all
the circumstances are unconscionable; (9) Conducts business in violation of such rules and
regulations as the division prescribes for the protection of
investors, clients, or prospective clients; (10)(a) Has failed to furnish to the division any
information
with respect to the
purchases or sales of securities
within this
state that may
be reasonably requested by the division
as pertinent to the
protection of investors in this state. (b) Has failed to furnish to the division any
information
with respect to acting as an investment adviser or
an, investment
adviser representative, or state retirement system investment officer within this state
that may be reasonably
requested by the division. (B) For the protection of investors the division may
prescribe
reasonable rules defining fraudulent, evasive,
deceptive, or
grossly unfair practices or devices in the purchase
or sale of
securities. (C) For the protection of investors, clients, or
prospective
clients, the division may prescribe reasonable rules
regarding the
acts and practices of an investment adviser or an
investment
adviser representative. (D) Pending any investigation or hearing provided for in
sections 1707.01 to 1707.45 of the Revised Code, the
division may
order the suspension of any dealer's,
salesperson's, investment
adviser's, or investment adviser
representative's, or state retirement system investment officer's
license by
notifying the party concerned of such suspension and
the cause for
it. If it is a salesperson whose license
is
suspended, the
division shall also notify the dealer employing
the salesperson.
If it is an investment adviser representative
whose license is
suspended, the division also shall notify the investment
adviser
with whom the investment adviser representative is employed or
associated. If it is a state retirement system investment officer whose license is suspended, the division shall also notify the state retirement system with whom the state retirement system investment officer is employed. (E)(1) The suspension or revocation of the dealer's license
suspends the licenses of all the
dealer's salespersons. (2) The suspension or revocation of the investment
adviser's
license suspends the licenses of all the investment adviser's
investment adviser representatives. The suspension or
revocation
of an investment adviser's registration under
section 203 of the
"Investment Advisers Act
of 1940," 15 U.S.C.
80b-3, suspends the
licenses of all the investment
adviser's investment adviser
representatives. (F) It is sufficient cause for refusal, revocation, or
suspension of the license in case of a partnership, partnership
association, corporation, or unincorporated association if any
general partner of the partnership, manager of
the partnership
association, or executive officer of the corporation or
unincorporated association is not of good business repute or has
been guilty of any act or omission which would be cause for
refusing or revoking the license of an individual dealer,
salesperson, investment adviser, or investment
adviser
representative.
Sec. 1707.20. (A) The division of securities may adopt,
amend, and rescind such rules, forms, and orders as are necessary
to carry out sections 1707.01 to 1707.45 of the Revised Code,
including rules and forms governing registration statements,
applications, and reports, and defining any terms, whether or not
used in sections 1707.01 to 1707.45 of the Revised Code, insofar
as the definitions are not inconsistent with these
sections. For
the purpose of rules and forms, the division may
classify
securities, persons, and matters within its
jurisdiction, and
prescribe different requirements for different
classes. (B) No rule, form, or order may be made, amended, or
rescinded unless the division finds that the action
is necessary
or appropriate in the public interest or for the
protection of
investors, clients, or prospective clients, or state retirement systems and
consistent with the
purposes fairly
intended by the policy and provisions of sections
1707.01 to
1707.45 of the Revised Code. In prescribing rules and
forms and
in otherwise administering sections 1707.01 to 1707.45
of the
Revised Code, the division may cooperate with the
securities administrators of the other states and the securities
and exchange commission with a view of effectuating the policy of
this section to achieve maximum uniformity in the form and
content
of registration statements, applications, reports, and
overall
securities regulation wherever practicable. (C) The division may by rule or order
prescribe: (1) The form and content of financial statements required
under sections 1707.01 to 1707.45 of the Revised Code; (2) The circumstances under which consolidated financial
statements shall be filed; (3) Whether any required financial statements shall be
certified by independent or certified public accountants. All
financial statements shall be prepared in accordance with
generally accepted accounting practices. (D) All rules and forms of the division
shall be published;
and in addition to fulfilling the
requirements of Chapter
119. of
the Revised Code,
the division shall prescribe, and shall publish
and make
available its rules regarding the sale of securities, the
administration of sections 1707.01 to 1707.45 of the Revised
Code,
and the procedure and practice before the division. (E) No provision of sections 1707.01 to 1707.45 of the
Revised Code imposing any liability applies to any act done or
omitted in good faith in conformity with any rule, form, or order
of the division of securities, notwithstanding that the rule,
form, or order may later be amended or rescinded or be determined
by judicial or other authority to be invalid for any reason,
except that the issuance of an order granting effectiveness to a
registration under section 1707.09 or 1707.091 of the Revised
Code
for the purposes of this division shall not be deemed an
order
other than as the establishment of the fact of
registration.
Sec. 1707.22. Whenever a dealer's,
salesperson's, investment adviser's, or investment adviser
representative's, or state retirement system investment officer's license has been refused,
suspended, or revoked, or a renewal thereof has been denied, by the division
of securities, or whenever the division has refused to qualify securities or
has suspended or revoked the registration of any particular security by
description or by qualification, or the right to buy, sell, or deal in any
particular security whether it is registered or qualified or exempt, or
whether the transactions in it are registered or exempt, the aggrieved party
may appeal in accordance with Chapter 119. of the Revised Code. An order sustaining the refusal of the division to grant or renew a
dealer's,
salesperson's, investment adviser's, or
investment adviser representative's, or state retirement system investment officer's license or to grant qualification of
securities, or an order sustaining
the division in suspending or revoking a dealer's,
salesperson's, investment adviser's, or investment adviser
representative's, or state retirement system investment officer's license, the
registration of any particular security by description or by qualification, or
the right to buy, sell, or deal in any particular security, shall not bar,
after ten days from the order, a new registration by
description, or a new
application of the plaintiff for such a license or qualification or for a
withdrawal of a revocation or suspension; nor shall an order in favor of
the plaintiff prevent the division, after proper notice and hearing, from
thereafter revoking or suspending such license, registration, or right to buy,
sell, or deal in a particular security, for any proper cause which may, after
the order, accrue or be discovered.
Sec. 1707.23. Whenever it appears to the division of
securities, from its files, upon complaint, or otherwise, that
any
person has engaged in, is engaged in, or is about to engage
in any
practice declared to be illegal or prohibited by this chapter or
rules adopted under
this chapter by the
division, or defined as
fraudulent in this chapter or rules
adopted under this chapter
by the division, or any other
deceptive scheme or practice in
connection
with the sale of securities, or acting as a dealer, a salesperson, an investment
adviser or,
investment adviser representative, or state retirement system investment officer or when the division
believes it
to be in the best interests of the public and
necessary for the
protection of investors, the division may do any
of the following: (A) Require any person to file with it, on such forms as
it
prescribes, an original or additional statement or report in
writing, under oath or otherwise, as to any facts or
circumstances
concerning the issuance, sale, or offer for sale of
securities
within this state by the person,
as to the person's acts or
practices as a dealer, a salesperson, an investment adviser or, investment
adviser
representative, or state retirement system investment officer within this state, and as to other
information as
it deems material or relevant thereto; (B) Examine any investment adviser, investment adviser
representative, state retirement system investment officer, or
any
seller, dealer, salesperson, or issuer of
any
securities, and any of their agents, employees, partners,
officers, directors, members, or shareholders, wherever located,
under oath; and examine and produce records, books, documents, accounts,
and
papers as the division deems material or relevant to the
inquiry; (C) Require the attendance of witnesses, and the
production
of books, records, and papers, as are required
either by the
division or by any party to a hearing before the
division, and for
that purpose issue a subpoena for any witness,
or a subpoena duces
tecum to compel the production of any books,
records, or papers.
The subpoena shall be served by
personal service or by certified
mail, return receipt requested. If the subpoena is returned
because of inability to deliver, or if no return is received
within thirty days of the date of mailing, the subpoena may be
served by ordinary mail. If no return of ordinary mail is
received within thirty days after the date of mailing, service
shall be deemed to have been made. If the subpoena is returned
because of inability to deliver, the division may designate a
person or persons to effect either personal or residence service
upon the witness. The person designated to effect personal or
residence
service under this division may be the sheriff of the
county
in which the witness resides or may be found or any other
duly
designated person. The fees and mileage of the person
serving
the subpoena shall be the same as those allowed by the
courts of
common pleas in criminal cases, and shall be paid from
the funds
of the division. Fees and mileage for the witness shall
be the
same as those allowed for witnesses by the courts of common
pleas
in criminal cases, and shall be paid from the funds of the
division upon request of the witness following the hearing. (D) Proceed under section 1707.19 of the Revised Code to
refuse a license applied for by a dealer, salesperson, investment
adviser, or investment adviser representative or to suspend the
license of any licensed dealer,
licensed salesperson,
licensed
investment adviser, or licensed investment
adviser
representative
and
ultimately, if the division determines, revoke
such license
under
that section; (E) Initiate criminal proceedings under section 1707.042
or
1707.44 of the Revised Code or rules adopted under those sections
by the
division by laying before the prosecuting
attorney of the
proper county any evidence of criminality which
comes to its
knowledge; and in the event of the neglect or
refusal of the
prosecuting attorney to prosecute such violations,
or at the
request of the prosecuting attorney, the division shall
submit the
evidence 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.
(F)(E) Require any dealers
immediately to furnish to
the
division
copies of prospectuses, circulars, or advertisements
respecting
securities that they publish or generally
distribute,
or require
any investment advisers immediately
to furnish to the
division
copies of brochures, advertisements,
publications,
analyses,
reports, or other writings that they
publish or
distribute;
(G)(F) Require any dealers to mail to the division, prior to
sale, notices of intention to sell, in respect to all securities
which are not exempt under section 1707.02 of the Revised Code,
or
which are sold in transactions not exempt under section
1707.03 or
1707.04 of the Revised Code;
(H)(G) Issue and cause to be served by certified mail upon
all
persons affected an order requiring the person or persons to
cease
and desist from the acts or practices appearing to the
division to
constitute violations of this chapter or rules adopted under
this chapter by the
division. The order shall state specifically
the
section or sections of this
chapter or the rule or
rules
adopted under this chapter by the division that
appear to the
division to have been violated and
the facts constituting the
violation. If after the issuance of
the order it appears to the
division that any
person or persons affected by the order have
engaged in any act
or practice from which the person or persons
shall have been
required, by the order, to cease and desist, the
director of
commerce may apply to the court of common pleas of any
county
for, and upon proof of the validity of the order of the
division,
the delivery of the order to the person or persons
affected, and of the illegality and the continuation of the acts
or practices that are the subject of the order, the court may
grant an injunction implementing the order of the division.
(I)(H) Issue and initiate contempt proceedings in this state
regarding
subpoenas and subpoenas duces tecum at the request of
the
securities administrator of another state, if it appears to
the
division that the activities for which the information is
sought
would violate this chapter if
the activities had occurred
in this state.
(J)(I) The remedies provided by this section are cumulative and concurrent with any other remedy provided in this chapter, and the exercise of one remedy does not preclude or require the exercise of any other remedy.
Sec. 1707.25. In case any person fails to file any
statement or report required by sections
1707.01 to 1707.45 of the Revised Code,
to obey any subpoena the issuance
of which is provided for in those sections, or to produce
books, records, or papers, give testimony, or answer questions, as
required by those sections, the director of commerce may
apply to
a court of common pleas of any county for, and upon proof of such
failure the court may grant, an injunction
restraining the
acting as an investment adviser or, investment adviser representative, or state retirement system investment officer, or
the issuance, sale, or offer for sale of any securities by the
person or by its agents, employees, partners, officers,
directors, or shareholders, until such failure has been remedied
and other relief as the facts may warrant has been had.
Such injunctive relief is available in addition to the other
remedies provided for in sections 1707.01 to
1707.45 of the Revised Code. Where the person refusing to comply with such order of
court is an issuer of securities, the court may enjoin the sale
by any dealer of any securities of the issuer, and the
division
of securities may revoke the qualification of the securities of
the issuer, or suspend or revoke the sale of any securities
of the issuer which have been registered by description, and
such securities shall not thereafter be sold by any dealer until
the order of the court or of the division is withdrawn.
Sec. 1707.261. (A) If a court of common pleas grants an injunction pursuant to section 1707.26 of the Revised Code, after consultation with the attorney general the director of commerce may request that court to order the defendant or defendants that are subject to the injunction to make restitution or rescission to any purchaser or holder of securities damaged by the defendant's or defendants' violation of any provision of sections 1707.01 to 1707.45 of the Revised Code.
(B) If the court of common pleas is satisfied with the sufficiency of the director's request for restitution or rescission under division (A) of this section and with the sufficiency of the proof of a substantial violation of any provision of sections 1707.01 to 1707.45 of the Revised Code, or of the use of any act, practice, or transaction declared to be illegal or prohibited or defined as fraudulent by those sections or rules adopted under those sections by the division of securities, to the material prejudice of a purchaser or holder of securities, the court may order the defendant or defendants subject to the injunction to make restitution or rescission to any purchaser or holder of securities damaged by the defendant's or defendants' violation of sections 1707.01 to 1707.45 of the Revised Code.
(C)
A court order granting restitution or rescission based upon a request made pursuant to division (A) of this section shall meet the requirements of division (B) of this section and may not be based solely upon a final order issued by the division of securities pursuant to Chapter 119. of the Revised Code or upon an action to enforce a final order issued by the division pursuant to that chapter. Notwithstanding the foregoing provision, a request for restitution or rescission pursuant to division (A) of this section may concern the same acts, practices, or transactions that were, or may later be, the subject of a division of securities action for a violation of any provision of sections 1707.01 to 1707.45 of the Revised Code. If a request for restitution or rescission pursuant to division (A) of this section concerns the same acts, practices, or transactions that were the subject of a final order issued by the division of securities pursuant to Chapter 119. of the Revised Code, the court shall review the request in accordance with division (B) of this section, and the standard of review in section 119.12 of the Revised Code shall not apply to the request.
(D) No purchaser or holder of securities who is entitled to restitution or rescission under this section shall recover, pursuant to this section or any other proceeding, a total amount in excess of the person's purchase price for the securities sold in violation of sections 1707.01 to 1707.45 of the Revised Code. (E)(1) If a court of common pleas grants an injunction pursuant to section 1707.26 of the Revised Code against any state retirement system investment officer, after consultation with the attorney general, the director of commerce may request that court to order the state retirement system investment officer or officers that are subject to the injunction to make restitution to the state retirement system damaged by the state retirement system investment officer's or officers' violation of any provision of sections 1707.01 to 1707.45 of the Revised Code.
(2) If the court of common pleas is satisfied with the sufficiency of the director's request for restitution under division (E)(1) of this section and with the sufficiency of the proof of a substantial violation of any provision of sections 1707.01 to 1707.45 of the Revised Code, or of the use of any act, practice, or transaction declared to be illegal or prohibited or defined as fraudulent by those sections or rules adopted under those sections by the division of securities, to the material prejudice of a state retirement system, the court may order the state retirement system investment officer or officers subject to the injunction to make restitution to the state retirement system damaged by the state retirement system investment officer's or officers' violation of sections 1707.01 to 1707.45 of the Revised Code. A request for restitution pursuant to division (E)(1) of this section may concern the same acts, practices, or transactions that were, or may later be, the subject of a division of securities action for a violation of any provision of section 1707.01 to 1707.45 of the Revised Code.
Sec. 1707.39. When any securities have been sold without
compliance with sections 1707.01 to 1707.45 of the Revised Code,
or any former law in force at the time of such sale, any
interested person may apply in writing to the division of
securities for the qualification of such securities under such
sections. If it appears to the division that no person has been
defrauded, prejudiced, or damaged by such noncompliance or sale
and that no person will be defrauded, prejudiced, or damaged by
such qualification, the division may permit such securities to be
so qualified upon the payment of a fee of one hundred dollars
plus a fee of one-fifth of one per cent of the aggregate price at
which the securities have been sold in this state, which fee
shall in no case be less than one hundred dollars nor more than
two thousand dollars. In addition, the division may require the
applicant to advance sufficient funds to pay the actual expenses
of an examination or investigation by the division, whether to be
conducted in this state or outside this state. An itemized
statement of such expenses shall be furnished to the applicant. Such qualification shall estop the division from proceeding
under division (E)(D) of section 1707.23 of the Revised Code against
anyone who has violated division (C)(1) of section 1707.44 of the
Revised Code for acts within the scope of the application, or
from proceeding with administrative action pursuant to section
1707.13 of the Revised Code.
Sec. 1707.431. For purposes of this section, the following
persons shall not be deemed to have effected, participated in, or
aided the seller in any way in making, a sale or contract of sale
in violation of sections 1707.01 to 1707.45 of the Revised Code: (A) Any attorney, accountant, or engineer whose
performance is incidental to the practice of the person's
profession; (B) Any person, other than an investment adviser or an, investment
adviser representative, or state retirement system investment officer, who brings any issuer together with any
potential investor, without receiving, directly or indirectly, a
commission, fee, or other remuneration based on the sale of any
securities by the issuer to the
investor. Remuneration
received by the person solely for the purpose of offsetting
the
reasonable out-of-pocket costs incurred by the person shall not
be deemed a commission, fee, or other remuneration. Any person claiming exemption under this division for a
publicly advertised meeting shall file a notice with the division
of securities indicating an intent to cause or hold such a
meeting at least twenty-one days prior to the meeting. The
division may, upon receipt of such notice, issue an order denying
the availability of an exemption under this division not more
than fourteen days after receipt of the notice based on a
finding that the applicant is not entitled to the exemption.
Notwithstanding the notice described in this section, a failure
to file the notice does not create a presumption that a
person
was participating in or aiding in the making of a sale or
contract of sale in violation of this chapter. (C) Any person whom the division exempts from this
provision by rule.
Sec. 1707.44. (A)(1) No person shall engage in any act or
practice that
violates division (A), (B), or (C) of section
1707.14 of the Revised
Code, and no salesperson shall sell
securities in this state without
being licensed pursuant to
section 1707.16 of the Revised Code. (2) No person shall engage in any act or practice that
violates
division (A) of section 1707.141 or section 1707.161 of
the Revised Code.
(3) No person shall engage in any act or practice that violates section 1707.162 of the Revised Code. (B) No person shall knowingly make or cause to be made any
false representation concerning a material and relevant fact, in
any oral statement or in any prospectus, circular, description,
application, or written statement, for any of the following
purposes: (1)
Registering securities or transactions, or
exempting
securities or transactions from registration, under this
chapter; (2) Securing the qualification of any securities under
this
chapter; (3) Procuring the licensing of any dealer,
salesperson,
investment adviser, or investment adviser
representative, or state retirement system investment officer
under
this chapter; (4) Selling any securities in this state; (5) Advising for compensation, as to the value of securities
or as to the
advisability of investing in, purchasing, or selling
securities;
(6) Submitting a notice filing to the division under
division (X) of section 1707.03 or section
1707.092 or 1707.141 of
the Revised Code. (C) No person shall knowingly
sell,
cause
to be sold, offer
for sale, or cause to be offered for
sale, any
security which
comes under any of the following
descriptions: (1) Is not exempt under section 1707.02 of the Revised
Code,
nor the subject matter of one of the transactions exempted
in
section 1707.03, 1707.04, or
1707.34 of the Revised Code,
has not
been registered by
coordination or
qualification,
and is not the
subject matter of a transaction
that has been
registered by
description; (2) The prescribed fees for registering by description, by
coordination, or by qualification have not been paid in respect
to
such security; (3)
The person has been notified by the division, or has
knowledge of the notice, that the right to buy, sell, or
deal in
such security has been suspended or revoked, or that the
registration by description, by coordination, or by qualification
under which it may be sold has been suspended or revoked; (4) The offer or sale is accompanied by a statement that
the
security offered or sold has been or is to be in any manner
indorsed by the division. (D) No person who is an officer, director, or trustee of,
or
a dealer for, any issuer, and who knows such issuer to be
insolvent in that the liabilities of the issuer exceed its
assets,
shall sell any securities of or for any such issuer,
without
disclosing the fact of the insolvency to the
purchaser. (E) No person with intent to aid in the sale of any
securities on behalf of the issuer, shall knowingly make any
representation not authorized by such issuer or at material
variance with statements and documents filed with the division by
such issuer. (F) No person, with intent to deceive, shall sell, cause
to
be sold, offer for sale, or cause to be offered for sale, any
securities of an insolvent issuer, with knowledge that such
issuer
is insolvent in that the liabilities of the issuer
exceed
its
assets, taken at their fair market value. (G) No person in purchasing or selling securities shall
knowingly
engage in any act or practice that is, in this chapter,
declared
illegal, defined as fraudulent, or prohibited. (H) No licensed dealer shall refuse to buy from, sell to,
or
trade with any person because the person appears on a
blacklist
issued by, or is being boycotted by, any foreign
corporate or
governmental entity, nor sell any securities of or
for any issuer
who is known in relation to the issuance or sale
of
the
securities to have engaged in such practices. (I) No dealer in securities, knowing that the dealer's
liabilities exceed the reasonable value of the dealer's
assets,
shall accept money or securities, except in payment of or as
security
for an existing debt, from a customer who is ignorant of
the dealer's insolvency, and thereby cause the customer
to lose
any part of the customer's securities or the value
of those
securities, by doing
either of the following without the
customer's consent: (1) Pledging, selling, or otherwise disposing of such
securities, when the dealer has no lien on or any
special property
in such securities; (2) Pledging such securities for more than the amount due,
or otherwise disposing of such securities for the dealer's
own
benefit,
when the dealer has a lien or indebtedness on such
securities. It is an affirmative defense to a charge under this
division
that, at the time the securities involved were pledged,
sold, or
disposed of, the dealer had in the dealer's
possession
or control,
and available for delivery, securities of the same
kinds and in
amounts sufficient to satisfy all customers entitled
to the
securities, upon demand and tender of any amount
due on the
securities. (J) No person, with purpose to deceive, shall make, issue,
publish, or cause to be made, issued, or published any statement
or advertisement as to the value of securities, or as to alleged
facts affecting the value of securities, or as to the financial
condition of any issuer of securities, when the person knows
that
such statement or advertisement is false in any material
respect. (K) No person, with purpose to deceive, shall make,
record,
or publish or cause to be made, recorded, or published, a
report
of any transaction in securities which is false in any
material
respect. (L) No dealer shall engage in any act that violates the
provisions of section
15(c) or 15(g) of the
"Securities Exchange
Act of 1934," 48 Stat. 881, 15
U.S.C.A. 78o(c) or (g), or any rule
or regulation promulgated by the
securities and exchange
commission thereunder. If, subsequent to
October 11, 1994,
additional amendments to section 15(c) or 15(g) are adopted, or
additional
rules or regulations are promulgated pursuant to such
sections, the division
of securities shall, by rule, adopt the
amendments, rules, or regulations,
unless the division finds that
the amendments, rules, or regulations are not
necessary for the
protection of investors or in the public interest. (M)(1) No investment adviser or investment adviser
representative shall do any of the following: (a) Employ any device, scheme, or artifice to defraud
any
person; (b) Engage in any act, practice, or course of business
that
operates or would operate as a fraud or deceit upon any
person; (c) In acting as principal for the investment adviser's or
investment adviser representative's own account, knowingly sell
any security to or purchase any security from a client, or in
acting as salesperson for a person other than such client,
knowingly effect any sale or purchase of any security for the
account of such client, without disclosing to the client in
writing before the completion of the transaction the capacity in
which the investment adviser or investment adviser
representative
is acting and obtaining the consent of the client
to the
transaction. Division (M)(1)(c)
of this section does not apply to
any investment adviser
registered with the securities and exchange
commission under
section 203 of the
"Investment Advisers Act of
1940," 15 U.S.C. 80b-3, or to
any transaction with a customer
of a
licensed dealer or salesperson if the licensed dealer or
salesperson is not acting as an investment adviser or investment
adviser representative in relation to the transaction. (d) Engage in any act, practice, or
course of business that
is fraudulent, deceptive, or
manipulative. The division of
securities may adopt rules
reasonably designed to prevent such
acts, practices, or courses
of business
that are fraudulent,
deceptive, or manipulative.
(2) No investment adviser or investment adviser
representative licensed or required to be licensed under this
chapter shall take or have custody of any securities or funds of
any person, except as provided in rules adopted by the division. (3) In the solicitation of clients or prospective clients,
no
person shall make any untrue statement of a material fact or
omit to state a material fact necessary in order to make the
statements made not misleading in light of the circumstances
under
which the statements were made. (N) No person knowingly shall influence, coerce, manipulate,
or mislead any person engaged in the preparation, compilation,
review, or audit of financial statements to be used in the
purchase or sale of securities for the purpose of rendering the
financial statements materially misleading. (O) No state retirement system investment officer shall do any of the following:
(1) Employ any device, scheme, or artifice to defraud any state retirement system;
(2) Engage in any act, practice, or course of business that operates or would operate as a fraud or deceit on any state retirement system;
(3) Engage in any act, practice, or course of business that is fraudulent, deceptive, or manipulative.
The division of securities may adopt rules reasonably designed to prevent such acts, practices, or courses of business as are fraudulent, deceptive, or manipulative; (4) Knowingly fail to comply with any policy adopted regarding the officer established pursuant to section 145.094, 742.104, 3307.043, 3309.043, or 5505.066 of the Revised Code.
Sec. 1707.46. The principal executive officer of the division of securities
shall be the commissioner of securities, who shall be appointed by the
director of commerce. The commissioner of securities shall enforce all the
laws and administrative rules enacted or adopted to regulate the sale
of bonds, stocks,
and other securities and to prevent fraud in such sales.
The commissioner also shall enforce all the laws and administrative rules
enacted or adopted to regulate investment advisers and, investment adviser
representatives, and state retirement system investment officers and to prevent fraud in their acts, practices, and
transactions. The commissioner shall be paid at a rate not less than pay range 47 set out in
schedule E-2 of section 124.152 of the Revised Code, to be paid as other
operating expenses of the division.
Sec. 3307.03. A state teachers retirement system is hereby established for
the teachers of the public schools of the state which includes the several
funds created and placed under the management of a state teachers retirement
board for the payment of retirement allowances and other benefits under
Chapter
3307. of the Revised Code. The board may sue and be sued, plead and be
impleaded, contract and be contracted with, and do all things necessary to
carry out such sections. All of its business shall be transacted, and all of
its funds invested, all warrants for money drawn and payments made, and all of
its cash, securities, and other property shall be held in the name of the
board or in the name of its nominee, provided that nominees are authorized by
retirement board resolution for the purpose of facilitating the ownership and
transfer of investments and are restricted to members of the board, the
executive director, and designated members of the staff, or a partnership or
corporation composed of any of the foregoing persons.
If the Ohio retirement study council establishes a uniform format for any report the board is required to submit to the council, the board shall submit the report in that format.
Sec. 3307.041. The state teachers retirement board shall do all of the following:
(A) In consultation with the Ohio ethics commission, review any existing policy regarding the travel and payment of travel expenses of members and employees of the state teachers retirement board and adopt rules in accordance with section 3307.04 of the Revised Code establishing a new or revised policy regarding travel and payment of travel expenses;
(B) If the board intends to award a bonus to any employee of the board, adopt rules in accordance with section 3307.04 of the Revised Code establishing a policy regarding employee bonuses;
(C) Provide copies of the rules adopted under divisions (A) and (B) of this section to each member of the Ohio retirement study council; (D) Submit to the Ohio retirement study council a proposed operating budget, including an administrative budget for the board, for the next immediate fiscal year and adopt that budget not earlier than sixty days after it is submitted to the council; (E) Submit to the council a plan describing how the board will improve the dissemination of public information pertaining to the board. Sec. 3307.042. The state teachers retirement board shall, in consultation with the Ohio ethics commission, develop an ethics policy. The board shall submit this policy to the Ohio retirement study council for approval. The council shall review the policy and, if the council determines, upon the advice of the Ohio ethics commission, that the policy is adequate, approve the policy. If the council determines that the policy is inadequate, it shall specify the revisions to be made and the board shall submit a revised policy. If the council approves the revised policy, the board shall adopt it. If not, the board shall make any further revisions required by the council and adopt the policy. The board periodically shall provide ethics training to members and employees of the board. The training shall include training regarding the requirements and prohibitions of Chapter 102. of the Revised Code and sections 2921.42 and 2921.43 of the Revised Code and any other training the board considers appropriate.
The board shall establish a procedure to ensure that each employee of the board is informed of the procedure for filing a complaint alleging violation of Chapter 102. of the Revised Code or section 2921.42 or 2921.43 of the Revised Code with the Ohio ethics commission or the appropriate prosecuting attorney. Sec. 3307.043. (A) The state teachers retirement board shall designate a person who is a licensed state retirement system investment officer to be the chief investment officer for the state teachers retirement system. The board shall notify the division of securities of the department of commerce in writing of its designation and of any change in its designation within ten calendar days of the designation or change.
(B) The chief investment officer shall reasonably supervise the licensed state retirement system investment officers and other persons employed by the state teachers retirement system with a view toward preventing violations of Chapter 1707. of the Revised Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. and following, and the "Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a, and following, and the rules and regulations promulgated under those statutes. This duty of reasonable supervision shall include the adoption, implementation, and enforcement of written policies and procedures reasonably designed to prevent persons employed by the state teachers retirement system from misusing material, nonpublic information in violation of those laws, rules, and regulations.
For purposes of this division, no chief investment officer shall be considered to have failed to satisfy the officer's duty of reasonable supervision if the officer has done all of the following:
(1) Adopted and implemented written procedures, and a system for applying the procedures, that would reasonably be expected to prevent and detect, insofar as practicable, any violation by its licensed investment officers and other persons employed by the state teachers retirement system;
(2) Reasonably discharged the duties and obligations incumbent on the chief investment officer by reason of the established procedures and the system for applying the procedures when the officer had no reasonable cause to believe that there was a failure to comply with the procedures and systems;
(3) Reviewed, at least annually, the adequacy of the policies and procedures established pursuant to this section and the effectiveness of their implementation.
(C) The chief investment officer shall ensure that securities transactions are executed in such a manner that the state teachers retirement system's total costs or proceeds in each transaction are the most favorable under the circumstances.
For purposes of this division, no chief investment officer shall be considered to have failed to satisfy the officer's duty of best execution if the officer has done both of the following:
(1) Adopted and implemented a written policy that outlines the criteria used to select broker-dealers that execute securities transactions on behalf of the state teachers retirement system, which criteria shall include all of the following:
(a) Commissions charged by the broker-dealer, both in the aggregate and on a per share basis;
(b) The execution speed and trade settlement capabilities of the broker-dealer;
(c) The responsiveness, reliability, and integrity of the broker-dealer;
(d) The nature and value of research provided by the broker-dealer;
(e) Any special capabilities of the broker-dealer.
(2) Reviewed, at least annually, the performance of broker-dealers that execute securities transactions on behalf of the state teachers retirement system.
Sec. 3307.05. The state teachers retirement board shall
consist of the
following nine members: (A) The superintendent of public instruction; or a designee of the superintendent who has the following qualifications: (1) The designee is a resident of this state.
(2) Within the three years immediately preceding the appointment, the designee has not been employed by the public employees retirement system, police and fire pension fund, state teachers retirement system, school employees retirement system, or state highway patrol retirement system or by any person, partnership, or corporation that has provided to one of those retirement systems services of a financial or investment nature, including the management, analysis, supervision, or investment of assets.
(3) The designee has direct experience in the management, analysis, supervision, or investment of assets. (B) The auditor of state; (C) The attorney general treasurer of state; (D) Five members, known as teacher members, who shall be
members of the state
teachers retirement system; (E) A Two former member members of the system, known as the retired
teacher member members, who
shall be a superannuate and superannuates who is are not
otherwise employed in a position positions requiring the retired teacher
member them to make contributions to the system; (F) One member, known as the school board member, appointed by the governor, who shall be a member of a city, local, exempted village, or joint vocational school board district board of education or a member of an educational service center governing board, but need not be a member of the retirement system. Sec. 3307.051. Each newly elected member of the state teachers retirement board and each individual appointed to fill a vacancy on the board, shall, not later than ninety days after commencing service as a board member, complete the orientation program component of the retirement board member education program established under section 171.50 of the Revised Code. Each member of the board who has served a year or longer as a board member shall, not less than twice each year, attend one or more programs that are part of the continuing education component of the retirement board member education program established under section 171.50 of the Revised Code. Sec. 3307.052. A person who served as an elected or appointed member of the state teachers retirement board for one or more entire fiscal years in fiscal years 2000, 2001, or 2002 is ineligible for re-election or reappointment to the board if the person has accepted reimbursements for travel and travel-related expenses from the board that have an annual average of more than ten thousand dollars for those fiscal years.
Sec. 3307.06. (A) Annually on the first Monday of May, one
teacher member, as defined in division (D) of section 3307.05 of
the Revised Code, shall be elected by ballot to the state
teachers retirement board, except that, beginning with the annual
election for teacher members in May, 1978, and in the annual
election of each fourth year thereafter, two teacher members
shall be elected to the board. Elected teacher members shall
begin their respective terms of office on the first day of
September following their election and shall serve for a term of
four years. (B) The retired teacher member members of the board, as defined in
division (E) of section 3307.05 of the Revised Code, shall be
elected for a term of four years, except that the initial retired
teacher member shall be elected for a term of three years. The
retired teacher member members shall be elected to the board at the
annual election for teacher members of the board, as provided in
division (A) of this section, in the year in which the term of
the current retired teacher member members would expire. The retired
teacher member members shall begin his term their respective terms of office on
the first day of September following his their election. No teacher member of the board who retires while a member
of the board shall be eligible to become a retired teacher member
of the board for three years after the date of the member's
retirement.
(C) If a vacancy occurs during the term of office of any
elected member of the board, the remaining members of the board
shall elect a successor member who. On certification of the election results under section 111.30 of the Revised Code the successor member shall hold office for the
remainder of his predecessor's term until the next board election that occurs not less than ninety days after the successor member's election. The successor member
shall
qualify for board membership under the same division of section
3307.05 of the Revised Code as his the member's predecessor in
office. Elections under this division shall be conducted under the supervision of the secretary of state pursuant to section 111.30 of the Revised Code. (D) If as a result of changed circumstances an elected
member of the board would no longer qualify for board membership
under that division of section 3307.05 of the Revised Code on the
basis of which he the member was elected, or if such a member
fails to attend the meetings of the board for four months or longer,
without being excused, his the member's position on the board
shall be considered vacant, and a successor member shall be chosen elected, under
division (C) of this section, for the remainder of his the
unexpired term.
Sec. 3307.061. A teacher member or retired teacher member of the state teachers retirement board who is charged with committing a felony, a theft offense as defined in section 2913.01 of the Revised Code, or a violation of section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be suspended from participation on the board for the period during which the charges are pending. If the charges are dismissed, the member is found not guilty, or the charges are otherwise resolved in a manner not resulting in the member being convicted of or pleading guilty to an offense of that nature, the suspension shall end, and the member may participate on the board. If the member pleads guilty to or is convicted of the offense, the position of the member on the board shall be deemed vacant. A person who has pleaded guilty to or been convicted of an offense of that nature is ineligible for election to the office of teacher or retired teacher member of the state teachers retirement board.
Sec. 3307.07. All elections of members of the state
teachers retirement board shall be held under the direction of
the board in accordance with rules adopted under section 111.30 of the Revised Code. Any member of the state teachers retirement system,
who has been nominated by a petition that is signed by five hundred or
more members of the system and certified under section 111.30 of the Revised Code, shall be eligible for election as a
teacher member of the board. The petition shall contain the
signatures of twenty or more members of the system from each of
at least ten counties wherein members of the system are employed. Any retired teacher who is a superannuate and a resident of
Ohio is
eligible for election
as the a retired teacher member of the board, if such retired
teacher has been nominated by a petition that is signed by five hundred
or more retired teachers, who are also superannuates, and certified under section 111.30 of the Revised Code.
The
petition shall contain the signatures of twenty or more retired
teachers from each of at least ten counties wherein
superannuates
under the system reside. The board shall place the name of any eligible candidate
upon the appropriate ballot as a regular candidate. At any
election, qualified voters, as defined in this section, may vote
for the regular candidates or for other eligible candidates, in
which case the names of such persons shall be written upon the
appropriate ballots, except that members of the system and former
members of the system who are
superannuates
shall vote respectively for teacher members and the retired
teacher member members of the board. The candidate who receives the
highest number of votes for any term of office shall be elected
to the board on certification of the election results under section 111.30 of the Revised Code. If, at any election, teacher members or retired teacher members are to be
elected for concurrent terms, eligible candidates shall be placed
on the ballot, and the candidates who receive the highest numbers
of votes shall be elected to the board on certification of the election results under section 111.30 of the Revised Code. Elected members of the board shall be elected on the basis
of the total number of ballots cast by qualified voters, who
shall consist of members of the system and former members of the
system who are superannuates.
Sec. 3307.072. (A) As used in this section:
(1) "Campaign committee" means a candidate or a combination of two or more persons authorized by a candidate to receive contributions and in-kind contributions and make expenditures on behalf of the candidate.
(2) "Candidate" means an individual who has been nominated pursuant to section 3307.07 of the Revised Code for election to the state teachers retirement board or who is seeking to be elected to fill a vacancy on the board pursuant to division (D) of section 3307.06 of the Revised Code.
(3) "Contribution" means a loan, gift, deposit, forgiveness of indebtedness, donation, advance, payment, transfer of funds or transfer of anything of value including a transfer of funds from an inter vivos or testamentary trust or decedent's estate, and the payment by any person other than the person to whom the services are rendered for the personal services of another person, which contribution is made, received, or used for the purpose of influencing the results of an election to the state teachers retirement board under section 3307.07 of the Revised Code or the results of an election to fill a vacancy on the board pursuant to division (D) of section 3307.06 of the Revised Code. "Contribution" does not include:
(a) Services provided without compensation by individuals volunteering a portion or all of their time on behalf of a person;
(b) Ordinary home hospitality;
(c) The personal expenses of a volunteer paid for by that volunteer campaign worker.
(4) "Election day" means the following, as appropriate to the situation:
(a) The first Monday in May of a year for which section 3307.06 of the Revised Code specifies that an election for a member of the state teachers retirement board be held;
(b) If, pursuant to section 3307.071 of the Revised Code, no election is held, the first Monday in May of a year that the election would have been held if not for section 3307.071 of the Revised Code.
(5) "Expenditure" means the disbursement or use of a contribution for the purpose of influencing the results of an election to the state teachers retirement board under section 3307.07 of the Revised Code or the results of an election to fill a vacancy on the board pursuant to division (D) of section 3307.06 of the Revised Code.
(6) "Independent expenditure" means an expenditure by an individual, partnership, or other entity advocating the election or defeat of an identified candidate or candidates, that is not made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of any candidate or candidates or of the campaign committee or agent of the candidate or candidates. An independent expenditure shall not be construed as being a contribution. As used in division (A)(6) of this section: (a) "Advocating" means any communication containing a message advocating election or defeat.
(b) "Identified candidate" means that the name of the candidate appears, a photograph or drawing of the candidate appears, or the identity of the candidate is otherwise apparent by unambiguous reference.
(c) "Made in coordination, cooperation, or consultation with, or at the request or suggestion of, any candidate or the campaign committee or agent of the candidate" means made pursuant to any arrangement, coordination, or direction by the candidate, the candidate's campaign committee, or the candidate's agent prior to the publication, distribution, display, or broadcast of the communication. An expenditure is presumed to be so made when it is any of the following:
(i) Based on information about the candidate's plans, projects, or needs provided to the person making the expenditure by the candidate, or by the candidate's campaign committee or agent, with a view toward having an expenditure made;
(ii) Made by or through any person who is, or has been, authorized to raise or expend funds, who is, or has been, an officer of the candidate's campaign committee, or who is, or has been, receiving any form of compensation or reimbursement from the candidate or the candidate's campaign committee or agent;
(iii) Made by a political party in support of a candidate, unless the expenditure is made by a political party to conduct voter registration or voter education efforts.
(d) "Agent" means any person who has actual oral or written authority, either express or implied, to make or to authorize the making of expenditures on behalf of a candidate, or means any person who has been placed in a position with the candidate's campaign committee or organization such that it would reasonably appear that in the ordinary course of campaign-related activities the person may authorize expenditures.
(7) "In-kind contribution" means anything of value other than money that is used to influence the results of an election to the state teachers retirement board under section 3307.07 of the Revised Code or the results of an election to fill a vacancy on the board pursuant to division (D) of section 3307.06 of the Revised Code or is transferred to or used in support of or in opposition to a candidate and that is made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of the benefited candidate. The financing of the dissemination, distribution, or republication, in whole or part, of any broadcast or of any written, graphic, or other form of campaign materials prepared by the candidate, the candidate's campaign committee, or their authorized agents is an in-kind contribution to the candidate and an expenditure by the candidate.
(8) "Personal expenses" includes ordinary expenses for accommodations, clothing, food, personal motor vehicle or airplane, and home telephone.
(B) Except as otherwise provided in division (D) of this section, each candidate who, or whose campaign committee, receives a contribution or in-kind contribution or makes an expenditure in connection with the candidate's efforts to be elected to the state teachers retirement board shall file with the secretary of state two complete, accurate, and itemized statements setting forth in detail the contributions, in-kind contributions, and expenditures. The statements shall be filed regardless of whether, pursuant to section 3307.071 of the Revised Code, no election is held. The statements shall be made on a form prescribed under section 111.30 of the Revised Code. Every expenditure shall be vouched for by a receipted bill, stating the purpose of the expenditures, that shall be filed with the statement; a canceled check with a notation of the purpose of the expenditure is a receipted bill for purposes of this division. The first statement shall be filed not later than four p.m. on the day that is twelve days before election day. The second statement shall be filed not sooner than the day that is eight days after election day and not later than thirty-eight days after election day. The first statement shall reflect contributions and in-kind contributions received and expenditures made to the close of business on the twentieth day before election day. The second statement shall reflect contributions and in-kind contributions received and expenditures made during the period beginning on the nineteenth day before election day and ending on the close of business on the seventh day after election day. (C) Each individual, partnership, or other entity who makes an independent expenditure in connection with the candidate's efforts to be elected to the state teachers retirement board shall file with the secretary of state two complete, accurate, and itemized statements setting forth in detail the independent expenditures. The statements shall be filed regardless of whether, pursuant to section 3307.071 of the Revised Code, no election is held. The statements shall be made on a form prescribed under section 111.30 of the Revised Code.
The first statement shall be filed not later than four p.m. on the day that is twelve days before election day. The second statement shall be filed not sooner than the day that is eight days after election day and not later than thirty-eight days after election day. The first statement shall reflect independent expenditures made to the close of business on the twentieth day before election day. The second statement shall reflect independent expenditures made during the period beginning on the nineteenth day before election day and ending on the close of business on the seventh day after election day. (D) Each candidate who, or whose campaign committee, receives a contribution or in-kind contribution or makes an expenditure in connection with the candidate's efforts to be elected to fill a vacancy in the public employees retirement board pursuant to division (D) of section 3307.06 of the Revised Code shall file with the secretary of state a complete, accurate, and itemized statement setting forth in detail the contributions, in-kind contributions, and expenditures. The statement shall be made on a form prescribed under section 111.30 of the Revised Code. Every expenditure shall be vouched for by a receipted bill, stating the purpose of the expenditures, that shall be filed with the statement; a canceled check with a notation of the purpose of the expenditure is a receipted bill for purposes of this division.
The statement shall be filed within thirty-eight days after the day the candidate takes office. The statement shall reflect contributions and in-kind contributions received and expenditures made to the close of business on the seventh day after the day the candidate takes office.
Sec. 3307.073. (A) No person shall knowingly fail to file a complete and accurate campaign finance statement or independent expenditure statement in accordance with section 3307.072 of the Revised Code. (B) No person, during the course of a person seeking nomination for, and during any campaign for, election to the state teachers retirement board, shall knowingly and with intent to affect the nomination or the outcome of the campaign do any of the following by means of campaign materials, an advertisement on radio or television or in a newspaper or periodical, a public speech, press release, or otherwise:
(1) With regard to a candidate, identify the candidate in a manner that implies that the candidate is a member of the board or use the term "re-elect" when the candidate is not currently a member of the board;
(2) Make a false statement concerning the formal schooling or training completed or attempted by a candidate; a degree, diploma, certificate, scholarship, grant, award, prize, or honor received, earned, or held by a candidate; or the period of time during which a candidate attended any school, college, community technical school, or institution;
(3) Make a false statement concerning the professional, occupational, or vocational licenses held by a candidate, or concerning any position the candidate held for which the candidate received a salary or wages;
(4) Make a false statement that a candidate or public official has been indicted or convicted of a theft offense, extortion, or other crime involving financial corruption or moral turpitude;
(5) Make a statement that a candidate has been indicted for any crime or has been the subject of a finding by the Ohio elections commission without disclosing the outcome of any legal proceedings resulting from the indictment or finding;
(6) Make a false statement that a candidate or official has a record of treatment or confinement for mental disorder;
(7) Make a false statement that a candidate or official has been subjected to military discipline for criminal misconduct or dishonorably discharged from the armed services;
(8) Falsely identify the source of a statement, issue statements under the name of another person without authorization, or falsely state the endorsement of or opposition to a candidate by a person or publication;
(9) Make a false statement concerning the voting record of a candidate or public official;
(10) Post, publish, circulate, distribute, or otherwise disseminate a false statement concerning a candidate, either knowing the same to be false or with reckless disregard of whether it was false or not, if the statement is designed to promote the election, nomination, or defeat of the candidate. Sec. 3307.074. The secretary of state, or any person acting on personal knowledge and subject to the penalties of perjury, may file a complaint with the Ohio elections commission alleging a violation of section 3307.073 of the Revised Code. The complaint shall be made on a form prescribed and provided by the commission.
On receipt of a complaint under this section, the commission shall hold a hearing open to the public to determine whether the violation alleged in the complaint has occurred. The commission may administer oaths and issue subpoenas to any person in the state compelling the attendance of witnesses and the production of relevant papers, books, accounts, and reports. On the refusal of any person to obey a subpoena or to be sworn or to answer as a witness, the commission may apply to the court of common pleas of Franklin county under section 2705.03 of the Revised Code. The court shall hold contempt proceedings in accordance with Chapter 2705. of the Revised Code.
The commission shall provide the person accused of the violation at least seven days prior notice of the time, date, and place of the hearing. The accused may be represented by an attorney and shall have an opportunity to present evidence, call witnesses, and cross-examine witnesses.
At the hearing, the commission shall determine whether the violation alleged in the complaint has occurred. If the commission determines that a violation of division (A) of section 3307.073 of the Revised Code has occurred, the commission shall either impose a fine under section 3307.99 of the Revised Code or enter a finding that good cause has been shown not to impose the fine. If the commission determines that a violation of division (B) of section 3307.073 of the Revised Code has occurred, the commission shall impose the fine described in section 3307.99 of the Revised Code, refer the matter to the appropriate prosecutor, or enter a finding that good cause has been shown not to impose a fine or refer the matter to a prosecutor.
Sec. 3307.11. The state teachers retirement board shall
elect from its membership, a chairperson and a vice-chairperson.
The
board shall employ an executive director who shall serve as
secretary, and shall employ other persons necessary to operate
the system and to fulfill the board's duties and responsibilities
under Chapter 3307. of the Revised Code. The Effective ninety days after the effective date of this amendment, the board may not employ a state retirement system investment officer, as defined in section 1707.01 of the Revised Code, who does not hold a valid state retirement system investment officer license issued by the division of securities in the department of commerce.
The compensation of all
employees and all other expenses of the board necessary for the
proper operation of the system shall be paid in such amounts as
the board approves. Every expense voucher of an employee, officer, or board
member of the state teachers retirement system shall itemize all
purchases and expenditures. The board shall receive all applications for retirement under the plans
described in section 3307.031 of the Revised Code,
shall provide for the payment of all retirement allowances and
other benefits payable under this chapter, and shall make other
expenditures authorized by
this chapter.
Sec. 3307.20. (A) As used in this section: (1) "Personal history record"
means information maintained
by the state teachers retirement board on
an individual who is a
member, former
member, contributor, former contributor, retirant,
or beneficiary
that includes the address, telephone number, social
security
number, record of contributions, correspondence with the
state teachers
retirement system,
or other information the board
determines to be confidential. (2) "Retirant" has the same meaning as in section 3307.50 of
the Revised Code. (B) The records of the board shall be open to public
inspection, except for the following, which shall be excluded,
except with the written authorization of the individual
concerned: (1) The individual's personal records provided for in
section 3307.23 of the Revised Code; (2) The individual's personal history record; (3) Any information identifying, by name and address, the
amount of a monthly allowance or benefit paid to the individual. (C) All medical reports and recommendations under sections
3307.62, 3307.64, and
3307.66 of the Revised Code are privileged,
except that copies of such medical reports or recommendations
shall be made available to the personal physician, attorney, or
authorized agent of the individual concerned upon written release
received from the individual or the
individual's agent, or, when
necessary for the proper administration of
the fund, to the board
assigned physician. (D) Any person who is a member or contributor of the
system
shall be furnished, on written request, with a
statement of the
amount to the credit of the person's account. The
board need not
answer more than one request of a person in any
one year. (E) Notwithstanding the exceptions to public inspection in
division (B) of this section, the board may furnish the
following
information: (1) If a member, former member, retirant, contributor, or
former contributor is subject to an order issued under section
2907.15 of the
Revised Code or is convicted of or pleads guilty to
a
violation of section 2921.41 of the Revised Code, on written
request of a prosecutor as defined in section 2935.01 of the
Revised Code, the board shall furnish to the prosecutor the
information requested from the individual's personal history
record. (2) Pursuant to a court or administrative order issued
under
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the
Revised Code, the board
shall
furnish to a court or child support
enforcement agency the
information required under that section. (3) At the written request of any person, the board shall
provide to the person a list of the names and addresses of
members, former members, retirants, contributors, former
contributors, or beneficiaries. The costs of compiling, copying,
and mailing the list shall be paid by such person. (4) Within fourteen days after receiving from the director
of job and family services a list of the names and social security
numbers
of recipients of public assistance pursuant to section
5101.181
of the Revised Code, the board shall inform the auditor
of state
of the name, current or most recent employer address, and
social
security number of each member whose name and social
security
number are the same as that of a person whose name or
social
security number was submitted by the director. The board
and its
employees shall, except for purposes of furnishing the
auditor of
state with information required by this section,
preserve the
confidentiality of recipients of public assistance in
compliance
with division (A) of section 5101.181 of the Revised
Code. (5) The
system shall comply with orders issued under section
3105.87 of the Revised Code. On the written request of an alternate payee, as defined in
section 3105.80 of the Revised
Code, the system shall furnish to
the alternate payee information on the amount and status of any
amounts
payable to the alternate payee under an order issued under
section 3105.171 or
3105.65 of the Revised Code.
(6) At the request of any person, the board shall make available to the person copies of all documents, including resumes, in the board's possession regarding filling a vacancy of a teacher member or retired teacher member of the board. The person who made the request shall pay the cost of compiling, copying, and mailing the documents. The information described in this division is a public record. (7) The board shall furnish those personal history records kept by the board to the secretary of state necessary for the purposes of certifying an election pursuant to section 111.30 of the Revised Code. The records provided pursuant to this division shall remain confidential while in the possession of the secretary of state. (F) A statement that contains information obtained from
the
system's records that is signed by an officer of the
retirement
system and to which the system's official seal is
affixed, or
copies of the system's records to which the signature
and seal are
attached, shall be received as true copies of the
system's records
in any court or before any officer of this
state. Sec. 3307.99. (A) Whoever violates division (A) of section 3307.073 of the Revised Code shall be fined not more than one hundred dollars for each day of the violation. (B) Whoever violates division (B) of section 3307.073 of the Revised Code shall be imprisoned for not more than six months or fined not more than five thousand dollars, or both. (C)
Fines imposed by the Ohio elections commission under this section shall be paid into the Ohio elections commission fund created under section 3513.10 of the Revised Code. Sec. 3309.03. A school employees retirement system is
hereby
established for the employees as defined in section
3309.01 of the
Revised Code, which shall include the several
funds created and
placed under the management of the school
employees retirement
board for the payment of retirement
allowances and other benefits
provided in Chapter 3309. of the
Revised Code. The board may sue
and be sued, plead and be
impleaded, contract and be contracted
with, and do all things
necessary to carry out Chapter 3309. of
the Revised Code. All of
its business shall be transacted, all of
its funds invested, all
warrants for money drawn and payments
made, and all of its cash, securities,
and other property shall be
held in the
name of
the board, or in the name of its nominee,
provided that nominees
are authorized by retirement board
resolution for such
purposes.
The board may take all appropriate
action to avoid payment by the
system or its members of federal or
state income taxes on contributions
to the system or amounts
earned on those contributions.
If the Ohio retirement study council establishes a uniform format for any report the board is required to submit to the council, the board shall submit the report in that format.
Sec. 3309.041. The school employees retirement board shall do all of the following:
(A) In consultation with the Ohio ethics commission, review any existing policy regarding the travel and payment of travel expenses of members and employees of the school employees retirement board and adopt rules in accordance with section 3309.04 of the Revised Code establishing a new or revised policy regarding travel and payment of travel expenses;
(B) If the board intends to award a bonus to any employee of the board, adopt rules in accordance with section 3309.04 of the Revised Code establishing a policy regarding employee bonuses;
(C) Provide copies of the rules adopted under divisions (A) and (B) of this section to each member of the Ohio retirement study council; (D) Submit to the Ohio retirement study council a proposed operating budget, including an administrative budget for the board, for the next immediate fiscal year and adopt that budget not earlier than sixty days after it is submitted to the council; (E) Submit to the council a plan describing how the board will improve the dissemination of public information pertaining to the board. Sec. 3309.042. The school employees retirement board shall, in consultation with the Ohio ethics commission, develop an ethics policy. The board shall submit this policy to the Ohio retirement study council for approval. The council shall review the policy and, if the council determines, upon the advice of the Ohio ethics commission, that the policy is adequate, approve the policy. If the council determines that the policy is inadequate, it shall specify the revisions to be made and the board shall submit a revised policy. If the council approves the revised policy, the board shall adopt it. If not, the board shall make any further revisions required by the council and adopt the policy. The board periodically shall provide ethics training to members and employees of the board. The training shall include training regarding the requirements and prohibitions of Chapter 102. of the Revised Code and sections 2921.42 and 2921.43 of the Revised Code and any other training the board considers appropriate.
The board shall establish a procedure to ensure that each employee of the board is informed of the procedure for filing a complaint alleging violation of Chapter 102. of the Revised Code or section 2921.42 or 2921.43 of the Revised Code with the Ohio ethics commission or the appropriate prosecuting attorney. Sec. 3309.043. (A) The school employees retirement board shall designate a person who is a licensed state retirement system investment officer to be the chief investment officer for the school employees retirement system. The board shall notify the division of securities of the department of commerce in writing of its designation and of any change in its designation within ten calendar days of the designation or change.
(B) The chief investment officer shall reasonably supervise the licensed state retirement system investment officers and other persons employed by the school employees retirement system with a view toward preventing violations of Chapter 1707. of the Revised Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. and following, and the "Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a, and following, and the rules and regulations promulgated under those statutes. This duty of reasonable supervision shall include the adoption, implementation, and enforcement of written policies and procedures reasonably designed to prevent persons employed by the school employees retirement system from misusing material, nonpublic information in violation of those laws, rules, and regulations.
For purposes of this division, no chief investment officer shall be considered to have failed to satisfy the officer's duty of reasonable supervision if the officer has done all of the following:
(1) Adopted and implemented written procedures, and a system for applying the procedures, that would reasonably be expected to prevent and detect, insofar as practicable, any violation by its licensed investment officers and other persons employed by the school employees retirement system;
(2) Reasonably discharged the duties and obligations incumbent on the chief investment officer by reason of the established procedures and the system for applying the procedures when the officer had no reasonable cause to believe that there was a failure to comply with the procedures and systems;
(3) Reviewed, at least annually, the adequacy of the policies and procedures established pursuant to this section and the effectiveness of their implementation.
(C) The chief investment officer shall ensure that securities transactions are executed in such a manner that the school employees retirement system's total costs or proceeds in each transaction are the most favorable under the circumstances.
For purposes of this division, no chief investment officer shall be considered to have failed to satisfy the officer's duty of best execution if the officer has done both of the following:
(1) Adopted and implemented a written policy that outlines the criteria used to select broker-dealers that execute securities transactions on behalf of the school employees retirement system, which criteria shall include all of the following:
(a) Commissions charged by the broker-dealer, both in the aggregate and on a per share basis;
(b) The execution speed and trade settlement capabilities of the broker-dealer;
(c) The responsiveness, reliability, and integrity of the broker-dealer;
(d) The nature and value of research provided by the broker-dealer;
(e) Any special capabilities of the broker-dealer.
(2) Reviewed, at least annually, the performance of broker-dealers that execute securities transactions on behalf of the school employees retirement system.
Sec. 3309.05. The school employees retirement board shall
consist of the following seven members: (A) The auditor of state; (B) The attorney general treasurer of state; (C) Four members, known as employee members, who shall be
members of the school employees retirement system, and who shall
be elected by ballot by the members of the system; (D) One member, known as the retirant member, who shall be
a
former member of the retirement system who is a
resident of this
state and currently receiving an age and
service retirement
benefit, a disability benefit, or benefits under a plan
established under section 3309.81 of the Revised Code. The
retirant member shall be
elected by
ballot by former members of
the system who are currently receiving
an age and service
retirement benefit, a disability benefit, or benefits under a
plan established
under section 3309.81 of the Revised Code; (E) One member, known as the school board member, appointed by the governor, who shall be a member of a city, local, exempted village, or joint vocational school board district board of education or a member of an educational service center governing board, but need not be a member of the retirement system; (F)(1) One member, known as the investment expert member, who shall be appointed by the governor and who shall have the following qualifications:
(a) The member is a resident of this state;
(b) Within the three years immediately preceding the appointment, the member has not been employed by the public employees state retirement system, police and fire pension fund, state teachers retirement system, school employees retirement system, or state highway patrol retirement system or by any person, partnership, or corporation that has provided to one of those retirement systems services of a financial or investment nature, including the management, analysis, supervision, or investment of assets;
(c) The member has direct experience in the management, analysis, supervision, or investment of assets.
(2) The initial investment expert member shall be appointed and take office not less than ninety days after the effective date of this amendment. Any investment expert member appointed to fill a vacancy occurring prior to the expiration of the term for which the member's predecessor was appointed holds office until the end of such term. The member continues in office subsequent to the expiration date of the member's term until the member's successor takes office, or until a period of sixty days has elapsed, whichever occurs first.
Sec. 3309.051. Each newly elected member of the school employees retirement board and each individual appointed to fill a vacancy on the board shall, not later than ninety days after commencing service as a board member, complete the orientation program component of the retirement board member education program established under section 171.50 of the Revised Code. Each member of the board who has served a year or longer as a board member shall, not less than twice each year, attend one or more programs that are part of the continuing education component of the retirement board member education program established under section 171.50 of the Revised Code. Sec. 3309.052. A person who served as an elected or appointed member of the school employees retirement board for one or more entire fiscal years in fiscal years 2000, 2001, or 2002 is ineligible for re-election or reappointment to the board if the person has accepted reimbursements for travel and travel-related expenses from the board that have an annual average of more than ten thousand dollars for those fiscal years.
Sec. 3309.06. (A) Elections for employee and retirant members of the school
employees retirement board shall be held on the first Monday of March. Terms
of office of the employee members and the retirant member of the board shall
be for four years each, commencing on the first day of July following the
election and ending on the thirtieth day of June. The initial terms of the
retirant member and the new employee member shall commence on July 1, 1984,
and end on June 30, 1988. Vancancies occurring in (B) If a vacancy occurs during the
terms term of employee members or
the retirant an elected member of the board shall be filled by, the remaining members of
the board for the unexpired terms shall elect a successor member. Employee On certification of the election results under section 111.30 of the Revised Code, the successor member shall hold office until the next board election that occurs not less than ninety days after the successor member's election. The successor member shall qualify for board membership under the same division of section 3309.05 of the Revised Code as the member's predecessor in office. Elections under this division shall be conducted under the supervision of the secretary of state pursuant to section 111.30 of the Revised Code.
(C) Employee members or the retirant member of
the board who fail to attend the meetings of the board for four months or
longer, without being excused, shall be considered as having resigned and
successors shall be elected for their unexpired terms pursuant to division (B) of this section. If as a result of
changed circumstances the retirant member would no longer qualify for
membership on the board as the retirant member, the office shall be considered
vacant, and a successor retirant member shall be elected pursuant to division (B) of this section.
Sec. 3309.061. An employee member or retirant member of the school employees retirement board who is charged with committing a felony, a theft offense as defined in section 2913.01 of the Revised Code, or a violation of section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be suspended from participation on the board for the period during which the charges are pending. If the charges are dismissed, the member is found not guilty, or the charges are otherwise resolved in a manner not resulting in the member being convicted of or pleading guilty to an offense of that nature, the suspension shall end, and the member may participate on the board. If the member pleads guilty to or is convicted of the offense, the position of the member on the board shall be deemed vacant. A person who has pleaded guilty to or been convicted of an offense of that nature is ineligible for election to the office of employee or retirant member of the school employees retirement board. Sec. 3309.07. (A) All elections for employee or retirant
members of the school employees retirement board shall be held
under the direction of the board in accordance with rules adopted under section 111.30 of the Revised Code. (B) Any member of the school employees retirement system,
other than a disability benefit recipient, shall be eligible to be nominated for
election as an employee member of the board who has been
nominated
by a petition that is signed by at least five hundred members,
provided
that there shall be and certified under section 111.30 of the Revised Code. The petition shall contain the signatures of not less than twenty signers members each
from at
least ten counties wherein such members are employed.
The petition
shall specify the term of office and position. The
name of any
member so nominated shall be placed upon the ballot
by the board
as a regular candidate. Other names of eligible
candidates may at
any election be substituted for the regular
candidates by writing
such names upon the ballot. The candidate
receiving the highest
number of votes for any term as member of
the board shall be
elected for such term on certification of the election results under section 111.30 of the Revised Code. In any year in which
two employee member
positions must be filled, the candidates who
receive the highest
and second highest number of votes shall be
elected to the
offices on certification of the election results under section 111.30 of the Revised Code. (C) Any former
member
of the school employees retirement
system described in division
(D) of section 3309.05 of the Revised
Code is eligible for
election as the retirant member of the board
to represent former members currently receiving an age and service
retirement benefit, a disability benefit, or benefits under a plan
established under section 3309.81 of the Revised Code,
provided
that such
person has been nominated by a petition that is certified under section 111.30 of the Revised Code and signed by at
least one
hundred fifty former members of the system who are
currently receiving
an age and service retirement benefit,
a
disability benefit, or benefits under a plan established under
section 3309.81 of the Revised Code. The
petition shall contain
the signatures of at least
ten such recipients from each of
at
least five counties wherein recipients of benefits from this
system
reside. The petition shall
specify the term of office and
position. The name of any
person so nominated
shall be
placed
upon the ballot by the board as a regular candidate.
Other names
of eligible candidates may at any election be
substituted for the
regular candidates by writing such names upon
the ballot. The
candidate receiving the highest number of votes
for any term as
member of the board shall be elected for such
term on certification of the election results under section 111.30 of the Revised Code. No employee member of the board who retires while a member
of
the board shall be eligible to become a retirant member of the
board for three years after the date of the member's retirement.
Sec. 3309.061 3309.071. Notwithstanding sections 3309.05, 3309.06,
and
3309.07 of the Revised Code, the school employees retirement
board is not required to hold an election for a position on the
board as an
employee member or retirant
member if only one
candidate has been nominated for the position by petition
in
accordance with section 3309.07 of the Revised Code. The
candidate shall take office as if elected. The term of
office
shall be four years beginning on the first
day of July following
the date the candidate was nominated.
Sec. 3309.072. (A) As used in this section:
(1) "Campaign committee" means a candidate or a combination of two or more persons authorized by a candidate to receive contributions and in-kind contributions and make expenditures on behalf of the candidate.
(2) "Candidate" means an individual who has been nominated pursuant to section 3309.07 of the Revised Code for election to the school employees retirement board or who is seeking to be elected to fill a vacancy on the board pursuant to division (C) of section 3309.06 of the Revised Code.
(3) "Contribution" means a loan, gift, deposit, forgiveness of indebtedness, donation, advance, payment, transfer of funds or transfer of anything of value including a transfer of funds from an inter vivos or testamentary trust or decedent's estate, and the payment by any person other than the person to whom the services are rendered for the personal services of another person, which contribution is made, received, or used for the purpose of influencing the results of an election to the school employees retirement board under section 3309.07 of the Revised Code or the results of an election to fill a vacancy on the board pursuant to division (C) of section 3309.06 of the Revised Code. "Contribution" does not include:
(a) Services provided without compensation by individuals volunteering a portion or all of their time on behalf of a person;
(b) Ordinary home hospitality;
(c) The personal expenses of a volunteer paid for by that volunteer campaign worker.
(4) "Election day" means the following, as appropriate to the situation:
(a) The first Monday in March of a year for which section 3309.06 of the Revised Code specifies that an election for a member of the school employees retirement board be held;
(b) If, pursuant to section 3309.071 of the Revised Code, no election is held, the first Monday in March of a year that the election would have been held if not for section 3309.071 of the Revised Code.
(5) "Expenditure" means the disbursement or use of a contribution for the purpose of influencing the results of an election to the school employees retirement board under section 3309.07 of the Revised Code or the results of an election to fill a vacancy on the board pursuant to division (C) of section 3309.06 of the Revised Code.
(6) "Independent expenditure" means an expenditure by an individual, partnership, or other entity advocating the election or defeat of an identified candidate or candidates, that is not made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of any candidate or candidates or of the campaign committee or agent of the candidate or candidates. An independent expenditure shall not be construed as being a contribution. As used in division (A)(6) of this section: (a) "Advocating" means any communication containing a message advocating election or defeat.
(b) "Identified candidate" means that the name of the candidate appears, a photograph or drawing of the candidate appears, or the identity of the candidate is otherwise apparent by unambiguous reference.
(c) "Made in coordination, cooperation, or consultation with, or at the request or suggestion of, any candidate or the campaign committee or agent of the candidate" means made pursuant to any arrangement, coordination, or direction by the candidate, the candidate's campaign committee, or the candidate's agent prior to the publication, distribution, display, or broadcast of the communication. An expenditure is presumed to be so made when it is any of the following:
(i) Based on information about the candidate's plans, projects, or needs provided to the person making the expenditure by the candidate, or by the candidate's campaign committee or agent, with a view toward having an expenditure made;
(ii) Made by or through any person who is, or has been, authorized to raise or expend funds, who is, or has been, an officer of the candidate's campaign committee, or who is, or has been, receiving any form of compensation or reimbursement from the candidate or the candidate's campaign committee or agent;
(iii) Made by a political party in support of a candidate, unless the expenditure is made by a political party to conduct voter registration or voter education efforts.
(d) "Agent" means any person who has actual oral or written authority, either express or implied, to make or to authorize the making of expenditures on behalf of a candidate, or means any person who has been placed in a position with the candidate's campaign committee or organization such that it would reasonably appear that in the ordinary course of campaign-related activities the person may authorize expenditures.
(7) "In-kind contribution" means anything of value other than money that is used to influence the results of an election to the school employees retirement board under section 3309.07 of the Revised Code or the results of an election to fill a vacancy on the board pursuant to division (C) of section 3309.06 of the Revised Code or is transferred to or used in support of or in opposition to a candidate and that is made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of the benefited candidate. The financing of the dissemination, distribution, or republication, in whole or part, of any broadcast or of any written, graphic, or other form of campaign materials prepared by the candidate, the candidate's campaign committee, or their authorized agents is an in-kind contribution to the candidate and an expenditure by the candidate.
(8) "Personal expenses" includes ordinary expenses for accommodations, clothing, food, personal motor vehicle or airplane, and home telephone.
(B) Except as otherwise provided in division (D) of this section, each candidate who, or whose campaign committee, receives a contribution or in-kind contribution or makes an expenditure in connection with the candidate's efforts to be elected to the school employees retirement board shall file with the secretary of state two complete, accurate, and itemized statements setting forth in detail the contributions, in-kind contributions, and expenditures. The statements shall be filed regardless of whether, pursuant to section 3309.071 of the Revised Code, no election is held. The statements shall be made on a form prescribed under section 111.30 of the Revised Code. Every expenditure shall be vouched for by a receipted bill, stating the purpose of the expenditures, that shall be filed with the statement; a canceled check with a notation of the purpose of the expenditure is a receipted bill for purposes of this division. The first statement shall be filed not later than four p.m. on the day that is twelve days before election day. The second statement shall be filed not sooner than the day that is eight days after election day and not later than thirty-eight days after election day. The first statement shall reflect contributions and in-kind contributions received and expenditures made to the close of business on the twentieth day before election day. The second statement shall reflect contributions and in-kind contributions received and expenditures made during the period beginning on the nineteenth day before election day and ending on the close of business on the seventh day after election day. (C) Each individual, partnership, or other entity who makes an independent expenditure in connection with the candidate's efforts to be elected to the school employees retirement board shall file with the secretary of state two complete, accurate, and itemized statements setting forth in detail the independent expenditures. The statements shall be filed regardless of whether, pursuant to section 3309.071 of the Revised Code, no election is held. The statements shall be made on a form prescribed under section 111.30 of the Revised Code.
The first statement shall be filed not later than four p.m. on the day that is twelve days before election day. The second statement shall be filed not sooner than the day that is eight days after election day and not later than thirty-eight days after election day. The first statement shall reflect independent expenditures made to the close of business on the twentieth day before election day. The second statement shall reflect independent expenditures made during the period beginning on the nineteenth day before election day and ending on the close of business on the seventh day after election day. (D) Each candidate who, or whose campaign committee, receives a contribution or in-kind contribution or makes an expenditure in connection with the candidate's efforts to be elected to fill a vacancy in the public employees retirement board pursuant to division (C) of section 3309.06 of the Revised Code shall file with the secretary of state a complete, accurate, and itemized statement setting forth in detail the contributions, in-kind contributions, and expenditures. The statement shall be made on a form prescribed under section 111.30 of the Revised Code. Every expenditure shall be vouched for by a receipted bill, stating the purpose of the expenditures, that shall be filed with the statement; a canceled check with a notation of the purpose of the expenditure is a receipted bill for purposes of this division.
The statement shall be filed within thirty-eight days after the day the candidate takes office. The statement shall reflect contributions and in-kind contributions received and expenditures made to the close of business on the seventh day after the day the candidate takes office.
Sec. 3309.073. (A) No person shall knowingly fail to file a complete and accurate campaign finance statement or independent expenditure statement in accordance with section 3309.072 of the Revised Code. (B) No person, during the course of a person seeking nomination for, and during any campaign for, election to the school employees retirement board, shall knowingly and with intent to affect the nomination or the outcome of the campaign do any of the following by means of campaign materials, an advertisement on radio or television or in a newspaper or periodical, a public speech, press release, or otherwise:
(1) With regard to a candidate, identify the candidate in a manner that implies that the candidate is a member of the board or use the term "re-elect" when the candidate is not currently a member of the board;
(2) Make a false statement concerning the formal schooling or training completed or attempted by a candidate; a degree, diploma, certificate, scholarship, grant, award, prize, or honor received, earned, or held by a candidate; or the period of time during which a candidate attended any school, college, community technical school, or institution;
(3) Make a false statement concerning the professional, occupational, or vocational licenses held by a candidate, or concerning any position the candidate held for which the candidate received a salary or wages;
(4) Make a false statement that a candidate or public official has been indicted or convicted of a theft offense, extortion, or other crime involving financial corruption or moral turpitude;
(5) Make a statement that a candidate has been indicted for any crime or has been the subject of a finding by the Ohio elections commission without disclosing the outcome of any legal proceedings resulting from the indictment or finding;
(6) Make a false statement that a candidate or official has a record of treatment or confinement for mental disorder;
(7) Make a false statement that a candidate or official has been subjected to military discipline for criminal misconduct or dishonorably discharged from the armed services;
(8) Falsely identify the source of a statement, issue statements under the name of another person without authorization, or falsely state the endorsement of or opposition to a candidate by a person or publication;
(9) Make a false statement concerning the voting record of a candidate or public official;
(10) Post, publish, circulate, distribute, or otherwise disseminate a false statement concerning a candidate, either knowing the same to be false or with reckless disregard of whether it was false or not, if the statement is designed to promote the election, nomination, or defeat of the candidate.
Sec. 3309.074. The secretary of state, or any person acting on personal knowledge and subject to the penalties of perjury, may file a complaint with the Ohio elections commission alleging a violation of section 3309.073 of the Revised Code. The complaint shall be made on a form prescribed and provided by the commission.
On receipt of a complaint under this section, the commission shall hold a hearing open to the public to determine whether the violation alleged in the complaint has occurred. The commission may administer oaths and issue subpoenas to any person in the state compelling the attendance of witnesses and the production of relevant papers, books, accounts, and reports. On the refusal of any person to obey a subpoena or to be sworn or to answer as a witness, the commission may apply to the court of common pleas of Franklin county under section 2705.03 of the Revised Code. The court shall hold contempt proceedings in accordance with Chapter 2705. of the Revised Code.
The commission shall provide the person accused of the violation at least seven days prior notice of the time, date, and place of the hearing. The accused may be represented by an attorney and shall have an opportunity to present evidence, call witnesses, and cross-examine witnesses.
At the hearing, the commission shall determine whether the violation alleged in the complaint has occurred. If the commission determines that a violation of division (A) of section 3309.073 of the Revised Code has occurred, the commission shall either impose a fine under section 3309.99 of the Revised Code or enter a finding that good cause has been shown not to impose the fine. If the commission determines that a violation of division (B) of section 3309.073 of the Revised Code has occurred, the commission shall impose the fine described in section 3309.99 of the Revised Code, refer the matter to the appropriate prosecutor, or enter a finding that good cause has been shown to not impose a fine or refer the matter to the appropriate prosecutor.
Sec. 3309.09. Four A majority of the members of the school employees retirement board
constitutes a quorum for the transaction of any business. Any action taken by
the board shall be approved by four or mor e a majority of its the members of the board. All
meetings of the board shall be open to the public except executive sessions as
set forth in division (G) of section 121.22 of the Revised Code, and any
portions of any sessions discussing medical records or the degree of
disability of a member excluded from public inspection by section 3309.22 of
the Revised Code.
Sec. 3309.14. The school employees retirement board shall
secure the service of such technical and administrative employees
as are necessary for the transaction of the business of the
school employees retirement system. The Effective ninety days after the effective date of this amendment, the board may not employ a state retirement system investment officer, as defined in section 1707.01 of the Revised Code, who does not hold a valid state retirement system investment officer license issued by the division of securities in the department of commerce. The compensation of all
persons engaged by the board and all other expenses of the board
necessary for the proper operation of the system shall be paid at
such rates and in such amounts as the board approves. Every
expense voucher of an employee, officer, or board member of the
school employees retirement system shall itemize all purchases
and expenditures. The board shall receive and act upon all applications for
retirement under Chapter 3309. of the Revised Code, and shall
provide for the payment of all retirement allowances and other
benefits and shall make other expenditures required or authorized
by this chapter.
Sec. 3309.22. (A)(1) As used in this division, "personal
history record"
means information maintained by the board on an
individual who is a
member, former
member, contributor, former
contributor, retirant,
or beneficiary
that includes the address,
telephone number, social
security
number, record of contributions,
correspondence with the
system,
and other information the board
determines to be
confidential. (2) The records of the board shall be open to public
inspection, except for the following, which shall be excluded,
except with the written authorization of the individual
concerned: (a) The individual's statement of previous service and
other
information as provided for in section 3309.28 of the
Revised
Code; (b) Any information identifying by name and address the
amount of a monthly allowance or benefit paid to the individual; (c) The individual's personal history record. (B) All medical reports and recommendations required by
the
system are privileged except that copies of such medical
reports
or recommendations shall be made available to the
personal
physician, attorney, or authorized agent of the
individual
concerned upon written release received from the
individual or the
individual's agent, or when necessary
for the proper
administration of the
fund, to the board assigned physician. (C) Any person who is a contributor of the system shall be
furnished, on written request, with a statement of the
amount to
the credit of the person's account. The board need not
answer
more than one such request of a person in any one year. (D) Notwithstanding the exceptions to public inspection in
division (A)(2) of this section, the board may furnish the
following information: (1) If a member, former member, contributor, former
contributor, or retirant is subject to an order issued under
section 2907.15
of the Revised Code or is convicted of or pleads
guilty to a
violation of section 2921.41 of the Revised Code, on
written
request of a prosecutor as defined in section 2935.01 of
the
Revised Code, the board shall furnish to the prosecutor the
information requested from the individual's personal history
record. (2) Pursuant to a court or administrative order issued
under
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the
Revised Code, the board
shall
furnish to a court or child support
enforcement agency the
information required under that section. (3) At the written request of any person, the board shall
provide to the person a list of the names and addresses of
members, former members, retirants, contributors, former
contributors, or beneficiaries. The costs of compiling, copying,
and mailing the list shall be paid by such person. (4) Within fourteen days after receiving from the director
of job and family services a list of the names and social security
numbers
of recipients of public assistance pursuant to section
5101.181
of the Revised Code, the board shall inform the auditor
of state
of the name, current or most recent employer address, and
social
security number of each contributor whose name and social
security number are the same as that of a person whose name or
social security number was submitted by the director. The board
and its employees shall, except for purposes of furnishing the
auditor of state with information required by this section,
preserve the confidentiality of recipients of public assistance
in
compliance with division (A) of section 5101.181 of the
Revised
Code. (5) The
system shall comply with orders issued under section
3105.87 of the Revised Code. On the written request of an alternate payee, as defined in
section 3105.80 of the Revised
Code, the system shall furnish to
the alternate payee information on the amount and status of any
amounts
payable to the alternate payee under an order issued under
section 3105.171 or
3105.65 of the Revised Code. (6) At the request of any person, the board shall make available to the person copies of all documents, including resumes, in the board's possession regarding filling a vacancy of an employee member or retirant member of the board. The person who made the request shall pay the cost of compiling, copying, and mailing the documents. The information described in this division is a public record. (7) The board shall furnish those personal history records kept by the board to the secretary of state necessary for the purposes of certifying an election pursuant to section 111.30 of the Revised Code. The records provided pursuant to this division shall remain confidential while in the possession of the secretary of state. (E) A statement that contains information obtained from
the
system's records that is signed by an officer of the
retirement
system and to which the system's official seal is
affixed, or
copies of the system's records to which the signature
and seal are
attached, shall be received as true copies of the
system's records
in any court or before any officer of this
state. Sec. 3309.99. (A) Whoever violates division (A) of section 3309.073 of the Revised Code shall be fined not more than one hundred dollars for each day of the violation. (B) Whoever violates division (B) of section 3309.073 of the Revised Code shall be imprisoned for not more than six months or fined not more than five thousand dollars, or both.
(C) Fines imposed by the Ohio elections commission under this section shall be paid into the Ohio elections commission fund created under section 3513.10 of the Revised Code. Sec. 5505.04. (A)(1) The general administration and
management
of the state highway patrol retirement system and the
making
effective of this chapter are hereby vested in the state
highway
patrol retirement board. The board may sue and be sued,
plead and
be impleaded, contract and be contracted with, and do
all things
necessary to carry out this chapter. The board shall consist of the auditor of state, the director of public safety, the treasurer of state, the
superintendent of the state highway patrol, a retirant-member retirant member who
is a resident of this state, and four employee-members employee members, and two investment expert members, who shall be appointed by the governor and who shall have the following qualifications: (a) Each investment expert member shall be a resident of this state.
(b) Within the three years immediately preceding the appointment, each investment expert member shall not have been employed by the public employees retirement system, police and fire pension fund, state teachers retirement system, school employees retirement system, or state highway patrol retirement system or by any person, partnership, or corporation that has provided to one of those retirement systems services of a financial or investment nature, including the management, analysis, supervision, or investment of assets.
(c) Each investment expert member shall have direct experience in the management, analysis, supervision, or investment of assets. (2) The board shall annually elect a chairperson and
vice-chairperson from among its members. The vice-chairperson
shall act as
chairperson in the absence of the chairperson. A
majority of the members of
the board shall constitute a quorum and
any action taken shall be
approved by four or more a majority of the members of the board.
The board shall meet
not less than once each year, upon sufficient
notice to the
members. All meetings of the board shall be open to
the public
except executive sessions as set forth in division (G)
of section
121.22 of the Revised Code, and any portions of any
sessions
discussing medical records or the degree of disability of
a
member excluded from public inspection by this section. (3) The initial investment expert member shall be appointed and take office not less than ninety days after the effective date of this amendment. Any investment expert member appointed to fill a vacancy occurring prior to the expiration of the term for which the member's predecessor was appointed holds office until the end of such term. The member continues in office subsequent to the expiration date of the member's term until the member's successor takes office, or until a period of sixty days has elapsed, whichever occurs first. (B) The attorney general shall prescribe procedures for
the
adoption of rules authorized under this chapter, consistent
with
the provision of section 111.15 of the Revised Code under
which
all rules shall be filed in order to be effective. Such
procedures shall establish methods by which notice of proposed
rules are given to interested parties and rules adopted by the
board published and otherwise made available.
When it files a
rule with the joint committee on agency
rule review pursuant to
section 111.15 of the
Revised Code, the board shall submit to
the
Ohio retirement study
council a copy of the full text of the rule,
and if applicable,
a copy of the rule summary and
fiscal analysis
required by division
(B) of section 127.18 of the
Revised
Code. (C)(1) Except as provided in division
(C)(4) of this
section, the retirant-member of the board shall be
elected for
a
four-year term by a general election of service and disability
retirants conducted in a manner approved by the board. The term
of the initial retirant-member shall commence in August 1990. A
person who at the time of retirement is an employee-member of the
board is not eligible to become a retirant-member until three
years after such person's retirement date.
(2) Except as provided in division (C)(4) of this
section,
employee-members of the board
shall be elected for terms of four
years by a general election of
contributing members conducted in a
manner approved by the board.
The term of office of each
employee-member shall commence in
August of the year in which such
member is elected.
(3) Except as provided in division (C)(4) of this
section,
any vacancy occurring
in the term of the retirant-member or any
employee-member of the
board shall be filled by an election
conducted in the same manner
as other retirant-member and
employee-member elections. The
retirant-member or employee-member
elected shall fill the
unexpired term.
(4) The state highway patrol retirement board is not
required to
hold an election for a position on the board as a
retirant-member,
employee-member, or vacancy for a
retirant-member
or employee-member if only one candidate has been nominated
for
the position or vacancy in
the
manner approved by the board. The
candidate shall take office as if elected.
In the case of a
retirant-member or
employee-member, the term of office shall be
four years beginning in August of the year the candidate was
nominated. In the case of a vacancy, the candidate shall fill the
unexpired term.
(D)(1) As used in this division, "personal history record"
means information maintained by the board on an individual who is
a
member, former
member, retirant, or beneficiary that includes
the address,
telephone number, social security number, record of
contributions, correspondence with the system, and other
information the board determines to be confidential.
(2) The records of the board shall be open to public
inspection, except for the following which shall be excluded:
the
member's, former member's, retirant's, or beneficiary's
personal
history record and the amount of a monthly allowance or
benefit
paid to a retirant, beneficiary, or survivor, except with
the
written authorization of the individual concerned. All
medical
reports and recommendations are privileged except that
copies of
such medical reports or recommendations shall be made
available to
the individual's personal physician, attorney, or
authorized agent
upon written release received from such
individual or such
individual's agent, or when necessary
for the proper
administration of the
fund to the board-assigned physician. (E)(D) Notwithstanding the exceptions to public inspection in
division (D)(C)(2) of this section, the board may furnish the
following information:
(1) If a member, former member, or retirant is subject to an
order issued
under section 2907.15 of the Revised Code or is
convicted
of or pleads guilty to a violation of section 2921.41 of
the
Revised Code, on written request of a prosecutor as defined in
section 2935.01 of the Revised Code, the board shall furnish to
the prosecutor the information requested from the individual's
personal history record. (2) Pursuant to a court order issued under Chapters 3119.,
3121., and 3123.
of the Revised Code, the board shall furnish to a
court or child
support enforcement agency the information required
under those chapters. (3) At the written request of any nonprofit organization
or
association providing services to retirement system members,
retirants, or beneficiaries, the board shall provide to the
organization or association a list of the names and addresses of
members, former members, retirants, or beneficiaries if the
organization or association agrees to use such information solely
in accordance with its stated purpose of providing services to
such individuals and not for the benefit of other persons,
organizations, or associations. The costs of compiling, copying,
and mailing the list shall be paid by such entity. (4) Within fourteen days after receiving from the director
of job and
family services a list of the names and social security
numbers
of recipients of public assistance pursuant to section
5101.181
of the Revised Code, the board shall inform the auditor
of state
of the name, current or most recent employer address, and
social
security number of each member whose name and social
security
number are the same as those of a person whose name or
social
security number was submitted by the director. The board
and its
employees, except for purposes of furnishing the auditor
of state
with information required by this section, shall preserve
the
confidentiality of recipients of public assistance in
compliance
with division (A) of section 5101.181 of the Revised
Code. (5) The
system shall comply with orders issued under section
3105.87 of the Revised Code. On the written request of an alternate payee, as defined in
section 3105.80 of the Revised
Code, the system shall furnish to
the alternate payee information on the amount and status of any
amounts
payable to the alternate payee under an order issued under
section 3105.171 or
3105.65 of the Revised Code. (6) At the request of any person, the board shall make available to the person copies of all documents, including resumes, in the board's possession regarding filling a vacancy of an employee member or retirant member of the board. The person who made the request shall pay the cost of compiling, copying, and mailing the documents. The information described in this division is a public record. (7) The board shall furnish those personal history records kept by the board to the secretary of state necessary for the purposes of certifying an election pursuant to section 111.30 of the Revised Code. The records provided pursuant to this division shall remain confidential while in the possession of the secretary of state. (F)(E) A statement that contains information obtained from
the
system's records that is certified and signed by an officer
of the
retirement system and to which the system's official seal
is
affixed, or copies of the system's records to which the
signature
and seal are attached, shall be received as true copies
of the
system's records in any court or before any officer of
this state.
Sec. 5505.041. All elections for retirant member and employee members of the state highway patrol retirement board shall be held under the direction of the board in accordance with rules adopted under section 111.30 of the Revised Code. A person who at the time of retirement is an employee member of the board is not eligible to become a retirant member of the board until three years after the person's retirement date. Service and disability retirants may vote in elections for the retirant member of the board. Contributing members may vote in elections for the employee member of the board.
On certification of the election results under section 111.30 of the Revised Code, the person elected as the retirant member of the board or an employee member of the board shall serve a four-year term beginning on the first day of August following the election. Sec. 5505.042. Except as provided in section 5505.043 of the Revised Code, any vacancy occurring in the term of the retirant member of the state highway patrol retirement board or an employee member of the board shall be filled by an election conducted in the same manner as other retirant member and employee member elections under section 5505.041 of the Revised Code. On certification of the election results under section 111.30 of the Revised Code, the retirant member or employee member elected shall hold office until the next board election that occurs not less than ninety days after the member's election. Sec. 5505.043. The state highway patrol retirement board is not required to hold an election for a position on the board as a retirant member, employee member, or vacancy for a retirant member or employee member if only one candidate has been nominated for the position or vacancy in accordance with rules governing the election adopted under section 111.30 of the Revised Code. The candidate shall take office as if elected. In the case of a retirant member or employee member, the term of office shall be four years beginning in August of the year the candidate was nominated. In the case of a vacancy, the candidate shall fill the unexpired term. Sec. 5505.044. (A) As used in this section:
(1) "Campaign committee" means a candidate or a combination of two or more persons authorized by a candidate to receive contributions and in-kind contributions and make expenditures on behalf of the candidate.
(2) "Candidate" means an individual who has been nominated in accordance with rules adopted under section 111.30 of the Revised Code for election to the state highway patrol retirement board or who is seeking to be elected to fill a vacancy on the board pursuant to section 5505.042 of the Revised Code.
(3) "Contribution" means a loan, gift, deposit, forgiveness of indebtedness, donation, advance, payment, transfer of funds or transfer of anything of value including a transfer of funds from an inter vivos or testamentary trust or decedent's estate, and the payment by any person other than the person to whom the services are rendered for the personal services of another person, which contribution is made, received, or used for the purpose of influencing the results of an election to the state highway patrol retirement board under section 5505.041 or 5505.042 of the Revised Code or the results of an election to fill a vacancy on the board pursuant to section 5505.042 of the Revised Code. "Contribution" does not include:
(a) Services provided without compensation by individuals volunteering a portion or all of their time on behalf of a person;
(b) Ordinary home hospitality;
(c) The personal expenses of a volunteer paid for by that volunteer campaign worker.
(4) "Election day" means the following, as appropriate to the situation:
(a) The last day that ballots for an election to the state highway patrol retirement board under section 5505.041 or 5505.042 of the Revised Code may be returned in order for the ballot to be counted;
(b) If, pursuant to section 5505.043 of the Revised Code, no election is held, the last day that ballots would have been required to be returned in order to be counted if an election was to be held under section 5505.041 or 5505.042 of the Revised Code.
(5) "Expenditure" means the disbursement or use of a contribution for the purpose of influencing the results of an election to the state highway patrol retirement board under section 5505.041 or 5505.042 of the Revised Code or the results of an election to fill a vacancy on the board pursuant to section 5505.042 of the Revised Code.
(6) "Independent expenditure" means an expenditure by an individual, partnership, or other entity advocating the election or defeat of an identified candidate or candidates, that is not made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of any candidate or candidates or of the campaign committee or agent of the candidate or candidates. An independent expenditure shall not be construed as being a contribution. As used in division (A)(6) of this section: (a) "Advocating" means any communication containing a message advocating election or defeat.
(b) "Identified candidate" means that the name of the candidate appears, a photograph or drawing of the candidate appears, or the identity of the candidate is otherwise apparent by unambiguous reference.
(c) "Made in coordination, cooperation, or consultation with, or at the request or suggestion of, any candidate or the campaign committee or agent of the candidate" means made pursuant to any arrangement, coordination, or direction by the candidate, the candidate's campaign committee, or the candidate's agent prior to the publication, distribution, display, or broadcast of the communication. An expenditure is presumed to be so made when it is any of the following:
(i) Based on information about the candidate's plans, projects, or needs provided to the person making the expenditure by the candidate, or by the candidate's campaign committee or agent, with a view toward having an expenditure made;
(ii) Made by or through any person who is, or has been, authorized to raise or expend funds, who is, or has been, an officer of the candidate's campaign committee, or who is, or has been, receiving any form of compensation or reimbursement from the candidate or the candidate's campaign committee or agent;
(iii) Made by a political party in support of a candidate, unless the expenditure is made by a political party to conduct voter registration or voter education efforts.
(d) "Agent" means any person who has actual oral or written authority, either express or implied, to make or to authorize the making of expenditures on behalf of a candidate, or means any person who has been placed in a position with the candidate's campaign committee or organization such that it would reasonably appear that in the ordinary course of campaign-related activities the person may authorize expenditures.
(7) "In-kind contribution" means anything of value other than money that is used to influence the results of an election to the state highway patrol retirement board under section 5505.041 or 5505.042 of the Revised Code or the results of an election to fill a vacancy on the board pursuant to section 5505.042 of the Revised Code or is transferred to or used in support of or in opposition to a candidate and that is made with the consent of, in coordination, cooperation, or consultation with, or at the request or suggestion of the benefited candidate. The financing of the dissemination, distribution, or republication, in whole or in part, of any broadcast or of any written, graphic, or other form of campaign materials prepared by the candidate, the candidate's campaign committee, or their authorized agents is an in-kind contribution to the candidate and an expenditure by the candidate.
(8) "Personal expenses" includes ordinary expenses for accommodations, clothing, food, personal motor vehicle or airplane, and home telephone.
(B) Except as otherwise provided in division (D) of this section, each candidate who, or whose campaign committee, receives a contribution or in-kind contribution or makes an expenditure in connection with the candidate's efforts to be elected to the state highway patrol retirement board shall file with the secretary of state two complete, accurate, and itemized statements setting forth in detail the contributions, in-kind contributions, and expenditures. The statements shall be filed regardless of whether an election is held or, pursuant to section 5505.043 of the Revised Code, an election is not held. The statements shall be made on a form prescribed under section 111.30 of the Revised Code. Every expenditure shall be vouched for by a receipted bill, stating the purpose of the expenditures, that shall be filed with the statement; a canceled check with a notation of the purpose of the expenditure is a receipted bill for purposes of this division. The first statement shall be filed not later than four p.m. on the day that is twelve days before election day. The second statement shall be filed not sooner than the day that is eight days after election day and not later than thirty-eight days after election day. The first statement shall reflect contributions and in-kind contributions received and expenditures made to the close of business on the twentieth day before election day. The second statement shall reflect contributions and in-kind contributions received and expenditures made during the period beginning on the nineteenth day before election day and ending on the close of business on the seventh day after election day. (C) Each individual, partnership, or other entity who makes an independent expenditure in connection with the candidate's efforts to be elected to the state highway patrol retirement board shall file with the secretary of state two complete, accurate, and itemized statements setting forth in detail the independent expenditures. The statements shall be filed regardless of whether an election is held or, pursuant to section 5505.043 of the Revised Code, an election is not held. The statements shall be made on a form prescribed under section 111.30 of the Revised Code.
The first statement shall be filed not later than four p.m. on the day that is twelve days before election day. The second statement shall be filed not sooner than the day that is eight days after election day and not later than thirty-eight days after election day. The first statement shall reflect independent expenditures made to the close of business on the twentieth day before election day. The second statement shall reflect independent expenditures made during the period beginning on the nineteenth day before election day and ending on the close of business on the seventh day after election day. (D) Each candidate who, or whose campaign committee, receives a contribution or in-kind contribution or makes an expenditure in connection with the candidate's efforts to be elected to fill a vacancy in the public employees retirement board pursuant to section 5505.042 of the Revised Code shall file with the secretary of state a complete, accurate, and itemized statement setting forth in detail the contributions, in-kind contributions, and expenditures. The statement shall be made on a form prescribed under section 111.30 of the Revised Code. Every expenditure shall be vouched for by a receipted bill, stating the purpose of the expenditures, that shall be filed with the statement; a canceled check with a notation of the purpose of the expenditure is a receipted bill for purposes of this division.
The statement shall be filed within thirty-eight days after the day the candidate takes office. The statement shall reflect contributions and in-kind contributions received and expenditures made to the close of business on the seventh day after the day the candidate takes office.
Sec. 5505.045. (A) No person shall knowingly fail to file a complete and accurate campaign finance statement or independent expenditure statement in accordance with section 5505.044 of the Revised Code. (B) No person, during the course of a person seeking nomination for, and during any campaign for, election to the state highway patrol retirement board, shall knowingly and with intent to affect the nomination or the outcome of the campaign do any of the following by means of campaign materials, an advertisement on radio or television or in a newspaper or periodical, a public speech, press release, or otherwise:
(1) With regard to a candidate, identify the candidate in a manner that implies that the candidate is a member of the board or use the term "re-elect" when the candidate is not currently a member of the board;
(2) Make a false statement concerning the formal schooling or training completed or attempted by a candidate; a degree, diploma, certificate, scholarship, grant, award, prize, or honor received, earned, or held by a candidate; or the period of time during which a candidate attended any school, college, community technical school, or institution;
(3) Make a false statement concerning the professional, occupational, or vocational licenses held by a candidate, or concerning any position the candidate held for which the candidate received a salary or wages;
(4) Make a false statement that a candidate or public official has been indicted or convicted of a theft offense, extortion, or other crime involving financial corruption or moral turpitude;
(5) Make a statement that a candidate has been indicted for any crime or has been the subject of a finding by the Ohio elections commission without disclosing the outcome of any legal proceedings resulting from the indictment or finding;
(6) Make a false statement that a candidate or official has a record of treatment or confinement for mental disorder;
(7) Make a false statement that a candidate or official has been subjected to military discipline for criminal misconduct or dishonorably discharged from the armed services;
(8) Falsely identify the source of a statement, issue statements under the name of another person without authorization, or falsely state the endorsement of or opposition to a candidate by a person or publication;
(9) Make a false statement concerning the voting record of a candidate or public official;
(10) Post, publish, circulate, distribute, or otherwise disseminate a false statement concerning a candidate, either knowing the same to be false or with reckless disregard of whether it was false or not, if the statement is designed to promote the election, nomination, or defeat of the candidate.
Sec. 5505.046. The secretary of state, or any person acting on personal knowledge and subject to the penalties of perjury, may file a complaint with the Ohio elections commission alleging a violation of section 5505.045 of the Revised Code. The complaint shall be made on a form prescribed and provided by the commission.
On receipt of a complaint under this section, the commission shall hold a hearing open to the public to determine whether the violation alleged in the complaint has occurred. The commission may administer oaths and issue subpoenas to any person in the state compelling the attendance of witnesses and the production of relevant papers, books, accounts, and reports. On the refusal of any person to obey a subpoena or to be sworn or to answer as a witness, the commission may apply to the court of common pleas of Franklin county under section 2705.03 of the Revised Code. The court shall hold contempt proceedings in accordance with Chapter 2705. of the Revised Code.
The commission shall provide the person accused of the violation at least seven days prior notice of the time, date, and place of the hearing. The accused may be represented by an attorney and shall have an opportunity to present evidence, call witnesses, and cross-examine witnesses.
At the hearing, the commission shall determine whether the violation alleged in the complaint has occurred. If the commission determines that a violation of division (A) of section 5505.045 of the Revised Code has occurred, the commission shall either impose a fine under section 5505.99 of the Revised Code or enter a finding that good cause has been shown not to impose the fine. If the commission determines that a violation of division (B) of section 5505.045 of the Revised Code has occurred, the commission shall impose the fine described in section 5505.99 of the Revised Code, refer the matter to the appropriate prosecutor, or enter a finding that good cause has been shown to not impose a fine or refer the matter to the appropriate prosecutor. Sec. 5505.048. An employee member or retirant member of the state highway patrol retirement board who is charged with committing a felony, a theft offense as defined in section 2913.01 of the Revised Code, or a violation of section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be suspended from participation on the board for the period during which the charges are pending. If the charges are dismissed, the member is found not guilty, or the charges are otherwise resolved in a manner not resulting in the member being convicted of or pleading guilty to an offense of that nature, the suspension shall end, and the member may participate on the board. If the member pleads guilty to or is convicted of the offense, the position of the member on the board shall be deemed vacant. A person who has pleaded guilty to or been convicted of an offense of that nature is ineligible for election to the office of employee member or retirant member of the state highway patrol retirement board. Sec. 5505.049. A person who served as an elected or appointed member of the state highway patrol retirement board for one or more entire fiscal years in fiscal years 2000, 2001, or 2002 is ineligible for re-election or reappointment to the board if the person has accepted reimbursements for travel and travel-related expenses from the board that have an annual average of more than ten thousand dollars for those fiscal years. Sec. 5505.062. The state highway patrol retirement board shall do all of the following:
(A) In consultation with the Ohio ethics commission, review any existing policy regarding the travel and payment of travel expenses of members and employees of the state highway patrol retirement board and adopt rules in accordance with section 5505.04 of the Revised Code establishing a new or revised policy regarding travel and payment of travel expenses;
(B) If the board intends to award a bonus to any employee of the board, adopt rules in accordance with section 5505.04 of the Revised Code establishing a policy regarding employee bonuses;
(C) Provide copies of the rules adopted under divisions (A) and (B) of this section to each member of the Ohio retirement study council; (D) Submit to the Ohio retirement study council a proposed operating budget, including an administrative budget for the board, for the next immediate fiscal year and adopt that budget not earlier than sixty days after it is submitted to the council; (E) Submit to the council a plan describing how the board will improve the dissemination of public information pertaining to the board. Sec. 5505.063. The state highway patrol retirement board shall, in consultation with the Ohio ethics commission, develop an ethics policy. The board shall submit this policy to the Ohio retirement study council for approval. The council shall review the policy and, if the council determines, upon the advice of the Ohio ethics commission, that the policy is adequate, approve the policy. If the council determines that the policy is inadequate, it shall specify the revisions to be made and the board shall submit a revised policy. If the council approves the revised policy, the board shall adopt it. If not, the board shall make any further revisions required by the council and adopt the policy. The board periodically shall provide ethics training to members and employees of the board. The training shall include training regarding the requirements and prohibitions of Chapter 102. of the Revised Code and sections 2921.42 and 2921.43 of the Revised Code and any other training the board considers appropriate.
The board shall establish a procedure to ensure that each employee of the board is informed of the procedure for filing a complaint alleging violation of Chapter 102. of the Revised Code or section 2921.42 or 2921.43 of the Revised Code with the Ohio ethics commission or the appropriate prosecuting attorney. Sec. 5505.064. Each newly elected member of the state highway patrol retirement board and each individual appointed to fill a vacancy on the board, shall, not later than ninety days after commencing service as a board member, complete the orientation program component of the retirement board member education program established under section 171.50 of the Revised Code.
Each member of the board who has served a year or longer as a board member shall, not less than twice each year, attend one or more programs that are part of the continuing education component of the retirement board member education program established under section 171.50 of the Revised Code.
Sec. 5505.065. (A) The state highway patrol retirement board shall designate a person who is a licensed state retirement system investment officer to be the chief investment officer for the state highway patrol retirement system. The board shall notify the division of securities of the department of commerce in writing of its designation and of any change in its designation within ten calendar days of the designation or change.
(B) The chief investment officer shall reasonably supervise the licensed state retirement system investment officers and other persons employed by the state highway patrol retirement system with a view toward preventing violations of Chapter 1707. of the Revised Code, the "Commodity Exchange Act," 42 Stat. 998, 7 U.S.C. and following, the "Securities Act of 1933," 48 Stat. 74, 15 U.S.C. and following, and the "Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78a, and following, and the rules and regulations promulgated under those statutes. This duty of reasonable supervision shall include the adoption, implementation, and enforcement of written policies and procedures reasonably designed to prevent persons employed by the state highway patrol retirement system from misusing material, nonpublic information in violation of those laws, rules, and regulations.
For purposes of this division, no chief investment officer shall be considered to have failed to satisfy the officer's duty of reasonable supervision if the officer has done all of the following:
(1) Adopted and implemented written procedures, and a system for applying the procedures, that would reasonably be expected to prevent and detect, insofar as practicable, any violation by its licensed investment officers and other persons employed by the state highway patrol retirement system;
(2) Reasonably discharged the duties and obligations incumbent on the chief investment officer by reason of the established procedures and the system for applying the procedures when the officer had no reasonable cause to believe that there was a failure to comply with the procedures and systems;
(3) Reviewed, at least annually, the adequacy of the policies and procedures established pursuant to this section and the effectiveness of their implementation.
(C) The chief investment officer shall ensure that securities transactions are executed in such a manner that the state highway patrol retirement system's total costs or proceeds in each transaction are the most favorable under the circumstances.
For purposes of this division, no chief investment officer shall be considered to have failed to satisfy the officer's duty of best execution if the officer has done both of the following:
(1) Adopted and implemented a written policy that outlines the criteria used to select broker-dealers that execute securities transactions on behalf of the state highway patrol retirement system, which criteria shall include all of the following:
(a) Commissions charged by the broker-dealer, both in the aggregate and on a per share basis;
(b) The execution speed and trade settlement capabilities of the broker-dealer;
(c) The responsiveness, reliability, and integrity of the broker-dealer;
(d) The nature and value of research provided by the broker-dealer;
(e) Any special capabilities of the broker-dealer.
(2) Reviewed, at least annually, the performance of broker-dealers that execute securities transactions on behalf of the state highway patrol retirement system.
Sec. 5505.07. (A) The state highway patrol retirement
board may employ a secretary and secure the services of employees
for the transaction of business of the state highway patrol
retirement system. The Effective ninety days after the effective date of this amendment, the board may not employ a state retirement system investment officer, as defined in section 1707.01 of the Revised Code, who does not hold a valid state retirement system investment officer license issued by the division of securities in the department of commerce. The compensation of all persons engaged by
the board and all other expenses of the board necessary for the
proper operation of the pension fund shall be paid at such rates
and in such amounts as the board approves. Every expense voucher
of an employee, officer, or board member of the state highway
patrol retirement system shall itemize all purchases and
expenditures. (B) The clerical procedures required in the operation of
the retirement system shall be performed by the staff of the
secretary appointed by the board. The cost of such clerical
procedures and the services performed by the secretary of the
retirement system shall be paid by the retirement system. (C) The board shall appoint an actuary who shall be its
technical advisor. (D) The board shall from time to time adopt such mortality
and other tables of experience, and such rate or rates of
interest, as are required in the proper operation of the
retirement system. (E) The board shall determine by appropriate rules the
service to be credited any member in any calendar year. The board shall perform other functions and adopt rules as
required for the proper execution of Chapter 5505. of the Revised
Code.
Sec. 5505.122. If the Ohio retirement study council establishes a uniform format for any report the state highway patrol retirement board is required to submit to the council, the board shall submit the report in that format. Sec. 5505.99. (A) Whoever violates division (A) of section 5505.045 of the Revised Code shall be fined not more than one hundred dollars for each day of the violation. (B) Whoever violates division (B) of section 5505.045 of the Revised Code shall be imprisoned for not more than six months or fined not more than five thousand dollars, or both. (C)
Fines imposed by the Ohio elections commission under this section shall be paid into the Ohio elections commission fund created under section 3513.10 of the Revised Code.
Section 2. That existing sections 102.02, 102.03, 102.06, 117.10, 145.04, 145.05, 145.051, 145.06, 145.09, 145.27, 171.01, 171.02, 171.03, 171.04, 742.03, 742.04, 742.05, 742.10, 742.38, 742.41, 1707.01, 1707.03, 1707.17, 1707.19, 1707.20, 1707.22, 1707.23, 1707.25, 1707.261, 1707.39, 1707.431, 1707.44, 1707.46, 3307.03, 3307.05, 3307.06, 3309.061, 3307.07, 3307.11, 3307.20, 3309.03, 3309.05, 3309.06, 3309.07, 3309.09, 3309.14, 3309.22, 5505.04, and 5505.07 of the Revised Code are hereby repealed.
Section 3. Section 1707.162 of the Revised Code, as enacted by this act, shall take effect ninety days after the effective date of this section.
Section 4. The amendment to sections 3307.05, 3307.06, and
3307.07 of the Revised Code in this act shall not affect the term
of any elected member of the State Teachers Retirement Board serving on
the effective date of this section. Within ninety days after the effective date of this act, the governor shall appoint the initial additional retired teacher member position created by this act. The teacher member shall hold office until the next board election that occurs not less than ninety days after the appointment.
Section 5. Nothing in this act shall be construed to be a limitation of the Ohio Ethics Commission's authority, responsibility, and powers under Chapter 102. of the Revised Code as it existed immediately prior to the effective date of this act as applied to members and employees of the state retirement boards. Any authority, power, or responsibilities of the Ohio Ethics Commission expressly created by this act are in addition to any authority, power, or responsibilities of the Commission in effect immediately prior to the effective date of this act. Section 6. A member of a state retirement board who, pursuant to this act, is replaced on that board by an elected or appointed member shall remain in office until the replacement member is appointed or elected. Section 7. Section 742.41 of the Revised Code is presented in
this act as a composite of the section as amended by both Sub. H.B. 535 and Am. Sub. S.B. 180 of
the 123rd General Assembly. Section 3307.20 of the Revised Code is presented in
this act as a composite of the section as amended by both Sub. H.B. 535 and Am. Sub. S.B. 180 of
the 123rd General Assembly. Section 3309.22 of the Revised Code is
presented in
this act as a composite of the section as amended by
Sub. H.B. 535, Sub. S.B. 270, and Am. Sub. S.B. 180 all of
the
123rd General Assembly. Section 5505.04 of the Revised Code is presented in
this act as a composite of the section as amended by both Sub. H.B. 535 and Am. Sub. S.B. 180 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 composites are the resulting
versions of the sections in effect prior to the effective dates of
the sections as presented in this act.
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