To amend section 2929.13 and to enact sections 5120.037, 5120.0371, and 5120.038 of the Revised Code to require the Department of Rehabilitation and Correction to establish a pilot work program for offenders, to establish and operate the program at repayment, retraining, and reclamation factories that are not in or on the grounds of a prison or jail and permit the Department to establish and operate the program in prisons, to permit counties to establish and operate local repayment, retraining, and reclamation factories for certain offenders, to provide for the manufacture of goods and the sale of the goods manufactured by the pilot work program or local pilot work program on the open market or the assembly, processing, manufacture, or repair of components for goods pursuant to contract, to grant a nonviolent participant one day of credit off the participant's prison term or jail term for each day the participant productively participates in the program at a repayment, retraining, and reclamation factory or a local repayment, retraining, and reclamation factory, and to name this act the "Repayment, Retraining, and Reclamation Act."

Section 1.  That section 2929.13 be amended and sections 5120.037, 5120.0371, and 5120.038 of the Revised Code be enacted to read as follows:

Sec. 2929.13.  (A) Except as provided in division (E), (F), or (G) of this section and unless a specific sanction is required to be imposed or is precluded from being imposed pursuant to law, a court that imposes a sentence upon an offender for a felony may impose any sanction or combination of sanctions on the offender that are provided in sections 2929.14 to 2929.18 of the Revised Code.

If the offender is eligible to be sentenced to community control sanctions, the court shall consider the appropriateness of imposing a financial sanction pursuant to section 2929.18 of the Revised Code or a sanction of community service pursuant to section 2929.17 of the Revised Code as the sole sanction for the offense. Except as otherwise provided in this division, if the court is required to impose a mandatory prison term for the offense for which sentence is being imposed, the court also shall impose any financial sanction pursuant to section 2929.18 of the Revised Code that is required for the offense and may impose any other financial sanction pursuant to that section but may not impose any additional sanction or combination of sanctions under section 2929.16 or 2929.17 of the Revised Code.

If the offender is being sentenced for a fourth degree felony OVI offense or for a third degree felony OVI offense, in addition to the mandatory term of local incarceration or the mandatory prison term required for the offense by division (G)(1) or (2) of this section, the court shall impose upon the offender a mandatory fine in accordance with division (B)(3) of section 2929.18 of the Revised Code and may impose whichever of the following is applicable:

(1) For a fourth degree felony OVI offense for which sentence is imposed under division (G)(1) of this section, an additional community control sanction or combination of community control sanctions under section 2929.16 or 2929.17 of the Revised Code. If the court imposes upon the offender a community control sanction and the offender violates any condition of the community control sanction, the court may take any action prescribed in division (B) of section 2929.15 of the Revised Code relative to the offender, including imposing a prison term on the offender pursuant to that division.

(2) For a third or fourth degree felony OVI offense for which sentence is imposed under division (G)(2) of this section, an additional prison term as described in division (B)(4) of section 2929.14 of the Revised Code or a community control sanction as described in division (G)(2) of this section.

(B)(1)(a) Except as provided in division (B)(1)(b) of this section, if an offender is convicted of or pleads guilty to a felony of the fourth or fifth degree that is not an offense of violence or that is a qualifying assault offense, the court shall sentence the offender to a community control sanction of at least one year's duration if all of the following apply:

(i) The offender previously has not been convicted of or pleaded guilty to a felony offense.

(ii) The most serious charge against the offender at the time of sentencing is a felony of the fourth or fifth degree and the offender is convicted of or pleads guilty to not more than one felony of the fourth or fifth degree listed in the indictment, information, or complaint.

(iii) If the court made a request of the department of rehabilitation and correction pursuant to division (B)(1)(c) of this section, the department, within the forty-five-day period specified in that division, provided the court with the names of, contact information for, and program details of one or more community control sanctions of at least one year's duration that are available for persons sentenced by the court.

(iv) The offender previously has not been convicted of or pleaded guilty to a misdemeanor offense of violence that the offender committed within two years prior to the offense for which sentence is being imposed.

(b) The court has discretion to impose a prison term upon an offender who is convicted of or pleads guilty to a felony of the fourth or fifth degree that is not an offense of violence or that is a qualifying assault offense if any of the following apply:

(i) The offender committed the offense while having a firearm on or about the offender's person or under the offender's control.

(ii) If the offense is a qualifying assault offense, the offender caused serious physical harm to another person while committing the offense, and, if the offense is not a qualifying assault offense, the offender caused physical harm to another person while committing the offense.

(iii) The offender violated a term of the conditions of bond as set by the court.

(iv) The court made a request of the department of rehabilitation and correction pursuant to division (B)(1)(c) of this section, and the department, within the forty-five-day period specified in that division, did not provide the court with the name of, contact information for, and program details of any community control sanction of at least one year's duration that is available for persons sentenced by the court.

(v) The offense is a sex offense that is a fourth or fifth degree felony violation of any provision of Chapter 2907. of the Revised Code.

(vi) In committing the offense, the offender attempted to cause or made an actual threat of physical harm to a person with a deadly weapon.

(vii) In committing the offense, the offender attempted to cause or made an actual threat of physical harm to a person, and the offender previously was convicted of an offense that caused physical harm to a person.

(viii) The offender held a public office or position of trust, and the offense related to that office or position; the offender's position obliged the offender to prevent the offense or to bring those committing it to justice; or the offender's professional reputation or position facilitated the offense or was likely to influence the future conduct of others.

(ix) The offender committed the offense for hire or as part of an organized criminal activity.

(x) The offender at the time of the offense was serving, or the offender previously had served, a prison term.

(xi) The offender committed the offense while under a community control sanction, while on probation, or while released from custody on a bond or personal recognizance.

(c) If a court that is sentencing an offender who is convicted of or pleads guilty to a felony of the fourth or fifth degree that is not an offense of violence or that is a qualifying assault offense believes that no community control sanctions are available for its use that, if imposed on the offender, will adequately fulfill the overriding principles and purposes of sentencing, the court shall contact the department of rehabilitation and correction and ask the department to provide the court with the names of, contact information for, and program details of one or more community control sanctions of at least one year's duration that are available for persons sentenced by the court. Not later than forty-five days after receipt of a request from a court under this division, the department shall provide the court with the names of, contact information for, and program details of one or more community control sanctions of at least one year's duration that are available for persons sentenced by the court, if any. Upon making a request under this division that relates to a particular offender, a court shall defer sentencing of that offender until it receives from the department the names of, contact information for, and program details of one or more community control sanctions of at least one year's duration that are available for persons sentenced by the court or for forty-five days, whichever is the earlier.

If the department provides the court with the names of, contact information for, and program details of one or more community control sanctions of at least one year's duration that are available for persons sentenced by the court within the forty-five-day period specified in this division, the court shall impose upon the offender a community control sanction under division (B)(1)(a) of this section, except that the court may impose a prison term under division (B)(1)(b) of this section if a factor described in division (B)(1)(b)(i) or (ii) of this section applies. If the department does not provide the court with the names of, contact information for, and program details of one or more community control sanctions of at least one year's duration that are available for persons sentenced by the court within the forty-five-day period specified in this division, the court may impose upon the offender a prison term under division (B)(1)(b)(iv) of this section.

(d) A sentencing court may impose an additional penalty under division (B) of section 2929.15 of the Revised Code upon an offender sentenced to a community control sanction under division (B)(1)(a) of this section if the offender violates the conditions of the community control sanction, violates a law, or leaves the state without the permission of the court or the offender's probation officer.

(2) If division (B)(1) of this section does not apply, except as provided in division (E), (F), or (G) of this section, in determining whether to impose a prison term as a sanction for a felony of the fourth or fifth degree, the sentencing court shall comply with the purposes and principles of sentencing under section 2929.11 of the Revised Code and with section 2929.12 of the Revised Code.

(C) Except as provided in division (D), (E), (F), or (G) of this section, in determining whether to impose a prison term as a sanction for a felony of the third degree or a felony drug offense that is a violation of a provision of Chapter 2925. of the Revised Code and that is specified as being subject to this division for purposes of sentencing, the sentencing court shall comply with the purposes and principles of sentencing under section 2929.11 of the Revised Code and with section 2929.12 of the Revised Code.

(D)(1) Except as provided in division (E) or (F) of this section, for a felony of the first or second degree, for a felony drug offense that is a violation of any provision of Chapter 2925., 3719., or 4729. of the Revised Code for which a presumption in favor of a prison term is specified as being applicable, and for a violation of division (A)(4) or (B) of section 2907.05 of the Revised Code for which a presumption in favor of a prison term is specified as being applicable, it is presumed that a prison term is necessary in order to comply with the purposes and principles of sentencing under section 2929.11 of the Revised Code. Division (D)(2) of this section does not apply to a presumption established under this division for a violation of division (A)(4) of section 2907.05 of the Revised Code.

(2) Notwithstanding the presumption established under division (D)(1) of this section for the offenses listed in that division other than a violation of division (A)(4) or (B) of section 2907.05 of the Revised Code, the sentencing court may impose a community control sanction or a combination of community control sanctions instead of a prison term on an offender for a felony of the first or second degree or for a felony drug offense that is a violation of any provision of Chapter 2925., 3719., or 4729. of the Revised Code for which a presumption in favor of a prison term is specified as being applicable if it makes both of the following findings:

(a) A community control sanction or a combination of community control sanctions would adequately punish the offender and protect the public from future crime, because the applicable factors under section 2929.12 of the Revised Code indicating a lesser likelihood of recidivism outweigh the applicable factors under that section indicating a greater likelihood of recidivism.

(b) A community control sanction or a combination of community control sanctions would not demean the seriousness of the offense, because one or more factors under section 2929.12 of the Revised Code that indicate that the offender's conduct was less serious than conduct normally constituting the offense are applicable, and they outweigh the applicable factors under that section that indicate that the offender's conduct was more serious than conduct normally constituting the offense.

(E)(1) Except as provided in division (F) of this section, for any drug offense that is a violation of any provision of Chapter 2925. of the Revised Code and that is a felony of the third, fourth, or fifth degree, the applicability of a presumption under division (D) of this section in favor of a prison term or of division (B) or (C) of this section in determining whether to impose a prison term for the offense shall be determined as specified in section 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, 2925.11, 2925.13, 2925.22, 2925.23, 2925.36, or 2925.37 of the Revised Code, whichever is applicable regarding the violation.

(2) If an offender who was convicted of or pleaded guilty to a felony violates the conditions of a community control sanction imposed for the offense solely by reason of producing positive results on a drug test, the court, as punishment for the violation of the sanction, shall not order that the offender be imprisoned unless the court determines on the record either of the following:

(a) The offender had been ordered as a sanction for the felony to participate in a drug treatment program, in a drug education program, or in narcotics anonymous or a similar program, and the offender continued to use illegal drugs after a reasonable period of participation in the program.

(b) The imprisonment of the offender for the violation is consistent with the purposes and principles of sentencing set forth in section 2929.11 of the Revised Code.

(3) A court that sentences an offender for a drug abuse offense that is a felony of the third, fourth, or fifth degree may require that the offender be assessed by a properly credentialed professional within a specified period of time. The court shall require the professional to file a written assessment of the offender with the court. If the offender is eligible for a community control sanction and after considering the written assessment, the court may impose a community control sanction that includes treatment and recovery support services authorized by section 3793.02 of the Revised Code. If the court imposes treatment and recovery support services as a community control sanction, the court shall direct the level and type of treatment and recovery support services after considering the assessment and recommendation of treatment and recovery support services providers.

(F) Notwithstanding divisions (A) to (E) of this section, the court shall impose a prison term or terms under sections 2929.02 to 2929.06, section 2929.14, section 2929.142, or section 2971.03 of the Revised Code and except as specifically provided in section 2929.20, divisions (C) to (I) of section 2967.19, or section 2967.191 of the Revised Code or when parole is authorized for the offense under section 2967.13 of the Revised Code shall not reduce the term or terms pursuant to section 2929.20, section 2967.19, section 2967.193, or any other provision of Chapter 2967. or Chapter 5120. of the Revised Code for any of the following offenses:

(1) Aggravated murder when death is not imposed or murder;

(2) Any rape, regardless of whether force was involved and regardless of the age of the victim, or an attempt to commit rape if, had the offender completed the rape that was attempted, the offender would have been guilty of a violation of division (A)(1)(b) of section 2907.02 of the Revised Code and would be sentenced under section 2971.03 of the Revised Code;

(3) Gross sexual imposition or sexual battery, if the victim is less than thirteen years of age and if any of the following applies:

(a) Regarding gross sexual imposition, the offender previously was convicted of or pleaded guilty to rape, the former offense of felonious sexual penetration, gross sexual imposition, or sexual battery, and the victim of the previous offense was less than thirteen years of age;

(b) Regarding gross sexual imposition, the offense was committed on or after August 3, 2006, and evidence other than the testimony of the victim was admitted in the case corroborating the violation.

(c) Regarding sexual battery, either of the following applies:

(i) The offense was committed prior to August 3, 2006, the offender previously was convicted of or pleaded guilty to rape, the former offense of felonious sexual penetration, or sexual battery, and the victim of the previous offense was less than thirteen years of age.

(ii) The offense was committed on or after August 3, 2006.

(4) A felony violation of section 2903.04, 2903.06, 2903.08, 2903.11, 2903.12, 2903.13, 2905.32, or 2907.07 of the Revised Code if the section requires the imposition of a prison term;

(5) A first, second, or third degree felony drug offense for which section 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, 2925.11, 2925.13, 2925.22, 2925.23, 2925.36, 2925.37, 3719.99, or 4729.99 of the Revised Code, whichever is applicable regarding the violation, requires the imposition of a mandatory prison term;

(6) Any offense that is a first or second degree felony and that is not set forth in division (F)(1), (2), (3), or (4) of this section, if the offender previously was convicted of or pleaded guilty to aggravated murder, murder, any first or second degree felony, or an offense under an existing or former law of this state, another state, or the United States that is or was substantially equivalent to one of those offenses;

(7) Any offense that is a third degree felony and either is a violation of section 2903.04 of the Revised Code or an attempt to commit a felony of the second degree that is an offense of violence and involved an attempt to cause serious physical harm to a person or that resulted in serious physical harm to a person if the offender previously was convicted of or pleaded guilty to any of the following offenses:

(a) Aggravated murder, murder, involuntary manslaughter, rape, felonious sexual penetration as it existed under section 2907.12 of the Revised Code prior to September 3, 1996, a felony of the first or second degree that resulted in the death of a person or in physical harm to a person, or complicity in or an attempt to commit any of those offenses;

(b) An offense under an existing or former law of this state, another state, or the United States that is or was substantially equivalent to an offense listed in division (F)(7)(a) of this section that resulted in the death of a person or in physical harm to a person.

(8) Any offense, other than a violation of section 2923.12 of the Revised Code, that is a felony, if the offender had a firearm on or about the offender's person or under the offender's control while committing the felony, with respect to a portion of the sentence imposed pursuant to division (B)(1)(a) of section 2929.14 of the Revised Code for having the firearm;

(9) Any offense of violence that is a felony, if the offender wore or carried body armor while committing the felony offense of violence, with respect to the portion of the sentence imposed pursuant to division (B)(1)(d) of section 2929.14 of the Revised Code for wearing or carrying the body armor;

(10) Corrupt activity in violation of section 2923.32 of the Revised Code when the most serious offense in the pattern of corrupt activity that is the basis of the offense is a felony of the first degree;

(11) Any violent sex offense or designated homicide, assault, or kidnapping offense if, in relation to that offense, the offender is adjudicated a sexually violent predator;

(12) A violation of division (A)(1) or (2) of section 2921.36 of the Revised Code, or a violation of division (C) of that section involving an item listed in division (A)(1) or (2) of that section, if the offender is an officer or employee of the department of rehabilitation and correction;

(13) A violation of division (A)(1) or (2) of section 2903.06 of the Revised Code if the victim of the offense is a peace officer, as defined in section 2935.01 of the Revised Code, or an investigator of the bureau of criminal identification and investigation, as defined in section 2903.11 of the Revised Code, with respect to the portion of the sentence imposed pursuant to division (B)(5) of section 2929.14 of the Revised Code;

(14) A violation of division (A)(1) or (2) of section 2903.06 of the Revised Code if the offender has been convicted of or pleaded guilty to three or more violations of division (A) or (B) of section 4511.19 of the Revised Code or an equivalent offense, as defined in section 2941.1415 of the Revised Code, or three or more violations of any combination of those divisions and offenses, with respect to the portion of the sentence imposed pursuant to division (B)(6) of section 2929.14 of the Revised Code;

(15) Kidnapping, in the circumstances specified in section 2971.03 of the Revised Code and when no other provision of division (F) of this section applies;

(16) Kidnapping, abduction, compelling prostitution, promoting prostitution, engaging in a pattern of corrupt activity, illegal use of a minor in a nudity-oriented material or performance in violation of division (A)(1) or (2) of section 2907.323 of the Revised Code, or endangering children in violation of division (B)(1), (2), (3), (4), or (5) of section 2919.22 of the Revised Code, if the offender is convicted of or pleads guilty to a specification as described in section 2941.1422 of the Revised Code that was included in the indictment, count in the indictment, or information charging the offense;

(17) A felony violation of division (A) or (B) of section 2919.25 of the Revised Code if division (D)(3), (4), or (5) of that section, and division (D)(6) of that section, require the imposition of a prison term;

(18) A felony violation of section 2903.11, 2903.12, or 2903.13 of the Revised Code, if the victim of the offense was a woman that the offender knew was pregnant at the time of the violation, with respect to a portion of the sentence imposed pursuant to division (B)(8) of section 2929.14 of the Revised Code.

(G) Notwithstanding divisions (A) to (E) of this section, if an offender is being sentenced for a fourth degree felony OVI offense or for a third degree felony OVI offense, the court shall impose upon the offender a mandatory term of local incarceration or a mandatory prison term in accordance with the following:

(1) If the offender is being sentenced for a fourth degree felony OVI offense and if the offender has not been convicted of and has not pleaded guilty to a specification of the type described in section 2941.1413 of the Revised Code, the court may impose upon the offender a mandatory term of local incarceration of sixty days or one hundred twenty days as specified in division (G)(1)(d) of section 4511.19 of the Revised Code. The court shall not reduce the term pursuant to section 2929.20, 2967.193, or any other provision of the Revised Code. The court that imposes a mandatory term of local incarceration under this division shall specify whether the term is to be served in a jail, a community-based correctional facility, a halfway house, or an alternative residential facility, and the offender shall serve the term in the type of facility specified by the court. A mandatory term of local incarceration imposed under division (G)(1) of this section is not subject to any other Revised Code provision that pertains to a prison term except as provided in division (A)(1) of this section.

(2) If the offender is being sentenced for a third degree felony OVI offense, or if the offender is being sentenced for a fourth degree felony OVI offense and the court does not impose a mandatory term of local incarceration under division (G)(1) of this section, the court shall impose upon the offender a mandatory prison term of one, two, three, four, or five years if the offender also is convicted of or also pleads guilty to a specification of the type described in section 2941.1413 of the Revised Code or shall impose upon the offender a mandatory prison term of sixty days or one hundred twenty days as specified in division (G)(1)(d) or (e) of section 4511.19 of the Revised Code if the offender has not been convicted of and has not pleaded guilty to a specification of that type. Subject to divisions (C) to (I) of section 2967.19 of the Revised Code, the court shall not reduce the term pursuant to section 2929.20, 2967.19, 2967.193, or any other provision of the Revised Code. The offender shall serve the one-, two-, three-, four-, or five-year mandatory prison term consecutively to and prior to the prison term imposed for the underlying offense and consecutively to any other mandatory prison term imposed in relation to the offense. In no case shall an offender who once has been sentenced to a mandatory term of local incarceration pursuant to division (G)(1) of this section for a fourth degree felony OVI offense be sentenced to another mandatory term of local incarceration under that division for any violation of division (A) of section 4511.19 of the Revised Code. In addition to the mandatory prison term described in division (G)(2) of this section, the court may sentence the offender to a community control sanction under section 2929.16 or 2929.17 of the Revised Code, but the offender shall serve the prison term prior to serving the community control sanction. The department of rehabilitation and correction may place an offender sentenced to a mandatory prison term under this division in an intensive program prison established pursuant to section 5120.033 of the Revised Code if the department gave the sentencing judge prior notice of its intent to place the offender in an intensive program prison established under that section and if the judge did not notify the department that the judge disapproved the placement. Upon the establishment of the initial intensive program prison pursuant to section 5120.033 of the Revised Code that is privately operated and managed by a contractor pursuant to a contract entered into under section 9.06 of the Revised Code, both of the following apply:

(a) The department of rehabilitation and correction shall make a reasonable effort to ensure that a sufficient number of offenders sentenced to a mandatory prison term under this division are placed in the privately operated and managed prison so that the privately operated and managed prison has full occupancy.

(b) Unless the privately operated and managed prison has full occupancy, the department of rehabilitation and correction shall not place any offender sentenced to a mandatory prison term under this division in any intensive program prison established pursuant to section 5120.033 of the Revised Code other than the privately operated and managed prison.

(H) If an offender is being sentenced for a sexually oriented offense or child-victim oriented offense that is a felony committed on or after January 1, 1997, the judge shall require the offender to submit to a DNA specimen collection procedure pursuant to section 2901.07 of the Revised Code.

(I) If an offender is being sentenced for a sexually oriented offense or a child-victim oriented offense committed on or after January 1, 1997, the judge shall include in the sentence a summary of the offender's duties imposed under sections 2950.04, 2950.041, 2950.05, and 2950.06 of the Revised Code and the duration of the duties. The judge shall inform the offender, at the time of sentencing, of those duties and of their duration. If required under division (A)(2) of section 2950.03 of the Revised Code, the judge shall perform the duties specified in that section, or, if required under division (A)(6) of section 2950.03 of the Revised Code, the judge shall perform the duties specified in that division.

(J)(1) Except as provided in division (J)(2) of this section, when considering sentencing factors under this section in relation to an offender who is convicted of or pleads guilty to an attempt to commit an offense in violation of section 2923.02 of the Revised Code, the sentencing court shall consider the factors applicable to the felony category of the violation of section 2923.02 of the Revised Code instead of the factors applicable to the felony category of the offense attempted.

(2) When considering sentencing factors under this section in relation to an offender who is convicted of or pleads guilty to an attempt to commit a drug abuse offense for which the penalty is determined by the amount or number of unit doses of the controlled substance involved in the drug abuse offense, the sentencing court shall consider the factors applicable to the felony category that the drug abuse offense attempted would be if that drug abuse offense had been committed and had involved an amount or number of unit doses of the controlled substance that is within the next lower range of controlled substance amounts than was involved in the attempt.

(K) As used in this section:

(1) "Drug abuse offense" has the same meaning as in section 2925.01 of the Revised Code.

(2) "Qualifying assault offense" means a violation of section 2903.13 of the Revised Code for which the penalty provision in division (C)(8)(b) or (C)(9)(b) of that section applies.

(L) At the time of sentencing an offender for any sexually oriented offense, if the offender is a tier III sex offender/child-victim offender relative to that offense and the offender does not serve a prison term or jail term, the court may require that the offender be monitored by means of a global positioning device. If the court requires such monitoring, the cost of monitoring shall be borne by the offender. If the offender is indigent, the cost of compliance shall be paid by the crime victims reparations fund.

Sec. 5120.037.  (A) As used in this section and section 5120.0371 of the Revised Code:

(1) "Goods" means materials, merchandise, products, and components of other goods that are designed, manufactured, constructed, or assembled, in whole or in part. "Goods" does not include agricultural products.

(2) "Community-based correctional facility," "community control sanction," "jail," "jail term," "offender," "prison," "prison term," and "stated prison term" have the same meanings as in section 2929.01 of the Revised Code.

(3) "Local repayment, retraining, and reclamation factory" means a repayment, retraining, and reclamation factory established and operated under section 5120.0371 of the Revised Code.

(4) "Repayment, retraining, and reclamation factory" means a repayment, retraining, and reclamation factory established and operated under division (J) of this section.

(5) "Repayment, retraining, and reclamation prison" means a prison where a pilot work program is operated by the department of rehabilitation and correction.

(6) "School district" means a city, exempted village, local, or joint vocational school district.

(7) "Senior staff" means a staff member at a repayment, retraining, and reclamation factory, pilot work program established at a repayment, retraining, and reclamation prison, or local repayment, retraining, and reclamation factory, who is not covered by an employee collective bargaining agreement, who is hired by, and is an employee at will of, the manager of a repayment, retraining, and reclamation factory, pilot work program operated at a repayment, retraining, and reclamation prison, or local repayment, retraining, and reclamation factory, and whom the manager has made responsible in part for the operation of the pilot work program at the repayment, retraining, and reclamation factory, repayment, retraining, and reclamation prison, or local repayment, retraining, and reclamation factory.

(8) "State agency" means any department, board, office, commission, agency, college, university, institution, or other instrumentality of this or another state.

(9) "State and local governments" includes all of the following:

(a) A state, county, township, city, or village;

(b) A state agency;

(c) The office of an elected officer of a county, township, city, or village;

(d) A department, board, office, commission, agency, institution, or other instrumentality of a county, township, city, or village;

(e) A school district.

(B)(1) The department of rehabilitation and correction shall establish and operate a pilot work program within two years after the effective date of this section. For a period beginning at the time the department establishes and begins to operate the pilot work program and ending not later than four years after the effective date of this section, the department shall operate a pilot work program that is capable of accommodating a minimum of fifty per cent of all eligible offenders who apply to participate in the pilot work program. Not later than four years after the effective date of this section, the department shall operate a pilot work program that is capable of accommodating a minimum of eighty per cent of all eligible offenders who apply to participate in the pilot work program. The department shall not establish or operate the pilot work program as a work program under sections 5145.16 to 5145.163 of the Revised Code or under any other work program for offenders that is in operation on the effective date of this section. The department may appoint a trustee or board of directors to supervise the operation of the pilot work program.

(2) The pilot work program shall have the following goals:

(a) To reduce state spending on the costs of incarcerating offenders in detention facilities without affecting public safety by using revenue obtained from the work of pilot work program participants for the costs of incarceration;

(b) To provide job training to pilot work program participants and assist pilot work program participants in obtaining occupational and professional licenses and certificates in order to improve pilot work program participants' employability following their release from confinement and reduce participants' rate of recidivism;

(c) To reclaim the production of goods not made in the United States in order to reduce the nation's trade deficit;

(d) To create, directly and indirectly, manufacturing jobs in this state.

(C)(1)(a) An offender who is sentenced to a prison term for one or more felonies of the third, fourth, or fifth degree, none of which is an offense of violence, is an eligible offender and may participate in the pilot work program at a repayment, retraining, and reclamation factory established and operated under division (J) of this section if the offender has more than two months remaining on the offender's prison term or remaining on the offender's prison term in combination with any remaining term in a community-based correctional facility imposed on the offender by a sentencing court as part of a community residential sanction.

(b) An offender who is sentenced to a community control sanction under division (B) of section 2929.13 of the Revised Code for a felony of the fourth or fifth degree that is not an offense of violence is not eligible to participate in the pilot work program.

(2) An offender who is sentenced to a prison term for one or more felonies is an eligible offender and may participate in a pilot work program established at a repayment, retraining, and reclamation prison under division (K) of this section if the offender has more than two months remaining on the offender's prison term or remaining on the offender's prison term in combination with any remaining term in a community-based correctional facility imposed on the offender by a sentencing court as part of a community residential sanction.

(3) The department may, based on documented safety, behavior, and performance concerns, designate an offender who is eligible to participate in the pilot work program under division (C)(1) or (2) of this section as an ineligible offender, but shall not unreasonably withhold an offender's eligibility.

(D)(1) An eligible offender is not required to participate in the pilot work program.

(2) An eligible offender serving a sentence in a prison who wishes to participate in the pilot work program shall submit an application to participate in the pilot work program to the department of rehabilitation and correction. The department shall adopt rules pursuant to Chapter 119. of the Revised Code governing the application process under this division.

(3) An offender who wishes to participate in the pilot work program may submit an application to participate in the pilot work program to the department of rehabilitation and correction prior to sentencing. The department shall adopt rules pursuant to Chapter 119. of the Revised Code governing the application process under this division.

(4) The rules adopted under divisions (D)(2) and (3) of this section shall include provisions that ensure that all offenders are made aware of the pilot work program at least forty-eight hours prior to the deadline for submitting an application prior to sentencing and receive notice that the sentencing court may include as part of the offender's sentence a sentence of up to one-half of the stated prison term, subject to the limits set forth in division (E)(1)(b)(ii) of this section, that the court may require the offender to serve if the department removes the offender from the pilot work program.

(E)(1)(a) The department of rehabilitation and correction shall review all applications submitted to the department pursuant to division (D)(2) of this section. The department shall adopt rules pursuant to Chapter 119. of the Revised Code governing the department's review of applications and the department's identification of those applicants who are best suited to participate in the pilot work program. The department shall give all applicants who are eligible offenders equal access to the pilot work program and shall not differentiate between applicants based on educational level, chronic physical or mental illness, or gender. The department shall select participants for the pilot work program from those eligible offenders identified as best suited to participate in the pilot work program and place those participants in the pilot work program in available vacancies in repayment, retraining, and reclamation factories and pilot work programs established at repayment, retraining, and reclamation prisons in accordance with divisions (C), (D), and (E) of this section. The department shall adopt rules pursuant to Chapter 119. of the Revised Code governing the department's selection of eligible offenders to participate in the pilot work program from those identified as best suited to participate in the pilot work program. The department may use a variety of means to determine an offender's suitability to participate in the pilot work program, including, but not limited to, Ohio risk assessment system tools and scores.

(b)(i) The department shall set a uniform deadline for an offender's submission of an application pursuant to division (D)(3) of this section. If an offender submits the application prior to the deadline set by the department, the department shall review the offender's application prior to the offender's sentencing. The department shall determine the offender's suitability to participate in the pilot work program and provide written notice to the offender and the sentencing court of the department's determination by a time prior to the offender's sentencing that is adequate for the offender's and court's consideration of the notice. The department may use a variety of means to determine an offender's suitability to participate in the pilot work program, including, but not limited to, Ohio risk assessment system tools and scores. The deadline set by the department for an offender's submission of an application pursuant to division (D)(3) of this section shall be a minimum number of days prior to the offender's sentencing that is sufficient to allow the department to review the application, determine the offender's suitability to participate in the pilot work program, and provide written notification of the department's determination of the offender's suitability to participate in the pilot work program to the offender and the sentencing court by a time prior to the offender's sentencing that is adequate for the offender's and court's consideration of the notice. The department shall adopt rules pursuant to Chapter 119. of the Revised Code governing the department's review of the applications submitted pursuant to division (D)(3) of the section, the means used to determine the offender's suitability to participate in the pilot work program, and for the provision of the written notification to the offender and sentencing court.

(ii) The sentencing court shall consider the written notice received from the department when sentencing the offender. If the court sentences the offender to a prison term of more than two months, the offender is an eligible offender under division (C) of this section, the department has determined both that the offender is suitable to participate in the pilot work program and that the department has an available vacancy in a pilot work program established at a repayment, retraining, and reclamation prison or at a repayment, retraining, and reclamation factory, and the department has provided written notification of the department's determination to the sentencing court, the court may order the department to accept the offender as a participant in the pilot work program. The sentencing court may include as part of the offender's sentence an additional sentence of up to one-half of the stated prison term that the court may require the offender to serve if the offender's participation in the pilot work program is ended under division (M) of this section. The additional sentence shall not exceed in combination with the stated prison term the maximum prison term that the court may impose for the offense under Chapter 2929. of the Revised Code. The department shall place these offenders in available vacancies in repayment, retraining, and reclamation factories and pilot work programs established at repayment, retraining, and reclamation prisons, subject to the offender being an eligible offender under division (C) of this section at the time that a vacancy becomes available. The court retains jurisdiction over these offenders for purposes of imposing penalties under division (M) of this section if the offender's participation in the pilot work program is ended. If the court does not order the department to accept the offender as a participant in the pilot work program, the offender may submit one application to participate in the pilot work program under division (D)(2) of this section while serving the offender's sentence in prison.

(2) The department shall prioritize the placement of the offenders whom the department has selected to participate in the pilot work program. The department shall place the participants in the following order of priority:

(a) Participants who applied to participate in the pilot work program prior to the participant's sentencing in a county where a repayment, retraining, and reclamation factory is in operation;

(b) Participants who applied to participate in the pilot work program prior to the participant's sentencing in a county adjacent to a county where a repayment, retraining, and reclamation factory is in operation;

(c) Participants who applied to participate in the pilot work program prior to the participant's sentencing in a county other than a county where a repayment, retraining, and reclamation factory is in operation or a county adjacent to a county where a repayment, retraining, and reclamation factory is in operation;

(d) Participants confined in a prison.

(3) A sentencing court may consider an offender's submission prior to sentencing of an application to participate in the pilot work program in determining the sentence to be imposed on an offender.

(F)(1) Participants in the pilot work program shall manufacture goods at repayment, retraining, and reclamation factories and repayment, retraining, and reclamation prisons.

(2)(a) The department of rehabilitation and correction shall pay a participant in the pilot work program for the participant's work in the pilot work program at the same rate paid to participants in work programs established under section 5145.16 of the Revised Code. The department shall designate a financial manager for the pilot work program.

(b) The net earnings of a participant in the pilot work program shall be allocated in the same manner as the earnings of participants in work programs under section 5145.16 of the Revised Code. Twenty-five per cent of the earnings allocated to the account of the participant shall be held by a financial manager in accordance with divisions (F)(2)(c) and (d) of this section.

(c) The financial manager shall hold the earnings surrendered by a participant on behalf of the participant, place the earnings surrendered by each participant in a separate account, and provide a monthly account statement to the participant. The financial manager shall place a participant's earnings in an interest-bearing savings account at a savings bank or in a bond account invested in bonds issued by the United States treasury, this state, or a political subdivision of this state that is chosen by the participant.

(d) The financial manager shall pay out the total funds held on behalf of a participant to the participant upon the participant's release from incarceration. The financial manager shall maintain complete and accurate records with respect to all money received from and paid out to participants.

(G)(1) The director of rehabilitation and correction or the director's designee shall determine the goods to be manufactured by the participants in the pilot work program at each repayment, retraining, and reclamation factory and repayment, retraining, and reclamation prison. If required by division (G)(2)(d) or (3)(f) of this section, the department shall discontinue the pilot work program's manufacture of the good, and the director or the director's designee shall determine a different good to be manufactured at the repayment, retraining, and reclamation factories and repayment, retraining, and reclamation prisons that had been manufacturing the discontinued good.

(2)(a) Subject to division (G)(2)(c) of this section, in determining the goods to be manufactured at each repayment, retraining, and reclamation factory and repayment, retraining, and reclamation prison, the director or the director's designee shall consider only those goods that the director or the director's designee determines can be produced by participants and sold for profit on the open market on a competitive basis. The director or the director's designee shall consider all of the following factors in determining the goods to be manufactured:

(i) The potential for the department to make the most profit from the good among the goods being considered, based on all business factors and projections and the skills that participants must have in order to produce the good;

(ii) The likelihood that the department will be required to end the production of the good;

(iii) The potential that the production of the good will provide the greatest opportunity for participants engaged in the good's production to obtain transferable skills and professional or occupational certificates and licenses.

(b) The department shall determine whether a good under consideration for manufacture by the pilot work program, or a substantially similar good, is being manufactured in the United States, and, if the good under consideration or a substantially similar good is being manufactured in the United States, the percentage of the world's total production of the good and any substantially similar good that is being manufactured in the United States. Goods manufactured in the United States by criminal offenders participating in other federal, state, and local work programs shall not be included in the determination of the percentage of the world's total production of a good and any substantially similar good being manufactured in the United States for purposes of this division.

(c) In determining the goods to be manufactured by the pilot work program, except as otherwise provided in this division, the director or the director's designee shall choose goods that are not being manufactured, and that are not substantially similar to goods being manufactured, in the United States. However, the director or the director's designee may choose a good that is being manufactured in the United States or that is substantially similar to a good that is being manufactured in the United States if not more than one-half of one per cent of the world's total production of the good was manufactured in the United States over the preceding three years if the director has reason to believe that one or more manufacturers are manufacturing the good in the United States with the intent of preventing the pilot work program from manufacturing the good and any substantially similar good due to the restriction in this division on the choice of a good that is being manufactured in the United States. In making a determination under this division, the director or the director's designee shall examine the following factors:

(i) The ownership, parent, affiliates and subsidiaries, and management of the manufacturers;

(ii) The source of capital of the manufacturers;

(iii) The net profits and projected net profits of the manufacturers;

(iv) The date manufacturing began;

(v) The relationship of the manufacturers to the world's large foreign manufacturers;

(vi) The independence of the manufacturers;

(vii) Other factors and circumstances relevant to the determination.

(d) Every ten years after the manufacture of a good by participants in the pilot work program begins at a repayment, retraining, and reclamation factory or repayment, retraining, and reclamation prison, the department shall determine whether more than one per cent of the world's total production of the good and substantially similar goods are being profitably manufactured in the United States. If more than one per cent of the world's total production of the good and substantially similar goods are being profitably manufactured in the United States at that time, the department shall discontinue the pilot work program's manufacture of that good, and the director or the director's designee shall determine in accordance with division (G)(2)(c) of this section a different good to be manufactured at the repayment, retraining, and reclamation factories and repayment, retraining, and reclamation prisons that had been manufacturing the discontinued good.

(e) In any legal proceeding challenging the department's determination of a good to be manufactured by the participants in the pilot work program, a court shall use objective market data to determine the percentage of the good and substantially similar goods that are being manufactured in the United States. The court shall make its determination in an expeditious manner but shall not issue an injunction against the pilot work program's manufacture of the selected good prior to the court's determination.

(3)(a) The department may contract with a private individual, corporation, partnership, or association for work for participants in the pilot work program that involves the assembly, processing, manufacture, or repair of parts or components for goods being manufactured or produced by the contracting party if the director or the director's designee determines that the pilot work program is unable or is not likely to produce a good that can be sold for profit on the open market on a competitive basis or determines that such a contract would better meet the needs and obtain the goals of the pilot work program. All contracts shall be made in writing. The department shall use any profits resulting from the contract to pay the expenses of the pilot work program. The contract shall comply with the Revised Code and federal law.

(b) The department shall advertise for written contract offers in a newspaper of general circulation in the county where the participants would be engaged in the assembly, processing, manufacture, or repair of the parts or components. The department shall adopt rules under Chapter 119. of the Revised Code pertaining to the advertisement for and receipt of contract offers.

(c) The director or the director's designee shall consider only work that will meet the needs and obtain the goals of the pilot work program. The director or the director's designee, and any other person involved in reviewing contract offers, shall consider all of the following factors prior to entering into the contract:

(i) The amount of profit the department would make from entering into and participating in the contract;

(ii) The skills that participants must have in order to assemble, process, manufacture, or repair the parts or components that would be assembled, processed, manufactured, or repaired under the contract;

(iii) The likelihood that the department will be required to end the assembly, processing, manufacture, or repair of the parts or components for the contracting party;

(iv) The opportunity for participants engaged in the assembly, processing, manufacture, or repair of the parts or components to obtain transferable skills and professional or occupational certificates and licenses.

(d) The director or the director's designee may reject any or all of the initial contract offers. If the director or the director's designee rejects all of the initial contract offers, the department shall readvertise for contract offers and may continue to readvertise for contract offers until the director or the director's designee enters into a contract for work under division (G)(3) of this section or elects to proceed under division (G)(2) of this section.

(e) No person involved in the selection of a contract for a work project for participants in the pilot work program shall have any interest, directly or indirectly, in any contract or lease entered into by the department.

(f) If the contracting party ends the manufacture or production of the goods or components that were the subject of the contract or at the end of the contract unless the contract is renewed, the department shall discontinue the pilot work program's manufacture of the parts or components, and the director or the director's designee shall determine a different good to be manufactured at the repayment, retraining, and reclamation factories and repayment, retraining, and reclamation prisons that had been manufacturing the parts or components.

(H)(1) If the department of rehabilitation and correction manufactures a good selected pursuant to division (G)(2) of this section, the department shall sell the goods manufactured by the pilot work program on the open market in this state for the greatest possible profit. The department shall use any profit resulting to pay the expenses of the pilot work program. The department shall pay any expenses of the pilot work program that are not paid from the profit resulting from the operation of the pilot work program.

(2) The department may actively market the goods manufactured by the pilot work program pursuant to division (G)(2) of this section to the federal government, the state and local governments of this state, state and local governments of other states, the District of Columbia, and all not-for-profit organizations in the United States or elsewhere.

(3) The department shall not transport or arrange for the transportation of the goods in interstate commerce in violation of 18 U.S.C. 1761. The department shall attempt to obtain a waiver from the federal government from the provisions of 18 U.S.C. 1761 or find an alternative method for legally transporting and selling the goods manufactured by the pilot work program on the open market in other states and countries. If the department obtains a waiver from the federal government, the department may sell the goods manufactured by the pilot work program on the open market in other states and countries.

(4) The department may acquire or develop intellectual property of any kind in connection with the operation of the pilot work program, including, but not limited to, patents, inventions, discoveries, processes, or ideas, subject to the discretion of the director or the director's designee, and may apply for and secure patents from the United States patent and trademark office. The department may protect the department's patent rights in accordance with Title 35 of the United States Code.

(I)(1) The department of rehabilitation and correction, to the extent consistent with the operation of the pilot work program, shall assist participants in learning a trade or in obtaining a certificate or license to engage in an occupation or profession.

(2) The department shall maintain records of a participant's work history in the pilot work program, including, but not limited to, the department's monthly performance ratings of the participant, and shall provide these records to an employer at the request of the participant.

(J)(1)(a) Each county in which a repayment, retraining, and reclamation factory is established and operated shall have a population in excess of five hundred thousand. Each repayment, retraining, and reclamation factory shall be designed to accommodate at least one thousand participants.

(b) The department shall not operate a repayment, retraining, and reclamation factory in or on the grounds of a prison or jail. The department shall locate the repayment, retraining, and reclamation factories in a variety of urban, suburban, and rural locations that are at least one mile from a prison.

(c) The department shall construct, renovate, or acquire housing near each repayment, retraining, and reclamation factory that is within walking distance from the repayment, retraining, and reclamation factory. Participants residing in the housing shall be under the custody of the department. The housing and repayment, retraining, and reclamation factory shall have minimal security and maximum flexibility to achieve maximum productivity.

(2)(a) The department shall appoint or hire managers who shall be responsible for the operation of each repayment, retraining, and reclamation factory and each pilot work program established at a repayment, retraining, and reclamation prison. The department shall set the salary of the managers. The manager of a repayment, retraining, and reclamation factory shall have the authority to hire and fire the senior staff at the repayment, retraining, and reclamation factory at the manager's discretion. The manager of a pilot work program at a repayment, retraining, and reclamation prison shall have the authority to hire and fire the pilot work program senior staff at the manager's discretion. The manager shall set the salaries of the senior staff. The salaries shall not exceed the manager's salary. If the department objects to any of the salaries set by the manager for senior staff, the salary must be approved by the controlling board.

(b) The department shall award a bonus to the manager and senior staff of a repayment, retraining, and reclamation factory or a pilot work program operated at a repayment, retraining, and reclamation prison based on the net profit resulting from the operation of that repayment, retraining, and reclamation factory or that pilot work program. Twenty per cent of the net profit shall be awarded to the manager and senior staff, weighted based on salary.

(3)(a) The department shall be responsible for the construction and renovation of manufacturing facilities at repayment, retraining, and reclamation factories, as needed. The department may enter into any contracts and perform any other functions necessary for the construction of repayment, retraining, and reclamation factories or may require the department of administrative services to enter into a lease-purchase plan under division (A)(10) of section 123.01 of the Revised Code providing for the construction of a repayment, retraining, and reclamation factory and the lease of the factory to the department of rehabilitation and correction.

(b) The department may enter into any contracts and perform any other functions necessary for the operation and maintenance of repayment, retraining, and reclamation factories and for the renovation of manufacturing facilities at repayment, retraining, and reclamation factories as needed.

(c) At the discretion of the director, a participant in the pilot work program may assist in the construction or renovation of a repayment, retraining, and reclamation factory. To the extent practical, participants in the pilot work program shall provide maintenance, cleaning, and dietary services at repayment, retraining, and reclamation factories and at repayment, retraining, and reclamation prisons to make repayment, retraining, and reclamation factories and repayment, retraining, and reclamation prisons as self-sufficient as possible, unless the director determines it is more profitable, on a per-participant basis, to contract for services. The director's determination shall be included in the written report distributed to each member of the general assembly under division (N)(1) of this section.

(4) A repayment, retraining, and reclamation factory qualifies as a community-based correctional facility and program and may receive awards from the local government innovation fund as a local government innovation project.

(5) A repayment, retraining, and reclamation factory qualifies as a state correctional institution for purposes of section 103.73 of the Revised Code.

(6) The state highway patrol shall investigate any criminal offense that allegedly has been committed in or on the grounds of, or in connection with, a repayment, retraining, and reclamation factory.

(7) The department shall provide security at repayment, retraining, and reclamation factories.

(K) The department of rehabilitation and correction, with the authorization of the director of the department, may establish and operate the pilot work program in any prison. The director shall not authorize the operation of a pilot work program at a prison unless the director determines that the pilot work program can be operated profitably at the prison and a sufficient number of participants and qualified applicants are available as necessary for the operation of the pilot work program.

(L) Subject to section 2929.14 of the Revised Code or any other section of the Revised Code that prohibits the reduction of a prison term, a participant serving a prison term for one or more offenses shall earn one day of credit as a deduction from the participant's prison term for each day during which the participant productively participates in the pilot work program at a repayment, retraining, and reclamation factory. The department of rehabilitation and correction shall adopt rules pursuant to Chapter 119. of the Revised Code defining what constitutes productive participation and setting procedures for determining whether a participant is productively participating in the pilot work program.

(M)(1)(a) If a participant at a repayment, retraining, and reclamation factory or repayment, retraining, and reclamation prison violates any of the rules adopted by the department of rehabilitation and correction for the operation of the pilot work program, the director of the department or, if authorized by the director, the manager of the participant's repayment, retraining, and reclamation factory or pilot work program at a repayment, retraining, and reclamation prison, may end the offender's participation in the pilot work program. The director may end any offender's participation in the pilot work program, at the director's discretion, at any time. A participant has no property right in the participant's selection to or participation in the pilot work program.

(b) A participant may resign from the pilot work program at any time by submitting notice of the participant's resignation to the department of rehabilitation and correction or the manager of the participant's repayment, retraining, and reclamation factory or pilot work program at a repayment, retraining, and reclamation prison. The participant's resignation may be considered by the department if the offender applies to participate in the pilot work program at a later date.

(2) The department shall return a participant who resigns from the pilot work program to prison to serve the remainder of the offender's prison term. If the director or the manager of a participant's repayment, retraining, and reclamation factory or pilot work program at a repayment, retraining, and reclamation prison ends an offender's participation in the pilot work program and the offender was selected to participate in the pilot work program under division (E)(1) of this section, the department shall return the offender to prison to serve the remainder of the offender's prison term except as provided in division (M)(3) of this section.

(3) If the director or the manager of a participant's repayment, retraining, and reclamation factory or pilot work program at a repayment, retraining, and reclamation prison ends an offender's participation in the pilot work program due to the offender's violation of the rules adopted by the department under division (O) of this section, the department shall notify the offender's sentencing court, and the sentencing court shall return the offender to prison to serve the remainder of the offender's prison term and may impose any additional prison term that the court included in the offender's sentence under division (E)(1)(b)(ii) of this section.

(N)(1) Each fifth year after the establishment of the pilot work program, the director of rehabilitation and correction shall prepare a written report on the operation of the pilot work program. The report shall contain the director's recommendations for the operation of the pilot work program. The department shall distribute a copy of the director's report to each member of the general assembly.

(2) Annually after the establishment of the pilot work program, the director of rehabilitation and correction shall prepare a written report on the effectiveness of the pilot work program, the condition of the finances of the pilot work program, the impact of the pilot work program on the rate of recidivism of those participants in the pilot work program who did not resign from and were not removed from the pilot work program, and all direct and indirect financial savings that result from the operation of the pilot work program.

(O) The department of rehabilitation and correction may adopt pursuant to Chapter 119. of the Revised Code any rules not otherwise required by this section that are necessary to implement and operate the pilot work program. Rules adopted by the department pursuant to section 5145.03 of the Revised Code shall not apply to the pilot work program.

(P) All records pertaining to the establishment and operation of the pilot work program kept by any public office are public records as defined in section 149.43 of the Revised Code.

Sec. 5120.0371. (A)(1) At any time after two years after the effective date of this section, a board of county commissioners, by resolution, may establish a local pilot work program and establish and operate a local repayment, retraining, and reclamation factory or may enter into a contract with one or more counties to establish a local pilot work program and establish and operate a local repayment, retraining, and reclamation factory, if the county, or the counties that have entered into such an agreement determine that the county or counties will be able to do both of the following:

(a) Establish and operate a local repayment, retraining, and reclamation factory that can accommodate a minimum of five hundred participants;

(b) Fill a minimum of eighty per cent of the local repayment, retraining, and reclamation factory's positions for a minimum period of ten years.

(2) The state shall fund all local repayment, retraining, and reclamation factories established under this division from the same line item appropriation amount in each biennial operating appropriation act that funds community-based correctional facilities, if the county or counties substantiate that the county or counties are able to establish and operate a local repayment, retraining, and reclamation factory in accordance with division (A)(1) of this section. All profits resulting from the operation of a local repayment, retraining, and reclamation factory shall be deposited into the state treasury to the credit of the fund that funds community-based correctional facilities.

(3) The sheriff of the county in which the local repayment, retraining, and reclamation factory is located shall supervise the local pilot work program and the operation of the local repayment, retraining, and reclamation factory.

(B) A local pilot work program shall have the following goals:

(1) To reduce county spending on the costs of incarcerating misdemeanants in jails without affecting public safety;

(2) To provide job training to local pilot work program participants and assist local pilot work program participants in obtaining occupational and professional licenses and certificates in order to improve a local pilot work program participant's employability following the participant's release from jail or completion of the participant's period of community control sanctions;

(3) To reclaim the production of goods not made in the United States in order to reduce the nation's trade deficit;

(4) To create, directly and indirectly, manufacturing jobs in the state.

(C)(1) If an offender is convicted of or pleads guilty to a felony of the fourth or fifth degree that is not an offense of violence and has been sentenced to a community control sanction under section 2929.13 of the Revised Code or submits an application to participate in the local pilot work program prior to sentencing, or is convicted of or pleads guilty to one or more misdemeanors none of which is an offense of violence, the offender is eligible to participate in a local pilot work program at a local repayment, retraining, and reclamation factory established and operated under this section if the offender has not less than two months remaining on the term of the offender's community control sanction or jail term.

(2) The sheriff may, based on documented safety, behavior, and performance concerns, designate an offender who is an eligible offender under division (C)(1) of this section as an ineligible offender, but shall not unreasonably withhold an offender's eligibility.

(D)(1) An eligible offender is not required to participate in the local pilot work program.

(2) An eligible offender serving a sentence in a jail or serving a community control sanction who wishes to participate in a local pilot work program shall submit an application to participate in the local pilot work program to the sheriff of the county in which a local repayment, retraining, and reclamation factory is established and operating. The sheriff shall adopt rules governing the application process under this division.

(3) An eligible offender who wishes to participate in a local pilot work program may submit an application to participate in the local pilot work program to the sheriff of the county in which a local repayment, retraining, and reclamation factory is established and operating prior to sentencing. The sheriff shall adopt rules governing the application process under this division.

(4) The rules adopted under division (D)(3) of this section shall include provisions that ensure that all eligible offenders are made aware of the local pilot work program at least forty-eight hours prior to the deadline for submitting an application prior to sentencing. The rules also shall include provisions that ensure that all eligible misdemeanants receive notice that the sentencing court may include as part of the misdemeanant's sentence a sentence of up to one-half of the offender's jail term, subject to the limits set forth in division (E)(1)(b)(iii) of this section, that the court may require the offender to serve if the sheriff removes the offender from the local pilot work program and that all eligible offenders sentenced to a community control sanction receive notice that the offender shall be required to serve the remainder of the offender's community control sanction if the sheriff removes the offender from the local pilot work program. The sheriff of the county in which an eligible offender will be sentenced shall provide the notices required by this division.

(E)(1)(a)(i) The sheriff shall review all applications submitted to the sheriff pursuant to division (D)(2) of this section. The sheriff shall adopt rules governing the sheriff's review of the applications and the sheriff's identification of those applicants who are best suited to participate in the local pilot work program. The sheriff shall give all applicants who are eligible offenders equal access to the local pilot work program and shall not differentiate between applicants based on educational level, chronic physical or mental illness, or gender. The sheriff, with the written consent of the presiding or sentencing judge or magistrate of the court where the offender's sentence was imposed, may place those applicants who the sheriff identified as best suited to participate in the local pilot work program in available vacancies in local repayment, retraining, and reclamation factories in accordance with divisions (C), (D), and (E) of this section. The sheriff may use a variety of means to determine an offender's suitability to participate in the local pilot work program, including, but not limited to, Ohio risk assessment system tools and scores.

(ii) The sheriff shall adopt rules governing the sheriff's selection of eligible offenders to participate in the local pilot work program from those identified as best suited to participate in the local pilot work program and for obtaining the written consent of the sentencing court.

(b)(i) The sheriff shall set a uniform deadline for an offender's submission of an application pursuant to division (D)(3) of this section. If an offender submits the application prior to the deadline set by the sheriff, the sheriff or sheriff's designee shall review the offender's application prior to the offender's sentencing. The sheriff or sheriff's designee shall determine the offender's suitability to participate in the local pilot work program and provide written notice to the offender and the sentencing court of the sheriff's or sheriff designee's determination by a time prior to the offender's sentencing that is adequate for the offender's and court's consideration of the notice. The sheriff may use a variety of means to determine an offender's suitability to participate in the local pilot work program, including, but not limited to, Ohio risk assessment system tools and scores. The deadline set by the sheriff for the offender's submission of an application pursuant to division (D)(3) of this section shall be a minimum number of days prior to the offender's sentencing that is sufficient to allow the sheriff or sheriff's designee to review the application, determine the offender's suitability to participate in the local pilot work program, and provide written notification of the sheriff's or sheriff designee's determination of the offender's suitability to participate in the local pilot work program to the offender and the sentencing court prior to the offender's sentencing that is adequate for the offender's and court's consideration of the notice.

(ii) The sheriff shall adopt rules governing the sheriff's or sheriff designee's review of the applications submitted pursuant to division (D)(3) of this section, the means used to determine the offender's eligibility to participate in the local pilot work program, and for the provision of the written notification to the offender and the sentencing court.

(iii) The sentencing court shall consider the written notification received from the sheriff when sentencing the offender. If the court sentences the offender to a community control sanction or a jail term of more than two months, the offender is eligible to participate in a local pilot work program under division (C) of this section, the sheriff has determined both that the offender is suitable to participate in the local pilot work program and that the local repayment, retraining, and reclamation factory has an available vacancy, and the sheriff has provided written notification of the sheriff's determination to the sentencing court, the court may order the sheriff to accept the offender as a participant in the local pilot work program. The sentencing court may include as part of an offender's jail term an additional jail term of up to one-half of the stated jail term that the court may require the offender to serve if the offender's participation in the local pilot work program is ended under division (M) of this section. The additional sentence shall not exceed in combination with the stated jail term the maximum jail term that the court may impose for the offenses under Chapter 2929. of the Revised Code. The sheriff or sheriff's designee shall place these offenders in available vacancies in the local repayment, retraining, and reclamation factory, subject to the offender being an eligible offender under division (C) of this section at the time that a vacancy becomes available. The court retains jurisdiction over these offenders for purposes of imposing penalties under division (M) of this section if the offender's participation in the local pilot work program is ended. If the court does not order the sheriff or sheriff's designee to accept the offender as a participant in the local pilot work program, the offender may submit one application to participate in the local pilot work program under division (D)(2) of this section while the offender is serving a jail term or community control sanction.

(2) The sheriff shall prioritize the placement of the offenders whom the sheriff has selected to participate in the local pilot work program. The sheriff shall place the participants in the following order of priority:

(a) Participants who applied to participate in the local pilot work program prior to the participant's sentencing in a county operating, or under contract with one or more other counties for the operation of, a local pilot work program and local repayment, retraining, and reclamation factory;

(b) Participants confined in a jail located in a county operating, or under contract with one or more other counties for the operation of, a local pilot work program and local repayment, retraining, and reclamation factory;

(c) Participants who applied to participate in the local pilot work program prior to the participant's sentencing in a county adjacent to a county operating, or under contract with one or more other counties for the operation of, a local pilot work program;

(d) Participants confined in a jail located in a county adjacent to a county operating, or under contract with one or more other counties for the operation of, a local pilot work program;

(e) Participants who applied to participate in the local pilot work program prior to the participant's sentencing in a county other than those identified in divisions (E)(2)(a) and (c) of this section;

(f) Participants confined in a jail or serving a community control sanction in a county other than those identified in divisions (E)(2)(b) and (d) of this section.

(3) A sentencing court may consider an offender's submission prior to sentencing of an application to participate in the local pilot work program in determining the sentence to be imposed on an offender.

(F)(1) Participants in a local pilot work program shall manufacture goods at the local repayment, retraining, and reclamation factory.

(2)(a) The sheriff shall pay a participant in the local pilot work program for the participant's work in the local pilot work program at the same rate paid to participants in work programs established under section 5145.16 of the Revised Code. The sheriff shall designate a financial manager for the local pilot work program.

(b) The net earnings of a participant in the local pilot work program shall be allocated in the same manner as the earnings of participants in work programs under section 5145.16 of the Revised Code. Twenty-five per cent of the earnings allocated to the account of the participant shall be surrendered to and held by a financial manager in accordance with divisions (F)(2)(c) and (d) of this section.

(c) The financial manager shall hold the earnings surrendered by a participant on behalf of the participant, place the earnings surrendered by each participant in a separate account, and provide a monthly account statement to the participant. The financial manager shall place a participant's earnings in an interest-bearing savings account at a savings bank or in a bond account invested in bonds issued by the United States treasury, this state, or a political subdivision of this state that is chosen by the participant.

(d) The financial manager shall pay out the total funds held on behalf of a participant to the participant upon the participant's release from incarceration or completion of the participant's period of community control sanctions. The financial manager shall maintain complete and accurate records with respect to all money received from and paid out to participants.

(G)(1) The sheriff or the sheriff's designee shall determine the goods to be manufactured by the participants in the local pilot work program at the local repayment, retraining, and reclamation factory. If required by division (G)(2)(d) or (3)(f) of this section, the sheriff shall discontinue the local pilot work program's manufacture of the good, and the sheriff or the sheriff's designee shall determine a different good to be manufactured at the local repayment, retraining, and reclamation factory that had been manufacturing the discontinued good.

(2)(a) Subject to division (G)(2)(c) of this section, in determining the goods to be manufactured at the local repayment, retraining, and reclamation factory, the sheriff or the sheriff's designee shall consider only those goods that the sheriff or the sheriff's designee determines can be produced by participants and sold for profit on the open market on a competitive basis. The sheriff or the sheriff's designee shall consider all of the following factors in determining the goods to be manufactured:

(i) The potential to make the most profit from the good among the goods being considered, based on all business factors and projections and the skills that participants must have in order to produce the good;

(ii) The likelihood that the sheriff will be required to end the production of the good;

(iii) The potential that the production of the good will provide the greatest opportunity for participants engaged in the good's production to obtain transferable skills and professional or occupational certificates and licenses.

(b) The sheriff or sheriff's designee shall determine whether a good under consideration for manufacture by the local pilot work program, or a substantially similar good, is being manufactured in the United States, and, if the good under consideration or a substantially similar good is being manufactured in the United States, the percentage of the world's total production of the good and any substantially similar good that is being manufactured in the United States. Goods manufactured in the United States by criminal offenders participating in other federal, state, and local work programs shall not be included in the determination of the percentage of the world's total production of a good and any substantially similar good being manufactured in the United States for purposes of this division.

(c) In determining the goods to be manufactured by the local pilot work program, except as otherwise provided in this division, the sheriff or the sheriff's designee shall choose goods that are not being manufactured, and that are not substantially similar to goods being manufactured, in the United States. However, the sheriff or the sheriff's designee may choose a good that is being manufactured in the United States or that is substantially similar to a good that is being manufactured in the United States if not more than one-half of one per cent of the world's total production of the good was manufactured in the United States over the preceding three years if the sheriff or sheriff's designee has reason to believe that one or more manufacturers are manufacturing the good in the United States with the intent of preventing the local pilot work program from manufacturing the good and any substantially similar good due to the restriction in this division on the choice of a good that is being manufactured in the United States. In making a determination under this division, the sheriff or the sheriff's designee shall examine the following factors:

(i) The ownership, parent, affiliates and subsidiaries, and management of the manufacturers;

(ii) The source of capital of the manufacturers;

(iii) The net profits and projected net profits of the manufacturers;

(iv) The date manufacturing began;

(v) The relationship of the manufacturers to the world's large foreign manufacturers;

(vi) The independence of the manufacturers;

(vii) Other factors and circumstances relevant to the determination.

(d) Every ten years after the manufacture of a good by participants in the local pilot work program begins at a local repayment, retraining, and reclamation factory, the sheriff or sheriff's designee shall determine whether more than one per cent of the world's total production of the good and substantially similar goods are being profitably manufactured in the United States. If more than one per cent of the world's total production of the good and substantially similar goods are being profitably manufactured in the United States at that time, the sheriff shall discontinue the local pilot work program's manufacture of that good, and the sheriff or the sheriff's designee shall determine in accordance with division (G)(2)(c) of this section a different good to be manufactured at the local repayment, retraining, and reclamation factory that had been manufacturing the discontinued good.

(e) In any legal proceeding challenging the sheriff's or sheriff designee's determination of a good to be manufactured by the participants in the local pilot work program, a court shall use objective market data to determine the percentage of the good and substantially similar goods that are being manufactured in the United States. The court shall make its determination in an expeditious manner but shall not issue an injunction against the local pilot work program's manufacture of the selected good prior to the court's determination.

(3)(a) The sheriff may contract with a private individual, corporation, partnership, or association for work for participants in the local pilot work program that involves the assembly, processing, manufacture, or repair of parts or components for goods being manufactured or produced by the contracting party if the sheriff or the sheriff's designee determines that the local pilot work program is unable or is not likely to produce a good that can be sold for profit on the open market on a competitive basis or determines that such a contract would better meet the needs and obtain the goals of the local pilot work program. All contracts shall be made in writing. The sheriff shall deposit all profits resulting from the contract into the state treasury to the credit of the fund that funds community-based correctional facilities. The contract shall comply with the Revised Code and federal law.

(b) The sheriff shall advertise for written contract offers in a newspaper of general circulation in the county where the participants would be engaged in the assembly, processing, manufacture, or repair of the parts or components. The sheriff shall adopt rules pertaining to the advertisement for and receipt of contract offers.

(c) The sheriff or the sheriff's designee shall consider only work that will meet the needs and obtain the goals of the local pilot work program. The sheriff or the sheriff's designee, and any other person involved in reviewing contract offers, shall consider all of the following factors prior to entering into the contract:

(i) The amount of profit the local pilot work program would make from entering into and participating in the contract;

(ii) The skills that participants must have in order to assemble, process, manufacture, or repair the parts or components that would be assembled, processed, manufactured, or repaired under the contract;

(iii) The likelihood that the sheriff will be required to end the assembly, processing, manufacture, or repair of the parts or components for the contracting party;

(iv) The opportunity for participants engaged in the assembly, processing, manufacture, or repair of the parts or components to obtain transferable skills and professional or occupational certificates and licenses.

(d) The sheriff or the sheriff's designee may reject any or all of the initial contract offers. If the sheriff or the sheriff's designee rejects all of the initial contract offers, the sheriff shall readvertise for contract offers and may continue to readvertise for contract offers until the sheriff or the sheriff's designee enters into a contract for work under division (G)(3) of this section or elects to proceed under division (G)(2) of this section.

(e) No person involved in the selection of a contract for a work project for participants in the local pilot work program shall have any interest, directly or indirectly, in any contract or lease entered into by the sheriff or the sheriff's designee.

(f) If the contracting party ends the manufacture or production of the goods or components that were the subject of the contract or at the end of the contract unless the contract is renewed, the sheriff shall discontinue the local pilot work program's manufacture of the parts or components, and the sheriff or the sheriff's designee shall determine a different good to be manufactured at the local repayment, retraining, and reclamation factory that had been manufacturing the parts or components.

(H)(1) If a local repayment, retraining, and reclamation factory manufactures a good selected pursuant to division (G)(2) of this section, the sheriff shall sell the goods manufactured by the local repayment, retraining, and reclamation factory on the open market in this state for the greatest possible profit. The sheriff shall deposit any profit resulting from the operation of the local repayment, retraining, and reclamation factory into the state treasury to the credit of the fund that funds community-based correctional facilities.

(2) The sheriff may actively market the goods manufactured by the local pilot work program pursuant to division (G)(2) of this section to the federal government, the state and local governments of this state, state and local governments of other states, the District of Columbia, and all not-for-profit organizations in the United States or elsewhere.

(3) The sheriff shall not transport or arrange for the transportation of the goods in interstate commerce in violation of 18 U.S.C. 1761. The sheriff shall attempt to obtain a waiver from the federal government from the provisions of 18 U.S.C. 1761 or find an alternative method for legally transporting and selling the goods manufactured by the local pilot work program on the open market in other states and countries. If the sheriff obtains a waiver from the federal government, the sheriff may sell the goods manufactured by the local pilot work program on the open market in other states and countries.

(4) The sheriff may acquire or develop intellectual property of any kind in connection with the operation of the local pilot work program, including, but not limited to, patents, inventions, discoveries, processes, or ideas, subject to the discretion of the sheriff or the sheriff's designee, and may apply for and secure patents from the United States patent and trademark office. The sheriff may protect the sheriff's patent rights in accordance with Title 35 of the United States Code.

(I)(1) The sheriff, to the extent consistent with the operation of the local pilot work program, shall assist participants in learning a trade or in obtaining a certificate or license to engage in an occupation or profession.

(2) The sheriff shall maintain records of a participant's work history in the local pilot work program, including, but not limited to, the sheriff's monthly performance ratings of the participant, and shall provide these records to an employer at the request of the participant.

(J) The sheriff shall not operate a local repayment, retraining, and reclamation factory in or on the grounds of a prison or jail. The sheriff shall construct, renovate, or acquire housing near each local repayment, retraining, and reclamation factory that is within walking distance from the local repayment, retraining, and reclamation factory for those participants who are serving a jail term. Participants residing in the housing shall be under the custody of the sheriff. The housing and local repayment, retraining, and reclamation factory shall have minimal security and maximum flexibility to achieve maximum productivity.

(K)(1) The sheriff shall appoint or hire a manager who shall be responsible for the operation of each local repayment, retraining, and reclamation factory. The sheriff shall set the salary of the manager. The manager of a local repayment, retraining, and reclamation factory shall have the authority to hire and fire the senior staff at the local repayment, retraining, and reclamation factory at the manager's discretion. The manager shall set the salaries of the senior staff. The salaries shall not exceed the manager's salary. If the sheriff objects to any of the salaries set by the manager for senior staff, the salary must be approved by the board of county commissioners. The sheriff shall award a bonus to the manager and senior staff of a local repayment, retraining, and reclamation factory based on the net profit resulting from the operation of that local repayment, retraining, and reclamation factory. Twenty per cent of the net profit shall be awarded to the manager and senior staff, weighted based on salary.

(2)(a) The sheriff shall be responsible for the construction and renovation of manufacturing facilities at a local repayment, retraining, and reclamation factory, as needed. The sheriff may enter into any contracts and perform any other functions necessary for the construction of a local repayment, retraining, and reclamation factory.

(b) The sheriff may enter into any contracts and perform any other functions necessary for the operation and maintenance of a local repayment, retraining, and reclamation factory and for the renovation of manufacturing facilities at a local repayment, retraining, and reclamation factory as needed.

(c) At the discretion of the sheriff, a participant in the local pilot work program may assist in the construction or renovation of a local repayment, retraining, and reclamation factory. To the extent practical, participants in the local pilot work program shall provide maintenance, cleaning, and dietary services at the local repayment, retraining, and reclamation factory to make the local repayment, retraining, and reclamation factory as self-sufficient as possible, unless the sheriff determines it is more profitable, on a per-participant basis, to contract for services. The sheriff's determination shall be included in the written report distributed to each member of the general assembly under division (N)(1) of this section.

(3) A local repayment, retraining, and reclamation factory qualifies as a community-based correctional facility and program and may receive awards from the local government innovation fund as a local government innovation project.

(4) The sheriff shall investigate any criminal offense that allegedly has been committed in or on the grounds of, or in connection with, a local repayment, retraining, and reclamation factory.

(5) The sheriff shall provide security at the local repayment, retraining, and reclamation factory.

(L) Subject to section 2929.24 of the Revised Code or any other section of the Revised Code that prohibits the reduction of a jail term, a participant serving a jail term for one or more offenses shall earn one day of credit as a deduction from the participant's jail term for each day during which the participant productively participates in the local pilot work program at a local repayment, retraining, and reclamation factory. The sheriff shall adopt rules defining what constitutes productive participation and setting procedures for determining whether a participant is productively participating in the local pilot work program.

(M)(1)(a) If a participant at a local repayment, retraining, and reclamation factory violates any of the rules adopted by the sheriff for the operation of a local pilot work program, the sheriff or, if authorized by the sheriff, the manager of the participant's local repayment, retraining, and reclamation factory, may end the offender's participation in the local pilot work program. The sheriff may end any offender's participation in the local pilot work program, at the sheriff's discretion, at any time. A participant has no property right in the participant's selection to or participation in the local pilot work program.

(b) A participant may resign from the local pilot work program at any time by submitting notice of the participant's resignation to the sheriff or the manager of the participant's local repayment, retraining, and reclamation factory. The participant's resignation may be considered by the sheriff if the offender applies to participate in the local pilot work program at a later date.

(2) The sheriff shall return a participant who resigns from the local pilot work program to jail to serve the remainder of the offender's jail term or, if the offender was sentenced to a community control sanction, the sheriff shall return the participant to the control of the participant's supervising department of probation. If the sheriff or the manager of a participant's local repayment, retraining, and reclamation factory ends an offender's participation in the local pilot work program and the offender was selected to participate in the local pilot work program under division (E)(1) of this section, the sheriff shall return the offender to jail to serve the remainder of the offender's jail term or, if the offender was sentenced to a community control sanction, the sheriff shall return the participant to the control of the participant's supervising department of probation except as provided in division (M)(3) of this section.

(3) If the sheriff or the manager of a participant's local repayment, retraining, and reclamation factory ends an offender's participation in the local pilot work program due to the offender's violation of the rules adopted under division (O) of this section, the sheriff shall notify the offender's sentencing court. If the offender was sentenced to a jail term, the sentencing court shall return the offender to jail to serve the remainder of the offender's jail term and may impose any additional jail term that the court included in the offender's sentence under division (E)(1)(b)(iii) of this section. If the offender was sentenced to a community control sanction, the sentencing court may impose an additional penalty under division (B) of section 2929.15 of the Revised Code as a violation of the conditions of the community control sanction.

(N)(1) Each fifth year after the establishment of the local pilot work program, the sheriff shall prepare a written report on the operation of the local pilot work program. The report shall contain the sheriff's recommendations for the operation of the local pilot work program. The sheriff shall distribute a copy of the sheriff's report to each member of the general assembly and the board of county commissioners.

(2) Annually after the establishment of the local pilot work program, the sheriff shall prepare a written report on the effectiveness of the local pilot work program, the condition of the finances of the local pilot work program, the impact of the local pilot work program on the rate of recidivism of those participants in the local pilot work program who did not resign from and were not removed from the local pilot work program, and all direct and indirect financial savings that result from the operation of the local pilot work program.

(O) The sheriff may adopt any rules not otherwise required by this section that are necessary to implement and operate the local pilot work program.

(P) All records pertaining to the establishment and operation of a local pilot work program kept by any public office are public records as defined in section 149.43 of the Revised Code.

Sec. 5120.038. (A) The director of rehabilitation and correction, with the approval of the governor, may provide at one time or from time to time for the issuance of pilot work program revenue bonds of the state for the purpose of paying all or part of the cost of establishing and operating the pilot work program under section 5120.037 of the Revised Code. The principal of and interest on these bonds is payable solely from the revenues provided from the operation of the pilot work program under section 5120.037 of the Revised Code. The bonds shall recite an estimate by the director of the costs to be paid from the proceeds of the bond issue and provide for the issuance of bonds in an amount not in excess of the estimated cost. The bonds of each issue shall be dated, bear interest at a rate or rates not to exceed the rate provided in section 9.95 of the Revised Code, and mature at a time or times, not to exceed forty years from their date or dates, as determined by the director, and may be made redeemable before maturity, at the option of the director, at the price or prices and under the terms and conditions as fixed by the director prior to the issuance of the bonds. The director shall determine the form of the bonds, including the interest coupons to be attached to the bonds, and fix the denomination of the bonds and the place of payment of principal and interest of the bonds, which may be at any bank or trust company within or without the state.

The bonds shall be signed by the governor, the secretary of state, and the director, provided that all but one of these signatures may be a facsimile, and shall have affixed the great seal of Ohio or a facsimile of the great seal of Ohio. Coupons attached to the bonds shall bear the facsimile signature of the director. The bonds shall contain a statement on their face that the state is not obligated to pay the face value of the bonds or the interest on the bonds and that they do not constitute a debt, or a pledge of the faith and credit, of the state or of any political subdivision of the state, but that the bonds and the interest on the bonds are payable solely from the revenues provided from the operation of the pilot work program under section 5120.037 of the Revised Code. If any of the officers whose signatures or facsimiles of their signatures appear on the bonds or coupons ceases to be such an officer before delivery of the bonds, the signatures or facsimiles are nevertheless valid and sufficient for all purposes as if they had remained in office until delivery. All the bonds shall have all the qualities and incidents of negotiable instruments under the applicable law of this state, and the bonds and the interest on the bonds are exempt from all taxation within this state. The bonds are lawful investments of banks, savings banks, trust companies, savings and loan associations, deposit guarantee associations, fiduciaries, trustees, and trustees of the sinking fund or officer in charge of the bond retirement fund of municipal corporations and other subdivisions of the state and of domestic insurance companies notwithstanding sections 3907.14 and 3925.08 of the Revised Code and are acceptable as security for deposit of public money.

The bonds may be issued in coupon or registered form, or both, as the director determines, and provision may be made for the registration of any coupon bonds as to principal alone and for the exchange of coupon bonds for bonds registered as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest.

The director shall adopt rules for the refunding of outstanding revenue bonds.

(B) The revenue bonds shall be sold by the director of rehabilitation and correction to the highest bidder therefor, but for not less than the par value of the bonds plus accrued interest on the bonds, after a notice of sale has been published once a week for three consecutive weeks in one newspaper in each of the three most populous counties in the state. The notice of sale shall state the day, hour, and place of sale, the total principal amount of the bonds to be sold, their denominations, date, and the dates and amounts of their maturities, whether or not they are callable, information relative to the rates of interest that the bonds shall bear, and the dates upon which interest is payable, and any other information the director determines advisable.

(C) The proceeds of the bonds of each issue shall be used solely for the payment of the costs for which the bonds were issued.

Section 2. That existing section 2929.13 of the Revised Code is hereby repealed.

Section 3. This act shall be known as the "Repayment, Retraining, and Reclamation Act."