To amend sections 109.57, 5733.01, 5733.98, and 5751.98 and to enact sections 124.1311, 3313.88, 3321.30, 5733.54, 5747.124, and 5751.54 of the Revised Code to require parents of students enrolled in school districts to perform volunteer service for the district, to grant state employees paid leave to participate in a child's educational activities, to allow a nonrefundable credit against the corporate franchise or commercial activity tax for employer-paid leave enabling employees to participate in school-related activities, and to require school districts to establish mentoring programs for students.

Section 1. That sections 109.57, 5733.01, 5733.98, and 5751.98 be amended and sections 124.1311, 3313.88, 3321.30, 5733.54, 5747.124, and 5751.54 of the Revised Code be enacted to read as follows:

Sec. 109.57.  (A)(1) The superintendent of the bureau of criminal identification and investigation shall procure from wherever procurable and file for record photographs, pictures, descriptions, fingerprints, measurements, and other information that may be pertinent of all persons who have been convicted of committing within this state a felony, any crime constituting a misdemeanor on the first offense and a felony on subsequent offenses, or any misdemeanor described in division (A)(1)(a) or (A)(10)(a) of section 109.572 of the Revised Code, of all children under eighteen years of age who have been adjudicated delinquent children for committing within this state an act that would be a felony or an offense of violence if committed by an adult or who have been convicted of or pleaded guilty to committing within this state a felony or an offense of violence, and of all well-known and habitual criminals. The person in charge of any county, multicounty, municipal, municipal-county, or multicounty-municipal jail or workhouse, community-based correctional facility, halfway house, alternative residential facility, or state correctional institution and the person in charge of any state institution having custody of a person suspected of having committed a felony, any crime constituting a misdemeanor on the first offense and a felony on subsequent offenses, or any misdemeanor described in division (A)(1)(a) or (A)(10)(a) of section 109.572 of the Revised Code or having custody of a child under eighteen years of age with respect to whom there is probable cause to believe that the child may have committed an act that would be a felony or an offense of violence if committed by an adult shall furnish such material to the superintendent of the bureau. Fingerprints, photographs, or other descriptive information of a child who is under eighteen years of age, has not been arrested or otherwise taken into custody for committing an act that would be a felony or an offense of violence if committed by an adult, has not been adjudicated a delinquent child for committing an act that would be a felony or an offense of violence if committed by an adult, has not been convicted of or pleaded guilty to committing a felony or an offense of violence, and is not a child with respect to whom there is probable cause to believe that the child may have committed an act that would be a felony or an offense of violence if committed by an adult shall not be procured by the superintendent or furnished by any person in charge of any county, multicounty, municipal, municipal-county, or multicounty-municipal jail or workhouse, community-based correctional facility, halfway house, alternative residential facility, or state correctional institution, except as authorized in section 2151.313 of the Revised Code.

(2) Every clerk of a court of record in this state, other than the supreme court or a court of appeals, shall send to the superintendent of the bureau a weekly report containing a summary of each case involving a felony, involving any crime constituting a misdemeanor on the first offense and a felony on subsequent offenses, involving a misdemeanor described in division (A)(1)(a) or (A)(10)(a) of section 109.572 of the Revised Code, or involving an adjudication in a case in which a child under eighteen years of age was alleged to be a delinquent child for committing an act that would be a felony or an offense of violence if committed by an adult. The clerk of the court of common pleas shall include in the report and summary the clerk sends under this division all information described in divisions (A)(2)(a) to (f) of this section regarding a case before the court of appeals that is served by that clerk. The summary shall be written on the standard forms furnished by the superintendent pursuant to division (B) of this section and shall include the following information:

(a) The incident tracking number contained on the standard forms furnished by the superintendent pursuant to division (B) of this section;

(b) The style and number of the case;

(c) The date of arrest;

(d) The date that the person was convicted of or pleaded guilty to the offense, adjudicated a delinquent child for committing the act that would be a felony or an offense of violence if committed by an adult, found not guilty of the offense, or found not to be a delinquent child for committing an act that would be a felony or an offense of violence if committed by an adult, the date of an entry dismissing the charge, an entry declaring a mistrial of the offense in which the person is discharged, an entry finding that the person or child is not competent to stand trial, or an entry of a nolle prosequi, or the date of any other determination that constitutes final resolution of the case;

(e) A statement of the original charge with the section of the Revised Code that was alleged to be violated;

(f) If the person or child was convicted, pleaded guilty, or was adjudicated a delinquent child, the sentence or terms of probation imposed or any other disposition of the offender or the delinquent child.

If the offense involved the disarming of a law enforcement officer or an attempt to disarm a law enforcement officer, the clerk shall clearly state that fact in the summary, and the superintendent shall ensure that a clear statement of that fact is placed in the bureau's records.

(3) The superintendent shall cooperate with and assist sheriffs, chiefs of police, and other law enforcement officers in the establishment of a complete system of criminal identification and in obtaining fingerprints and other means of identification of all persons arrested on a charge of a felony, any crime constituting a misdemeanor on the first offense and a felony on subsequent offenses, or a misdemeanor described in division (A)(1)(a) or (A)(10)(a) of section 109.572 of the Revised Code and of all children under eighteen years of age arrested or otherwise taken into custody for committing an act that would be a felony or an offense of violence if committed by an adult. The superintendent also shall file for record the fingerprint impressions of all persons confined in a county, multicounty, municipal, municipal-county, or multicounty-municipal jail or workhouse, community-based correctional facility, halfway house, alternative residential facility, or state correctional institution for the violation of state laws and of all children under eighteen years of age who are confined in a county, multicounty, municipal, municipal-county, or multicounty-municipal jail or workhouse, community-based correctional facility, halfway house, alternative residential facility, or state correctional institution or in any facility for delinquent children for committing an act that would be a felony or an offense of violence if committed by an adult, and any other information that the superintendent may receive from law enforcement officials of the state and its political subdivisions.

(4) The superintendent shall carry out Chapter 2950. of the Revised Code with respect to the registration of persons who are convicted of or plead guilty to a sexually oriented offense or a child-victim oriented offense and with respect to all other duties imposed on the bureau under that chapter.

(5) The bureau shall perform centralized recordkeeping functions for criminal history records and services in this state for purposes of the national crime prevention and privacy compact set forth in section 109.571 of the Revised Code and is the criminal history record repository as defined in that section for purposes of that compact. The superintendent or the superintendent's designee is the compact officer for purposes of that compact and shall carry out the responsibilities of the compact officer specified in that compact.

(B) The superintendent shall prepare and furnish to every county, multicounty, municipal, municipal-county, or multicounty-municipal jail or workhouse, community-based correctional facility, halfway house, alternative residential facility, or state correctional institution and to every clerk of a court in this state specified in division (A)(2) of this section standard forms for reporting the information required under division (A) of this section. The standard forms that the superintendent prepares pursuant to this division may be in a tangible format, in an electronic format, or in both tangible formats and electronic formats.

(C)(1) The superintendent may operate a center for electronic, automated, or other data processing for the storage and retrieval of information, data, and statistics pertaining to criminals and to children under eighteen years of age who are adjudicated delinquent children for committing an act that would be a felony or an offense of violence if committed by an adult, criminal activity, crime prevention, law enforcement, and criminal justice, and may establish and operate a statewide communications network to gather and disseminate information, data, and statistics for the use of law enforcement agencies and for other uses specified in this division. The superintendent may gather, store, retrieve, and disseminate information, data, and statistics that pertain to children who are under eighteen years of age and that are gathered pursuant to sections 109.57 to 109.61 of the Revised Code together with information, data, and statistics that pertain to adults and that are gathered pursuant to those sections.

(2) The superintendent or the superintendent's designee shall gather information of the nature described in division (C)(1) of this section that pertains to the offense and delinquency history of a person who has been convicted of, pleaded guilty to, or been adjudicated a delinquent child for committing a sexually oriented offense or a child-victim oriented offense for inclusion in the state registry of sex offenders and child-victim offenders maintained pursuant to division (A)(1) of section 2950.13 of the Revised Code and in the internet database operated pursuant to division (A)(13) of that section and for possible inclusion in the internet database operated pursuant to division (A)(11) of that section.

(3) In addition to any other authorized use of information, data, and statistics of the nature described in division (C)(1) of this section, the superintendent or the superintendent's designee may provide and exchange the information, data, and statistics pursuant to the national crime prevention and privacy compact as described in division (A)(5) of this section.

(D) The information and materials furnished to the superintendent pursuant to division (A) of this section and information and materials furnished to any board or person under division (F) or (G) of this section are not public records under section 149.43 of the Revised Code. The superintendent or the superintendent's designee shall gather and retain information so furnished under division (A) of this section that pertains to the offense and delinquency history of a person who has been convicted of, pleaded guilty to, or been adjudicated a delinquent child for committing a sexually oriented offense or a child-victim oriented offense for the purposes described in division (C)(2) of this section.

(E) The attorney general shall adopt rules, in accordance with Chapter 119. of the Revised Code, setting forth the procedure by which a person may receive or release information gathered by the superintendent pursuant to division (A) of this section. A reasonable fee may be charged for this service. If a temporary employment service submits a request for a determination of whether a person the service plans to refer to an employment position has been convicted of or pleaded guilty to an offense listed in division (A)(1), (3), (4), (5), or (6) of section 109.572 of the Revised Code, the request shall be treated as a single request and only one fee shall be charged.

(F)(1) As used in division (F)(2) of this section, "head start agency" means an entity in this state that has been approved to be an agency for purposes of subchapter II of the "Community Economic Development Act," 95 Stat. 489 (1981), 42 U.S.C.A. 9831, as amended.

(2)(a) In addition to or in conjunction with any request that is required to be made under division (C)(2) of section 3313.88 or section 109.572, 2151.86, 3301.32, 3301.541, 3319.39, 3319.391, 3327.10, 3701.881, 5104.012, 5104.013, 5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code, the board of education of any school district; the director of mental retardation and developmental disabilities; any county board of mental retardation and developmental disabilities; any entity under contract with a county board of mental retardation and developmental disabilities; the chief administrator of any chartered nonpublic school; the chief administrator of any home health agency; the chief administrator of or person operating any child day-care center, type A family day-care home, or type B family day-care home licensed or certified under Chapter 5104. of the Revised Code; the administrator of any type C family day-care home certified pursuant to Section 1 of Sub. H.B. 62 of the 121st general assembly or Section 5 of Am. Sub. S.B. 160 of the 121st general assembly; the chief administrator of any head start agency; the executive director of a public children services agency; or an employer described in division (A)(2) of section 3319.391 or division (J)(2) of section 3327.10 of the Revised Code may request that the superintendent of the bureau investigate and determine, with respect to any individual who has applied for employment in any position after October 2, 1989, or any individual wishing to apply for employment with a board of education may request, with regard to the individual, whether the bureau has any information gathered under division (A) of this section that pertains to that individual. On receipt of the request, the superintendent shall determine whether that information exists and, upon request of the person, board, or entity requesting information, also shall request from the federal bureau of investigation any criminal records it has pertaining to that individual. The superintendent or the superintendent's designee also may request criminal history records from other states or the federal government pursuant to the national crime prevention and privacy compact set forth in section 109.571 of the Revised Code. Within thirty days of the date that the superintendent receives a request, the superintendent shall send to the board, entity, or person a report of any information that the superintendent determines exists, including information contained in records that have been sealed under section 2953.32 of the Revised Code, and, within thirty days of its receipt, shall send the board, entity, or person a report of any information received from the federal bureau of investigation, other than information the dissemination of which is prohibited by federal law.

(b) When a board of education is required to receive information under this section as a prerequisite to employment of an individual pursuant to section 3319.39 of the Revised Code, it may accept a certified copy of records that were issued by the bureau of criminal identification and investigation and that are presented by an individual applying for employment with the district in lieu of requesting that information itself. In such a case, the board shall accept the certified copy issued by the bureau in order to make a photocopy of it for that individual's employment application documents and shall return the certified copy to the individual. In a case of that nature, a district only shall accept a certified copy of records of that nature within one year after the date of their issuance by the bureau.

(3) The state board of education may request, with respect to any individual who has applied for employment after October 2, 1989, in any position with the state board or the department of education, any information that a school district board of education is authorized to request under division (F)(2) of this section, and the superintendent of the bureau shall proceed as if the request has been received from a school district board of education under division (F)(2) of this section.

(4) When the superintendent of the bureau receives a request for information under division (C)(1) of section 3313.88 or section 3319.291 of the Revised Code, the superintendent shall proceed as if the request has been received from a school district board of education under division (F)(2) of this section.

(5) When a recipient of a classroom reading improvement grant paid under section 3301.86 of the Revised Code requests, with respect to any individual who applies to participate in providing any program or service funded in whole or in part by the grant, the information that a school district board of education is authorized to request under division (F)(2)(a) of this section, the superintendent of the bureau shall proceed as if the request has been received from a school district board of education under division (F)(2)(a) of this section.

(G) In addition to or in conjunction with any request that is required to be made under section 3701.881, 3712.09, 3721.121, or 3722.151 of the Revised Code with respect to an individual who has applied for employment in a position that involves providing direct care to an older adult, the chief administrator of a home health agency, hospice care program, home licensed under Chapter 3721. of the Revised Code, adult day-care program operated pursuant to rules adopted under section 3721.04 of the Revised Code, or adult care facility may request that the superintendent of the bureau investigate and determine, with respect to any individual who has applied after January 27, 1997, for employment in a position that does not involve providing direct care to an older adult, whether the bureau has any information gathered under division (A) of this section that pertains to that individual.

In addition to or in conjunction with any request that is required to be made under section 173.27 of the Revised Code with respect to an individual who has applied for employment in a position that involves providing ombudsperson services to residents of long-term care facilities or recipients of community-based long-term care services, the state long-term care ombudsperson, ombudsperson's designee, or director of health may request that the superintendent investigate and determine, with respect to any individual who has applied for employment in a position that does not involve providing such ombudsperson services, whether the bureau has any information gathered under division (A) of this section that pertains to that applicant.

In addition to or in conjunction with any request that is required to be made under section 173.394 of the Revised Code with respect to an individual who has applied for employment in a position that involves providing direct care to an individual, the chief administrator of a community-based long-term care agency may request that the superintendent investigate and determine, with respect to any individual who has applied for employment in a position that does not involve providing direct care, whether the bureau has any information gathered under division (A) of this section that pertains to that applicant.

On receipt of a request under this division, the superintendent shall determine whether that information exists and, on request of the individual requesting information, shall also request from the federal bureau of investigation any criminal records it has pertaining to the applicant. The superintendent or the superintendent's designee also may request criminal history records from other states or the federal government pursuant to the national crime prevention and privacy compact set forth in section 109.571 of the Revised Code. Within thirty days of the date a request is received, the superintendent shall send to the requester a report of any information determined to exist, including information contained in records that have been sealed under section 2953.32 of the Revised Code, and, within thirty days of its receipt, shall send the requester a report of any information received from the federal bureau of investigation, other than information the dissemination of which is prohibited by federal law.

(H) Information obtained by a government entity or person under this section is confidential and shall not be released or disseminated.

(I) The superintendent may charge a reasonable fee for providing information or criminal records under division (F)(2) or (G) of this section.

(J) As used in this section, "sexually oriented offense" and "child-victim oriented offense" have the same meanings as in section 2950.01 of the Revised Code.

Sec. 124.1311.  (A) As used in this section:

(1) "Child" means a person who is enrolled in an elementary or secondary school and who has any of the following relationships to a state employee:

(a) Natural child;

(b) Adopted child;

(c) Stepchild;

(d) Foster child;

(e) Grandchild;

(f) Ward of the state employee by virtue of the state employee having been appointed the person's legal guardian or custodian;

(g) Any other legal capacity where the state employee is acting as parent for the child.

(2) "Educational activity" means an activity that is sponsored by an elementary or secondary school and that includes, but is not limited to, any of the following:

(a) A parent-teacher conference;

(b) Participation in school-sponsored tutoring;

(c) Participation in a school-sponsored volunteer program;

(d) A field trip;

(e) A classroom program;

(f) A school committee meeting;

(g) An academic competition;

(h) Assistance with an athletic, music, or theater program.

(B) Each state employee shall be granted up to sixteen hours of leave with pay during each calendar year to use during those hours when the employee is absent from work because of the employee's participation in an educational activity of the employee's child at the child's elementary or secondary school. An appointing authority shall compensate a state employee who uses the leave at the employee's regular rate of pay for those regular work hours during which the employee is absent from work. An appointing authority shall make reasonable efforts to schedule the leave in a manner that does not unduly disrupt the appointing authority's operations.

Sec. 3313.88.  (A) The board of education of each city, exempted village, local, and joint vocational school district shall adopt a policy establishing a mentoring program for students. The board shall create a division of mentoring consisting of a distinct unit of staff to implement the program.

(B) The board shall require all mentors participating in the program to do both of the following:

(1) Satisfactorily complete a criminal records check in accordance with division (C) of this section, notwithstanding sections 109.574 to 109.577 of the Revised Code;

(2) Complete an annual training course developed by the division of mentoring.

(C)(1) The director of the division of mentoring shall report to the department of education the name and address of each person applying to be a mentor. Except as provided in division (C)(2) of this section, the department shall request the superintendent of the bureau of criminal identification and investigation to conduct a criminal records check of each person reported under this division and to obtain any criminal records that the federal bureau of investigation has on the person. For this purpose, the department shall require each applicant to submit the form prescribed by division (C)(1) of section 109.572 of the Revised Code and the fingerprint impressions sheet prescribed by division (C)(2) of that section and shall forward the completed form and impression sheet to the superintendent of the bureau of criminal identification and investigation at the time the department requests the criminal records check. Upon receipt of a request, the bureau shall conduct the criminal records check in accordance with section 109.572 of the Revised Code as if the request had been made under section 3319.39 of the Revised Code. The department shall forward the results of the criminal records check to the director of the division of mentoring. The cost of each criminal records check requested under this division shall be paid by the department.

(2) The board may elect to request the criminal records check of any person applying to be a mentor rather than having the department request the check on its behalf, if the director of the division of mentoring notifies the department of that election. In that case, the request for a criminal records check shall be made to the superintendent of the bureau of criminal identification and investigation in the manner prescribed in section 3319.39 of the Revised Code, except that the director of the division of mentoring shall request the check rather than the appointing or hiring officer of the board. Upon receipt of the request, the bureau shall conduct the criminal records check in accordance with section 109.572 of the Revised Code as if the request had been made under section 3319.39 of the Revised Code. The cost of each criminal records check requested under this division shall be paid by the district.

(3) Any person subject to a criminal records check under division (C)(1) or (2) of this section who has been convicted of or pleaded guilty to any offense described in division (B)(1) of section 3319.39 of the Revised Code shall not be permitted to mentor students.

Sec. 3321.30.  (A) As used in this section, "parent" means either of the natural or adoptive parents of a student, except under the following conditions:

(1) When the marriage of the natural or adoptive parents of the student has been terminated by a divorce, dissolution of marriage, or annulment or the natural or adoptive parents of the student are living separate and apart under a legal separation decree and the court has issued an order allocating the parental rights and responsibilities with respect to the student, "parent" means the residential parent as designated by the court except that "parent" means either parent when the court issues a shared parenting decree.

(2) When a court has granted temporary or permanent custody of the student to an individual or agency other than either of the natural or adoptive parents of the student, "parent" means the legal custodian of the child.

(3) When a court has appointed a guardian for the student, "parent" means the guardian of the student.

(4) When the student is the subject of a power of attorney executed under sections 3109.51 to 3109.62 of the Revised Code, "parent" means the grandparent designated as attorney in fact under the power of attorney. When the student is the subject of a caretaker authorization affidavit executed under sections 3109.65 to 3109.73 of the Revised Code, "parent" means the grandparent that executed the affidavit.

(B) The parent of each student enrolled in any of grades kindergarten through twelve in a city, exempted village, or local school district shall do both of the following:

(1) Prior to the opening date of each school year, attend an orientation seminar described in division (D) of this section conducted by the district;

(2) Perform at least thirteen hours of volunteer service for the district each school year. However, if a student is enrolled in a joint vocational school district, the student's parent may perform any or all of that volunteer service for the joint vocational district rather than for the city, exempted village, or local district in which the student is also enrolled.

(C) In any situation in which a student has two parents who share custody for the student, each parent may perform a portion of the thirteen hours of volunteer service required by division (B)(2) of this section, provided that the combined number of hours of volunteer service performed by both parents equals at least thirteen hours.

(D) Each school district, other than a joint vocational school district, shall develop a three-hour orientation seminar for parents of students enrolled in the district. The district shall conduct the seminar prior to the opening date of each school year at such times and places as necessary to accommodate all parents, but not less than two times. Each seminar shall cover the following topics:

(1) The district's expectations of parents during the school year, including the duty to perform the volunteer service required by division (B)(2) of this section and the consequences for failure to perform that service under division (F) of this section;

(2) Strategies for parents to help their children succeed in school, including the importance of regular attendance and managing homework;

(3) Opportunities for participation in school activities by parents and students;

(4) Any other topics considered relevant by the district.

(E) Each school district board of education shall adopt a policy describing volunteer activities in which parents may participate to fulfill the service requirements of division (B)(2) of this section. The volunteer activities may include tutoring, participation on school or district committees, assistance with extracurricular activities, chaperoning field trips, lunchroom or library assistance, clerical work, or any other activity that the board determines is necessary or useful for the district and that can be performed by a volunteer parent.

(F) Not later than the thirtieth day of June of each school year, the superintendent of each school district shall report to the department of education the name and address of each parent who, in that school year, did not complete the requirements of division (B) of this section. The department shall impose a fine of one hundred dollars on each parent reported under this division who does not show good cause as to why the parent was unable to complete the requirements. The department shall send the parent written notification of the fine. The notification shall inform the parent of the following:

(1) The amount of the fine, methods of payment, and the deadline for payment;

(2) The procedures adopted under division (H) of this section for showing good cause as to why the parent was unable to complete the requirements;

(3) That failure to pay the fine by the deadline will result in the amount of the fine being withheld from the parent's refund of paid state income taxes under section 5747.124 of the Revised Code.

(G) Not later than the fifteenth day of January each year, the department shall report to the tax commissioner the name and address of each parent who failed to pay the fine imposed under division (F) of this section prior to the thirty-first day of December of the preceding year and did not show good cause as to why the parent was unable to complete the requirements of division (B) of this section. If a parent subsequently pays the fine, the department promptly shall notify the tax commissioner that the fine has been paid.

(H) The state board of education shall adopt rules establishing procedures by which a parent may appeal the fine imposed under division (F) of this section. The rules shall require the department to waive the fine for any parent who shows good cause as to why the parent was unable to complete the requirements of division (B) of this section.

(I) The department shall use all funds collected under this section or paid into the parental school participation fund pursuant to section 5747.124 of the Revised Code to pay the costs of the criminal records checks requested under section 3313.88 of the Revised Code. If a school district elects under division (C)(2) of section 3313.88 of the Revised Code to request criminal records checks itself rather than having the department request the checks on its behalf, the department shall reimburse the district for the costs of the checks from those funds. If the funds are insufficient to pay the costs of all criminal records checks requested under section 3313.88 of the Revised Code, the department shall reimburse all districts that elect to request the criminal records checks under division (C)(2) of that section prior to using the funds to pay the costs of the criminal records checks requested by the department under division (C)(1) of that section.

Sec. 5733.01.  (A) The tax provided by this chapter for domestic corporations shall be the amount charged against each corporation organized for profit under the laws of this state and each nonprofit corporation organized pursuant to Chapter 1729. of the Revised Code, except as provided in sections 5733.09 and 5733.10 of the Revised Code, for the privilege of exercising its franchise during the calendar year in which that amount is payable, and the tax provided by this chapter for foreign corporations shall be the amount charged against each corporation organized for profit and each nonprofit corporation organized or operating in the same or similar manner as nonprofit corporations organized under Chapter 1729. of the Revised Code, under the laws of any state or country other than this state, except as provided in sections 5733.09 and 5733.10 of the Revised Code, for the privilege of doing business in this state, owning or using a part or all of its capital or property in this state, holding a certificate of compliance with the laws of this state authorizing it to do business in this state, or otherwise having nexus in or with this state under the Constitution of the United States, during the calendar year in which that amount is payable.

(B) A corporation is subject to the tax imposed by section 5733.06 of the Revised Code for each calendar year that it is so organized, doing business, owning or using a part or all of its capital or property, holding a certificate of compliance, or otherwise having nexus in or with this state under the Constitution of the United States, on the first day of January of that calendar year.

(C) Any corporation subject to this chapter that is not subject to the federal income tax shall file its returns and compute its tax liability as required by this chapter in the same manner as if that corporation were subject to the federal income tax.

(D) For purposes of this chapter, a federally chartered financial institution shall be deemed to be organized under the laws of the state within which its principal office is located.

(E) For purposes of this chapter, any person, as defined in section 5701.01 of the Revised Code, shall be treated as a corporation if the person is classified for federal income tax purposes as an association taxable as a corporation, and an equity interest in the person shall be treated as capital stock of the person.

(F) For the purposes of this chapter, "disregarded entity" has the same meaning as in division (D) of section 5745.01 of the Revised Code.

(1) A person's interest in a disregarded entity, whether held directly or indirectly, shall be treated as the person's ownership of the assets and liabilities of the disregarded entity, and the income, including gain or loss, shall be included in the person's net income under this chapter.

(2) Any sale, exchange, or other disposition of the person's interest in the disregarded entity, whether held directly or indirectly, shall be treated as a sale, exchange, or other disposition of the person's share of the disregarded entity's underlying assets or liabilities, and the gain or loss from such sale, exchange, or disposition shall be included in the person's net income under this chapter.

(3) The disregarded entity's payroll, property, and sales factors shall be included in the person's factors.

(G) The tax a corporation is required to pay under this chapter shall be as follows:

(1)(a) For financial institutions, the greater of the minimum payment required under division (E) of section 5733.06 of the Revised Code or the difference between all taxes charged the financial institution under this chapter, without regard to division (G)(2) of this section, less any credits allowable against such tax.

(b) A corporation satisfying the description in division (E)(5), (6), (7), (8), or (10) of section 5751.01 of the Revised Code that is not a financial institution, insurance company, or dealer in intangibles is subject to the taxes imposed under this chapter as a corporation and not subject to tax as a financial institution, and shall pay the greater of the minimum payment required under division (E) of section 5733.06 of the Revised Code or the difference between all the taxes charged under this chapter, without regard to division (G)(2) of this section, less any credits allowable against such tax.

(2) For all corporations other than those persons described in division (G)(1)(a) or (b) of this section, the amount under division (G)(2)(a) of this section applicable to the tax year specified less the amount under division (G)(2)(b) of this section:

(a)(i) For tax year 2005, the greater of the minimum payment required under division (E) of section 5733.06 of the Revised Code or the difference between all taxes charged the corporation under this chapter and any credits allowable against such tax;

(ii) For tax year 2006, the greater of the minimum payment required under division (E) of section 5733.06 of the Revised Code or four-fifths of the difference between all taxes charged the corporation under this chapter and any credits allowable against such tax, except the qualifying pass-through entity tax credit described in division (A)(29)(30) and the refundable credits described in divisions (A)(30)(31) to (34)(35) of section 5733.98 of the Revised Code;

(iii) For tax year 2007, the greater of the minimum payment required under division (E) of section 5733.06 of the Revised Code or three-fifths of the difference between all taxes charged the corporation under this chapter and any credits allowable against such tax, except the qualifying pass-through entity tax credit described in division (A)(29)(30) and the refundable credits described in divisions (A)(30)(31) to (34)(35) of section 5733.98 of the Revised Code;

(iv) For tax year 2008, the greater of the minimum payment required under division (E) of section 5733.06 of the Revised Code or two-fifths of the difference between all taxes charged the corporation under this chapter and any credits allowable against such tax, except the qualifying pass-through entity tax credit described in division (A)(29)(30) and the refundable credits described in divisions (A)(30)(31) to (34)(35) of section 5733.98 of the Revised Code;

(v) For tax year 2009, the greater of the minimum payment required under division (E) of section 5733.06 of the Revised Code or one-fifth of the difference between all taxes charged the corporation under this chapter and any credits allowable against such tax, except the qualifying pass-through entity tax credit described in division (A)(29)(30) and the refundable credits described in divisions (A)(30)(31), (31)(32), (32)(33), and (33)(34) of section 5733.98 of the Revised Code;

(vi) For tax year 2010 and each tax year thereafter, no tax.

(b) A corporation shall subtract from the amount calculated under division (G)(2)(a)(ii), (iii), (iv), or (v) of this section any qualifying pass-through entity tax credit described in division (A)(29)(30) and any refundable credits described in divisions (A)(30)(31) to (34)(35) of section 5733.98 of the Revised Code to which the corporation is entitled. Any unused qualifying pass-through entity tax credit is not refundable.

(c) For the purposes of computing the amount of a credit that may be carried forward to a subsequent tax year under division (G)(2) of this section, a credit is utilized against the tax for a tax year to the extent the credit applies against the tax for that tax year, even if the difference is then multiplied by the applicable fraction under division (G)(2)(a) of this section.

(3) Nothing in division (G) of this section eliminates or reduces the tax imposed by section 5733.41 of the Revised Code on a qualifying pass-through entity.

Sec. 5733.54.  For tax years 2009 and thereafter, there is hereby allowed a nonrefundable credit against the tax imposed by section 5733.06 of the Revised Code for an employer that pays for leave taken by an employee to participate in activities at an elementary or secondary school the employee's child attends that directly relate to the employee's child. The credit for each such employee shall equal the number of hours of such paid leave, not to exceed sixteen hours for each employee for each taxable year, multiplied by the employee's hourly compensation, or its equivalent if salaried. The taxpayer shall claim the credit for the taxable year in which such leave is paid. The credit shall not exceed the amount of tax otherwise due under section 5733.06 of the Revised Code after deducting any other credits that precede the credit claimed under this section in the order prescribed by section 5733.98 of the Revised Code. The credit claimed under this section shall not also be claimed under section 5751.54 of the Revised Code for the same leave.

Sec. 5733.98.  (A) To provide a uniform procedure for calculating the amount of tax imposed by section 5733.06 of the Revised Code that is due under this chapter, a taxpayer shall claim any credits to which it is entitled in the following order, except as otherwise provided in section 5733.058 of the Revised Code:

(1) For tax year 2005, the credit for taxes paid by a qualifying pass-through entity allowed under section 5733.0611 of the Revised Code;

(2) The credit allowed for financial institutions under section 5733.45 of the Revised Code;

(3) The credit for qualifying affiliated groups under section 5733.068 of the Revised Code;

(4) The subsidiary corporation credit under section 5733.067 of the Revised Code;

(5) The savings and loan assessment credit under section 5733.063 of the Revised Code;

(6) The credit for recycling and litter prevention donations under section 5733.064 of the Revised Code;

(7) The credit for employers that enter into agreements with child day-care centers under section 5733.36 of the Revised Code;

(8) The credit for employers that reimburse employee child care expenses under section 5733.38 of the Revised Code;

(9) The credit for maintaining railroad active grade crossing warning devices under section 5733.43 of the Revised Code;

(10) The credit for purchases of lights and reflectors under section 5733.44 of the Revised Code;

(11) The nonrefundable credit for employers that provide paid leave to employees who participate in school-related activities under section 5733.54 of the Revised Code;

(12) The job retention credit under division (B) of section 5733.0610 of the Revised Code;

(12)(13) The credit for tax years 2008 and 2009 for selling alternative fuel under section 5733.48 of the Revised Code;

(13)(14) The second credit for purchases of new manufacturing machinery and equipment under section 5733.33 of the Revised Code;

(14)(15) The job training credit under section 5733.42 of the Revised Code;

(15)(16) The credit for qualified research expenses under section 5733.351 of the Revised Code;

(16)(17) The enterprise zone credit under section 5709.66 of the Revised Code;

(17)(18) The credit for the eligible costs associated with a voluntary action under section 5733.34 of the Revised Code;

(18)(19) The credit for employers that establish on-site child day-care centers under section 5733.37 of the Revised Code;

(19)(20) The ethanol plant investment credit under section 5733.46 of the Revised Code;

(20)(21) The credit for purchases of qualifying grape production property under section 5733.32 of the Revised Code;

(21)(22) The export sales credit under section 5733.069 of the Revised Code;

(22)(23) The credit for research and development and technology transfer investors under section 5733.35 of the Revised Code;

(23)(24) The enterprise zone credits under section 5709.65 of the Revised Code;

(24)(25) The credit for using Ohio coal under section 5733.39 of the Revised Code;

(25)(26) The credit for small telephone companies under section 5733.57 of the Revised Code;

(26)(27) The credit for eligible nonrecurring 9-1-1 charges under section 5733.55 of the Revised Code;

(27)(28) For tax year 2005, the credit for providing programs to aid the communicatively impaired under division (A) of section 5733.56 of the Revised Code;

(28)(29) The research and development credit under section 5733.352 of the Revised Code;

(29)(30) For tax years 2006 and subsequent tax years, the credit for taxes paid by a qualifying pass-through entity allowed under section 5733.0611 of the Revised Code;

(30)(31) The refundable credit for rehabilitating a historic building under section 5733.47 of the Revised Code;

(31)(32) The refundable jobs creation credit under division (A) of section 5733.0610 of the Revised Code;

(32)(33) The refundable credit for tax withheld under division (B)(2) of section 5747.062 of the Revised Code;

(33)(34) The refundable credit under section 5733.49 of the Revised Code for losses on loans made to the Ohio venture capital program under sections 150.01 to 150.10 of the Revised Code;

(34)(35) For tax years 2006, 2007, and 2008, the refundable credit allowable under division (B) of section 5733.56 of the Revised Code.

(B) For any credit except the credits enumerated in divisions (A)(30)(31) to (34)(35) of this section, the amount of the credit for a tax year shall not exceed the tax due after allowing for any other credit that precedes it in the order required under this section. Any excess amount of a particular credit may be carried forward if authorized under the section creating that credit.

Sec. 5747.124.  (A) In accordance with section 3321.30 of the Revised Code, the tax commissioner shall cooperate with the department of education in establishing and then implementing procedures for the collection of delinquent fines imposed under that section from refunds of paid state income taxes under this chapter that are payable to obligors. The tax commissioner shall deposit money collected from such refunds into the parental school participation fund.

(B) At the request of the department of education in connection with the collection of delinquent fines imposed under section 3321.30 of the Revised Code from a refund of paid state income taxes pursuant to division (A) of this section, the tax commissioner shall release to the department the home address and social security number of any obligor whose delinquent fine may be collected from a refund of paid state income taxes.

(C) In the case of persons filing a joint income tax return, the amount of the refund available for the collection of such fines shall be based on the proportion of the refund due to the obligor only. Any obligor's spouse who objects to the amount of the refund to be used for the collection of such fines may file a complaint with the tax commissioner within twenty-one days after receiving notice of the collection. The commissioner shall afford a complainant an opportunity to be heard. The burden of proving an error by the commissioner in determining the amount of a refund to be used for the collection of the fine shall be on the complainant.

(D) There is hereby created in the state treasury the parental school participation fund, which shall consist of moneys paid into it by the tax commissioner under division (A) of this section. Moneys in the fund shall be used by the department of education to pay the costs of the criminal records checks requested under section 3313.88 of the Revised Code.

(E) As used in this section, "obligor" means a person who fails to show good cause for being unable to complete the requirements of division (B) of section 3321.30 of the Revised Code and owes a fine imposed under that section.

Sec. 5751.54.  For tax periods beginning in 2009 or thereafter, there is hereby allowed a nonrefundable credit against the tax imposed by section 5751.02 of the Revised Code for an employer that pays for leave taken by an employee to participate in activities at an elementary or secondary school the employee's child attends that directly relate to the employee's child. The credit for each such employee shall equal the number of hours of such paid leave, not to exceed sixteen hours for each employee for each calendar year, multiplied by the employee's hourly compensation, or its equivalent if salaried. The taxpayer shall claim the credit for the tax period in which such leave is paid. The credit shall not exceed the amount of tax otherwise due under this chapter after deducting any other credits that precede the credit claimed under this section in the order prescribed by section 5751.98 of the Revised Code. The credit claimed under this section shall not also be claimed under section 5733.54 of the Revised Code for the same leave.

Sec. 5751.98.  (A) To provide a uniform procedure for calculating the amount of tax due under this chapter, a taxpayer shall claim any credits to which it is entitled in the following order:

(1) The nonrefundable jobs retention credit under division (B) of section 5751.50 of the Revised Code;

(2) The nonrefundable credit for qualified research expenses under division (B) of section 5751.51 of the Revised Code;

(3) The nonrefundable credit for a borrower's qualified research and development loan payments under division (B) of section 5751.52 of the Revised Code;

(4) The nonrefundable credit for employers that provide paid leave to employees who participate in school-related activities under section 5751.54 of the Revised Code;

(5) The nonrefundable credit for calendar years 2010 to 2029 for unused net operating losses under division (B) of section 5751.53 of the Revised Code;

(5)(6) The refundable credit for calendar year 2030 for unused net operating losses under division (C) of section 5751.53 of the Revised Code;

(6)(7) The refundable jobs creation credit under division (A) of section 5751.50 of the Revised Code.

(B) For any credit except the credit enumerated in division (A)(4)(5) of this section, the amount of the credit for a tax period shall not exceed the tax due after allowing for any other credit that precedes it in the order required under this section. Any excess amount of a particular credit may be carried forward if authorized under the section creating the credit.

Section 2.  That existing sections 109.57, 5733.01, 5733.98, and 5751.98 of the Revised Code are hereby repealed.